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IMPACT – MEDIUM
What is the change? Singapore has instituted a requirement that employers seeking to appoint employment pass holders from another company to their board of directors must first obtain a letter of consent from the Ministry of Manpower.
What does the change mean? The ministry has said it will generally grant letters of consent in these circumstances if (1) the company is “related by shareholding” to the employment pass holder’s employer and (2) the pass holder’s appointment is related to his or her primary employment in Singapore.
Background: The change was recently announced and will apply retroactively as well as prospectively, i.e., companies with employment pass holders from other companies already serving on their board of directors must apply for a consent letter for that pass holder. Letters of consent must be renewed whenever employment passes are renewed in order for the employee to continue serving as a company director.
B·A·L Analysis: BAL is able to assist employers seeking to appoint an employment pass holder to their board of directors by helping submit applications for letters of consent.
This alert has been provided by the BAL Global Practice group in Singapore. For additional information, please contact singapore@bal.com.
Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
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