PUTRAJAYA: Act 258 which allows the setting up of foundations to help the less fortunate needs to be improved through amendments for best governance in line with the current challenging developments and government approach that is people-centric.
Minister in the Prime Minister’s Department Datuk Seri Azalina Othman Said said non profit foundations should be strengthened because their management faced certain challenges and are exposed to the opportunity to misappropriate the trust fund for personal gains.
She said the incorporation of foundations under Act 258 enabled these foundations to have a legal entity and status as a corporate body, thereby ensuring that public interest, especially the fund contributors, are always protected and the trustworthiness of the trustees is at its highest level.
According to her, Act 258, which was enacted in 1952, only underwent an editorial amendment in 1981, which meant no substantive amendment was made over the past 35 years.
“As such the ministry’s Legal Affairs Division should propose appropriate amendments for the consideration and approval of the Cabinet ministers,” she said when speaking at the division’s monthly assembly here today.
“I sincerely hope the tax exempted and welfare based foundations remain free from negative elements that can wreak havoc on the confidence of donors and society,” she said.
She said the existing 380 foundations required the sacrifices of trustees to do good by contributing time, energy or abilities without hoping for any rewards either in cash or kind.
At the event, Azalina also presented certificates of incorporation to eight foundations that are involved in religious, educational, social and literary activities. -- BERNAMA