LAWS OF MALAYSIA
REPRINT
Act 258
TRUSTEES (INCORPORATION)
ACT 1952
Incorporating all amendments up to 1 January 2006
PUBLISHED BY
THE COMMISSIONER OF LAW REVISION, MALAYSIA
UNDER THE AUTHORITY OF THE REVISION OF LAWS ACT 1968
IN COLLABORATION WITH
PERCETAKAN NASIONAL MALAYSIA BHD
2006
2
Laws of Malaysia
ACT 258
TRUSTEES (INCORPORATION) ACT 1952
First enacted
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1952 (F.M. Ordinance
No. 73 of 1952)
Revised
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1981 (Act 258 w.e.f.
24 December 1981)
PREVIOUS REPRINT
First Reprint
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2001
Trustees (Incorporation)
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LAWS OF MALAYSIA
Act 258
TRUSTEES (INCORPORATION) ACT 1952
ARRANGEMENT OF SECTIONS
Section
1.
Short title and application
1A. Interpretation
2.
Upon application of trustees, Minister may grant certificate as a body
corporate
3.
Estate to vest in body corporate
4.
Particulars respecting application
5.
Nomination of trustees and filling up vacancies
6.
Liability of trustees and others, notwithstanding incorporation
6A. Disqualification of trustees
7.
Certificate to be evidence of compliance with requisitions
8.
Record of applications and documents to be kept, and copies supplied
9.
Enforcement of orders and directions of Attorney General
10.
Applications and certificates to be stamped
11.
Gift to vest in body corporate
12.
Common seal
13.
Contracts not under seal to be binding in certain cases
14.
Payments on transfers in reliance on corporate seal protected
15.
Trustees to keep accounts and to render annual returns of accounts
16.
Petition to decide question whether person is a member of a body
corporate
17.
Revocation or suspension of certificate of incorporation
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ACT 258
Section
18.
Voluntary dissolution of body corporate
19.
Consequences of revocation of certificate of incorporation
20.
Appointment of Registrar, Deputy Registrars and Assistant Registrars
21.
Regulations
SCHEDULE
Trustees (Incorporation)
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LAWS OF MALAYSIA
Act 258
TRUSTEES (INCORPORATION) ACT 1952
An Act to provide for the incorporation of the trustees of certain
bodies or association of persons.
[30 December 1952]
Short title and application
1. (1) This Act may be cited as the Trustees (Incorporation)
Act 1952.
(2) This Act shall apply to Peninsular Malaysia only.
Interpretation
1A.
In this Act, unless the context otherwise requires--
" c e r t i f i c a t e of incorporation" means the certificate of
registration of a trustee as a body corporate that may be granted
under section 2.
Upon application of trustees, Minister may grant certificate as
a body corporate
2. (1) Trustees may be appointed by any body or association of
persons established for any religious, educational, literary, scientific,
social or charitable purpose, and such trustees may apply, in the
manner hereinafter provided, to the Minister for a certificate of
registration of the trustees of such body or association of persons
as a body corporate.
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ACT 258
(2) If the Minister, having regard to the extent, nature and
objects and other circumstances of such body or association of
persons, shall consider such incorporation expedient, he may grant
such certificate accordingly, subject to such conditions or directions
generally as he shall think fit to insert in such certificate, and
particularly relating to the qualifications and number of the trustees,
their tenure and avoidance of office, the mode of appointing new
trustees, the custody and use of the common seal, the amount of
the land which such trustees may hold, and the purposes for which
such land may be applied.
(3) The trustees shall thereupon become a body corporate by
the name described in the certificate, and shall have perpetual
succession and a common seal and power to sue and be sued in
such corporate name, and subject to the conditions and directions
contained in the said certificate to acquire, purchase, take, hold
and enjoy movable and immovable property and by instruments
under such common seal to sell, convey, assign, surrender and
yield up, mortgage, charge, demise, reassign, transfer or otherwise
dispose of movable and immovable property now or hereafter
belonging to, or held for the benefit of, such body or association
of persons, in such and the like manner, and subject to such
restrictions and provisions, as such trustees might do, without such
incorporation, for the purposes of such body or association of
persons.
