Assignment
Nanyang technological university
AC 208-Written Assignment
Name: Seah Wei Ting Pauline
Matriculation card no: 080298K04
Seminar Group 4
Tutor: Prof. Marc Wang Han Ming
Word count: 1200 words
The issue in this case is whether the purchase of 0.2% of Good Build’s shares by Seng Huat (“SH”) has affected the deemed and actual interests of the directors and shareholders that would directly implicate the register of directors’ shareholdings and register of substantial shareholders of Good Build (“GB”).
In the following discussion, Low and Tan are not associates and apart from Low’s children, no other directors have spouses or children with shareholding in SH or GB.
Register of substantial shareholders[1]
The following 2 sets of information are crucial in determining if Low can be deemed as a substantial shareholder under S81 (1) after satisfying the 20% rule in S7(4).
We need information to investigate if Low and Tan can be termed as associates under S7(5) such that both of them are deemed to have a total combined interest of more than 20% of the total voting shares in SH under S7(4A). If they are associates, Low and Tan will qualify to be substantial shareholders of GB through their ownership in SH.
In addition, we need to establish if there is an associate relationship between Low and his children under S7 (5) to observe if his children’s interest can be deemed as Low’s to contribute to his shareholding in SH, giving rise to a possibility that Low would have deemed interest in BG through SH under S7(4A).
i) Low Keng Huat
Taking a close look at the Low’s interest in SH, we gathered that Low has a direct shareholding in SH of 18% because of S164(15), where his children’s shareholding contributes to his interest in SH. However, the 18% shareholding in SH is unable to deem Low as a substantial shareholder[2] of GB even though SH has more than 5% total voting shares in GB. This is chiefly because the 18% does not meet the
AC 208-Written Assignment
Name: Seah Wei Ting Pauline
Matriculation card no: 080298K04
Seminar Group 4
Tutor: Prof. Marc Wang Han Ming
Word count: 1200 words
The issue in this case is whether the purchase of 0.2% of Good Build’s shares by Seng Huat (“SH”) has affected the deemed and actual interests of the directors and shareholders that would directly implicate the register of directors’ shareholdings and register of substantial shareholders of Good Build (“GB”).
In the following discussion, Low and Tan are not associates and apart from Low’s children, no other directors have spouses or children with shareholding in SH or GB.
Register of substantial shareholders[1]
The following 2 sets of information are crucial in determining if Low can be deemed as a substantial shareholder under S81 (1) after satisfying the 20% rule in S7(4).
We need information to investigate if Low and Tan can be termed as associates under S7(5) such that both of them are deemed to have a total combined interest of more than 20% of the total voting shares in SH under S7(4A). If they are associates, Low and Tan will qualify to be substantial shareholders of GB through their ownership in SH.
In addition, we need to establish if there is an associate relationship between Low and his children under S7 (5) to observe if his children’s interest can be deemed as Low’s to contribute to his shareholding in SH, giving rise to a possibility that Low would have deemed interest in BG through SH under S7(4A).
i) Low Keng Huat
Taking a close look at the Low’s interest in SH, we gathered that Low has a direct shareholding in SH of 18% because of S164(15), where his children’s shareholding contributes to his interest in SH. However, the 18% shareholding in SH is unable to deem Low as a substantial shareholder[2] of GB even though SH has more than 5% total voting shares in GB. This is chiefly because the 18% does not meet the