Act of Parliament · 2020 Revised Edition
Mutual Benefit Organisations Act 1960
Feedback & supportRegistration and control of mutual benefit organisationsOfficial textFrom Singapore Statutes Online, unchanged
s 1Short title
This Act is the Mutual Benefit Organisations Act 1960.
s 2Interpretation
In this Act, unless the context otherwise requires —“benefit” means the payment made by a mutual benefit organisation for the relief or maintenance of the members or subscribers or on birth or death in accordance with the rules of the mutual benefit organisation;“mutual benefit organisation” or “organisation” means any organisation which by its objects and rules either as the principal object or as an ancillary object makes provision by voluntary subscriptions of the members thereof or subscribers thereto with or without the aid of donations for —
the relief or maintenance of the members or subscribers, their husbands, wives, children, fathers, mothers, brothers, sisters, nephews, nieces or wards, during sickness or other infirmity, whether bodily or mental, in old age or in widowhood or for the relief or maintenance of the orphan children of members or subscribers during minority;
the payment of money on the birth of a member’s or subscriber’s child or on the death of a member or subscriber or of the child, husband, wife, parent or grandparent of a member or subscriber or on the death of any other person or for the funeral expenses of the member or subscriber or of the child, husband or wife of a member or subscriber or of the widow of a deceased member or subscriber; or
the relief or maintenance of the members or subscribers when unemployed or when in distressed circumstances;“officer” means the president, the secretary and members of a committee of an organisation and includes persons holding positions analogous to those of president, secretary or member of a committee;“registered organisation” means any organisation for the time being registered under this Act;“Registrar” means the officer appointed as Registrar of Mutual Benefit Organisations and includes an Assistant Registrar of Mutual Benefit Organisations;“subscription” means a subscription paid by a member or subscriber to a mutual benefit organisation and, where a mutual benefit organisation carries on activities other than those of a mutual benefit organisation, means the subscription paid by the member or subscriber for the purpose of obtaining the benefits provided by the rules of the organisation.
“benefit” means the payment made by a mutual benefit organisation for the relief or maintenance of the members or subscribers or on birth or death in accordance with the rules of the mutual benefit organisation;
“mutual benefit organisation” or “organisation” means any organisation which by its objects and rules either as the principal object or as an ancillary object makes provision by voluntary subscriptions of the members thereof or subscribers thereto with or without the aid of donations for —
the relief or maintenance of the members or subscribers, their husbands, wives, children, fathers, mothers, brothers, sisters, nephews, nieces or wards, during sickness or other infirmity, whether bodily or mental, in old age or in widowhood or for the relief or maintenance of the orphan children of members or subscribers during minority;
the payment of money on the birth of a member’s or subscriber’s child or on the death of a member or subscriber or of the child, husband, wife, parent or grandparent of a member or subscriber or on the death of any other person or for the funeral expenses of the member or subscriber or of the child, husband or wife of a member or subscriber or of the widow of a deceased member or subscriber; or
the relief or maintenance of the members or subscribers when unemployed or when in distressed circumstances;
“officer” means the president, the secretary and members of a committee of an organisation and includes persons holding positions analogous to those of president, secretary or member of a committee;
“registered organisation” means any organisation for the time being registered under this Act;
“Registrar” means the officer appointed as Registrar of Mutual Benefit Organisations and includes an Assistant Registrar of Mutual Benefit Organisations;
“subscription” means a subscription paid by a member or subscriber to a mutual benefit organisation and, where a mutual benefit organisation carries on activities other than those of a mutual benefit organisation, means the subscription paid by the member or subscriber for the purpose of obtaining the benefits provided by the rules of the organisation.
s 3Appointment of Registrar and Assistant Registrars
The Minister may appoint by name or office an officer to be the Registrar of Mutual Benefit Organisations and officers to be Assistant Registrars of Mutual Benefit Organisations.
Every mutual benefit organisation shall apply for registration under this Act.
The application for registration of the organisation shall be signed by 7 members and the secretary and shall be sent together with a copy of the rules and a list of the names of the secretary and of every trustee or other officer intended to be authorised to sue and be sued on behalf of the organisation to the Registrar.
The rules of the organisation shall contain provisions in respect of the several matters mentioned in the Schedule.
The list referred to in subsection (2) shall be signed by the secretary and every trustee and other officer named therein and shall on the registration of the organisation be evidence that the persons so named have been duly appointed.
Subject to this Act, the Registrar shall, upon an application being made therefor by a mutual benefit organisation and on payment of the prescribed fee, register the organisation with or without conditions.
Upon registering an organisation under subsection (1), the Registrar shall issue to that organisation a certificate of registration.