Estate to vest in body corporate
3.  The certificate of incorporation shall vest in such body corporate
all property, movable or immovable of whatever description,
belonging to or held by any person in trust for such body or
association of persons, and thereupon any person in whose name
any stocks, funds or securities shall be standing in trust for the
body or association of persons, shall transfer the same into the
name of such body corporate, and all covenants and conditions
relating to any such immovable property enforceable by or against
the trustees thereof before their incorporation shall be enforceable
to the same extent and by the same means by or against them after
their incorporation.
Particulars respecting application
4. (1) Every application to the Minister for a certificate under this
Act shall be in writing, signed by the person making the same, and
shall contain the several particulars specified in the Schedule, or
such of them as shall be applicable to the case.
Trustees (Incorporation)
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(2) The Minister may require a statutory declaration or other
evidence in verification of the statements and particulars in the
application, and such other particulars, information and evidence,
if any, as he may think necessary or proper.
(3) The Minister may refuse to grant a certificate of incorporation
under this Act if he is not satisfied that the application has complied
with the provisions of this Act or the regulations made under this
Act.
Nomination of trustees and filling up vacancies
5. (1) Before a certificate of incorporation shall be granted, the
said trustees shall have been effectually appointed to the satisfaction
of the Minister, and where a certificate of incorporation shall have
been granted vacancies in the number of the said trustees shall,
from time to time, be filled up so far as shall be required by the
constitution or settlement of the said body or association of persons,
or by any such conditions or directions as aforesaid, by such legal
means as would have been available for the appointment of new
trustees of the said body or association if no certificate of incorporation
had been granted, or otherwise as shall be required by such conditions
or directions as aforesaid, and the appointment of every new trustee
shall be certified by, or by the direction of, the trustees to the
Minister upon the completion of such appointment.
(2) Within one month after the expiration of each period of one
year after the grant of a certificate of incorporation, or, whenever
required by the Minister, a return shall be made to the Minister
by the then trustees of the names of the trustees at the expiration
of each such period, with their residences and descriptions.
Liability of trustees and others, notwithstanding incorporation
6.  After a certificate of incorporation has been granted under this
Act all trustees of the body or association of persons, notwithstanding
their incorporation, shall be chargeable for such property as shall
come into their hands, and shall be answerable and accountable
for their own acts, receipts, neglects and defaults, and for the due
administration of the body or association of persons and its property,
in the same manner and to the same extent as if no such incorporation
had been effected, and nothing herein contained shall diminish or
impair any control or authority exerciseable by the Attorney General
u n d e r section 9 of the Government Proceedings Act 1956
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[Act 359] over the trustees who shall be so incorporated but they
shall remain subject jointly and separately to such control and
authority as if they were not incorporated.
Disqualification of trustees
6A.  Where a certificate of incorporation has been granted under
this Act in respect of a trustee, a person shall be disqualified from
being, and shall not become or remain, such trustee or one of such
trustees if--
(a) he has been convicted of any offence under any law and
sentenced to a fine of not less than one thousand ringgit
or to imprisonment for a term of not less than one year
or to both;
(b) there has been made and is in force against him any order
of detention, supervision, restricted residence, banishment
or deportation, or if there has been imposed on him any
form of restriction or supervision, by bond or otherwise,
under any law relating to the security of Malaysia or any
part thereof, the prevention of crime, preventive detention,
restricted residence, banishment or immigration;
(c) he is an undischarged bankrupt; or
(d) he is, or has been found or declared to be, of unsound
mind.
Certificate to be evidence of compliance with requisitions
7.  A certificate of incorporation so granted shall until and unless
it is revoked be conclusive evidence that all the preliminary
requisitions herein contained and required in respect of such
incorporation have been complied with, and the date of incorporation
mentioned in such certificate shall be deemed to be the date at
which incorporation has taken place.
