Statute Details
- Title: Variable Capital Companies (Further Modifications to Incorporated Provisions) Regulations 2020
- Full Title: Variable Capital Companies (Further Modifications to Incorporated Provisions) Regulations 2020
- Act Code: VCCA2018-S22-2020
- Type: Subsidiary Legislation (sl)
- Commencement Date: 14 January 2020
- Parts: N/A
- Key Sections: 1, 2
- Related Legislation: Companies Act, Variable Capital Companies Act 2018
What Is This Legislation About?
The Variable Capital Companies (Further Modifications to Incorporated Provisions) Regulations 2020 is a piece of subsidiary legislation enacted under the Variable Capital Companies Act 2018. It modifies the application of a specific provision from the Companies Act to variable capital companies (VCCs) in Singapore.
The primary purpose of this regulation is to prescribe the amount referenced in section 328(2) of the Companies Act, which is incorporated into the VCC framework through sections 33(2) and 130(1) of the Variable Capital Companies Act 2018. This modification ensures that the amount prescribed for VCCs is determined by regulations made under the Variable Capital Companies Act 2018, rather than by a separate order published in the Gazette as is the case for companies under the Companies Act.
What Are the Key Provisions?
The Variable Capital Companies (Further Modifications to Incorporated Provisions) Regulations 2020 contains two main provisions:
1. Citation and Commencement (Section 1)
This section states that the regulations are titled the "Variable Capital Companies (Further Modifications to Incorporated Provisions) Regulations 2020" and came into operation on 14 January 2020.
2. Modification to Section 328(2) of Companies Act (Section 2)
This section modifies the application of section 328(2) of the Companies Act, which is incorporated into the VCC framework through sections 33(2) and 130(1) of the Variable Capital Companies Act 2018. Specifically, it states that the reference in section 328(2) of the Companies Act to an amount prescribed by the Minister by order published in the Gazette is to be read as a reference to an amount prescribed by regulations made under section 165 of the Variable Capital Companies Act 2018.
How Is This Legislation Structured?
The Variable Capital Companies (Further Modifications to Incorporated Provisions) Regulations 2020 is a short piece of subsidiary legislation consisting of only two sections. The first section deals with the citation and commencement of the regulations, while the second section outlines the specific modification being made to the application of section 328(2) of the Companies Act.
Who Does This Legislation Apply To?
This legislation applies to variable capital companies (VCCs) in Singapore. VCCs are a new corporate structure introduced by the Variable Capital Companies Act 2018 to provide an alternative investment fund vehicle to the traditional unit trust structure.
The modification made by these regulations specifically impacts VCCs, as it changes how the amount referenced in section 328(2) of the Companies Act is determined for VCCs. This provision relates to the requirement for a company to have a minimum amount of share capital.
Why Is This Legislation Important?
The Variable Capital Companies (Further Modifications to Incorporated Provisions) Regulations 2020 is an important piece of legislation for the VCC framework in Singapore. It demonstrates the government's commitment to tailoring the regulatory environment to the unique needs of VCCs, rather than simply applying the Companies Act provisions without any modifications.
The specific modification made by these regulations is significant because it allows the minimum share capital amount for VCCs to be prescribed through regulations under the Variable Capital Companies Act 2018, rather than by a separate order published in the Gazette as is the case for companies under the Companies Act. This provides greater flexibility and control over this requirement for VCCs.
From a practical perspective, this legislation is important for VCC fund managers and service providers, as it clarifies the applicable requirements around minimum share capital. Ensuring the regulatory environment is well-defined and appropriate for the VCC structure is crucial for the success and adoption of VCCs as an investment fund vehicle in Singapore.
Related Legislation
- Companies Act (Chapter 50)
- Variable Capital Companies Act 2018
Source Documents
This article provides an overview of the Variable Capital Companies (Further Modifications to Incorporated Provisions) Regulations 2020 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.