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MOM · PDF

EP Secondary Directorship Factsheet: Related and Unrelated Companies

Why a second directorship is work, and how shareholding relationships or agency support affect LOC.

Source reviewed:

A directorship is an additional work activity

An EP ordinarily permits work only for the named employer. Executive and non-executive directors of another company must perform Companies Act duties; that is work requiring permission. The factsheet requires an approved LOC under regulation 11 of the Employment of Foreign Manpower (Work Passes) Regulations 2012 before undertaking that appointment.

Corporate shareholding relationships

MOM generally grants LOC for related-company appointments that may be important to the primary role, and may also consider indirect relationships. The requesting secondary employer must supply an organisation chart explaining the link. The two diagrams show the following structures; related entities other than the primary employer may be considered.

ScenarioShareholding structurePrimary employer
1A holds B and C; C holds D directly or indirectlyB; A, C and D are other related entities
2A holds B directly or indirectlyA; B is the related secondary entity

Unrelated company appointments

For an unrelated company, MOM relies on the assessment of the government sector agency regulating or promoting that industry. An LOC may be granted if that agency supports the application. This is a discretionary consideration, not automatic permission for every external board position.

Official source

Written independently from official MOM source material.

MOM official source ↗

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