Record of applications and documents to be kept, and copies
supplied
8.  The Minister shall, in such manner as he shall think fit, direct
a record to be kept of all such applications for and certificates of
incorporation, and shall in like manner direct all documents sent
to him under this Act to be preserved, and any person may require
a copy or extract of any such document to be certified under the
Trustees (Incorporation)
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hand of such person as shall be appointed for that purpose by the
Minister, and there shall be paid for such certified copy or extract
such fee as may be prescribed by the Minister.
Enforcement of orders and directions of Attorney General
9.  All conditions and directions inserted in any certificate of
incorporation shall be binding upon and performed or observed by
the trustees as trusts of the body or association of persons, and
shall also be enforceable by the Attorney General or other persons
interested under section 9 of the Government Proceedings Act
1956.
Applications and certificates to be stamped
10.  Every application for a certificate of incorporation under this
Act, and every such certificate, shall be charged with a stamp duty
of thirty ringgit, and a stamp denoting the payment of that duty
shall be impressed or affixed upon such application or certificate.
Gift to vest in body corporate
11.  After the incorporation of the trustees of any association or
body of persons pursuant to this Act, every donation, gift and
disposition of land, or any interest therein, theretofore lawfully
made (but not having actually taken effect) or hereafter lawfully
made by deed, will or otherwise to or in favour of such body or
association of persons, or the trustees thereof, or otherwise for the
purposes thereof, shall take effect as if the same had been made
to, or in favour of, the body corporate or otherwise for the like
purposes.
Common seal
12. (1) The common seal of the body corporate shall have such
device as may be approved by the Minister, and until such common
seal is provided the seal of some person may be authorized by the
Minister for use as the common seal of the body corporate.
(2) Any instrument to which the common seal of the body
corporate has been affixed, in apparent compliance with the
conditions or directions for the use of such common seal referred
t o in section 2, shall be binding on such body corporate,
notwithstanding any defect or circumstance affecting the execution
of such instrument.
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Contracts not under seal to be binding in certain cases
13.  Every contract made or entered into by the trustees of a body
or association of persons which would be valid and binding according
to the constitution, settlement or rules and regulations of the said
body or association of persons if no such incorporation had taken
place as aforesaid, shall be valid and binding although the same
shall not have been made or entered into under the common seal
of the trustees.
Payments on transfers in reliance on corporate seal protected
14.  Any person who shall make or permit to be made any transfer
or payment bona fide, in reliance on any instruments to which the
common seal of any body corporate created under this Act is
affixed, shall be indemnified and protected in respect of such
transfer or payment, notwithstanding any defect or circumstance
affecting the execution of the instrument.
Trustees to keep accounts and to render annual returns of
accounts
1 5 . ( 1 ) T h e trustees of any body or association of persons
incorporated pursuant to this Act shall, in books to be kept by them
for that purpose, regularly enter or cause to be entered full and true
accounts of all money received and paid respectively on account
of such body or association.
(2) The said trustees shall, on or before the 30th day of June
in every year, or upon such other day as may be appointed for this
purpose by the Minister, prepare and make out the following accounts
in relation to the said body or association--
(a) an account of the gross income arising from any endowment
or which ought to have arisen therefrom during the year
ending on the 31st day of December immediately preceding,
or upon such other day as may have been appointed for
this purpose by the Minister;
(b) an account of all balances in hand at the commencement
of the year and of all moneys received during the same
year on account of the said body or association;
(c) an account for the same period of all payments; and
(d) an account of all moneys owing to or from the said body
or association, so far as conveniently may be.
Trustees (Incorporation)
11
(3) The accounts prescribed under subsection (2) shall be certified
under the hand of one or more of the said trustees or of the said
trustee and shall be audited by the auditor of the said body or
association, if any, and the said trustees shall within fourteen days
after the day appointed for making out the said accounts deliver
or transmit a copy thereof to the Minister and every such copy
shall be open to inspection of all persons at all reasonable hours,
subject to such regulations as the Minister may see fit to make,
and any person may require a copy of every such account, or of
any part thereof, on paying therefor such fee as the Minister may
prescribe.
