From the Companies Act
Disqualification to act as director on conviction of certain offences
154.
—(1) Where a person is convicted (whether in Singapore or elsewhere) of any offence involving fraud or dishonesty punishable with imprisonment for 3 months or more, he shall be subject to the disqualifications provided in subsection (3).
[22/93]
(2) Where a person is
convicted in Singapore of —
(a) any offence in connection with the formation or management of a corporation; or
(b) any offence under section 157 or 339, the court may make a disqualification order in addition to any other sentence imposed.
(3) A person who is disqualified under subsection (1) or who has had a disqualification order made against him under subsection (2) shall not act as a director of a company or of a foreign company to which Division 2 of Part XI applies nor shall he take part, whether directly or indirectly, in the management of such a company or foreign company.
(4) (a) Where a disqualified person has not been sentenced to imprisonment, the disqualifications in subsection (3) shall take effect upon conviction and shall continue for a period of 5 years or for such shorter period as the court may order under subsection (2).
(b)
Where a disqualified person is sentenced to imprisonment, the disqualifications in subsection (3) shall take effect upon conviction and shall continue for a period of 5 years after his release from prison.
(5) A person who acts in contravention of a disqualification under this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 2 years or to both.
(6) An application for leave to act as a director of a company or of a foreign company to which Division 2 of Part XI applies or to take part whether directly or indirectly, in the management of such a company or foreign company may be made by a person against whom a disqualification order has been made upon that person giving the Minister not less than 14 days’ notice of his intention to apply for such leave.
(7) On the hearing of any application under this section, the Minister may be represented at the hearing and may oppose the granting of the application.
(8) Without prejudice to section 409, a District Court may make a disqualification order under this section.
(9) Any right to apply for leave of the Court to be a director or promoter or to be concerned or take part in the management of a company that was subsisting immediately before 12th November 1993 shall on or after that date be treated as subsisting by virtue of the corresponding provision made under this section.
[UK, 1948, s. 188; Aust. 1961, s. 122]
(31-05-2013, 09:37 AM)smallcaps Wrote: [ -> ]Wonder if need to resign like fu yu's ex-ceo? He was also controlling shareholder, I think.
From Fu Yu AR:
Our former Executive Chairman and CEO and also one of
the Founders of the Company, Mr. Lui Choon Hay, resigned
as a director from the Fu Yu group of companies on 16
January 2007 as a result of his failure to exercise his
fiduciary duties as a director and had possibly breached
Section 157 of the Companies Act.
All directors has the statutory duty to act in the best interests of all shareholders. Appointing by the Nominating Comm of a director who is facing charges is NOT in the best interests of the company. Can always reinstate director if acquitted or charges dropped.