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EP for director of a Singapore Company.

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roshanjk
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EP for director of a Singapore Company.

Postby roshanjk » Tue, 27 Sep 2005 4:58 pm

Hello,

I am going to become a director of a Singapore Company. Will I get a EP if I become a director?

Thanks V.much in advance,

Jose

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Postby Strong Eagle » Tue, 27 Sep 2005 7:15 pm

It depends. I assume this is a small private limited company, yes? A director per se, is not an employee of the company but rather a member of the governing board. Assuming that the company already meets the minimum of two directors with Singapore addresses, there is no reason you need an EP to be a director. You could live on the North Pole and be a director. So, an EP is not guaranteed.

However, if you intend to take an active role in the company, then you will have a title within the company as well. For this you can apply for an EP or for an Entrepass. If you can, I'd opt for the Entrepass simply because you have no income requirements to fulfill and you have the ability to take on other EP's later.

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Directors

Postby ringo100 » Wed, 28 Sep 2005 6:35 pm

Don't know about EP issue in Singapore, but Directors are legally classed as employees of the company.

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Re: Directors

Postby Strong Eagle » Wed, 28 Sep 2005 11:00 pm

ringo100 wrote:Don't know about EP issue in Singapore, but Directors are legally classed as employees of the company.


Ringo,

Do you have a cite for this? This is not my understanding. For example, this would mean that a person working for company A on an EP could not be a director for company B because the EP allows him/her to work for only one company.

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Directors

Postby ringo100 » Thu, 29 Sep 2005 1:05 am

As I said I don't know how it works for Singapore emloyment rules but in terms of company law and financial reporting standards, company directors are officers and employees of the company, hence they are included in the number of employees note in the stat accounts.

Not a great source but it's late. An extract from the Department of trade and indutry website titled FAQ:


Q6 What employment rights does a Company Director have?

An executive director (unlike a non-executive director who will not normally be an employee) will be an employee of a company like other employees, there are no special provision for directors in company law in relation to employment rights.

Separate provision may, however, be found in individual directors’ service contracts as well as a company’s articles of association.

For related issues you may find it helpful to look at:

1. The Institute of Directors’ (IoD) website

2. The Institute of Chartered Secretaries and Administrators (ICSA) website

How many directors must a company have?

Every company shall at least two directors, or at least one if it is a private company (section282 of the Companies Act 1985)

The directors can be the same people who are forming the company, or they can be different.

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Directors 2

Postby ringo100 » Thu, 29 Sep 2005 1:17 am

Another source www.answers.com:

Inside Director (Executive Director - in English)
Any member of a company's board of directors who is either an employee or stakeholder in the company.

Investopedia Says: Inside directors can either be management or major shareholders in the company.

Outside Director (Non-exec)
Any member of a company's board of directors who is not an employee or stakeholder in the company.

Investopedia Says: Outside directors are advantageous because they have very little conflict of interest.

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Postby Strong Eagle » Thu, 29 Sep 2005 10:39 am

Good information, Ringo. Thanks. I did a bit of a search myself at the ACRA website and got this stuff.

[quote]How many directors must a company have?
With effect from 1 April 2004, a company can have one director who must be “ordinarily resident in Singapore”

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Postby fx8fx » Thu, 06 Oct 2005 7:43 pm

[quote="Strong Eagle"]Good information, Ringo. Thanks. I did a bit of a search myself at the ACRA website and got this stuff.

[quote]How many directors must a company have?
With effect from 1 April 2004, a company can have one director who must be “ordinarily resident in Singapore”


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