Unauthorised operation of bus services
Open ↗11.—(1) A person must not operate in Singapore a bus service unless —(a)
the person is authorised to do so by a bus service licence;
(b)
the person is exempt from this section by or under this Act in relation to that bus service;
(c)
the person is the LTA; or
(d)
the person (called in this Act a bus service subcontractor) is authorised to do so by contract with a person referred to in paragraph (a) or (b).
(2) A person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction —(a)
where the number of bus services operated in contravention is 10 or more regular route services — to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 6 months or to both and, in the case of a continuing offence, to a further fine not exceeding $5,000 for every day or part of a day during which the offence continues after conviction; or
(b)
in any other case — to a fine not exceeding $10,000 and, in the case of a continuing offence, to a further fine not exceeding $500 for every day or part of a day during which the offence continues after conviction.
Application for or to renew bus service licences
Open ↗12.—(1) An application for or to renew a bus service licence must be made to the LTA in accordance with this section.
(2) An application for a bus service licence or to renew a bus service licence must —(a)
be in the form and manner that the LTA may determine;
(b)
be accompanied by an application fee, if prescribed; and
(c)
be accompanied by the prescribed information and any other additional information that the LTA requires to decide on the application.
(3) The LTA may refuse to consider an application for or to renew a bus service licence that is incomplete or not made in accordance with this section.
Grant, etc., of bus service licences
Open ↗13.—(1) After considering any application for or to renew a bus service licence, the LTA may —(a)
on payment of —(i)
a bus service licence fee (if prescribed) — grant the applicant a Class 1 bus service licence or Class 2 bus service licence; or
(ii)
a renewal fee or late renewal fee (if prescribed) — renew the licence; or
(b)
refuse to grant or renew the bus service licence, as the case may be.
(2) In deciding whether an applicant should be granted a Class 1 bus service licence, or whether the applicant’s Class 1 bus service licence should be renewed, and the conditions to impose or modify, the LTA must have regard to, and give such weight as the LTA considers appropriate to, all of the following matters:(a)
the applicant’s capacity to comply with the requirements for financial viability in operating the regular route services in the application;
(b)
the applicant’s capacity to deliver the regular route services in the application according to the performance standards and other terms in a public bus services contract;
(c)
the demand for the regular route services in the application;
(d)
the existence of other bus services in the same area;
(e)
whether the applicant is a company, partnership, limited liability partnership or other body corporate;
(f)
whether the applicant and, where necessary, whether —(i)
every member of the board of directors or committee or board of trustees or other governing body of an applicant that is a company, limited liability partnership or other body corporate; or
(ii)
every partner of an applicant that is a partnership,
is a suitable person to be involved in the management or operation of the regular route services in the application;
(g)
whether it is otherwise contrary to the public interest for the licence to be granted to the applicant.
(3) For the purpose of determining whether or not a person referred to in subsection (2)(f) is a suitable person to be involved in the management or operation of 10 or more regular route services, the LTA must, having regard to the degree and nature of the person’s proposed involvement in the public bus system in Singapore, have regard to, and give such weight as the LTA considers appropriate to, all of the following matters:(a)
the person’s relevant knowledge, competency and experience;
(b)
any evidence of the exercise of any power under section 39 in relation to the person —(i)
for committing an offence under this Act; or
(ii)
for contravening any notice or direction given under this Act;
(c)
any conviction for committing —(i)
an offence under Part 5 of the Road Traffic Act 1961 or rules made under that Part in relation to buses, or under the Public Transport Council Act 1987, whether or not the offence was committed before 22 January 2016; or
(ii)
any other offence, whether or not the conviction was in a Singapore court and whether or not the offence was committed before 22 January 2016.
(4) In determining whether an applicant should be granted a Class 2 bus service licence, or whether the applicant’s Class 2 bus service licence should be renewed, and the conditions to impose or modify, the LTA must have regard to, and give such weight as the LTA considers appropriate to, all of the following matters:(a)
the applicant’s ability and financial capacity to operate the bus services in the application in a satisfactory, safe and efficient manner;
(b)
the suitability of the route or routes on which a bus service is to be provided under the licence;
(c)
the extent (if any) to which the needs of those proposed route or routes are already adequately and satisfactorily served by existing land transport facilities;
(d)
the needs of the area as a whole in relation to passenger demand (including the provision of adequate, safe, suitable and efficient services, the elimination of unnecessary or unsatisfactory services and the provision of unremunerative services) and the coordination of all forms of passenger transport;
(e)
whether it is otherwise contrary to the public interest for the licence to be granted to the applicant.
(5) To avoid doubt, the LTA is not confined to consideration of the matters specified in subsection (2), (3) or (4) and may take into account any other matters and evidence that may be relevant.
