On 19/05/2013,
you requested for the version in force on 19/05/2013
incorporating all amendments published on or before 19/05/2013.
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PART III
DUTIES OF LICENSED HOUSING DEVELOPERS
8.
—(1) A licensed housing developer shall within 4 weeks of the making of any alteration —
(a)
if a company, in the memorandum of association and articles of association or other instrument under which it is incorporated;
(b)
if a society, in the by-laws or rules of the society;
(c)
if a group of persons or partnership, in any agreement;
(d)
if a limited liability partnership, in the limited liability partnership agreement or other document to that effect,
furnish to the Controller particulars in writing of the alteration.
(2) Any licensed housing developer that fails to comply with the requirements of subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $500 for every day during which the default continues.
9.
—(1) Subject to subsection (10), every licensed housing developer shall open and keep an account (referred to in this Act as a Project Account) with a bank or finance company for each building project undertaken by the licensed housing developer.
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(2) Where a building project has been approved by the competent authority under the Planning Act [Cap. 232] to be developed in phases, the Controller may, on the application of the licensed housing developer, allow the licensed housing developer to open and keep a Project Account under subsection (1) for each phase of such building project.
(3) The licensed housing developer shall pay into the Project Account of a building project the purchase moneys received by the licensed housing developer from the sale of the units in the building project and which are required by rules made under this Act to be paid into the Project Account.
(4) The licensed housing developer shall not withdraw any money from the Project Account except as authorised by rules made under this Act.
(5) Subject to subsection (6)(b), all moneys in the Project Account shall, notwithstanding any other written law to the contrary, be deemed not to form part of the property of the licensed housing developer in the event —
(a)
the licensed housing developer enters into any composition or arrangement with his creditors or has a receiving order or adjudication order made against him; or
(b)
the licensed housing developer, being a company, goes into voluntary or compulsory liquidation.
(6) Upon the happening of any of the events referred to in subsection (5) —
(a)
the moneys in the Project Account shall vest in the official receiver, trustee in bankruptcy or liquidator, as the case may be, to be applied for all or any of the purposes for which moneys in the Project Account are authorised by rules made under this Act to be withdrawn; and
(b)
any money remaining in the Project Account, after all payments have been made pursuant to paragraph (a) and all liabilities and obligations of the licensed housing developer under the sale and purchase agreements in respect of the building project have been fully discharged and fulfilled, shall be held by the official receiver, trustee in bankruptcy or liquidator, as the case may be, as money belonging to the licensed housing developer to be applied in accordance with the law relating to bankruptcy or the winding up of companies.
(7) The Minister may, if he thinks necessary, appoint the Auditor-General or an approved company auditor under the Companies Act [Cap. 50] to investigate the books, accounts and transactions of a Project Account.
(8) The licensed housing developer shall pay the Minister all the expenses of and incidental to the investigation referred to in subsection (7).
(9) Any account opened by a licensed housing developer at a bank or finance company for the purpose of depositing purchase moneys received from purchasers in respect of a building project prior to 4th January 1985 shall be deemed to be a Project Account which has been opened pursuant to this section.
(10) This section shall not apply to any building project carried on by —
(a)
a licensed housing developer where all the units in the building project will not be offered for sale and purchase before the completion of the building project;
(b)
a licensed housing developer under any building agreement with the Urban Redevelopment Authority established under the Urban Redevelopment Authority Act [Cap. 340]; or
(c)
a licensed housing developer who has furnished to the Controller a banker’s guarantee of an amount equivalent to not less than 140% of the total cost of construction of the building project as certified by the architect in charge of the building project.
(11) Any licensed housing developer that contravenes or fails to comply with subsection (1) or (4) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding one year or to both.
(12) For the purpose of this section —
“building project” means a housing development comprising units to be used for residential purposes or both residential and commercial purposes and includes, for the purposes of subsections (3) to (11), any phase of such housing development where such housing development has been approved by the competent authority under the Planning Act [Cap. 232] to be developed in phases;
“unit” means a horizontal stratum of any building or part thereof, whether such stratum is on one or more levels, and is intended for use in accordance with the provisions of any written law as a complete and separate unit for residential or commercial purpose.
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10.
—(1) Every licensed housing developer shall within 3 months of the close of its financial year —
(a)
forward to the Controller; and
(b)
publish in the Gazette,
a copy of the last audited balance-sheet and profit and loss account:
Provided that the Controller may, in his discretion, extend the time for compliance with this subsection, but such an extension shall not in any case exceed 3 months.
(2) Any licensed housing developer that fails to comply with any of the provisions of subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000.
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11.
—(1) Every licensed housing developer shall send to the Controller not later than 42 days after the last day of each half year ending on 30th June, and 31st December, a statement in the prescribed form.
(2) Any licensed housing developer that fails to comply with any of the requirements set out in subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000.
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12.
—(1) Every licensed housing developer shall inform the Controller of any proposed arrangement or agreement for any sale or disposal of its business relating to housing development by amalgamation or otherwise or of any proposal for reconstruction.
(2) The Controller may approve or withhold approval of such arrangement or reconstruction.
(3) Any licensed housing developer that is aggrieved by a decision of the Controller under subsection (2) may, within 14 days of being notified of the decision, appeal to the Minister whose decision shall be final and shall not be questioned in any court.
(4) Any licensed housing developer that fails to comply with subsection (1) shall be guilty of an offence.
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13.
—(1) Every licensed housing developer shall appoint annually an auditor whose duties shall be to make a report upon the annual balance-sheet and accounts of the housing developer. The auditor shall in every such report state in his opinion whether —
(a)
the balance-sheet is fully and fairly and properly drawn up;
(b)
the balance-sheet exhibits a true and correct statement of the licensed housing developer’s affairs; and
(c)
if the auditor has called for explanation or information from the officers or agents of the licensed housing developer, the explanation or information has been satisfactory.
