Corporation Law in Singapore and accounting standards

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Table of Content

Part 1 Rule of the game

1.1 Corporation Law in Singapore

1.2 Accounting Standard

1.3 Listing Rules

Part 2 Current Environments

Part 3 Reference Lists

Part 1 Rule of the game

1.1 Corporation Law in Singapore

Company law of the company from its operation to the dissolution of the organization, and other laws and regulations all steps. Company law regulating the behavior of the company, but also to protect the legitimate rights and interests of the company, shareholders and creditors, is indispensable to country important laws. The different countries, company law is not the same, in this article, I mainly want to introduce Singapore company law. Because Singapore's rapid economic development, the domestic many small and medium enterprises become the mainstay of Singapore economy. The Singapore government issued by the company law has certain characteristics, many countries should learn and reference.

According to the regulation of the Singapore company law, accounting and business administration to Singapore registered Private Limited company name must start with Private Limited. Company name cannot be the same as the already registered name or very similar. In the recently revised company law, the Singapore Company has cancelled the concept of nominal capital, every company registered in Singapore need to fill the actual amount of capital in the own company's articles of association. Min. 1 the Singapore dollar, the actual capital amount is only issued a shares, par value $1 in Singapore. Company can increase the registered capital in many ways, for example by shareholders vote on the bill. If foreigners want to registered company in Singapore, need to deal with business pass and in more than 30000 Singapore dollars, registered capital and registered capital need actual in position.

Singapore company law also stipulates clearly the every company must have at least 1 as the directors, one of whom must be a Singapore citizen or hold a work visa. In order to avoid the responsibility of escape, the Singapore company law do not allow the body corporate as company directors. Company law also stipulates each must as long as there is a Singapore company shareholder, but shareholders are not must be a Singapore citizen, can even be legal person shareholder. The shareholders need to provide the information to accounting and business administration for backup and archive. These materials belong to public information; the public will be able to access the data. Every Singaporean companies need to address in Singapore as the registered address, the registration time is usually about 2 to 14 days. In general, the company registered in Singapore can run most of the business in other licenses without application cases, but some business need to apply for special license, such as Banks and other financial business. In Singapore, a subsidiary of generally can enjoy free double tax benefits. In addition, company law has special provisions for subsidiary in Singapore registered layer must be 18 months after its founding, held by the shareholders meeting is held every year to after that.

1.2 Accounting Standard

Singapore's accounting standards adopted from the start, comply with international accounting standards, accounting reform in recent years is also reflected in the process of accounting internationalization development. As Singapore, one of the "Asian tigers", the economic development in the free port, the port of specialty and after the industrialization stage, still maintained a low but steady economic growth, including foreign investment in Singapore's economic development has played a crucial role, multinationals almost completely dominate the national economy. Economic independence and extraversion make Singapore accounting adopted comply with international accounting standards.

Singapore companies currently USES CCDG release of FRS, CCDG background is created to make Singapore become one of important commercial and financial center, the government of Singapore listed companies feel the need to improve public investors the confidence of the authenticity and fairness of financial statements information, and at the same time the development of other regulations also highlights the importance of corporate governance and disclosure of financial statements. Then, in July 2002, the revised company law, Singapore CCDG on August 16, 2002 by the ministry of finance, all of its members are appointed by the ministry of finance, from business, profession, academia and government representatives, members of the former has more extensive.

From January 1, 2003, CCDG began to replace ICPAS for Singapore accounting rules, and ICPAS by a legal group reorganization of a non-statutory accounting profession association, is to provide technical support and deal with the feedback. The responsibility of the accounting standards setting out of private institutions and controlled by the government, is the important impact of this change, accounting standards is enforced by law, it is also a FRS and the biggest difference between SAS. In fact, accounting standards have been formulated by CCDG reflected in the company law and become a part of it. Through legislation to regulate the company comply with the accounting standards established the authority of the standard, is also the embodiment of the line with international practice.

As dominant foreign-funded enterprises in Singapore, has a mature market environment, the accounting mode almost from the start, comply with international accounting rules. But its in recent years, the reform of accounting system also reflected the speed up the internationalization of accounting, strengthening corporate governance, strengthen accounting supervision mode and a series of issues, the revision of accounting standards is reflected under the economic globalization of the international accounting standards coordination problems.

1.3 Listing Rules

Singapore has strict rules for listed companies, first in terms of revenue and preparation of listed companies must meet the following two conditions, first, comprehensive pre-tax profit decline over the past three years of not less than 7.5 million Singapore dollars; The annual pre-tax profit in three years is not less than 1 million Singapore dollars, second, in the past year or two years of accumulated comprehensive pre-tax profit of not less than 10 million Singapore dollars. Secondly, on the company's market capitalization, according to the price or issued share capital calculation, initial public offering (IPO) when the market value of not less than 80 million Singapore dollars. Also, the number of shareholders must be at least 5000. In addition to the issuer of the subsidiaries and associated companies in debt, directors and major shareholders and their control of all the debt owed by a company must pay. Financial report must follow the financial reporting standards in Singapore and the United States generally accepted accounting principles or international financial reporting standards.

