Singapore: Taking Up Secondary Directorship for Employment Pass Holders
The Ministry of Manpower (MOM) has announced new rules in place for companies appointing Employment Pass (EP) holders as directors. Eligible companies can appoint EP holders from another related company to their Board of Directors, but with an Letter of Consent (LOC) from the MOM. In other words, the LOC must be obtained first before the EP holder takes up any secondary directorship.
Generally, MOM will grant an LOC in the event of approval
- If the company is “related by shareholding” to the employment pass holder’s employer and
- If the pass holder’s appointment is related to his or her primary employment in Singapore.
The recently announced new requirements will apply prospectively,
- Those companies who had appointed EP holders from other companies as their directors must apply a consent letter for the pass holder.
- LOC must be renewed in the case that the employee is to continue serving as a company director.
New rules at a glance:
- Who is eligible: Employers seeking to appoint EP holders to their board of directors.
- How long does it takes: within 5 weeks
How to apply for LOC:
- Make sure that your company has an updated shareholding records with ACRA.
- Complete and sign the request form.
- Submit a scanned copy of the signed form using iSubmit