(6) Without affecting subsection (1), the LTA may grant a renewal of a bus service licence (of any class) with or without modifying the conditions of the licence, but section 16 does not apply to or in relation to granting a renewal of a bus service licence with modifications to the conditions of the licence.
Validity of bus service licences
Open ↗14.—(1) Every bus service licence must state its class and be in the form that the LTA may determine.
(2) Every bus service licence granted or renewed under this Part continues in force for the period specified in the licence unless it is earlier revoked or suspended under section 39.
Conditions of bus service licences
Open ↗15.—(1) In granting a bus service licence to any person, the LTA may impose any conditions that the LTA considers requisite or expedient having regard to the purposes of this Act.
(2) In particular, in granting a Class 1 bus service licence to a bus operator, the LTA may impose conditions —(a)
relating to the use and deployment of the buses managed by the licensed bus operator in operating the regular route service or services in the licence;
(b)
relating to the safety and security of passengers of buses in the provision of the regular route service or services in the licence, and other persons using or engaged in work on those buses;
(c)
relating to the conduct of the employees, agents and contractors of the licensed bus operator;
(d)
requiring the provision of a performance bond, guarantee or any other form of security of an amount and on any terms and conditions that the LTA may determine —(i)
to secure compliance by the licensed bus operator with any condition attached to the licence; or
(ii)
to meet any financial penalty arising out of any proceedings under section 39 with a view to regulatory action started or likely to start against the licensed bus operator,
or both;
(e)
requiring the licensed bus operator itself to deal with any plague or epidemic, fire, flood, earthquake or disaster (natural or otherwise) or any other public emergency; or
(f)
requiring the licensed bus operator to undergo (at its own cost) any audit that the LTA may require to ascertain that licensee’s compliance with —(i)
the provisions of this Act or a code of practice applicable to the licensed bus operator;
(ii)
the conditions of the Class 1 bus service licence granted to that licensed bus operator; or
(iii)
a direction given under section 38.
(3) An audit mentioned in subsection (2)(f) may be carried out only by authorised officers or other officers of the LTA or qualified individuals approved by the LTA for the purpose.
(4) In particular, in granting a Class 2 bus service licence to a bus operator, the LTA may impose conditions relating to —(a)
the safety and security of passengers of the bus service and other persons who use the buses;
(b)
the operating hours, route, bus stopping points and other activities of the bus service connected with a safe and secure operation;
(c)
the prevention of racing, cutting in and dangerous competition with other vehicles on the route;
(d)
requirements that the licensed bus operator must prepare itself to deal with any plague or epidemic, fire, flood, earthquake or disaster (natural or otherwise) or any other public emergency; or
(e)
the provision of a performance bond, guarantee or any other form of security, of an amount and on any terms and conditions that the LTA may determine —(i)
to secure compliance by the licensed bus operator with any condition attached to the licence; or
(ii)
to meet any financial penalty arising out of any proceedings under section 39 with a view to regulatory action started or likely to start against the licensed bus operator,
or both.
Modifying conditions of bus service licence
Open ↗16.—(1) Subject to this section, it is lawful for the LTA to modify the conditions of a bus service licence without compensating the licensed bus operator concerned.
(2) Before modifying any conditions of a bus service licence, the LTA must give notice to the licensed bus operator holding that licence —(a)
stating that the LTA proposes to make the modification in the manner as specified in the notice; and
(b)
specifying the time (being at least 14 days after the date of service of the notice on the licensed bus operator) within which the licensed bus operator may make written representation to the LTA with respect to the proposed modification.
(3) Upon receiving any written representation mentioned in subsection (2), the LTA must consider that representation and may —(a)
reject the representation;
(b)
amend the proposed modification in such manner as the LTA thinks fit having regard to the representation; or
(c)
withdraw the proposed modification.
(4) Where —(a)
the LTA rejects any written representation under subsection (3)(a);
(b)
the LTA amends any proposed modification to the conditions of the licence under subsection (3)(b); or
(c)
no written representation is received by the LTA within the time specified under subsection (2)(b), or any written representation made under that subsection is subsequently withdrawn, and the licensed bus operator has not given immediate effect to the modification,
the LTA must issue a written direction to the licensed bus operator concerned requiring the licensed bus operator, within the time specified by the LTA, to give effect to the modification as specified in the notice under subsection (2) or as amended by the LTA under subsection (3), as the case may be.
Restriction on transfer and surrender of bus service licence
Open ↗17.—(1) A bus service licence, and any right, benefit or privilege under the licence, is not transferable or assignable to any other person unless —(a)
the licence contains a condition authorising the transfer or assignment; and
(b)
the LTA consents in writing to the transfer or assignment.
(2) Any consent under subsection (1) may be given subject to compliance with any conditions that the LTA thinks fit to impose, which may, subject to section 16, include modifying, or requiring or otherwise providing for the making of modifications to, the conditions of the licence.
