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Act 258

1. What is meant by the Trustees (Incorporation) Act 1952 [Act 258]?
Trustee (Incorporation) Act 1952 [Act 258] is an act to provide for the incorporation of trustees of certain bodies or association of persons formed for the purpose of social / charitable, scientific, literary, or religious education as provided for under Section 2, Act 258. This Act shall apply to Peninsular Malaysia only.
 
2. What is a Certificate of Incorporation and the effect of incorporation of the trustee?
Certificate of Incorporation means the certificate of registration as a body corporate trust issued by the Minister under the provisions of Section 2, Act 258. A trustee who has received the Certificate of Incorporation will become a body corporate by the name specified in the certificate with a common seal and may sue and be sued in its name.
 
3. What are the powers of the Minister in implementing Act 258?
Under Act 258, powers of the Minister are :
  1. The Minister may require to obtain a statutory declaration or other evidence to verify the statements and particulars in the application and any other information and evidence as may be necessary.
  2. The Minister may refuse to issue a Certificate of Incorporation if he is satisfied that the application does not comply with the provisions of Act 258 or any regulation made thereunder.
  3. Minister may by order revoke the Certificate of Incorporation if found in breach of any provision under Section 17, Act 258.
4. What are the documents to be submitted for registration?
Documents to be submitted are:
  1. Application Form for the establishment of the Foundation as Enclosure 1 ;
  2. Certified true copy of Identity Card for each trustee;
  3. A copy of bankruptcy search result from the Malaysia Department of Insolvency for each trustee;
  4. A copy of Statutory Declaration for each trustee;
  5. Revenue Stamp RM30 (RM10 x 3 copies) to be attached to the application form;
  6. Three (3) original copies of the Trust Deed stamped by the Inland Revenue Bureau;
  7. Curriculum Vitae for each trustee;
  8. Letter of appointment of trustees by the said body or association of persons;
  9. Common Seal Design;
  10. Rules or regulations drafted by the said body or association of persons; and
  11. Background, the establishment of the foundation's objectives, vision, mission, financial resources, the activities to be undertaken, the power to appoint the members of the board of trustees, the composition of board of trustees (not exceeding 10 pages).
 5. What are the responsibilities of trustees in accordance with Act 258?
Responsibilities of trustees incorporated by Act 258 are:
  1. To record all proof of payments and receipts for every item of expenditure and to submit audited financial statements to the Minister on or before June 30 each year.
  2. To inform the Minister of any changes to the board of trustee, the address, phone number or any other related matters. -
6. In what circumstances will a trustee be disqualified?
Pursuant to Section 6A, a trustee is disqualified if :
  1. He had been convicted of an offense under any law and imposed with a fine of not less than one thousand Malaysian Ringgit (RM1, 000.00) or imprisonment for a term not less than one year or both;
  2. Any order of detention, restricted residence, banishment or deportation has been made against him or any other form of restriction or supervision by bond or otherwise have been imposed against him under any law relating to the security of the Federation or any part thereof, prevention of crime, detention, preventive detention, restricted residence or immigration.
  3. Is a bankrupt, or
  4. Of unsound mind.
7. What is the validity period for the certificate?
The certificate of incorporation shall have perpetual succession unless it is revoked.

8. What causes the revocation or suspension of a corporation?
A corporation may be revoked or suspended by the Minister when:
  1. Incorporated by means of fraud, error or misrepresentation.
  2. Used for the purpose of illegal or harmful or not in accordance with federal security, public order and morals of this country.
  3. Found to have deviated from the original objectives of its establishment.
  4. Found to have violated the provisions in Act 258 and the regulations made under this Act;
  5. Found to have committed an offense under any law punishable by a fine of not less than Ringgit Malaysia One Thousand (RM1, 000) or imprisonment of not less than one year or both.
 9. Can a corporation be voluntarily dissolved?
Voluntary dissolution may be made by a corporation under Section 18 of Act 258.
 
10. Can a company be registered under the Companies Act 1965/Societies Act 1966 be a founder of a foundation?
Yes.
 
11. Where can I get information on the procedure for registration of trustees?
For further information, please contact:
   Legal Affairs Division
   Prime Minister's Department
   Legal Affairs Building
   Precint 3, Federal Government Administrative Centre
   62692 PUTRAJAYA
   Phone number: 03-88851000
   Fax: 03-88851088
   Portal : www.bheuu.gov.my
    e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.