Published Date: 12 March 2024

Business Trusts (Amendment) Act 2022 (Commencement) Notification 2024

Notification to commence Sections 2(a), (d), (f), (g), (i) and (j), 4 to 10, 12 to 16, 21 to 27, 39, 40(a) and (c) to (i), 44, 47, 50, 51, 53, 54, 55, 57, 59(b), 60(b) and 63(1) and (4) of the Business Trusts (Amendment) Act 2022.

Business Trusts (Amendment) Act 2022

The Business Trusts (Amendment) Act 2022 (“BT(A)A”) amends the Business Trusts Act 2005 (“BTA”) to align the provisions under the BTA with the relevant provisions under the Companies Act 1967, strengthen governance safeguards for registered business trusts, and streamline certain regulatory requirements.

The BT(A)A was passed by Parliament on 3 October 2022 and assented to by the President on 25 October 2022.

The BT(A)A will be implemented in 2 phases. Key amendments that will be implemented in Phase 1 include provisions relating to written resolutions and meetings of unitholders of the business trust, CEO’s disclosure of interests in transactions undertaken by the business trust and the court’s power to order a buy-out remedy in lieu of liquidation.

Phase 1 will commence on 12 March 2024. Please refer to the Business Trusts (Amendment) Act 2022 (Commencement) Notification 2024 (No. S 203), as set out above, for details.

Phase 2 will implement provisions that will be brought into effect concurrently with supporting subsidiary legislation. The public consultation on the supporting subsidiary legislation for Phase 2 is targeted to take place in 2Q2024, and to be implemented in 4Q2024.

Resource: Business Trusts (Amendment) Act 2022