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Why are certain people barred from becoming Company Directors?

The role of the company director is one of utmost importance in any company. This is because the company director is the only one who can perform certain tasks that no one else can. These tasks typically relate to the company’s general affairs. Directors are also usually tasked with making the most important business decisions, as well as monitoring officers’ activities. A director’s duties are divided into fiduciary and statutory duties; all duties in either category must be carried out to keep the company running at an optimal level.  

However, according to the existing laws in Singapore, not everyone is allowed to be a company director. The laws specify certain classes of people to whom this ban applies. There are certain valid reasons for this. 


People Not Allowed to Be Company Directors

One of the most important criteria for becoming a company director is that of being a natural person. This implies that a company director may not be a business entity or a company. Those who are not Singapore residents, including citizens, permanent residents, and those holding a valid work pass, may not take the position. People below 18 years old, who are not of sound mind, who are bankrupt, who have been convicted of fraud or other offenses related to corporate dishonesty, or who have been the director of a failed company are also barred from being company directors. 


Reasons Why Certain People May Not Be Company Directors

Companies and business entities are not allowed to be the directors of a company. This is because there is a risk that companies and business entities may choose to act in their own best interests instead of those of the company they would have overseen. The Singaporean government bars non-residents from being company directors because they fear that people who are opposed to the success of the country’s economy might infiltrate a Singapore company and deliberately cause its failure. Those below 18 years old would not yet have completed their education and would therefore lack the requisite knowledge, education, or skills. People who are not of sound mind might unintentionally make decisions that would jeopardize the success of the company. Bankrupts and directors of failed companies have already proven that they cannot be trusted to properly manage large sums of money, as they would if they were to become a company director. Finally, it should be obvious as to why those convicted of fraud or other forms of dishonesty are barred from being company directors. Such people have not only proven their dishonesty and lack of moral character, but they would also bring their tarnished reputation with them when joining the company. By doing so, they would in turn harm the company’s reputation and credibility. 

Anyone who has plans to become the director of a company in Singapore should consider their eligibility to do so. Those who are eligible, capable, and competent should apply for such a position because such people would create positive outcomes for the company and subsequently, the Singaporean economy. 


Paul Hype Page & Co – Acra service provider and Asean Chartered Accountant.

Paul Hype Page & Co. have 3 physical offices in Singapore, Malaysia and Indonesia

Our Firm Goal is to assist Foreigner and Foreign Companies to set up business in Asean.


How we can help you:

We will call you back, please click below link and make appointment with our Sales consultant:



Step 1- Listen to your Business plan and Relocation needs.

Step 2- Analysis your Singapore Tax Planning

Step 3- Recommend the most suited type of Company Incorporation , Open Bank account  and

Work Visa

Step 4- Arrange for your Spouse and Children Visa

Step 5- Assist as your company to hire staffs and handle all HR matters

Step 6-  Every financial year end, we assist you with your yearly Acra Financial and Tax Compliance

Step 7- Assist you to expand business to Malaysia, Indonesia , Vietnam and Thailand.

Get in Touch with Us Today.

Paul Hype Page


Posted on July 1, 2019 at 9:50 am
Categories: FAQ

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