Azalina: Time for a new Trustee Act

‘It hasn’t gone through much change since 1981’

PUTRAJAYA: The Trustee (Incorporation) Act has to be replaced to address the abuse of trust funds among non-profit organisations (NPOs), said Datuk Seri Azalina Othman Said.

The Minister in the Prime Minister’s Department said the Act, also known as Act 258, has not gone through substantive changes since its last amendment in 1981.

“In order to help NPOs or foundations that are prone to being abused for certain interests, the Government has decided to amend Act 258.

“The amendment will ensure that all NPOs will be people-centric and cannot be easily exploited for personal gain.

“Act 258 was enacted in 1952 and had only gone through an editorial amendment in 1981. This means, there has not been any substantive amendment to the Act for over 36 years,” said Azalina when opening the National NPO Seminar 2017 at the Legal Affairs Division headquarters here yesterday.

Azalina said the division, which falls under her portfolio, has been tasked to look into improving the existing regulatory framework of the Act.

“An amendment study for Act 258 is currently being carried out by a special taskforce that has been appointed. This study will look into, among others, the feasibility of replacing Act 258 with a new Act that will include addition proposals relating to the monitoring and better administration of NPOs in the country.

“The findings of the study will be presented to the Cabinet for consideration and approval, before it can be brought to Parliament,” said Azalina.

She added that for an NPO to be successful, good governance and a high level of ethics were important.

“The main aspects that must be addressed are the roles of the trustee in managing the organisation, which include having a good record-keeping system and financial management.

“Having good governance is the most important supporting infrastructure that will ensure an NPO remains relevant and sustainable,” she said.

In order to help NPOs or foundations that are prone to being abused for certain interests, the Government has decided to amend Act 258.

Datuk Seri Azalina Othman Said