(2) The report of the auditor shall be sent to the Controller within 3 months after the close of the financial year of the housing developer concerned.
(3) Any licensed housing developer that fails to comply with the requirements of subsection (1) or (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000.
(4) If a licensed housing developer fails to appoint an auditor under subsection (1) or at any time fails to fill a vacancy for an auditor, the Minister shall have power to appoint an auditor and shall fix the remuneration to be paid by the licensed housing developer to the auditor.
(5) No person having an interest in the business of a licensed housing developer, as a shareholder or otherwise, and no director, officer, employee or agent of that licensed housing developer shall be eligible for appointment as an auditor for that licensed housing developer. Any person appointed as an auditor to a licensed housing developer, who after such appointment acquires such an interest or becomes a director, officer, employee or agent of that licensed housing developer, shall forthwith cease to be its auditor.
(6) The duties, powers and liabilities imposed and conferred under section 16 in relation to an investigation by the Controller or an inspector of the affairs of a licensed housing developer under section 14 or 15 are hereby imposed and conferred upon auditors appointed under this section.
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14. The Controller or an inspector may from time to time investigate, under conditions of secrecy, the books, accounts and transactions of each licensed housing developer.
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15. The Minister may at any time direct the Controller or any inspector to make an investigation, under conditions of secrecy, of the books, accounts and transactions of a licensed housing developer, if he has reason to believe that a licensed housing developer is carrying on its business in a manner detrimental to the purchasers or other persons dealing with the licensed housing developer or has insufficient assets to cover its liabilities or is contravening any of the provisions of this Act or any regulations made thereunder.
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16.
—(1) The Minister may cause an investigation, under conditions of secrecy, to be made by the Controller or an inspector of the affairs of a licensed housing developer on the application of not less than 5 purchasers.
(2) Such an application shall be supported by such evidence as the Minister may require for the purpose of satisfying himself that the applicants have good reason for requiring an investigation. The Minister may also require the applicants to give such security as he may consider sufficient for the payment of the costs of any investigation.
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17.
—(1) For the purposes of an investigation under sections 14, 15 and 16, a licensed housing developer shall afford the Controller or an inspector access to its books, accounts and documents and shall give such information and facilities as may be required to conduct the investigation.
(2) Any licensed housing developer that does not, as is required under subsection (1), afford the Controller or an inspector access to its books, accounts and documents or give such information and facilities as may be required to conduct an investigation shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 and to a further fine not exceeding $1,000 for every day during which the offence continues after conviction.
(3) For the purposes of an investigation under sections 14, 15 and 16, the Controller and every inspector shall be deemed to be public servants within the meaning of the Penal Code.
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Action by Minister if licensed housing developer unable to meet obligations or is conducting business to the detriment of purchasers or the public
18.
—(1) Where —
(a)
a licensed housing developer informs the Controller —
(i)
that it considers that it is likely to become unable to meet its obligations; or
(ii)
that it is about to suspend building operations;
(b)
a licensed housing developer becomes unable to meet its obligations to the purchasers or the public;
(c)
after investigation is made under section 14, 15 or 16, the Controller is of the opinion that a licensed housing developer —
(i)
is likely to become unable to meet its obligations to the purchasers or the public; or
(ii)
is carrying on its business in a manner detrimental to the interests of the purchasers or to the public; or
(d)
the licence of a housing developer has been revoked under section 7(1),
the Minister may, in his discretion, take such action as he may consider necessary in the circumstances.
(2) Without prejudice to the generality of subsection (1), the Minister may for the purposes of taking action under subsection (1) —
(a)
require the licensed housing developer or housing developer, as the case may be, to take such steps as he may consider necessary to rectify any matter;
(b)
appoint a person to advise the licensed housing developer or housing developer, as the case may be, in the conduct of its business or winding up of its business;
(c)
direct a company or statutory board to assume control and carry on the business of the licensed housing developer or housing developer, as the case may be, upon such terms and conditions as the Minister may determine; or
(d)
direct the licensed housing developer to apply to the High Court for the winding up of the business of the licensed housing developer or housing developer, as the case may be.
[42/2005 wef 01/04/2006]
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19.
—(1) Where a company or statutory board has assumed control of the business of a licensed housing developer in pursuance of section 18(2)(c), the company or statutory board shall, subject to subsection (2), remain in control of and continue to carry on the business of the licensed housing developer for such time as the Minister may by order in writing direct.
(2) Where a company or statutory board has assumed control of the business of a licensed housing developer in pursuance of section 18(2)(c) or ceases to control the business of a licensed housing developer in pursuance of this section, the Controller shall notify that fact in the Gazette.
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20. A licensed housing developer or housing developer, as the case may be, that fails to —
(a)
take such steps as may be required by the Minister under section 18(2)(a);
(b)
act in accordance with the advice given by a person appointed by the Minister under section 18(2)(b);
(c)
apply to the High Court for the winding up of its business in accordance with a direction made by the Minister under section 18(2)(d),
shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000 and to a further fine not exceeding $1,000 for every day during which the offence continues after conviction.
[42/2005 wef 01/04/2006]
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Licensed housing developer under control of company or statutory board to co-operate with company or statutory board and Controller
21.
—(1) Where a company or statutory board has assumed control of the business of a licensed housing developer in pursuance of section 18(2)(c), the licensed housing developer shall submit its business to the control of the company or statutory board and shall provide the company or statutory board with such facilities as the Controller may require to carry on the business of that licensed housing developer.
(2) Any licensed housing developer that fails to comply with subsection (1) or with any requirement of the Controller thereunder shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000 and to a further fine not exceeding $1,000 for every day during which the offence continues after conviction.
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