Application for approval by Singapore entity with residential properties to become converted entity and for retention of its residential properties
—(1) Any Singapore entity which, pursuant to section 9, intends to seek the prior written approval of the Controller for its conversion to a converted entity, and for the retention of all its estate or interest in all or in one or more of its residential properties, not being non-restricted residential properties, which the Singapore entity intends should remain vested in the converted entity upon such conversion, shall make application to the Controller, in such form as he may require, for the grant of approval for such conversion and for such retention.
(2) Every such application shall state such particulars as the Controller may require.
(3) The Controller shall forward every such application to the Committee; and after consideration thereof, the Committee shall make recommendations thereon to the Controller who may, with the approval of the Minister, grant, with or without conditions (or refuse to grant), approval for —
the conversion of the Singapore entity to a converted entity; and
the retention of all or one or more of its residential properties in respect of which it has made application therefor.
(3A) The conditions that the Controller may impose under subsection (3) shall include all or any of the following:
that the applicant shall carry out and complete the development of any residential property retained by the applicant within such period as may be determined by the Controller;
that the applicant —
shall not sell, assign, transfer, sublease or otherwise dispose of such residential property or any part thereof in its vacant or undeveloped state without the prior approval of the Controller, which may be granted with or without conditions; or
shall sell all the flats or dwelling-houses in the development or, where the residential property comprises one or more buildings which have not been subdivided into units for sale, shall sell the whole development, to citizens or approved purchasers within a period of 2 years from the date of the issue by the relevant authority of a Temporary Occupation Permit or Certificate of Statutory Completion, whichever is the earlier, in respect of such flats, dwelling-houses or any of the buildings;
that, where the applicant is a company, limited liability partnership or society, no person who holds any shares in the company or who is a partner in the limited liability partnership or member of the society shall, without the approval of the Controller (which may be granted with or without conditions), sell, assign, transfer or otherwise dispose of any of his shares or any interest in such shares to any other person, or resign as such partner or member, as the case may be;
that the applicant shall provide such security as may be determined by the Controller for the purposes of complying with any condition imposed by the Controller;
that the applicant shall give an undertaking in writing to comply with the conditions imposed by the Controller.
(3B) Subject to subsections (3C) and (3D), the Controller may extend any period referred to in subsection (3A)(a) or (b)(ii) and may, in his discretion, dispense with the requirement to provide security referred to in subsection (3A)(d).
(3C) The Controller may, when extending any period referred to in subsection (3A)(a) or (b)(ii), require the applicant to pay an extension charge of such amount as may be determined by the Controller.
(3D) Any extension charge payable under subsection (3C) need not bear any relationship to the cost of considering an application for and granting an extension of any period referred to in subsection (3A)(a) or (b)(ii).
(3E) Where an applicant has failed to comply with any condition imposed by the Controller, the Controller may do all or any of the following:
in the case of a condition the compliance with which security has been provided under subsection (3A)(d), the Controller may forfeit (in part or whole) the security provided by the applicant after giving 21 days’ notice in writing to the applicant of his intention to forfeit the security and the grounds thereof;
in the case of any condition referred to in subsection (3A)(b)(i) relating to residential property or in subsection (3A)(c) relating to shares in a company, the Controller may, by notice in writing, require the applicant to pay, within a specified period, a financial penalty of such amount (as the Controller thinks fit) not exceeding 50% of the market value of the residential property or shares concerned.
(3F) The quantum of the financial penalty required to be paid under subsection (3E)(b) shall take into account any security provided by the applicant under subsection (3A)(d) and which has been forfeited under subsection (3E)(a) in respect of the same contravention of any condition referred to in subsection (3A)(b) or (c).
(3G) Where the Controller is of the opinion that the failure of the applicant to comply with any condition referred to in subsection (3A)(b)(i) or (c) was committed with the consent or connivance of, or was attributable to any neglect on the part of any person who is a director, partner or member of the governing body or board of trustees of the applicant, as the case may be, the Controller shall, together with the notice under subsection (3E)(b) to the applicant, inform the person concerned of the Controller’s opinion, and that person shall then be jointly and severally liable with the applicant to pay the financial penalty imposed under subsection (3E)(b).
(3H) Any financial penalty payable by any applicant or any other person under subsection (3E)(b) or (3G) shall be recoverable by the Controller as a debt due to the Controller from that applicant or other person.
(4) The Minister may direct that all the residential properties that are not non-restricted residential properties in respect of which approval was not granted under subsection (3)(b) shall be transferred to any citizen or approved purchaser.
(4A) Upon approving under subsection (3) the retention by an applicant of all or one or more of its residential properties subject to the condition referred to in subsection (3A)(b)(i), the Controller shall immediately inform the Registrar who shall enter —
on the relevant volume and folio of the land-register in the Land Titles Registry of the Authority; or
in the books or other records maintained at the Registry of Deeds of the Authority,
as the case may be, a notice warning persons dealing with the registered proprietor named therein that the registered proprietor is prohibited from selling, assigning, transferring, subleasing or otherwise disposing of the residential property comprised therein in its vacant or undeveloped state.
(4B) The Registrar shall cancel the notice of warning referred to in subsection (4A) if the Controller directs that the notice be cancelled; and the Controller shall make such a direction if he is satisfied that the Temporary Occupation Permit or the Certificate of Statutory Completion for the whole of the development has been issued by the relevant authority.
(4C) No claim shall be made by any person against the Registrar for any loss or damage suffered if the notice referred to in subsection (4A) is not entered on the land-register in the Land Titles Registry of the Authority or in the books or other records maintained at the Registry of Deeds of the Authority, as the case may be, or is cancelled pursuant to subsection (4B).
(5) Section 25(6) to (13) shall apply, with the necessary modifications, to every application made under subsection (1) for the retention of any estate or interest in such residential property.
(6) For the purpose of determining under subsection (3E) the financial penalty for contravening a condition, “market value” —
in relation to residential property, means the market value of the residential property at the date of the contravention of the condition as assessed by an independent valuer appointed by the Controller; and
in relation to shares in a company, means the market value of the shares at the date of the contravention of the condition.