How Many Directors Are Required For Private Limited Company
All Singapore registered Pte Ltd company is allowed to have single director who is local residential director. He or she must be Singaporean or Singapore Permanent Resident (PR) status .
What is Local residential director ?
Local residential refer to director who ordinary resident in Singapore and is contactable .
With effect from January 2016 director is allowed to give alternate address to protect their privacy .
How director made decision ?
All the decision making by director can be passed by signed resolution by majority director and is comply with Company’s constitution quorum.
Normally quorum fixed on company’s constitution is 2 which means that as long as we able to get 2 director’s consent then the transaction can be passed .
What if company have 5 or more director , quorum must be fixed to 3 or 4 to have majority consent in the Company.
If there is deadlock or disagreement between director, decision maker will fall under shareholder
Director duties :
Reporting duties to Authority
- must ensure that company’s comply with ACRA and IRAS due date such as Annual General Meeting (AGM) must be held and lodge in within stipulate time frame ( please click here for all you need to know about AGM).
Duties to Company
- director must ensure that they carry out their job on good faith of the Company and does not involved with any personal interest.
Duties to Shareholder
- shareholder is the owner of the company, they invest fund to run the company and of course they expect good return of their investment . If company making profit, dividend can be declare to shareholder.
- shareholder have their right to remove or change director.
Recently ACRA had implement new regime on director , please click here for more detail
Please bear in mind that director is treated as employee of the company and have the following right :
-monthly salary
-CPF contribution by company
-insurance cover by company
-all the employee basic benefit medical claim
Directors’ fees is another form of salary . Some company do not practise monthly salary to director and is depend on company’s performance to declare director fees.
Is a Company duties to withhold 22% ( after January 2016) of foreign director salary .Please click here for more detail
Please click here for the director’s education programme organised by ACRA