CONSULTATION PAPER ON PROPOSED AMENDMENTS TO THE HINDU ENDOWMENTS ACT

The Ministry of Community Development, Youth and Sports (MCYS) and Hindu Endowments Board are seeking feedback on the proposed amendments to the Hindu Endowments Act (HEA).

BACKGROUND

2.         The HEA was enacted on 1 May 1969.  The HEA provides for a Board, appointed by the Minister, to administer Hindu religious and charitable endowments.

3.         The draft Hindu Endowments (Amendment) Bill proposes amendments to four sections, for the purposes of:

a) Broadening the powers of the HEB (Board), including having the power to form companies, or enter into joint ventures or partnerships;

b) Updating the penalties for non-compliance with any requisition or order of the Board, and

c) Protecting the members of the Board, the Secretary of the Board and any person acting under the direction of the Board from personal liability.

PROPOSED AMENDMENTS

Proposed Amendment 1

4.         New section 17A.  Section 17A is introduced to empower the Board, with the approval of the Minister, to form a company, or to enter into a joint venture or partnership, to carry out any of the purposes of the Act and any endowment administered by the Board. This addition will provide the Board with greater flexibility to manage its endowments as well as execute its functions as provided for under Section 21 of the HEA.

5.         The proposed formulation for the new Section 17A in the HEA will read as follows:

"17A. The Board may, with the approval of the Minister, form or participate in the formation of any company, or enter into any joint venture or partnership, to carry out any of the purposes of 

(a) this Act; and

(b) any endowment administered by the Board pursuant to an order of the Minister under section 18."

Proposed Amendment 2

6.         Repeal and re-enactment of Section 21.  As a key institution in the Hindu community, there have been increasing calls for and expectation for the Board to do more for the society and for interfaith harmony, beyond the management of the endowments entrusted under its charge. It is thus proposed for Section 21 to be repealed and re-enacted to further empower the Board to expend the income of an endowment administered by the Board in promoting social, cultural, educational or other activities that the Board considers to be for the public interest, and in fostering inter-religious communication and harmony. These powers are in addition to those it currently has as if it were named as trustee of the endowment. 

7.         The proposed formulation for the re-enacted Section 21 of the HEA will read as follows:

"21. The Board shall, with respect to any such endowment, have all such powers as it would have had if it had been named as trustee in the instrument creating the endowment, and in addition may, in any case 

(a) appoint and remove any employee of any such endowment;

(b) receive and collect the income of the endowment;

(c) expend the income 

(i) in defraying the expenses of the management of the endowment and the Board;

(ii) in carrying out the purposes of the endowment;

(iii) in promoting social, cultural, educational or other activities that the Board considers to be for the public benefit; and

(iv) in fostering inter-religious communication and harmony;

(d) raise funds by means of voluntary subscriptions, donations or contributions for the purposes of exercising its powers, performing its duties and discharging its obligations under this Act; and

(e) promote or undertake publicity in any form. "

Proposed Amendment 3

8.         Amendment of Section 24.  Section 24 is proposed to be amended to update the penalties for the offence of refusing or wilfully neglecting to comply with any requisition or order of the Board made under the Act, or destroying or withholding any document required by the Board to be produced or transmitted. Reference has been taken from the Charities Act for penalties for similar offences.

9.         The proposed formulation for the amended Section 24 in the HEA will be as follows:

(a) by deleting "$400" and substituting "$5000"; and

(b) by deleting "$100" and substituting "$50".

Proposed Amendment 4

10.       New section 34A.  It is proposed for Section 34A to be inserted to protect members of the Board, the Secretary of the Board and any person acting under the direction of the Board from personal liability for anything which is in good faith done or intended to be done in the execution or purported execution of the HEA. This proposed change aims to protect members of the Board, who are volunteers, if they have acted in good faith in executing their functions. This move is consistent with similar changes to board members' liability in our statutory boards and in the charity sector.

11.       The proposed formulation for the new Section 34A in the HEA will read as follows:

"34A. No suit or other legal proceedings shall lie personally against any member of the Board, the Secretary of the Board or any other person acting under the direction of the Board for anything which is in good faith done or intended to be done in the execution or purported execution of this Act".

 PUBLIC FEEDBACK

12.       Members of the public are invited to give their feedback on the proposed amendments to HEA from 29 January 2010 to 19 February 2010 via the REACH portal at http://www.reach.gov.sg