SINGAPORE LAW AND PRACTICE Contributed by: Jeffrey Lim, Daniel Lim, Frederick Tay, Genevi Lim, Lakshmanan Anbarazan, Sarah Lai, Stephanie Goh and Tobias Andreas Satria, Joyce A. Tan & Partners LLC
Telecommunications The shareholding requirements are regulated under the Telecommunications Act which provides the fol - lowing thresholds: • A designated telecommunication licensee must give written notice to the Info-communications Media Development Authority of Singapore (IMDA) within seven days after first becoming aware of the event that any person, whether by a series of trans - actions over a period of time or otherwise, holds 5% or more but less than 12% of the total number of voting shares in the designated telecommunica - tion licensee or is in a position to control 5% or more but less than 12% of the voting power in the designated telecommunication licensee. • A person must not, without obtaining the prior written approval of the IMDA to do so, become, whether through a series of transactions over a period of time or otherwise, a 12% controller or a 30% controller of a designated telecommunication licensee. • A person must not, without obtaining the prior writ - ten approval of the IMDA to do so, obtain effective control over a designated telecommunication licen - see. Effective control means the ability to cause the designated telecommunication licensee to take, or to refrain from taking, a major decision regarding the management or operations of the designated telecommunication licensee. Refer to the Code of Practice for Competition in the Provision of Telecommunication and Media Services 2022 issued by the IMDA for the approval procedure in relation to the acquisition described above. Broadcasting Unless otherwise approved, under the Newspaper and Printing Presses Act 1974, all directors of every newspaper company in Singapore must be citizens of Singapore. Further, all newspaper companies in Singapore must have two classes of shares – man - agement shares and ordinary shares – whereby man - agement shares can only be issued or transferred to Singapore citizens or corporations unless written approval has been obtained.
The receipt of funds from a foreign source on behalf of or for the purposes of any newspaper are also prohibited unless the prior approval of the minister is obtained. The shareholding requirements are regulated under the Broadcasting Act 1994 of Singapore (BCA) which provides the following thresholds: • A person must not, on or after 2 September 2002, enter into any agreement or arrangement, to act together with any other person with respect to the acquisition, holding or disposal of, or the exer - cise of rights in relation to, their interests in vot - ing shares of an aggregate of more than 5% of the total votes attached to all voting shares in a broadcasting company without first obtaining the approval of the IMDA. • A person must not, on or after 2 September 2002, become a 12% controller or indirect controller of a broadcasting company without first obtaining the approval of the IMDA. In determining whether to grant approval, the IMDA will consider whether: • the person is a fit and proper person; • in view of the person’s likely influence, the broad - casting company will or will continue to conduct its business prudently and comply with the provisions of the BCA; and • it is in the national interest to do so. Public Utilities The shareholding requirements are regulated under the Public Utilities Act 2001 of Singapore (BCA), which provides the following thresholds in relation to any designated entity that has a contract with the Public Utilities Board (PUB) to supply water to PUB or col - lect, treat, recover or dispose of used water (includ - ing sewage, waste matter and effluent) (“Designated Activities”): • If a person becomes, on or after 1 April 2020, a 5% controller of a designated entity, designated busi - ness trust or designated trust, that person must, within seven days after becoming the 5% control - ler, give written notice to the PUB of that fact.
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