Appointment of auditors
13.—(1) Every licensed housing developer must appoint annually an auditor whose duties are to make a report upon the annual accounts of the housing developer.
(2) The auditor must in every such report state in the auditor’s opinion whether —(a)
the accounts are fully and fairly and properly drawn up;
(b)
the accounts exhibit a true and correct statement of the licensed housing developer’s affairs; and
(c)
if the auditor has called for explanation or information from the officers or agents of the licensed housing developer, the explanation or information has been satisfactory.[15/2013]
(3) If a licensed housing developer fails to appoint an auditor under subsection (1) or at any time fails to fill a vacancy for an auditor, the Minister has power to appoint an auditor and may fix the remuneration to be paid by the licensed housing developer to the auditor.
(4) The following persons are not eligible for appointment as an auditor for a licensed housing developer:(a)
a person having an interest in the business of the licensed housing developer, as a shareholder or otherwise;
(b)
a director, officer, employee or agent of the licensed housing developer.
(5) Any person appointed as an auditor to a licensed housing developer must forthwith cease to be its auditor if, after such appointment, the person —(a)
acquires an interest in the business of the licensed housing developer as a shareholder or otherwise; or
(b)
becomes a director, officer, employee or agent of the licensed housing developer.
(6) The duties, powers and liabilities imposed and conferred under section 16 in relation to an investigation by the Controller or an inspector of the affairs of a licensed housing developer under section 14 or 15 are imposed and conferred upon auditors appointed under this section.
Application of Companies Act 1967
13A.—(1) Sections 162 and 163 of the Companies Act 1967 apply to a licensed housing developer which is an exempt private company subject to the modification that any reference in those sections to an exempt private company does not include a reference to the licensed housing developer; and every such licensed housing developer must comply with the prohibitions in section 162 (relating to loans to its directors) and section 163 (relating to loans to persons connected with the directors of the lending company) of that Act as if it were not an exempt private company.[15/2013]
(2) In this section, “exempt private company” has the meaning given by section 4(1) of the Companies Act 1967.[15/2013]
Controller or inspector may investigate licensed housing developers
14.—(1) The Controller or an inspector may investigate, under conditions of secrecy, the books, accounts and transactions of each licensed housing developer.[Act 54 of 2018 wef 28/06/2023]
(2) In particular, in order to ascertain whether Part 3A, or any rules made under section 22 for the prevention of money laundering, proliferation financing and terrorism financing, or for the reporting of transactions which may involve money laundering, proliferation financing or terrorism financing, necessary or expedient to give effect to any relevant FATF Recommendation, is being complied with, the Controller may, on the Controller’s own motion or upon receiving any written complaint, require a licensed housing developer, or a partner or director of or other person holding a responsible position in a licensed housing developer which is not an individual or a sole proprietorship —(a)
to produce any document; or
(b)
to provide any information,
to the Controller, an inspector or any person appointed by the Controller.
[Act 54 of 2018 wef 28/06/2023]
[Act 15 of 2025 wef 01/07/2025]
(3) The Controller, an inspector or the person appointed by the Controller under subsection (2) may —(a)
retain the document provided and make and retain copies of the document; and
(b)
record the information provided.[Act 54 of 2018 wef 28/06/2023]
(4) The Controller may use the document or information obtained as a basis, or disclose the document, information or explanation, for all or any of the following purposes: (a)
an investigation of any criminal offence, and any subsequent criminal proceedings, under this Act or any other written law;
(b)
any regulatory action under section 7 against a licensed housing developer.[Act 54 of 2018 wef 28/06/2023]
(5) A person —(a)
who intentionally alters, suppresses or destroys any document or information which the person has been required under this section to produce or provide; or
(b)
who, in producing any document or providing any information required under this section, makes any statement which the person knows or ought reasonably to know that, or is reckless as to whether, it is false or misleading in a material particular,
shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000.
[Act 54 of 2018 wef 28/06/2023]
(6) Any power under this section to require a person to produce any document or to provide information includes the power —(a)
to take reasonable steps to require the person to produce the document or provide the information immediately or at a place and time specified in writing;
(b)
to require the person to provide an explanation of the document or information;
(c)
if the document or information is not produced or provided, to require the person to state, to the best of the person’s knowledge and belief, where the document or information is; and
(d)
if the information is recorded in electronic form or otherwise than in legible form, to require the information to be made available in the form or format specified by the Controller, inspector or the person appointed by the Controller under subsection (2), or in a legible form.[Act 54 of 2018 wef 28/06/2023]
Special investigation of licensed housing developers
15. The Minister may at any time direct the Controller or any inspector to make an investigation, under conditions of secrecy, of the books, accounts and transactions of a licensed housing developer, if the Minister has reason to believe that a licensed housing developer —(a)
is carrying on its business in a manner detrimental to the purchasers or other persons dealing with the licensed housing developer;
(b)
has insufficient assets to cover its liabilities; or
(c)
is contravening any of the provisions of this Act or any rules made under this Act.[15/2013]
Examination of affairs of licensed housing developer
16.—(1) The Minister may cause an investigation, under conditions of secrecy, to be made by the Controller or an inspector of the affairs of a licensed housing developer on the application of at least 5 purchasers.
(2) Such an application must be supported by such evidence as the Minister may require to be satisfied that the applicants have good reason for requiring an investigation.
(3) The Minister may also require the applicants to give such security as the Minister may consider sufficient to pay the costs of any investigation.
