Taking Compliance to the Next Level :

- Colour-coded Compliance Rating

and Certificate of Compliance

- Production of Director’s Handbook

Ms Peggy Tan

Head, Enforcement Policies and Strategy

Enforcement Division

Accounting and Corporate Regulatory Authority (ACRA)

ACRA – Source of Essential Corporate and

Financial information

To build Singapore into a trusted business centre

A crucial source of essential corporate and financial

information for use by the business community and other

government agencies

Such corporate and financial information has to be up-to-

date and accurate to be useful, failing which our

stakeholders’ would be adversely impacted by the

unavailability of reliable information.

Role of Enforcement Division (ED) in ACRA

Strategic Functions:

1. To undertake strategic studies and reviews

on enforcement and recommend the

appropriate policies

(Enforcement Policies & Strategy Unit)

2. To undertake focused and targeted

enforcement based on the strategic plans

and directions based in the strategic plans

and directions endorsed by ACRA

(Strategic Enforcement Unit)

3. To efficiently manage cases identified for

prosecution, including warrant cases.

(Summons & Warrants Processing Unit)

Targeted and Risk based Approach :

-Improving the Compliance Rate for top 3

offences

Strategy A – Clean up the Register

Strategy B – Assisting financially stricken

companies

Strategy C – Uplifting Awareness via Public

Education

Strategy D – Re-engineer change in behavior

COLOR CODED COMPLIANCE RATING

Strategy D: One of the initiatives - Implemented on 24 April 2010.

ACRA’s online Business Directory Search enhanced to include colour-coded compliance

rating for locally incorporated companies.

Compliant companies rated with a green tick ( ) and eligible for Certificate of Compliance.

Non-compliant ones rated with a red cross ( ).

The Colour-Coded Compliance Rating was introduced to:

o provide recognition to companies that are in compliance and to enable them to use their good

track record for brand equity purposes – prompt disclosure and good compliance translate to

good corporate governance.

o serve as an incentive for those not in compliance to strive to do better and be on time in their

next AGM and annual filing.

o provide for better transparency to the relevant companies’ stakeholders such as shareholders,

creditors, financial institutions by publicising the filing records of the company. This could

also assist them in making better informed decisions when dealing with the company

concerned.

Example 1: Companies which are compliant

Example 2: Companies which breached Section 175 only

Example 3: Companies which breached Section 175,197 and 201

Example 4: Companies which breached the next AGM Due Date

CERTIFICATE OF COMPLIANCE

Implemented together with the Colour-coded Compliance Rating initiative

on 24 April 2010.

Companies that are in compliance are eligible for the certificate to give

recognition of their efforts to comply with the statutory requirements on

holding AGM, lay up-to-date financial statements and filing of Annual

Returns within the prescribed period.

A fee of $15 is payable for the Certificate from 1st February 2011.

CERTIFICATE OF COMPLIANCE

Sample of a Certificate of Compliance

Coming Soon …

PRODUCTION

OF HANDBOOK

FOR

DIRECTORS

Uplifting Awareness via Public Education

Phase 1: Inclusion in “Regulatory & Business Guide for Start-Ups ” handbook topics

on Regulatory Compliance

Phase 2: Director’s Handbook- Part of the suite of initiatives aimed at promoting

voluntary compliance and reducing high enforcement cost downstream

Create compliance awareness targeted at those who may not be aware of their duties

Focus on statutory requirements under the Companies’ Act to address ACRA’s

common offences

Used as Standard Material/Text for Proposed Director’s Training Programme

Target Audience

Newly appointed and lay directors

Aspiring directors and people interested in understanding the role and

responsibilities of directors

People providing secretarial and advisory services to companies

About the Handbook

Uniqueness of Handbook

Contents in book written from an ACRA’s perspective based on past

experience and dealing with directors in default

Present statutory requirements in simple English and in layman’s term for

easy understanding

Providing guidance on filing requirements to improve compliance

Showcase real-life case studies of common defaults to provide learning

points

Provides useful information on how to do things right to avoid unnecessary

business cost

Introducing additional relevant topics outside the boundaries of mere

compliance with statutory requirements, e.g. corporate governance and

corporate social responsibility in simplified form

Common forms and templates for directors’ use

Director’s Handbook

More Information :

Target date for Launch : 1 June 2011

Hard copy available at Bookstores, etc at $15 per copy

Soft copy available online via ACRA’s website at www.acra.gov.sg

ACRA strives to promote a pro-business, pro-enterprise

environment through effective enforcement, the integration

of e-services (efiling, online reference materials) and public

education.

Ensuring continuing compliance is vital to maintaining

good corporate governance and investor confidence.

For more information, please visit:

http://www.acra.gov.sg

Conclusion

Thank You