Commencement of Key Changes under the Corporate and Accounting Laws (Amendment) Act 2025

Commencement of Key Changes under the Corporate and Accounting Laws (Amendment) Act 2025

The Corporate and Accounting Laws (Amendment) Act 2025 (No. 24 of 2025) will be implemented in phases, with selected provisions took effect from Wednesday, 6 May 2026. Key amendments include:

1. Heavier penalties for directors

Directors who breach their duties may now face higher penalties, with maximum fines increased from S$5,000 to S$20,000. Serious offences may also result in both a fine and imprisonment of up to 12 months.

2. Stronger anti-money laundering measures

Individuals convicted of money laundering offences under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992 will be disqualified from acting as directors. The list of disqualifying offences has also been expanded.

3. Greater accountability in auditing

Audit reports must now identify the public accountant primarily responsible for the audit engagement by name, enhancing transparency and accountability within the auditing profession.

4. Enhanced protection for shareholders

In addition to existing approval requirements, companies seeking to buy back shares from selected shareholders (instead of all shareholders) must now obtain 75% approval from shareholders of the same class of shares being bought back, excluding the selling shareholders.

These changes reinforce Singapore’s continued focus on enhancing corporate governance, safeguarding shareholders’ interests and strengthening the regulatory framework for public accountants in Singapore.

At CACS Corporate Advisory, we remain committed to helping businesses stay informed and prepared for regulatory developments.

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