Production of books, accounts and documents of licensed housing developer
17.—(1) For the purposes of an investigation under sections 14, 15 and 16, a licensed housing developer must give the Controller or an inspector access to its books, accounts and documents and must give any information and facilities that may be required to conduct the investigation.
(2) Any licensed housing developer that does not, as is required under subsection (1), give the Controller or an inspector access to its books, accounts and documents or give any information and facilities that may be required to conduct an investigation shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 and to a further fine not exceeding $5,000 for every day during which the offence continues after conviction.[15/2013]
Investigation and enforcement powers in relation to show units
17A.—(1) For the purpose of ascertaining whether a licensed housing developer has complied with any provision of this Act or any rules made under this Act, any condition attached to its licence granted under section 4(5) or any direction issued by the Controller under subsection (3) in relation to any show unit, the Controller may —(a)
enter, inspect and examine, at any reasonable time, any premises which are used or proposed to be used as or to display the show unit;
(b)
take any measurements, photographs and video recordings of the premises (including anything in the premises) that he or she thinks fit; and
(c)
take and retain any article, material, model, map, plan or document, or any sample or copy thereof, in the premises as he or she thinks fit.[15/2013]
(2) The licensed housing developer and the occupier of the premises must give the Controller such information, cooperation and means as the Controller may require for the exercise of any of his or her powers under subsection (1).[15/2013]
(3) If the Controller is of the opinion that a licensed housing developer has not complied with any provision of this Act or any rules made under this Act or any condition attached to its licence granted under section 4(5) in relation to any show unit, the Controller may direct the licensed housing developer —(a)
to take any action that the Controller may consider necessary to rectify any matter relating to the show unit;
(b)
to publish, display or disseminate any information relating to the show unit or the building project connected with the show unit, in the form and manner and within the time, that the Controller may determine; or
(c)
to refrain from displaying or advertising, or cease any display or advertisement of, the show unit until the Controller is satisfied that the licensed housing developer has taken all such actions directed by the Controller under this subsection. [15/2013]
(4) Any person who —(a)
obstructs or delays the Controller in the exercise of any of his or her powers under subsection (1); or
(b)
fails to comply with any requirement of the Controller under subsection (2),
shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 6 months or to both.
[15/2013]
(5) Any person who fails to comply with any direction of the Controller under subsection (3) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000.[15/2013]
(6) In this section, the reference to the Controller includes a reference to an inspector.[15/2013]
Action by Minister if licensed housing developer unable to meet obligations or is conducting business to the detriment of purchasers or the public
18.—(1) Where —(a)
a licensed housing developer informs the Controller —(i)
that it considers that it is likely to become unable to meet its obligations; or
(ii)
that it is about to suspend building operations;
(b)
a licensed housing developer becomes unable to meet its obligations to the purchasers or the public;
(c)
after investigation is made under section 14, 15 or 16, the Controller is of the opinion that a licensed housing developer —(i)
is likely to become unable to meet its obligations to the purchasers or the public; or
(ii)
is carrying on its business in a manner detrimental to the interests of the purchasers or to the public; or
(d)
the licence of a housing developer has been revoked under section 7(1),
the Minister may take any action that he or she may consider necessary in the circumstances.
(2) Without limiting subsection (1), the Minister may for the purposes of taking action under subsection (1) —(a)
require the licensed housing developer or housing developer (as the case may be) to take any steps that he or she may consider necessary to rectify any matter;
(b)
appoint a person to advise the licensed housing developer or housing developer (as the case may be) in the conduct of its business or winding up of its business;
(c)
direct a company or statutory board to assume control and carry on the business of the licensed housing developer or housing developer (as the case may be) on any terms and conditions that the Minister may determine; or
(d)
direct the licensed housing developer to apply to the General Division of the High Court for the winding up of the business of the licensed housing developer or housing developer, as the case may be.[42/2005; 40/2019]
Control of licensed housing developer by company or statutory board
19.—(1) Where a company or statutory board has assumed control of the business of a licensed housing developer under section 18(2)(c), the company or statutory board is, subject to subsection (2), to remain in control of and continue to carry on the business of the licensed housing developer for the time that the Minister may by written order direct.
(2) Where a company or statutory board has assumed control of the business of a licensed housing developer under section 18(2)(c) or ceases to control the business of a licensed housing developer under this section, the Controller must notify that fact in the Gazette.
Punishment for failure to comply with directions of Minister
20. A licensed housing developer or housing developer (as the case may be) that fails to —(a)
take any steps that the Minister may require under section 18(2)(a);
(b)
act in accordance with the advice given by a person appointed by the Minister under section 18(2)(b); or
(c)
apply to the General Division of the High Court for the winding up of its business in accordance with a direction made by the Minister under section 18(2)(d),
shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 and to a further fine not exceeding $5,000 for every day during which the offence continues after conviction.
[42/2005; 15/2013; 40/2019]
Licensed housing developer under control of company or statutory board to cooperate with company or statutory board and Controller
21.—(1) Where a company or statutory board has assumed control of the business of a licensed housing developer under section 18(2)(c), the licensed housing developer must submit its business to the control of the company or statutory board and must give the company or statutory board any facilities that the Controller may require to carry on the business of that licensed housing developer.
(2) Any licensed housing developer that fails to comply with subsection (1) or with any requirement of the Controller under that subsection shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 and to a further fine not exceeding $5,000 for every day during which the offence continues after conviction.[15/2013]
Source: Singapore Statutes Online (Attorney-General's Chambers), © Government of Singapore.