The certificate of registration referred to in subsection (2) shall be conclusive evidence that the organisation mentioned therein is duly registered, unless it is proved that the registration of the organisation has been suspended or cancelled.
Where the organisation is registered under subsection (1) subject to conditions, the organisation shall comply with those conditions.
The Registrar may at any time vary or revoke any of the conditions imposed under subsection (1) or impose conditions or additional conditions in respect of the registration of an organisation.
The Registrar shall refuse to register a mutual benefit organisation if he is satisfied that —
the rules of the organisation are insufficient to provide for its proper management and control;
the organisation is likely to be used for unlawful purposes or for purposes prejudicial to public peace, welfare or good order in Singapore;
any officer or person managing or assisting in the management of the organisation is not of good character;
the scheme for the relief or maintenance of the members thereof or subscribers thereto as provided for in the rules and objects of the organisation is undesirable and not in the interest of the members or subscribers;
the total number of members thereof or subscribers thereto is less than 50;
the application for registration does not comply with this Act or any rules made thereunder;
the rules and objects of the organisation are contrary to the provisions of this Act or any rules made thereunder; or
it would be contrary to the public interest for the organisation to be registered.
The Registrar may refuse to register a mutual benefit organisation if —
it appears to him that the name under which the organisation is to be registered is —
identical with or so nearly resembles that of any other existing organisation as is likely to deceive the members of the public as to its nature or identity; or
likely to mislead members of the public as to the true character and purpose of the organisation; or
no satisfactory evidence has been produced of the good character of the officers or persons managing or assisting in the management of the organisation.
s 7Appeal from refusal to register
Any person who is aggrieved by a decision of the Registrar under section 5(1) or (5) or section 6 may, within one month of being notified of the decision of the Registrar, appeal against his decision to the Minister whose decision shall be final.
s 8Annual registers to be published
The Registrar shall cause to be published in the Gazette in July of each year a list of all existing registered organisations.
An amendment of the rules of a registered organisation shall not be valid until the amendment has been registered under this Act, for which purpose copies of the amendment signed by 3 members and the secretary shall be sent to the Registrar.
The Registrar, on being satisfied that the amendment is not contrary to the provisions of this Act, shall issue to the registered organisation an acknowledgment of registration of the amendment and that acknowledgment shall be conclusive evidence that the amendment is duly registered.
Any person aggrieved by the refusal of the Registrar to register an amendment may appeal to the Minister whose decision shall be final.
s 10Registered office
Every registered organisation shall have a registered office to which all communications and notices may be addressed, and shall send to the Registrar notice of the address of that office and of every change therein.
Every registered organisation shall have one or more trustees.
The trustees shall be appointed at a meeting of the registered organisation and by a resolution of a majority of the members present and entitled to vote.
The registered organisation shall send to the Registrar a copy of every resolution appointing a trustee signed by the trustee so appointed and by the secretary of the registered organisation.
The same person shall not be secretary or treasurer of a registered organisation and a trustee of that registered organisation.
No person shall act as an officer of a mutual benefit organisation or manage or assist in the management of the organisation if —
he has been convicted of any offence involving dishonesty or moral turpitude and has not received a free pardon; or
he has been convicted of any other offence and sentenced to a fine of not less than $2,000 or to imprisonment for a term of not less than one year and has not received a free pardon, unless the written permission of the Minister so to act is first obtained.
Any person who contravenes or fails to comply with any of the provisions of subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $500 or to imprisonment for a term not exceeding 6 months or to both.
Every registered organisation shall once at least in every year submit its accounts for audit by an auditor approved generally or for any particular audit by the Registrar.
The auditor shall have access to all the books and accounts of the registered organisation and shall examine the annual return mentioned in this Act and verify the annual return with the accounts and vouchers relating thereto, and shall either sign the annual return as found by him to be correct, duly vouched and in accordance with law, or specially report to the registered organisation in what respects he finds it incorrect, unvouched or not in accordance with law.
Every registered organisation shall once in every year, not later than 31 May, send to the Registrar a return (referred to in this Act as the annual return) of the receipts and expenditure, funds and effects of the registered organisation as audited.
The annual return shall —
show separately the expenditure in respect of the several objects of the registered organisation;
be made out to 31 December then last inclusively; and
state the name, address and calling or profession of the auditor and the manner in which and the authority under which he is appointed.
The registered organisation shall send to the Registrar, together with the annual return, a copy of any special report of the auditor.
s 15Copy of last balance sheet
Every registered organisation shall keep a copy of the last annual balance sheet together with any special report of the auditors always displayed in a conspicuous place at the registered office of the organisation.
s 16Priority on death, bankruptcy, etc., of officer
In the following cases:
upon the death or bankruptcy of any officer of a registered organisation having in his possession by virtue of his office any money or property belonging to the organisation; or
if any enforcement, attachment or other process is issued or action taken against any such officer or against his property,his heirs, executors or administrators or the Official Assignee or the Sheriff of the Supreme Court or other person executing the process or the party taking the action, shall upon demand in writing of the trustees of the registered organisation or of any 2 of them or of any person authorised by the registered organisation to make the demand, pay the money and deliver over the property to the trustees of the registered organisation in preference to any other debt or claim against the estate of the officer.
