The definitions of “
prescribed” and “
Registrar” are substantially similar to the corresponding definitions in section 8 of the Principal Act which will now been relocated to section 2 and be deleted from section 8. The definition of “
unclaimed moneys” will be discussed hereafter.
Unclaimed moneys
The Amendment Act introduces a new section 2A which defines “unclaimed moneys” as follows:
“
2A. Unclaimed moneys referred to in this Act shall be construed as references to all sums of moneys—
(a) which are legally payable to the owner and have remained unpaid for a period of not less than two years after they have become payable;
(b) to the credit of an account that has not been operated in whatever manner by the owner for a period of not less than seven years; and
(c) to the credit of a trade account which has remained dormant for a period of not less than two years.”
The new section 2A is substantially similar to the definition of “unclaimed moneys” in section 8 of the Principal Act except for sub-paragraph (a) of section 2A which will extend the one-year period stipulated in the definition in section 8 to two years under the new section 2A(a) in order for unpaid moneys to constitute unclaimed moneys under that paragraph.
Registrars, Deputy Registrars etc.
The new section 4A which provides for the appointment and powers of the Registrar of Unclaimed Moneys (“
Registrar”), Deputy Registrars of Unclaimed Moneys (“
Deputy Registrar”) and Assistant Registrars of Unclaimed Moneys (“
Assistant Registrar”) is identical to the provisions in section 9 of the Principal Act which will be deleted when the Amendment Act comes into force.
Moneys in Court
Part I (sections 5 to 7) (
Moneys in Court) of the Principal Act sets out,
inter alia, the procedure for dealing with moneys that have been paid into court but remain unclaimed for 15 years. Presently the Principal Act imposes the responsibility to pay such moneys to the Consolidated Revenue Account on the “
proper officer of such court having the control or custody of money paid into court.” The Amendment Act transfers the responsibility from the aforesaid officer to the Registrar or any Deputy Registrar or Assistant Registrar appointed under section 4A(2).
Publication of register
Section 10A(1) of the Principal Act, among others, requires a company or firm holding unclaimed moneys to submit a copy of its register of unclaimed moneys to the Registrar for publication in the
Gazette annually. The Amendment Act amends this provision by replacing the publication in the
Gazette with publication by way of electronic medium or electronic transmission.
Disposal of unclaimed moneys
The Registrar is required to: (a) credit all unclaimed moneys lodged with him to the Consolidated Trust Account (section 11(1)); and (b) transfer any unclaimed monies credited in the Consolidated Trust Account to the Consolidated Revenue Account upon the expiration of 15 years from the date the moneys were credited to the Consolidated Trust Account (section 11(2)).
The Amendment Act amends section 11(2) to reduce the time frame for moneys to be transferred from the Consolidated Trust Account to the Consolidated Revenue Account from 15 years to 10 years.
Powers to make regulations expanded
As the responsibility under Part I (
Moneys in Court) of the Principal Act for dealing with moneys that remain unclaimed after such monies have been paid into court will be transferred from the “proper officer of court” to the Registrar or any Deputy Registrar or Assistant Registrar pursuant to the amendments to section 5 and 6, the power of the Minister to make regulations under section 15 of the Principal Act has been expanded to cover all matters under the Principal Act instead of being restricted to matters under Part II (
Moneys in Companies and Firms).
Comments
The four main amendments introduced under the Amendment Act are as follows:
(1) the extension of the time frame under the new section 2A(a) for moneys which are legally payable but remains unpaid to the owner to be considered as unclaimed moneys from one year to two years;
(2) the reduction of the time frame under section 11(2) of the Principal Act for moneys to be transferred from the Consolidated Trust Account to the Consolidated Revenue Account from 15 years to 10 years;
(3) the transfer of the responsibilities under Part I (
Moneys in Court) of the Principal Act for dealing with moneys paid into court that remain unclaimed from the “proper officer of court” to the Registrar or any Deputy Registrar or Assistant Registrar appointed under the Principal Act; and
(4) the expansion of the powers and responsibilities of the Registrar, Deputy Registrars and Assistant Registrars that were previously limited to Part II (
Moneys in Companies and Firms) of the Principal Act, to cover the whole of the Principal Act.
Alert by Amanda Swee Lin Hollow (Associate) of the Corporate Practice of Skrine.