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What is the difference between directors’ direct interest and deemed interest; and
What is the rationale behind the disclosure of director’s deemed interest?
A ‘deemed interest” is an expression that is new to me but, when I search the expression in google, I find:
“The Companies Act requires a director of a Singapore company to make disclosures of his dealings in the company’s securities. This includes not only securities in which he has a direct interest, but also securities in which he has a deemed interest. A ‘deemed interest’ is one which may not be held in the name of a director but which the law regards as being attributable to him.”
From this, do I assume that you are a student in Singapore?
And does the above extract from the internet explain the difference sufficiently for you?
If you follow this link
you’ll find that there’s a diagram representing the situation where a director holds a deemed interest
Without becoming familiar with Singaporean company law, in particular section 7 of the Companies Act, I assume the rationale for requiring disclosure is a furtherance of the objective of transparency – it seeks to prevent the situation where directors could influence companies into entering transactions where those directors hold an indirect (or deemed) interest
OK?
Thank you so much, Mike!
Would need some time digesting this. I’m from Malaysia =)
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