4 Key Changes from ACRA effective 6 May 2026

Singapore's corporate governance landscape is shifting. The Corporate and Accounting Laws (Amendment) Act 2025 commences in phases, with selected provisions taking effect on 6 May 2026.

Whether you're a company director, public accountant, or shareholder, these changes directly affect you. Here's a breakdown of the four key amendments — and what they mean in practice.

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1. Heavier Penalties for Directors

The days of light penalties for director misconduct are over.

Maximum fines for directors who breach their duties — such as failing to act in the company's best interests or not exercising reasonable diligence — have been raised from $5,000 to $20,000. For serious offences, directors may now face both fines and imprisonment of up to 12 months.

This is a clear signal from the regulator: directorship is not a ceremonial role. It comes with real accountability.

Takeaway: Directors must ensure they are actively engaged, informed, and acting in the best interests of their companies. Passive oversight is no longer sufficient.

Singapore Raises the Bar: 4 Key Changes Under the Corporate and Accounting Laws (Amendment) Act 2025

Effective 6 May 2026 — what every director, accountant, and business owner needs to know.

2. Stronger Safeguards Against Money Laundering

To reinforce Singapore's anti-money laundering (AML) regime, individuals convicted of money laundering offences under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992 will now be automatically disqualified from acting as directors.

This expands the existing list of disqualifying offences, tightening the gate against bad actors gaining access to company leadership roles.

Takeaway: Companies and corporate service providers should review their director appointment processes and ensure proper due diligence checks are in place.

3. Named Accountability in Audit Reports

Transparency is coming to the audit profession.

Going forward, audit reports must identify by name the public accountant primarily responsible for the audit engagement. Previously, reports were typically signed off by accounting firms without naming the individual auditor — even though that information was available in ACRA's register on Bizfile.

This change promotes personal accountability and helps stakeholders understand who stands behind an audit opinion.

Takeaway: Public accountants should be aware that their professional reputation is now more directly tied to the audit reports they sign. This is a positive development for audit quality and public trust.

4. Two-Tier Approval for Selective Share Buy-Backs

Shareholders get stronger protection when companies seek to buy back shares from select shareholders rather than all shareholders.

Under the new rules, a two-tier approval process applies to selective off-market share purchases:

• Tier 1: The existing 75% approval from all shareholders (excluding those selling) remains.

• Tier 2 (New): An additional 75% approval is now required from shareholders holding the same class of shares being bought back (excluding those selling).

This ensures that shareholders most directly affected by the buy-back — those in the same share class — have a meaningful voice in the decision.

Takeaway: Companies planning selective share buy-backs will need to plan ahead for the additional approval step. Legal and corporate secretarial teams should update their processes accordingly.

What Should You Do Now?

With the 6 May 2026 commencement date approaching, here are immediate steps to consider:

• Directors: Review your obligations and ensure you are meeting your duties actively and diligently.

• Compliance teams: Update AML due diligence procedures for director appointments.

• Audit firms: Prepare for the transition to named auditor disclosures in reports.

• Corporate secretaries & legal counsel: Revise share buy-back documentation and approval frameworks.

Singapore continues to position itself as a well-governed, transparent business hub. These amendments reflect a commitment to raising standards — not just on paper, but in practice.

Have further queries?

As Singapore continues to strengthen its corporate governance framework under the Accounting and Corporate Regulatory Authority, businesses should take a proactive approach in reviewing their structures, governance practices, and compliance readiness.

If you would like to understand how these changes may impact your company or group structure, please feel free to reach out to us. Our team would be happy to support you in navigating these developments with clarity and confidence.