CESM PTE. LTD. Business Review

Director Of Suspected Shell Companies Charged With Offences Under The Companies Act

Between September 2018 and August 2020, Lau, who is now 79 years old, was acting as the director of over 100 companies in Singapore. Investigations revealed that Lau had taken on the directorships through a corporate services provider in Singapore, which provided directorship services to clients who wished to incorporate companies in Singapore. It is a statutory requirement that a Singapore company must have at least one director who is ordinarily resident in Singapore. During Lau’s appointment as a director of two locally-registered companies, CESM Pte Ltd and CDBF Worldwide Pte Ltd, funds amounting to EUR 95,570.12 and USD 274,863.22 which are suspected to be derived from investment scams, were purportedly received in the companies’ bank accounts. The offence under Section 157(1) punishable under Section 157(3)(b) of the Companies Act carries a fine of up to $5,000 or imprisonment of up to 12 months. Under Section 154(2)(a) read with Section 154(4)(a) of the Companies Act, offenders may also be fined and disqualified from acting as a director for up to five years.