Key changes under the Corporate and Accounting Laws (Amendment) Act 2025 took effect on 6 May 2026, tightening accountability for directors and auditors in several specific ways. If you haven’t reviewed your company’s practices against these changes yet, here’s what changed.
1) Director penalties increased substantially.
The maximum fine for a director failing to exercise reasonable diligence rose from S$5,000 to S$20,000, a fourfold increase, and the penalty can now include imprisonment of up to 12 months. ACRA’s commencement notice for the Act sets out the detail.
2) The list of disqualifying offences expanded.
Directors convicted of money laundering offences are now disqualified, and the broader list of offences that trigger disqualification has been widened. This matters most to anyone serving as a director across multiple companies, since disqualification removes them from all directorships, not just the one connected to the offence.
3) Audit reports now have to name the responsible auditor.
Audit reports must identify, by name, the public accountant primarily responsible for the engagement, rather than attributing an audit solely to the audit firm. Individual accountability now attaches to a named person, not just the firm’s reputation.
4) Share buybacks need dual approval.
A selective off-market share buyback now needs the existing 75% shareholder approval plus a separate 75% approval from the holders of the same class of shares, unless the whole class is being bought back. The change is designed to protect minority holders.
5) What this means practically.
If your company has directors who aren’t closely tracking regulatory changes, or an audit relationship that hasn’t been reviewed against these transparency requirements, this is worth a proper compliance check rather than assuming existing practices already satisfy the updated rules.