On 16 April 2026, ACRA announced that selected provisions of the Corporate and Accounting Laws (Amendment) Act 2025 will commence on 6 May 2026. The Act was passed in Parliament on 5 November 2025 and will be rolled out in phases.
If you are a director, shareholder, or work with a public accountant, here is a straightforward breakdown of what is changing and what it means for you.
Heavier Penalties for Directors
Directors who fail to meet their duties now face significantly higher consequences. This includes situations where a director fails to act in the company’s best interests or does not exercise reasonable diligence in managing the company.
The maximum fine has increased from $5,000 to $20,000. For more serious offences, directors may face both the fine and imprisonment of up to 12 months.
If you sit on a board or hold a directorship in Singapore, this is a good time to review how actively and responsibly you are fulfilling your role. The bar has been raised.
Tighter Rules on Director Disqualification
As part of Singapore’s efforts to strengthen its anti-money laundering framework, the list of offences that disqualify a person from holding a director position has been expanded.
Notably, directors who are convicted of money laundering offences under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992 will now be disqualified from acting as directors.
This change reinforces Singapore’s position as a well-regulated business environment and signals that the government is taking a firmer stance on the misuse of corporate structures for unlawful purposes.
Greater Accountability in Audit Reports
Previously, reports were typically signed off by the accounting firm as a whole, without identifying the individual auditor.
Although, the auditor’s name would be available in ACRA’s register on Bizfile, it would not appear in the audit report itself. From 6 May 2026, that changes.
From 6 May 2026, Audit reports will now be required to name the specific public accountant who was primarily responsible for the audit engagement.
For businesses, this means your audit report will carry more transparency. For public accountants, it brings a greater degree of personal accountability to the work they sign off on.
New Approval Process for Selective Share Buybacks
If your company is looking to buy back shares from specific shareholders rather than all shareholders, a two-tier approval process will now apply.
Previously, companies needed approval from at least 75% of shareholders (excluding those selling). Under the new rules, companies must also obtain a separate 75% approval from shareholders who hold the same class of shares as those being bought back (again, excluding those selling).
This additional layer of approval gives shareholders in the affected share class a more direct say in the process, and is designed to better protect their interests.
If you have a share buyback planned, it is worth checking whether the new requirements apply to your situation before proceeding.
What You Should Do
The changes taking effect on 6 May 2026 are focused on accountability and governance. While they may not affect every company immediately, it is worth taking stock of which areas apply to you:
- Review your responsibilities and conduct as a director in light of the increased penalties.
- If you or any director in your company has been involved in any disqualifying offences, seek legal advice promptly.
- If you are due for an audit, check with your auditor on how the new naming requirement will be reflected in your report.
- If a selective share buyback is on your agenda, ensure your approval process is updated to meet the two-tier requirement.
The Corporate and Accounting Laws (Amendment) Act 2025 will continue to be rolled out in phases beyond May 2026, so there are more changes to watch for later in the year. We will keep you updated as more provisions come into effect.
If you have questions about how any of these changes apply to your company, feel free to reach out to us.
