New Corporate Law Changes Effective 6 May 2026 – What Directors and Companies Need to Know
May 4
2 min read
Selected provisions of the Corporate and Accounting Laws (Amendment) Act 2025 will come into force on 6 May 2026, introducing important changes that directly affect directors, shareholders and companies in Singapore.
Key changes include:
1. Heavier penalties for directors
Directors who breach their statutory duties (including failures to act in the company’s best interests or exercise reasonable diligence) now face significantly higher exposure:
(a) Maximum fines increased to S$20,000 (from S$5,000); and
(b) For serious offences, imprisonment of up to 12 months, in addition to fines.
2. Broader director disqualification grounds
Directors convicted of money laundering offences under Singapore law will be disqualified from acting as directors, strengthening Singapore’s antimoney laundering framework.
3. New two tier approval for selective share buybacks
Selective share buybacks now require:
(a) 75 percent approval of shareholders (excluding selling shareholders), and
(b) A separate 75 percent approval from shareholders of the same class as the shares being bought back (excluding selling shareholders).
This enhances protection for shareholders within the affected share class.
How Oaks Legal Can Help
These changes increase regulatory risk and raise the bar for corporate governance. Oaks Legal regularly advises directors, shareholders and companies on matters including the following:
(a) Directors’ duties and personal liability exposure;
(b) Share buyback structuring and shareholder approval processes;
(c) Corporate governance reviews and compliance updates; and
(d) Navigating regulatory changes.
If you have questions about how these amendments affect your company, board or transactions, feel free to reach out to our corporate and commercial team or emails us at reachus@oakslegal.com.sg.
