In the current economic climate, especially during the situation of the pandemic, many businesses are looking for rescheduling and restructuring possibilities. These techniques may help you to streamline businesses with improved efficiencies while dealing with financial difficulties. With adequate corporate restructuring advice, you can deal with all legal issues and cross-border restructuring.
Singapore businesses’ situations in 2023
The recent projections from the ministry of trade and industry in Singapore reveal that the global market may grow by approximately 0.5% to 2.5% in the year 2023. Furthermore, the ministry narrowed the GDP projection for 2023 stating that it may be around 3.5% in comparison to the earlier forecast of 3 – 4%. This prediction shows a considerable decline from the 7.6% growth reported in 2021, possibly due to the extended pandemic situation.
The businesses have experienced several negative consequences in the past few years; but in the year 2023, the condition may improve. However, another main concern is the war conditions between several major global powers. The businesses also need to stay prepared for corporate restructuring Singapore. The local agencies may help you to deal with the negative consequences and debt-related problems.
Important items all businesses should consider when planning a corporate restructuring Singapore
There are several important points that businesses need to keep in mind while planning to restructure. A few of them are listed below to help you grow:
- Company law framework
The restructuring process may require a corporate reorganization and the first thing you need to consider in this process is relevant company law permits. It may help you to understand the concept of asset and liability transfer, insolvent liquidation, reduction of capital, and amalgamation.
- Directors’ duties
The duties of directors may usually vary from one jurisdiction to another but in most common conditions, directors may need to consider the interest of shareholders. Boards are generally advised to get early support on matters so that they can avoid any wrongful act in insolvency procedures. Directors may be also responsible for contributing to company assets to some extent when needed.
- Intra-group transactions
The internal group restructuring process always needs some intra-group interactions. The idea is to analyze all transaction details including fair value, book value, and received considerations as well. The directors may also need to deal with contract-related restrictions while managing employee transfers.
- Reallocation of capital
The main reason to restructure is to reallocate capital carefully among different businesses and groups. You can consider using corporate restructuring advice from professionals to ensure you meet all regulatory conditions. As per the requirements of your jurisdiction, you also need to maintain accounting and tax-related implications.
New rules for cross-border corporate insolvency, restructuring, and dissolution matters
There are plenty of rules that you need to consider; mainly key changes advised by Singapore International Commercial Court, foreign lawyer participation in insolvency, and concerns related to crypto filings. New rules also focus on the cross border matters. The professionals at corporate restructuring Singapore can guide you better in dealing with financial difficulties.