Legal Updates

Legal Updates for May 2024

Consultation on Proposed Extension of Block Exemption Order for Certain Liner Shipping Agreements to 31 Dec 2029
The Competition and Consumer Commission of Singapore ("CCCS") is seeking public feedback on its proposed recommendation to renew the Competition (Block Exemption for Liner Shipping Agreements) Order ("LSA BEO") for five years from 1 January 2025 to 31 December 2029. The LSA BEO would apply to the following Liner Shipping Agreements ("LSAs"): (i) Vessel sharing agreements for liner shipping services; and (ii) Price discussion agreements for feeder services.

The LSA BEO exempts the prescribed categories of LSAs from the prohibition under section 34 of the Competition Act 2004 against anti-competitive agreements, subject to certain conditions and obligations. CCCS is seeking feedback on the possible impact of the extension of the LSA BEO on the Singapore economy, as well as the current and impending usage of LSAs which involve inland carriage of goods occurring as part of through transport.

The closing date for submissions is 17 June 2024. This Update highlights the key features of CCCS' proposed recommendation to extend the LSA BEO.

Rajah & Tann Singapore LLP Sustainability Update: Alert Solar Farms and Solar Panel Owners! Singapore High Court Sheds Light on Defective Backsheets in PV Modules
We are pleased to present you our Sustainability Update, which shares insights from our Sustainability Partners and experts across sectors and domains on key environmental, social and governance ("ESG") developments and trends.

In this issue, we explore briefly the issues surrounding a particular type of backsheet material, commonly used in solar panels, which has given rise to quality issues and purchasers' potential legal recourses. This is a developing area and we invite you to get in touch with our Partners in our Sustainability Practice who are ready to assist you with any queries you may have.

To read the article in PDF, please click here.

ACRA (Registry and Regulatory Enhancements) Bill Introduced in Parliament
The Accounting and Corporate Regulatory Authority ("ACRA") (Registry and Regulatory Enhancements) Bill was introduced in Parliament for its first reading on 7 May 2024. The Bill seeks to amend the ACRA Act 2004 and other ACRA-administered legislation to protect the personal data collected by ACRA and streamline the corporate regulatory regime. The Bill also serves to facilitate digital communications with ACRA.

A public consultation on the draft Bill had earlier been conducted, for which a consultation response has now been issued. This Update highlights the key amendments introduced in the Bill and the clarifications provided in the consultation response.

Amendments to Enhance Beneficial Ownership Transparency & the Regulatory Regime for Corporate Service Providers Introduced in Parliament
The following Bills were introduced in Parliament for their first reading on 7 May 2024:

• The Companies and Limited Liability Partnerships (Miscellaneous Amendments) Bill, which seeks to enhance the transparency of beneficial ownership of companies and limited liability partnerships; and
• The Corporate Service Providers Bill, which seeks to enhance the regulatory regime for the Corporate Service Providers sector.

A public consultation on the draft Bills had earlier been conducted, for which a consultation response has now been issued. This Update highlights the key amendments introduced in the Bills and the clarifications on the amendments provided in the consultation response.

SGX RegCo Consults on Proposed Changes to Listing Rules to Facilitate Shareholder-Requisitioned Meetings
On 23 April 2024, the Singapore Exchange Regulation ("SGX RegCo") issued a Consultation Paper on "Facilitating Shareholder-Requisitioned Meetings" to seek feedback on its proposed changes to the SGX-ST Listing Rules (Mainboard) and SGX-ST Listing Rules (Catalist) (collectively, "Listing Rules").

These changes relate to where shareholders ("Requisitionists") of issuers listed on the SGX-ST ("issuers") have requisitioned a general meeting ("Shareholder-Requisitioned Meetings"). Within 21 days of deposit of the requisition notice, issuers are to:

• commence facilitative efforts as soon as practicable; or
• (where they dispute the validity of the requisition notice) apply for a court ruling.

Defective Solar Panels: Singapore High Court Provides Guidance on How Unpleaded Claims and Abandoned Claims May Affect Pleadings
In DGE v DGF [2024] SGHC 107, the claimant DGE advanced eight grounds for setting aside an arbitral award in the defendant DGF's favour, that the photovoltaic modules (solar panels) supplied by DGE were inherently defective. The High Court ("Court") dismissed each of these grounds in declining to set aside the award.

This article deals with interesting questions that the Court considered – (i) whether the tribunal's raising of an unpleaded issue on the first day of the hearing made it a live issue, and (ii) whether a party's change in its legal position underlying an abandoned claim was a matter requiring pleading or amendments to pleadings.

The defendant was successfully represented by Partner Lai Yew Fei, Partner Tao Tao, and Associate Brendan Tan Zi Jian of Rajah & Tann Singapore.

Visit Arbitration Asia for insights from our thought leaders across Asia concerning arbitration and other alternative dispute resolution mechanisms, ranging from legal and case law developments to market updates and many more.

Topline Competition: Notifying a Merger in Singapore – When and What are the Triggers?
Topline Competition: Merger notifications in Singapore are necessary where thresholds are close to being or are crossed. A failure to notify can result in investigations and if a substantial lessening of competition (“SLC”) is found, penalties and remedies can be imposed. The Competition and Consumer Commission of Singapore (“CCCS”) regularly does review transactions occurring to ascertain if notification in Singapore ought to be made as well. CCCS has the power to issue remedies, including interim measures where potential mergers are still being negotiated, and mandate notification as part of the remedies, failing which the merger will be prohibited from being implemented. This brief note is a topline reminder to businesses, and provides basic information on thresholds and steps to take.