(3) A transfer or an assignment, or purported transfer or assignment, of a bus service licence, or of any right, benefit or privilege under the licence, is void and of no effect —(a)
if the licence is not capable of transfer or assignment;
(b)
if the transfer or assignment, or purported transfer or assignment, is in breach of a condition of the licence; or
(c)
if there has been, before the transfer or assignment or purported transfer or assignment, a contravention of a condition subject to compliance with which the consent required by subsection (1) is given.
(4) Every bus service licence is not capable of being surrendered without the written consent of the LTA, and any surrender or purported surrender of a bus service licence is void if it is without that written consent.
Division 2 — Special restrictions for Class 1 bus service licences
Change in management of Class 1 bus service licence
Open ↗18. It is a condition of every Class 1 bus service licence that the licensed bus operator to whom the licence is granted must notify the LTA of —(a)
if the licensed bus operator is a company — the resignation of any director of the company within the prescribed period after the date of resignation; or
(b)
if the licensed bus operator is a partnership, limited liability partnership or company — the death of any of its partners or directors within the prescribed period after the date the licensed bus operator becomes aware of that death.
Appointment and removal of chief executive officer, director, etc.
Open ↗19.—(1) A bus operator holding a Class 1 bus service licence that is a company, limited liability partnership or other body corporate must not —(a)
appoint or re-appoint an individual as its chief executive officer, or the chairperson of its board of directors or any of its directors; or
(b)
remove its chief executive officer or the chairperson of its board of directors or any of its directors,
unless the licensee has obtained the prior written approval of the LTA.
(1A) A person must not be appointed as a manager of, or become a partner in, a limited liability partnership that is a bus operator holding a Class 1 bus service licence, unless the licensee has obtained the prior written approval of the LTA.[Act 20 of 2024 wef 01/04/2025]
(2) A person must not become a partner in a partnership that is a bus operator holding a Class 1 bus service licence unless the person has obtained the prior written approval of the LTA.[Act 20 of 2024 wef 01/04/2025]
(2A) The LTA may —(a)
grant an approval under this section subject to any conditions that the LTA considers appropriate to impose; and
(b)
at any time add to, vary or revoke any condition so imposed.
[Act 20 of 2024 wef 01/04/2025]
(3) Where a person —(a)
is appointed or re-appointed by a bus operator holding a Class 1 bus service licence as its chief executive officer, its director or the chairperson of its board of directors, in contravention of subsection (1);
(b)
is removed as the chief executive officer or the chairperson of the board of directors or any of its directors, in contravention of subsection (1); or
(c)
is appointed a manager of or becomes a partner in a limited liability partnership in contravention of subsection (1A), or becomes a partner in a partnership in contravention of subsection (2),[Act 20 of 2024 wef 01/04/2025]
the LTA may issue a direction to the licensee to do as follows (whichever is applicable), and the licensee must comply with that direction:
(d)
to remove that individual from the individual’s appointment as the chief executive officer or a director or the chairperson of the board of directors of the licensee;
(e)
to reinstate the individual as the chief executive officer or a director or the chairperson of the board of directors of the licensee; or
(f)
to remove that manager or partner.[Act 20 of 2024 wef 01/04/2025]
[Act 20 of 2024 wef 01/04/2025]
(4) This section has effect despite the provisions of any other written law and the provisions of the memorandum or articles of association, limited liability partnership, partnership contract or other constitution, of the bus operator holding the Class 1 bus service licence.[Act 20 of 2024 wef 01/04/2025]
(5) Nothing in subsection (3) is to be taken as depriving a person who is removed under that subsection of compensation or damages payable to the person in respect of the termination of the person’s appointment as a chief executive officer, director or chairperson of the board of directors or the person’s removal as a manager or partner.[Act 20 of 2024 wef 01/04/2025]
(6) This section does not apply to or in relation to any bus operator holding a Class 1 bus service licence that has been designated as a designated operating entity, starting on its effective designation date and while it remains so designated.[Act 20 of 2024 wef 01/04/2025]
Restrictions on acquisition of essential operating assets
Open ↗20.—(1) A person must not acquire, on or after 22 January 2016, any essential operating asset for regular route services, or an interest in such an essential operating asset (whether or not the acquisition is by way of the enforcement of a loan security), unless —(a)
the person is a public bus operator holding a Class 1 bus service licence authorised to operate those regular route services; or
(b)
the LTA consents in writing to that acquisition.
(2) Any acquisition, or a purported acquisition of any essential operating asset for all or part of any regular route services, or of an interest in such an essential operating asset, in contravention of subsection (1) is void.
