PUTRAJAYA: A special committee has been set up to conduct a study on the proposed amendments to strengthen the Trustees (Incorporation) Act 1952 (Act 258), said Minister in the Prime Minister’s Department Datuk Seri Azalina Othman Said.
She said the committee, which came under the purview of the Legal Affairs Division of the Prime Minister’s Department, should take proactive steps in implementing the initiative to improve the existing regulatory framework through the ongoing amendments.
The study, among others, would consider the possibility of having Act 258 replaced with a new act that encompassed the proposed amendments related to better monitoring, governance and policy with regard to the incorporation of non-profit trustee organisations or welfare foundations in the country, she said.
“The implementation of best governance practices is an essential supporting infrastructure for every foundation to remain relevant and sustainable in implementing the objectives of its establishment.
“It may seem easy to implement, but the foundation management faces certain challenges and can be vulnerable to misuse of the
trust funds,” she said when opening the National Seminar on Non-Profit Organisations 2017 here.
Azalina said the amendments to Act 258, which was introduced in 1952, was a preventive measure by the government to ensure that the establishment of a foundation did not run away from being
people-oriented and also prevented misuse of trust funds. She said the report of the committee would be presented to the Cabinet for consideration and approval before being tabled at the next sitting of the Dewan Rakyat. — Bernama