Amendment to Section 157 of the Companies Act 1967

The Corporate and Accounting Laws (Amendment) Bill (the “Bill”), which will come into effect from April 2026, makes amendments to the Accounting and Corporate Regulatory Authority Act 2004, the Accountants Act 2004, the Companies Act 1967 (“CA”), the Insolvency, Restructuring and Dissolution Act 2018, the Limited Liability Partnerships Act 2005, the Limited Partnerships Act 2008 and the Variable Capital Companies Act 2018. The Bill also makes consequential and related amendments to the ACRA (Registry and Regulatory Enhancements) Act 2024, the Exchanges (Demutualisation and Merger) Act 1999 and the Securities and Futures Act 2001.

Specifically to Section 157 of the CA, the Bill’s amendments increase the penalties for directors who breach their statutory duties to act honestly and exercise reasonable diligence to serve as a stronger deterrent. The increased penalties include a maximum fine of S$20,000 or imprisonment for a term not exceeding 12 months, or both. Please refer to the table below for an easy comparison:

CA	Pre-April 2026	From April 2026
Section 157	Maximum fine of S$5,000; or Imprisonment for up to 12 months	Maximum fine of S$20,000; or Imprisonment for a term not exceeding 12 months; or Both

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