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Application of this Part
29. This Part applies only in relation to the following (called in this Part the relevant licensee):(a) a bus operator holding a Class 1 bus service licence; (b) a licensee holding a bus depot licence or a bus interchange licence.
Step-in order
30.—(1) The Minister may make an order under this section (called a step‑in order) if —(a) the licence of a relevant licensee is suspended, revoked or surrendered; or (b) the public bus services contract to which a relevant licensee is party is terminated or suspended, and on receipt of the written advice from the LTA of its opinion that it is necessary to take over some or all of the operations of the relevant licensee to ensure that the relevant licensee’s customers receive an adequate provision of those services. (2) Before a step-in order is made under this section, the Minister must give the relevant licensee concerned a reasonable opportunity to make submissions in respect of the proposed step-in order. (3) A step-in order —(a) authorises the LTA to directly take over, or to enter into an interim services contract with a step-in operator to take over, the operations of the relevant licensee concerned, or a specified part of those operations; (b) may appoint, or order the relevant licensee concerned to appoint, a person to advise the relevant licensee in the proper conduct of its business; (c) may specify that —(i) the step-in operator has such functions and powers in relation to the operations of the relevant licensee concerned as are specified in the order; (ii) the relevant licensee concerned is to stop operating a bus depot or bus interchange for, or providing regular route services to, specified customers on and from a specified date; and (iii) the step-in operator must have access to, and take control of, the buses or premises or other assets and other property, including intellectual property, licences and employees, used or required by the relevant licensee for the purposes of carrying on the operations specified in the order; and (d) may contain ancillary directions that may —(i) direct how the costs of carrying on the bus operations or bus depot or bus interchange operations (as the case may be), and revenue generated from those operations, are to be dealt with; (ii) fix the remuneration and expenses to be paid by a relevant licensee to any person appointed by the Minister under paragraph (b) to advise the relevant licensee in the proper conduct of its business; (iii) specify the period for which the step-in order under subsection (1) applies; and (iv) specify any other conditions that may apply. (4) Any decision of the Minister under subsection (1) is final. (5) A step-in order operates to the exclusion of rights that are inconsistent with the step-in order. (6) The relevant licensee concerned —(a) must facilitate the handover of the operations to the step‑in operator as specified in the order; (b) must not obstruct the step-in operator’s access to property or the exercise by the step‑in operator of the step‑in operator’s responsibilities under this section; and (c) must comply with reasonable directions given by the step‑in operator in the exercise of the step‑in operator’s responsibilities under this section. (7) The relevant licensee which fails to comply with subsection (6) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000 and, in the case of a continuing offence, to a further fine not exceeding $100 for every day or part of a day during which the offence continues after conviction.
Other provisions in step-in arrangements
31.—(1) Without affecting section 30(3), where financial assistance is provided by the Government to a relevant licensee for the purpose of maintaining the reliability of the supply of services by the relevant licensee, a step-in order may do one or more of the following:(a) in relation to all or any securities of a specified description that have been issued by the relevant licensee, make provision for or in connection with or in consequence of the transfer of shares or securities in the relevant licensee to any of the prescribed transferees, including the extinguishment of rights of any specified description to subscribe for, or otherwise acquire, securities of the operator concerned or any of its subsidiaries; and (b) make provision for or in connection with or in consequence of the transfer of property, rights or liabilities of the relevant licensee to any of the prescribed transferees. (2) A step-in order as described in subsection (1)(a) or (b) may contain any of the particular kinds of provisions as may be prescribed by the Minister by rules in the Gazette. (3) If a step‑in order as described in subsection (1)(a) or (b) is made, the Minister must, within 3 months after the making of the step‑in order, by notification in the Gazette, establish a scheme for determining the amount of any compensation payable by the relevant prescribed transferee —(a) to persons who held the shares or securities immediately before they were so transferred; (b) to persons whose rights of any specified description to subscribe for, or otherwise acquire, securities are extinguished; or (c) to the operator whose property, rights or liabilities have been transferred, as the case may be. (4) Any scheme established under subsection (3) may make provision —(a) for the manner in which any compensation or consideration is to be assessed, including the methods of calculation, valuation dates and matters to be taken into, or left out of, account in making valuations; and (b) for the assessment to be made by an independent valuer appointed by the Minister and as to the remuneration and expenses of that independent valuer. (5) In subsection (1), “prescribed transferee” means —(a) the LTA; (b) a company that is wholly‑owned by the Government; or (c) a nominee of the LTA.
Interim services contracts
32.—(1) The LTA may enter into an interim services contract with any person if the LTA is satisfied that the contract is necessary to ensure the continuity of any regular route services or the operation of a bus depot or bus interchange for the time being discontinued —(a) to ensure the continuity of regular route services or the operation of a bus depot or bus interchange in an interim period; or (b) to provide regular route services or the operation of a bus depot or bus interchange temporarily, in place of regular route services or the operation of a bus depot or bus interchange by a relevant licensee because of the suspension or revocation of the relevant licensee’s licence or the termination of the relevant licensee’s public bus services contract. (2) The LTA may invite offers from the public, in any way the LTA considers appropriate, for an interim services contract, except that the LTA may enter into an interim services contract without inviting offers for the contract if the LTA is satisfied that the contract is necessary as a matter of urgency. (3) An interim services contract is for a term of —(a) not more than 12 months as decided by the LTA if the LTA entered into the interim services contract without inviting offers for the contract; or (b) not more than 2 years as decided by the LTA in any other case.
Rules and saving for step-in arrangements
33.—(1) The Minister may, by rules in the Gazette, give effect to this Part, including making provision for applying, omitting or modifying the provisions of Parts 7 and 9 of the Insolvency, Restructuring and Dissolution Act 2018 where a step‑in order is made.[40/2018] [Act 31 of 2022 wef 01/11/2022] (2) Nothing effected or to be effected by this Part or done under this Part —(a) is to be regarded as placing any person in breach of contract or confidence or as otherwise making any person guilty of a civil wrong; (b) is to be regarded as placing any person in breach of, or as constituting a default under, any Act or other law or obligation or any provision in any agreement, arrangement or understanding including, but not limited to, any provision or obligation prohibiting, restricting or regulating the assignment, transfer, sale or disposal of any property or the disclosure of any information; (c) is to be regarded as fulfilling any condition that allows a person to exercise a power, right or remedy in respect of or to terminate any agreement or obligation; (d) is to be regarded as giving rise to any remedy for a party to a contract or an instrument or as causing or permitting the termination of any contract or instrument because of a change in the beneficial or legal ownership of any relevant property; (e) is to be regarded as causing any contract or instrument to be void or otherwise unenforceable, or as frustrating any contract; or (f) releases any surety or other obligor wholly or in part from any obligation.
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Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. Read the official text ↗
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