What to do when a Shareholder dies and/or Company Director resigns?

What to do when a Shareholder dies and/or Company Director resigns?

The business laws of Singapore are so inviting and attractive that deserving aspirants plan to settle here either for an objective of acquiring a good job or establishing a new business. The only condition is that one should have an entry pass or employment pass issued from the Employment office of Singapore.

Timcole, one of the leading companies of Singapore, is an Accounting firm to look after all the administrative parts of the company and assist you in overcoming all the hurdles coming in your way. Its main activity is management consultancy services with accounting and auditing services as the secondary activity. It is important to follow the rules and regulations of ACRA to initiate a new business set up in Singapore. Sometimes due to the new set of working environments, the entrepreneur gets stuck in the unwanted situations and does not understand what to do. Let’s dive more into the concept to keep the processing of the company incessant and smooth.

What to do when a shareholder dies in Singapore

What to do when a shareholder dies in Singapore? It depends whether the company has only one shareholder or more than one. If the only shareholder dies then his/her share is transferred to his/her beneficiaries according to his/her will. If there are other shareholders, then the share of the deceased shareholder will be transmitted to them without any stamp duties. In any kind of discrepancy the case can be filed in the court for legal proceedings but the entire system is well planned and the consequence is justified at the end. The conditions which make the entire processing of the system complex are absence of the will of the sole shareholder and if there is any dispute between the personal representatives of the deceased sole shareholder then the matter can be taken for the legal proceedings. Along with it, any decision taken in this regard should comply with the Company’s constitution.

What to do when a company director resigns

What to do when a company director resigns? According to the Company Act Law, it is mandatory to appoint one nominee director in the company who will be the resident of Singapore. The company has its own board of directors who take significant decisions in the favour of the company to promote its growth and status in the market. The nominee director does not take part in such decisions. He only observes whether the company is complying with all the rules and regulations as per Singaporean government. If he does not give accurate information to ACRA about its financial accounting then there is a heavy penalty on the Company’s Director. The key factors to notice when the company director resigns:

  • Director must give written notice and prior information
  • Important to send the notification to ACRA about his resignation
  • Enclose the copy of his resignation along with the notification to ACRA with the signature of the director who has resigned and the other directors for their approval

The post of the director should not remain vacant. As soon as the former director resigns, the post should be filled with the other eligible and worthy candidate of the company. A wise man to be given an opportunity that easily takes over the responsibilities and knows how to act in such a situation. It is also relevant to consider the opinion of the other members of the board in appointing a new director of the company.

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