Business Trusts Act (Cap 31A)

Abstract

As explained by the Minister for Education and Deputy Chairman of the Monetary Authority of Singapore Mr. Tharman Shanmugaratnam in the Second Reading speech in Parliament on the Business Trusts Bill, business trusts are distinct from both companies and traditional trusts. Like a company, a business trust operates and runs a business enterprise. But unlike a company, a business trust is not a separate legal entity. It is created by a trust deed under which the trustee has legal ownership of the trust assets and manages the assets for the benefit of the beneficiaries of the trust. However, a business trust differs from traditional trusts - such as private trusts and unit trusts - in that it is running and operating a business enterprise.

Keywords: Business Trusts, Company Law