(3) In this section, “essential operating asset”, in relation to any regular route service in a public bus services contract, means any bus, plant, equipment, machinery or other property which —(a)
is used or intended to be used (and whether or not it is also used for other purposes) by a public bus operator holding a Class 1 bus service licence to provide the regular route services under that public bus services contract;
(b)
makes up part of the public bus system and is essential to the continuity of the regular route services under that public bus services contract; or
(c)
is designated an essential operating asset by or under that public bus services contract.
Restrictions on voluntary winding up, etc., of bus operators holding Class 1 bus service licences
Open ↗21.—(1) Despite any other written law —(a)
a bus operator holding a Class 1 bus service licence cannot be wound up voluntarily without the consent of the LTA;
(b)
a person must not make any application under section 210 of the Companies Act 1967 or section 71 of the Insolvency, Restructuring and Dissolution Act 2018 in relation to a bus operator holding a Class 1 bus service licence, unless that person has served 14 days’ notice in writing of that person’s intention to make that application on the LTA;
(c)
no judicial management order under Part 7 of the Insolvency, Restructuring and Dissolution Act 2018 may be made in relation to a bus operator holding a Class 1 bus service licence without the consent of the LTA;
(d)
no interim judicial manager or judicial manager may be appointed under section 94 of the Insolvency, Restructuring and Dissolution Act 2018 in respect of a bus operator holding a Class 1 bus service licence without the consent of the LTA;
(e)
a person must not take any step to enforce any security over the property of a bus operator holding a Class 1 bus service licence unless that person has served 14 days’ notice in writing of that person’s intention to take that step on the LTA; and
(f)
a person must not take any step to execute or enforce any judgment or order of court obtained against a bus operator holding a Class 1 bus service licence unless that person has served 14 days’ notice in writing of that person’s intention to take that step on the LTA.
(2) The LTA must be a party to —(a)
any proceedings relating to the making of an order under section 210 of the Companies Act 1967 or section 71 of the Insolvency, Restructuring and Dissolution Act 2018 in relation to a bus operator holding a Class 1 bus service licence;
(b)
any proceedings relating to the making of a judicial management order under Part 7 of the Insolvency, Restructuring and Dissolution Act 2018 in relation to a bus operator holding a Class 1 bus service licence; and
(c)
any proceedings under the Insolvency, Restructuring and Dissolution Act 2018 relating to the winding up of the affairs of a bus operator holding a Class 1 bus service licence.
(3) A court must, when deciding any proceedings mentioned in subsection (2), take into consideration any representations made by the LTA in those proceedings.
(4) This section does not apply to or in relation to any bus operator holding a Class 1 bus service licence that has been designated as a designated operating entity, starting on its effective designation date and while it remains so designated.
[Act 20 of 2024 wef 01/04/2025]
—(1) Despite any other written law —(a)
a bus operator holding a Class 1 bus service licence cannot be wound up voluntarily without the consent of the LTA;
(b)
a person must not make any application under section 210 of the Companies Act 1967 or section 71 of the Insolvency, Restructuring and Dissolution Act 2018 in relation to a bus operator holding a Class 1 bus service licence, unless that person has served 14 days’ notice in writing of that person’s intention to make that application on the LTA;
(c)
no judicial management order under Part 7 of the Insolvency, Restructuring and Dissolution Act 2018 may be made in relation to a bus operator holding a Class 1 bus service licence without the consent of the LTA;
(d)
no interim judicial manager or judicial manager may be appointed under section 94 of the Insolvency, Restructuring and Dissolution Act 2018 in respect of a bus operator holding a Class 1 bus service licence without the consent of the LTA;
(e)
a person must not take any step to enforce any security over the property of a bus operator holding a Class 1 bus service licence unless that person has served 14 days’ notice in writing of that person’s intention to take that step on the LTA; and
(f)
a person must not take any step to execute or enforce any judgment or order of court obtained against a bus operator holding a Class 1 bus service licence unless that person has served 14 days’ notice in writing of that person’s intention to take that step on the LTA.
(2) The LTA must be a party to —(a)
any proceedings relating to the making of an order under section 210 of the Companies Act 1967 or section 71 of the Insolvency, Restructuring and Dissolution Act 2018 in relation to a bus operator holding a Class 1 bus service licence;
(b)
any proceedings relating to the making of a judicial management order under Part 7 of the Insolvency, Restructuring and Dissolution Act 2018 in relation to a bus operator holding a Class 1 bus service licence; and
(c)
any proceedings under the Insolvency, Restructuring and Dissolution Act 2018 relating to the winding up of the affairs of a bus operator holding a Class 1 bus service licence.
(3) A court must, when deciding any proceedings mentioned in subsection (2), take into consideration any representations made by the LTA in those proceedings.
(4) This section does not apply to or in relation to any bus operator holding a Class 1 bus service licence that has been designated as a designated operating entity, starting on its effective designation date and while it remains so designated.
Source: Singapore Statutes Online (Attorney-General's Chambers), © Government of Singapore.