Singapore for directors and managers need to listed companies; there are also many rules. First, directors and executives must have appropriate experience and expertise in business management group. Issuers of directors, management and control shareholder's character and integrity are related factor. Also, there should be at least two do not have any significant business and financial dealings with the issuer of independent non-executive directors. Last but not least, such as overseas distributors, at least two independent directors, one of them must be living in Singapore, and must be set up the audit committee.

Part 2 Current Environments

Friedman put forward in 1970, under the premise of following the rules of the game; the only purpose of all economic activity in the enterprise is a profit. With the development of society and economy, I think this sentence is not in conformity with the current business environment.

Social responsibility is a kind of way of doing business, the stakeholders concerns are taken into consideration, stakeholders said here refers to employees, customers, suppliers, community, environment, where our company is located all of these elements are the basis of enterprise survival. Enterprise to prosperity, it must consider all aspects of these, to see what is their need, when they do, are also beneficial to investors.

I want to say is that corporate social responsibility is also advantageous to the enterprise itself, can reduce cost and increase revenue. Enterprises will be more productive and creative employees to work harder, because you considered their needs. This logic applies to more loyal customers, they will be more inclined to choose your products, because you have more considering their interests, provides more value-added products. At the same time, you are at the height of the moral sense of responsibility to build a more cooperative community, and the environmental factors into account; the return on it is a natural and lower energy costs.

Do not assume CSR, the reason is only one, is that you only focus on short-term interests; From this point of view, to do the irresponsible thing is temporarily save a little money, but in the long run, it will hurt reputation, let enterprises pay higher costs, including staff no longer respect enterprise, decrease of the loyalty and staff turnover. China is now a large number of low-cost products, working technology content is low, and the cost of artificial loss is not big. But when you go into a very complicated high technical content of the work process, the most important asset is employees, owns strong creativity, able to motivate yourself and high efficiency of the staff, will win in the competition. This requires enterprises to correctly treat employees, give them a reasonable salary, taking into account the various requirements of them. This is currently undergoing a major change in the world, corporate social responsibility it will develop rapidly.

The meaning of corporate social responsibility both real level, and the meaning of the application level. As a program in the sense of concept, corporate social responsibility requires company’s decision-making process to consider and reflect the social benefits and social rights. As a meaningful concept of corporate social responsibility requires companies decision results can be responsible for social benefits and social rights. The United States, for example, take the company stakeholder theory states legislation to allow the board of directors of the company, making decisions on anti-takeover can not constrained to maximize shareholder interests way of thinking, and to promote the legitimate rights and interests of stakeholders and anti-takeover measures.

Law in the sense of social responsibility and ethics in the sense of social responsibility in accordance with the standard source of corporate social responsibility, corporate social responsibility can be divided into law in the sense of social responsibility, such as the timely fulfill debt, taxes, pay wages to laborers, protect the environment) in the sense of social responsibility and ethics.

Part 3 Reference Lists

¼ˆ1¼‰Fresco, B. V. (2003). 2003 amendments to the delaware general corporation law.Insights; the Corporate & Securities Law Advisor,17(10), 20-21. Retrieved from

¼ˆ2¼‰Allen, W. T. (2013). Contracts and communities in corporation law.Washington and Lee Law Review,50(4), 1395. Retrieved from

¼ˆ3¼‰Allen, M. D., & Fresco, B. V. (2004). 2004 amendments to the delaware constitution and general corporation law.Insights; the Corporate & Securities Law Advisor,18(9), 24-25. Retrieved from

¼ˆ4¼‰Tumas, M. B., & Grossbauer, J. F. (2010). Analyzing the latest amendments to the delaware general corporation law.The Corporate Governance Advisor,18(5), 30-33. Retrieved from

¼ˆ5¼‰Henning, J. J. (2011). Close corporation law reform in southern africa.Journal of Corporation Law,26(4), 917-950. Retrieved from

¼ˆ6¼‰Allen, W. T., Jacobs, J. B., & Strine,Leo E.,,Jr. (2001). Function over form: A reassessment of standards of review in delaware corporation law.The Business Lawyer,56(4), 1287-1321. Retrieved from

¼ˆ7¼‰Corporation is person for state RICO law use. (2006).National Law Journal,27(92), 16. Retrieved from

¼ˆ8¼‰Bowman, S. R. (2009).Corporate power, ideology, and the law: An essay on the political theory of the corporation in america.(Order No. 8914370, University of California, Los Angeles).ProQuest Dissertations and Theses,, 683-683 p. Retrieved from (303669511).

¼ˆ9¼‰The lin law firm, A professional law corporation; the lin law firm announces investigation of securities claims against ModusLink global solutions, inc. (2012).Marketing Weekly News,, 299. Retrieved from