81. Substantial shareholdings and substantial shareholders

Question 1

81. Substantial shareholdings and substantial shareholders

Answer 1

General overview
[81.01] This section provides that for the purposes of Division 4 of Part IV of the Act, a person has a substantial shareholding in a company (whether or not it has multiple classes of shares) if he has an interest in one or more voting shares in the company or in one or more voting shares in a class; and if the total votes attached to that share is not less than 5% of the total votes attached to all the voting shares in the company or all the voting shares in the class. In other words, a person holding 5% of the total votes attached to the voting shares in the company, or voting shares in a class of shares in the company is a substantial shareholder.
Division 4 applies particularly to listed corporations whose shares are quoted on the securities exchange. This information has to be disclosed in the company's annual report (see r 707 of the Mainboard Rules issued by the Singapore Exchange) as well as notified to the company under s 82.