TRUSTEES BILL

Order for Second Reading read.

6.30 p.m.

Mr Barker: Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

The law relating to trusts and trustees at present enforced in Singapore is contained in the Trustee Ordinance, 1949, as amended, and the Trustee Investment Act, 1965, both of Malaysia. The interpretation of the aforesaid enactments has caused a certain amount of difficulty since Singapore separated from Malaysia in August 1965, It is, therefore, considered desirable to have new legislation on those matters relating to trusts and trustees.

The Bill seeks to consolidate and reenact the statutory law dealing with trusts and trustees with certain amendments and additions. In the main, it follows closely the provisions of the former Trustees Ordinance (Cap. 34) of Singapore repealed by the Trustee Investment Act, 1965, of Malaysia which extended the provisions of the Federal Trustee Ordinance, 1949, to Singapore. No substantive change has been made to the provisions of the former Ordinance. The Malaysian Trustee Investment Act, 1965, also gives new powers of investment to trustees and imposes certain duties on them in choosing investments. Most of the provisions contained therein have been incorporated into this Bill. As it is proposed to empower trustees to invest in authorised unit trust schemes, the expressions "authorised unit trust scheme" and "unit trust scheme" are defined.

Clause 4 of the Bill defines the authorised investments for trust funds, and this follows in general the investments appearing in section 4 of the Malaysian Trustee Ordinance, 1949, as amended.

Part VI of the Bill seeks to introduce statutory provisions relating to charitable trusts.

Clause 66 empowers the Public Trustee to administer the property of charitable trusts which are for the time being without trustees.

Clause 67 contains provisions to prevent the invalidation of a trust by reason that the trust funds are directed to be applied for non-charitable and invalid purposes as well as for some charitable purposes. This clause follows recent legislation in the United Kingdom and Australia to validate certain imperfect charitable trusts.

The rest of Part VI of the Bill incorporates in the main the provisions of the Trustees (Incorporation) Ordinance. 1952, of Malaysia which provides for the incorporation of the trustees of bodies or associations established for charitable or public purposes. The trustees incorporated pursuant to this Part shall file with the Public Trustee their accounts annually.

The First Schedule empowers the Minister by order to declare a unit trust scheme to be an authorised trust scheme and also to appoint inspectors to investigate and report on the administration of any unit trust scheme. Such controls are necessary if unit trust schemes are to be allowed to be authorised investments. The provisions contained in the First Schedule follow in general the provisions contained in sections 12 and 17 and the First Schedule of the Prevention of Fraud (Investment) Act, 1958, of the United Kingdom.

Sir, the Bill has been referred and agreed to by the then Singapore Bar Committee, now the Singapore Advocates and Solicitors Society.

Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. -[Mr Barker].

Bill considered in Committee.

[Mr Speaker in the Chair]

6.36 p.m.

Clause 1 -

The Chairman: The citation date has to be changed from 1966 to 1967. This will be done.

Clause 1 ordered to stand part of the Bill.

Clauses 2 and 3 ordered to stand part of the Bill.

Clause 4 -

Mr Barker: Sir, I beg to move,

In page 6, line 6, to leave out "Malayan" and insert "Singapore".

The amendment is necessary consequent on the issue of our own currency.

Amendment agreed to.

Clause 4, as amended, ordered to stand part of the Bill.

Clauses 5 to 88 inclusive ordered to stand part of the Bill.

First Schedule -

Mr Barker: Mr Speaker, Sir, I beg to move,

In page 51, line 38, to leave out "Malayan" and insert "Singapore"; and

In page 51, line 40, to leave out "Malayan" and insert "Singapore".

These amendments are again necessary consequent on the issue of our own currency.

Amendments agreed to.

Amendment made: In page 53, lines 13 to 20, to leave out the whole of paragraph 4. -[Mr Barker].

Mr Barker: Sir, I beg to move,

In page 53, lines 24 to 27, to leave out the whole of paragraph 6.

Mr Tang See Chim: Mr Speaker, Sir, I would like to ask the Minister to give us the reasons why the provisions for audit in any trust scheme should be left out.

Mr Barker: Mr Speaker, Sir, may I reassure the Member for Choa Chu Kang that, whilst leaving them out in this Bill, we certainly do not intend that there should be no audit. As the Member is aware, there is a similar provision being made in the Companies Bill which is now before the Select Committee and which will be back in this House very soon. In view of the provisions in the new Companies Bill, these two provisions are considered redundant.

Amendment agreed to.

The Chairman: The renumbering of paragraphs consequential upon the deletion of paragraphs 4 and 6 will be done.

In page 53, line 32, the word "Unit" spelt with a capital "U" is a clerical error, as the word used in the Schedule itself is spelt with a small "u". This correction will also be made.

First Schedule, as amended, ordered to stand part of the Bill.

Second Schedule ordered to stand part of the Bill.

Bill reported with amendments; read a Third time and passed.

6.48 p.m.