141. Application of Division

Question 1

Application of Division

Answer 1

General overview
[141.01] A foreign company registered under Division 2 of Part XI of the Act that creates a charge over any property situated outside Singapore is not required to register the charge. Where the foreign company creates a charge in Singapore over property situated outside Singapore, and the validity of the charge is called into question, the courts will resolve the issue according to the rules of conflict of laws.

Question 2

Unregistered foreign companies

Answer 2

141.02] The Report of the Steering Committee for Review of the Companies Act, April 2011, paras 37–45 considered whether to require the registration of charges by the chargee created over the assets of an unregistered foreign company and decided against it. Only charges created by a foreign company registered under Division 2 of Part XI of the Act over assets situated in Singapore need to be registered under s 131(1).