Corporate and Accounting Laws (Amendment) Act 2025
The Accounting and Corporate Regulatory Authority (ACRA) has implemented selected provisions under the Corporate and Accounting Laws (Amendment) Act 2025, which took effect from 6 May 2026, with further changes to be introduced in phases.
These updates introduce important enhancements to director accountability, shareholder protection, audit transparency, and corporate governance standards, and are now applicable to companies operating in Singapore.
What Directors Need to Know
1. Increased Accountability and Penalties
Directors are expected to exercise greater diligence in fulfilling their duties.
- Maximum penalties for breaches have increased from S$5,000 to S$20,000. https://www.acra.gov.sg/news-events/news-announcements/commencement-of-key-changes-under-the-corporate-and-accounting-laws-amendment-act-2025/
- Serious offences may result in both financial penalties and imprisonment of up to 12 months.
What this means:
Directors must ensure they act in the company’s best interests and maintain robust oversight of business operations, as enforcement actions are now significantly stricter.
2. Stricter Disqualification Rules
To combat financial crime:
- Individuals convicted of money laundering offences will be disqualified from acting as directors. https://www.acra.gov.sg/news-events/news-announcements/commencement-of-key-changes-under-the-corporate-and-accounting-laws-amendment-act-2025/
- The range of offences leading to disqualification has been broadened.
What this means:
Boards should strengthen due diligence on appointments and continuously monitor compliance to mitigate regulatory and reputational risks.
What Shareholders Should Note
3. Enhanced Protection in Share Buyback Transactions
A new approval framework has been introduced for selective share buybacks.
- In addition to the existing 75% shareholder approval,
- A separate 75% approval from shareholders of the same class is now required (excluding selling shareholders).
What this means:
Shareholders in the affected class will have a stronger voice, ensuring fairer treatment and safeguarding against decisions that may disproportionately impact their interests.
Impact on Audit Transparency (Relevant to Both)
4. Greater Accountability in Audit Reporting
Audit reports must now identify, by name, the public accountant primarily responsible for the audit engagement.
What this means:
This improves transparency by naming the responsible auditor, allowing directors and shareholders to better assess accountability and audit quality.
How We Can Help
As your Corporate Secretarial Provider, we can assist you with:
- Understanding directors’ duties and associated risks
- Reviewing director eligibility and compliance
- Updating shareholder approval processes
- Coordinating with auditors and advisers
Please contact us if you would like guidance on how these changes affect your company.
We can be reached at :
Email : info@klp.com.sg
Contact Number ： +65 6227 4180
WhatsApp Number : +65 9647 9704