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You are here: Home / FAQs / Who are disqualified directors?
FAQ : Annual Compliance / Singapore Company Directors

Who are disqualified directors?

Disqualified directors are persons who cannot hold the appointment of a director in a local or foreign company.

Disqualification under Section 148 of the Singapore Companies Act (CAP. 50)
When a director is declared a bankrupt either by a Singapore court or foreign court, the director can no longer as a director or be involved in the management of any company, unless a Court Order or written permission of the Official Assignee has been obtained.

Once the bankrupt has been discharged from bankruptcy, the individual can then be reappointed as a director in his previous or new company.

Disqualification under Section 149 of the Singapore Companies Act (CAP. 50)
A director of an insolvent company may be disqualified from acting as a director and taking part in managing the company by a Court Order. The Court may issue a disqualification order against the director under the following circumstances:

  • i. The person was a director of an insolvent company which was liquidated. Such a person may be disqualified if he was a director at the time of liquidation or had ceased to be a director of that company within three years from the date of liquidation; and
  • ii. His conduct as a director of the insolvent company makes him unfit to continue to be a director or take part in the management of the company.

The director can apply to the Court for permission to act as a director during his disqualification period. After the end of his disqualification period, which is a period of 5 years, the person can be appointed as a director of his previous company, or incorporate a new company.

Disqualification under Section 154 of the Singapore Companies Act (CAP. 50)
A person who has been convicted of certain offences may be subjected to automatic disqualification or a disqualification order by the Court. Automatic disqualification will occur upon conviction for offences involving fraud or dishonesty (whether in Singapore or elsewhere) punishable with imprisonment for 3 months or more. Examples of such offences are cheating, theft and criminal breach of trust. This will attract automatic disqualification of a period of 5 years.

A Court can also make a Disqualification Order upon conviction for:

  • offences involving the formation or management of a company or;
  • offences related to the failure to carry out duties honestly and diligently and failure to keep proper accounts or trading when company is insolvent.

An automatic disqualification will last for a period of 5 years whereas if the Court disqualifies the director, the person will be disqualified for a period not exceeding 5 years. The director can apply to the Court for permission to act as a director during his disqualification period in cases where he is disqualified by the Court.

Disqualification under Section 155 of the Singapore Companies Act (CAP. 50)
A director will be disqualified if he is convicted of at least 3 offences related to required filings with, delivery of documents or giving of notice to, the Registrar of Companies within a period of 5 years.

Even though he will be disqualified for 5 years from the date of his last conviction in Court, he can apply to the High Court for permission to act as a director during his disqualification period. Once the disqualification period is over, the director may incorporate companies or be appointed as a director of his previous company.

Disqualification under Section 149A of the Singapore Companies Act (CAP. 50)
A person may be disqualified by the court if he was a director of a company which was wound up on the grounds that it is being used for purposes against national security or interest.

The director will be disqualified for a period of 3 years from the date the winding up order is issued against the company. He may incorporate companies or be appointed as a director of his previous company after the end of the disqualification period.

Disqualification under Section 13 or 399 of the Singapore Companies Act (CAP. 50)
A director may be disqualified if he had been convicted of 3 or more offences under the Act in relation to the failure to file the returns, accounts or other documents with the Registrar of Companies and have not had 3 or more orders of the High Court of Singapore made against the said director under section 13 or 399 of the Act in relation to such requirements.


Related questions?

  1. How often is it required for directors to hold Board Meetings?
  2. What are other reasons for disqualification of a Director?
  3. Can I apply for an Employment Pass prior to incorporating my Singapore company? Why do I need to appoint a resident director?
  4. How do I decide when the Financial Year End (FYE) should be?
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