On 20 April 2018, Section 202A of the Singapore Companies Act (the “Act”) was introduced to allow directors to voluntarily revise the defective financial statements on their own accord. Before section 202A was introduced, directors had to obtain a court order before they could file revised financial statements, which could be time-consuming and costly.
A company can now voluntarily revise its financial statements under section 202A, when it appears to the directors that the financial statements do not comply with the requirements of the Act (including compliance with the Accounting Standards).
Section 202B of the Act was also introduced on the same date to provides for the Registrar to apply to the Court for a declaration that the financial statements do not comply with the requirements of the Act (including compliance with the Accounting Standards), and for an order requiring the directors to revise the financial statements. The Court will then decide whether the financial statements comply with the requirements of the Act (including compliance with the Accounting Standards), and the Court may then give directions on the manner of revision.
Key requirements of sections 202A and 202B of the Act
For more information, please contact Linda Wong at linda.wong@kensington-trust.com or Stella Lee at stella.lee@kensington-trust.com.