(4) The said trustees shall, at the same time as the accounts
prescribed under subsection (2) are delivered or transmitted to the
Minister in accordance with subsection (3) for the first time after
the grant of a certificate of incorporation pursuant to this Act,
transmit to the Minister an account of any endowments then belonging
to the said body or association, showing in the case of immovable
property not in hand the manner in which the same is let or
occupied and in the case of movable property the existing investment
or employment thereof and in what names such investments are
made, and thereafter the said trustees shall, on every occasion
upon which the said accounts are delivered or transmitted as aforesaid
to the Minister after the acquisition of any endowment not included
in the foregoing account, or after the alienation, charge or transfer
of any movable or immovable property of the said body or association,
transmit to the Minister a similar account of such last-mentioned
endowment and an account of such alienation, charge or transfer,
as the case may be.
Petition to decide question whether person is a member of a
body corporate
16. (1) When any question arises as to whether any person is a
member of such body corporate as aforesaid, any person interested
in such question may apply by petition to the High Court for its
opinion on such question.
(2) Notice of the hearing shall be given to such persons and in
such manner as the Court shall think fit, and any opinion given
by the Court on an application under this section shall be binding
on the person in respect of whom such question arose and upon
all members of the said body corporate and upon the person aforesaid
interested in such question and upon any persons to whom notice
of the hearing has been given in accordance with any direction of
the Court.
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ACT 258
Revocation or suspension of certificate of incorporation
17. (1) The Minister may by order revoke the certificate of
incorporation if--
(a) the incorporation was effected as a result of fraud or
mistake or misrepresentation in any material particular;
(b) the body or association of persons by whom the trustee
constituting the body corporate are appointed is likely to
b e used for unlawful purpose prejudical to  or
incompatible with the security of Malaysia or public order
or morality in Malaysia or any part thereof;
(c) the body or association of persons by whom the trustee
constituting the body corporate are appointed is found to
have pursued objectives other than those for which it
originally established;
(d) the body corporate has willfully contravened any
provision of this Act or any regulations made under this
Act; or
(e) if the body corporate does any or omits to do any act the
doing or omission of which is an offence under any law
and punishable with a fine of not less than one thousand
ringgit or with imprisonment for a term of not less than
one year or to both.
(2) The Minister shall notify the body corporate of his intention
to revoke the certificate of incorporation of the body corporate.
(3) No certificate of incorporation shall be revoked under this
section without the body corporate being given the opportunity to
show cause in writing within a period of thirty days from the date
of receipt of a notice to show cause as to why the certificate should
not be revoked.
(4) During the period specified in subsection (3), the Minister
may by order in writing suspend all or any of the activities of the
body corporate--
(a) in order to restrain the body corporate from further
infringing or violating any provision of this Act or any
regulations made under this Act; or
Trustees (Incorporation)
13
(b) if he thinks it is necessary to do so in the interest of the
public or of the body corporate or the body or association
of persons by whom the trustee constituting the body
corporate are appointed.
(5) An order made under subsection (4) may contain such
condititions as the Minister thinks necessary or expedient and
shall continue to be in force until the order or the certificate of
incorporation is revoked.
(6) The revocation of the certificate of registration of any body
corporate by the Minister under this section shall come into force
on the date the notification of such revocation is communicated
to the trustee, or if there is more than one trustee, at least one of
the trustees, and it shall be final and conclusive.
Voluntary dissolution of body corporate
18. (1) A body corporate may be dissolved voluntarily in either
of the following ways:
(a) upon the happening of any event as specified in the trust
deed which amounts to the dissolution of the body corporate;
or
(b) by the decision of the trustee, or if there is more than one
trustee, the unanimous agreement of the trustees, testified
by the trustee constituting the body corporate signing an
instrument of dissolution and with the consent of the
body or association of persons by whom the trustee are
appointed.
(2) The trustee shall immediately inform the Minister of the
happening of the event referred to in paragraph (1)(a) or the decision
or agreement referred to in paragraph (1)(b).
(3) The Minister shall make an order revoking the certificate of
incorporation as from such date as is specified in the order.
