What are the director’s obligations?

What are the fiduciary duties of the company Director in a Singapore registered Company?

A director is a person who gives direction to the company and manages the company’s affairs. If a person acts as a director of a company and provides advice on its behalf, he is obliged to abide by the Singapore government’s regulations.

Failure in compliance may lead to the prosecution by several agencies and ministries like ACRA (in case of AGM/AR), MOM (Work Pass), CPF, SDL, and IRAS (In case of GST/corporate tax/other taxes).

A director is also obliged to give his notice of disqualification in writing to the company. The company must inform the ACRA registrar about the disqualification of the concerned director within a month.

A director’s failure to this may lead to:

• A fine up to S$15,000
• Imprisonment up to three years

In case the offense continues after conviction, there is a default penalty of S$1,000 per day.

A company’s failure to inform the ACRA may lead to a fine of S$5,000. If the offense continues after the conviction, the default penalty of S$200 per day is imposed.

A disqualified director must not act as a director for any company during his disqualification period as it is a serious offense in Singapore.