The rules of a registered organisation may provide for the admission of a person under 21 years of age as a member or subscriber.
Any such member or subscriber may, if he is over 16 years of age, by himself and if he is under that age by his parent or guardian, execute all instruments and give all acquittances necessary to be executed or given under the rules, but shall not be a member of the committee, or a trustee, secretary, manager or treasurer of the registered organisation.
s 18Restriction on nominees
No member or subscriber of a registered organisation may nominate as the person to receive the benefits provided under the rules of the organisation a person other than the wife, children (including adopted children), grandchildren, mother, father, sons‑in‑law, daughters‑in‑law, brothers or sisters of the whole blood, brothers or sisters of the half‑blood, children of such brothers and sisters of the whole or half‑blood, uncles or aunts of the whole blood, uncles or aunts of the half‑blood or children of those uncles or aunts of the whole or half‑blood of that member or subscriber:Provided that a member or subscriber may nominate any other person in writing signed by himself in the presence of and attested by a Justice of the Peace or a Magistrate or the Registrar.
s 19Right to supply of copies of rules
Every registered organisation shall deliver to any person on demand and on payment of a sum not exceeding one dollar, a copy of the rules of the organisation.
s 20Right to supply of copies of annual return
Every registered organisation shall supply free of charge to every member or subscriber or person having an interest in its funds on his application either —
a copy of the last annual return of the organisation; or
a balance sheet or other document duly audited containing the same particulars as to the receipt and expenditure, funds and effects of the organisation as are contained in the annual return.
s 21Inspection of books by members
A member or subscriber or person having an interest in the funds of a registered organisation may inspect the books of the organisation at all reasonable hours at the registered office of the organisation or at any place where the books are kept.
The amount deducted by a registered organisation for administration or any other expense shall not exceed such percentage of the total receipts from subscriptions as may be prescribed by the Minister by rules made under this Act.
All subscriptions paid by members or subscribers during the period in which, under the rules of any registered organisation, the members or subscribers are qualifying for the benefits provided by the rules of the organisation less a sum not exceeding the prescribed percentage allowed for administration and any other expense shall be placed on deposit with a bank which is a member of the Association of Banks in Singapore in the name of the organisation or be invested in trustee securities and those funds shall constitute the reserve funds of the organisation.
Subscriptions received from members of or subscribers to a registered organisation who have qualified for benefits under the rules of the organisation less a sum not exceeding the prescribed percentage allowed for administration and any other expense shall be paid into a separate account in the name of the organisation with a bank which is a member of the Association of Banks in Singapore and the organisation may draw upon these funds for the purpose of paying the benefits provided in the rules of the organisation.
No payment of any sum payable as a result of the death of a person shall be made by the organisation except upon the production of the original death certificate or a certified copy thereof issued by a registrar of deaths or, in the case of a person dying outside Singapore, a death certificate issued by the appropriate authority in the place where the person died:Provided that payment may be made to the personal representative of a deceased member or subscriber where no nomination has been made upon the production of letters of administration or probate of the will of the deceased member or subscriber.
s 23Utilisation of reserve funds
The reserve funds of a mutual benefit organisation referred to in section 22(2), or any part thereof, may be utilised for any purpose approved by the Minister.
A registered organisation may, by special resolution, with the approval in writing of the Registrar, change its name and shall not change its name in any other manner.
No change of name shall affect any right or obligation of the registered organisation or of any member thereof, and any legal proceeding may be continued by or against the trustees of the organisation or any officer who may sue or be sued on behalf of the organisation, notwithstanding such change of name.
For the purpose of this Act, “a special resolution” means a resolution that is —
passed by a majority of not less than three-fourths of such members of a registered organisation entitled under the rules to vote as may be present at any general meeting of which notice specifying the intention to propose the resolution has been duly given according to the rules; and
confirmed by a majority of such members entitled under the rules to vote as may be present at a subsequent general meeting of which notice has been duly given, held not less than 14 days nor more than one month from the day of the meeting at which the resolution was first passed.
At any meeting mentioned in this section, a declaration by the chairman that the resolution has been carried shall be conclusive evidence of the fact.
s 26Registration of special resolutions
A copy of every special resolution signed by the chairman of the meeting and countersigned by the secretary shall be sent to the Registrar and registered and until that copy is registered the special resolution shall not take effect.