Singapore legislation
Clause 25
Clause 25
Power to act for protection of charities
(1)
Where, at any time after the Commissioner has instituted an inquiry under section 8 with respect to any charity, he is satisfied —
that there is or has been any misconduct or mismanagement in the administration of the charity; and
that it is necessary or desirable to act for the purpose of protecting the property of the charity or securing a proper application for the purposes of the charity of that property or of property coming to the charity,the Commissioner may, with the consent of the Attorney-General, do one or more of the following things:
by order remove any trustee, charity trustee, officer, agent or employee of the charity who has been responsible for or privy to the misconduct or mismanagement or has by his conduct contributed to it or facilitated it;
by order establish a scheme for the administration of the charity;
notwithstanding anything in the trusts of the charity, by order restrict the transactions which may be entered into, or the nature or amount of the payments which may be made, in the administration of the charity without his approval.
(2)
Where, at any time after the Commissioner has instituted an inquiry under section 8 with respect to any charity, he is satisfied —
that there is or has been any misconduct or mismanagement in the administration of the charity; or
that it is necessary or desirable to act for the purpose of protecting the property of the charity or securing a proper application for the purposes of the charity of that property or of property coming to the charity,the Commissioner may, with the consent of the Attorney-General, do one or more of the following things:
by order suspend any trustee, charity trustee, officer, agent or employee of the charity from the exercise of his office or employment pending consideration being given to his removal (whether under this section or otherwise);
by order appoint such number of additional charity trustees as he considers necessary for the proper administration of the charity;
by order vest any property held by or in trust for the charity in the Public Trustee, or require the persons in whom any such property is vested to transfer it to the Public Trustee, or appoint any person to transfer any such property to him;
order any person who holds any property on behalf of the charity, or of any trustee for it, not to part with the property without the approval of the Commissioner;
order any debtor of the charity not to make any payment in or towards the discharge of his liability to the charity without the approval of the Commissioner;
by order restrict (notwithstanding anything in the trusts of the charity) the transactions which may be entered into, or the nature or amount of the payments which may be made, in the administration of the charity without the approval of the Commissioner;
by order appoint (in accordance with section 26) a receiver and manager in respect of the property and affairs of the charity.
(3)
The references in subsections (1) and (2) to misconduct or mismanagement shall (notwithstanding anything in the trusts of the charity) extend to the employment for remuneration or reward of persons acting in the affairs of the charity, or for other administrative purposes, of sums which are excessive in relation to the property which is or is likely to be applied or applicable for the purposes of the charity.
(4)
The Commissioner may remove a charity trustee by order made of his own motion where the trustee —
has been convicted of an offence involving dishonesty, fraud or moral turpitude;
is a bankrupt;
is a corporation in liquidation;
is incapable of acting by reason of mental disorder within the meaning of the Mental Disorders and Treatment Act [Cap. 178];
has not acted, and will not declare his willingness or unwillingness to act; or
is outside Singapore or cannot be found or does not act, and his absence or failure to act impedes the proper administration of the charity.
(5)
The Commissioner may, by order made of his own motion, appoint a person to be a charity trustee —
in place of a charity trustee removed by him under this section or otherwise;
where there are no charity trustees, or where by reason of vacancies in their number or the absence or incapacity of any of their number the charity cannot apply for the appointment;
where there is a single charity trustee, not being a corporation, and the Commissioner is of the opinion that it is necessary to increase the number for the proper administration of the charity; or
where the Commissioner is of the opinion that it is necessary for the proper administration of the charity to have an additional charity trustee, because one of the existing charity trustees who ought nevertheless to remain a charity trustee cannot be found or does not act or is outside Singapore.
(6)
The powers of the Commissioner under this section to remove or appoint charity trustees shall include power to make any such order with respect to the vesting in or transfer to the charity trustees of any property as the Commissioner may make on the removal or appointment of a charity trustee by him under section 24.
(7)
Any order under this section for the removal or appointment of a charity trustee or trustee for a charity, or for the vesting or transfer of any property, shall be of the like effect as an order made under section 24.
(8)
Section 24(4) shall apply to orders under this section as it applies to orders under section 24.
(9)
The power of the Commissioner to make an order under subsection (2)(i) shall not be exercisable so as to suspend any person from the exercise of his office or employment for a period of more than 12 months; but (without prejudice to the generality of section 42) any such order made in the case of any person may make provision as respects the period of his suspension for matters arising out of it, and in particular for enabling any person to execute any instrument in his name or otherwise act for him and, in the case of a charity trustee, for adjusting any rules governing the proceedings of the charity trustees to take account of the reduction in the number capable of acting.
(10)
Before exercising any jurisdiction under this section (otherwise than by virtue of subsection (2)), the Commissioner shall give notice of his intention to do so to each of the charity trustees except those who cannot be found or who have no known address in Singapore; and the notice may be given by post and, if given by post, may be addressed to the trustee’s last known address in Singapore.
(11)
The Commissioner shall, at such intervals as he thinks fit, review any order made by him under subsection (2)(i), (iii), (iv), (v), (vi) or (vii); and if on any such review it appears to him that it would be appropriate to discharge the order in whole or in part, he shall so discharge it (whether subject to any savings or transitional provisions or not).
(12)
Any person who contravenes an order under subsection (2)(iv), (v) or (vi) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding one year or to both.
(13)
Nothing in subsection (12) shall be taken to preclude the bringing of proceedings for breach of trust against any charity trustee or trustee for a charity in respect of a contravention of an order under subsection (2)(iv) or (vi) (whether proceedings in respect of the contravention are brought against him under subsection (12)).
(14)
This section shall not apply to an exempt charity.