What is an Employee Stock Option Plan (ESOP)

An Employee Stock Option Plan (ESOP) is a form of Employee Share Ownership. An Employee Stock Option Plan gives employees the right to purchase shares of the company at a predetermined price within a particular time frame. There are a variety of reasons for implementing an ESOP in a company. An ESOP may be used [...]

2019-08-18T16:27:15+08:00August 18th, 2019|What Is...|

What is a sole proprietorship

A sole proprietorship is a business that is owned by an individual. There are no other individuals involved in this business. The three characteristics that define a sole proprietorship are: 1) It is not a separate legal entity from the business owner When dealing with a sole proprietorship, it is akin to dealing with the [...]

2019-08-18T16:24:34+08:00August 8th, 2019|What Is...|

What is a shareholder agreement

A shareholder agreement is a document signed between shareholders of a company that supplements and complements the constitution of a company. A shareholder agreement may or may not be between all of the shareholders. It can be signed among some of the shareholders. It may also be signed between the shareholders and the company. One [...]

2019-05-29T13:36:50+08:00May 29th, 2019|What Is...|

What is a Share Certificate

A share certificate is proof of ownership of a company's shares. The persons holding the share certificates are the shareholders of the company. Shareholders are commonly referred to as owners. The preparation and issuance of a share certificate are usually done by the company secretary. The share certificate must be issued in accordance with the [...]

2019-03-01T09:40:39+08:00March 1st, 2019|What Is...|

What is a Special Resolution

There are two types of shareholders resolutions. Ordinary Resolution Special Resolution A Special Resolution is a resolution whereby the votes cast in favour of the resolution is at least three times higher than the votes cast against it. Therefore, 75 per cent of the votes is required to be cast to pass a special resolution. If [...]

2019-02-27T15:33:39+08:00February 26th, 2019|What Is...|

What is an Ordinary Resolution

There are two types of shareholders resolutions. Ordinary Resolution Special Resolution An ordinary resolution is a resolution whereby the votes that are cast in support of the resolution exceeds the votes that are cast against it. In short, the resolution needs more than 50 per cent of the votes to be passed. If there are [...]

2019-02-27T15:35:24+08:00February 25th, 2019|What Is...|

What is the Register of Nominee Directors

From 31st March 2017, it is compulsory for all companies, unless exempted, to have a Register of Controllers and a Register of Nominee Directors. The Accounting and Corporate Regulatory Authority (ACRA) or relevant government bodies like the police can compel a company to hand over these registers for inspection. If these registers are found not to [...]

2019-02-27T15:45:58+08:00February 20th, 2019|What Is...|