GIC is incorporated under the Companies Act and wholly owned by the Government of Singapore. However, as it manages government assets and the country's reserves, GIC has been designated, under the Constitution of Singapore, as a "Fifth Schedule" company.
Several consequences arise from GIC's status as a "Fifth Schedule" company. Firstly, the appointment or removal of GIC's Directors and Group Managing Director requires the assent of the President of Singapore. Where the President, in the exercise of his discretion, does not give his concurrence, his decision can be overruled only if
| (a) |
it is contrary to the recommendation of the Council of Presidential Advisers; and |
| (b) |
Parliament resolves to overrule his decision, with a majority of at least two-thirds. |
Secondly, GIC must submit its financial statements and proposed budget to the President for approval. These financial amounts are to be accompanied by a declaration by the Chairman of the Board and the Group Managing Director on whether there has been, or is likely to be, any drawing on reserves not accumulated by the company during the current term of office of the government.
Thirdly, the President is entitled, at his request, to any information concerning GIC, which is available to GIC's Directors.
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