Consequences of revocation of certificate of incorporation
19. (1) Upon an order being made under subsection 17(1) or
18(3)--
(a) the body corporate is dissolved;
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ACT 258
(b) any assets or liabilities of the body or association of
persons vested in the body corporate shall vest in such
trustee as may be appointed by the body or association
of persons, or if the trustee are the same trustee or
trustees who had been incorporated as the body corporate
before its dissolution, in such trustee, in trust for such
body or association; and
(c) any legal proceeding that might have been continued or
instituted by or against the body corporate with respect
to any asset or liability vested in the body corporate may
be continued or instituted by or against the trustee in
whom the asset or liability is vested subsequent to the
dissolution.
(2) Notwithstanding subsection (1), in the absence of such trustee
as are referred to in subsection (1) any property vested in such
body corporate shall vest in the Amanah Raya Berhad, a body
corporate established under the Public Trust Corporation Act 1995
[Act 532], in trust for the body or association of persons by whom
the trustee who had been incorporated as the body corporate before
its dissolution was appointed, until the appointment by the body
o r association of persons of a new trustee; and upon such
Pappointment the property shall be transferred to and vest in such
trustee.
Appointment of Registrar, Deputy Registrars and Assistant
Registrars
20. (1) The Minister may appoint a Registrar and such number of
Deputy Registrars and Assistant Registrars as he may consider
necessary for the purpose of this Act.
(2) The Registrar, Deputy Registrars and Assistant Registrars
shall perform such functions as may be specified by the Minister
in writing for the purpose of giving effect to and carrying out the
provisions of this Act.
(3) The Registrar, Deputy Registrars and Assistant Registrars
shall be deemed to be public servants for the purpose of the Penal
Code [Act 574].
Trustees (Incorporation)
15
(4) Nothing done or omitted to be done by the Registrar, Deputy
Registrars and Assistant Registrars shall, if done or omitted to be
done in good faith for the purpose of executing the provisions of
this Act, subject any of them to any action, liability, claim or
demand.
Regulations
21. (1) The Minister may make such regulations as are necessary
or expedient to give full effect to or for carrying out the provisions
of this Act.
(2) In particular and without prejudice to the generality of
subsection (1), regulations may be made for prescribing--
(a) the manner of making applications to register a trustee
as a body corporate;
(b) the procedure to be followed in registering a trustee as
a body corporate;
(c) the information to be furnished to the Minister; and
(d) the fees which can be imposed and collected for the
purposes of this Act.
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ACT 258
SCHEDULE
[Section 4]
PARTICULARS TO BE INSERTED IN APPLICATIONS
FOR INCORPORATION
1.  The objects of the body or association of persons, and the rules and regulations
of the same, together with the date of, and parties to every deed, will or other
instrument, if any, creating, constituting or regulating the same.
2.  A statement and short description of the land, or interest in land, which at
the date of application is possessed by, or belonging to, or held on behalf of
such body or association of persons.
3.  The names, residences and descriptions of the said trustees of such body
or association of persons.
4.  The proposed title of the body corporate, of which title the words "trustees"
and "registered" shall form part.
5.
The proposed device of the common seal.
6.
The regulations for the custody and use of the common seal.
Trustees (Incorporation)
17
LAWS OF MALAYSIA
Act 258
TRUSTEES (INCORPORATION) ACT 1952
LIST OF AMENDMENTS
Amending law
Short title
In force from
L.N. 332/1958
Federal Constitution (Modification
13-11-1958
of Laws) (Ordinances and
Proclamations) Order 1958
Ord. 58/1956
Government Proceedings Ordinance
01-04-1958
1956
Act 160
Malaysian Currency (Ringgit) Act
29-08-1975
1975
Act A1219
Trustees (Incorporation)
14-02-2005
(Amendment) Act 2004
18
Laws of Malaysia
ACT 258
LAWS OF MALAYSIA
Act 258
TRUSTEES (INCORPORATION) ACT 1952
Section
Amending authority
In force from
1
Act A1219
14-02-2005
1A
Act A1219
14-02-2005
4
Act A1219
14-02-2005
5
Act A1219
14-02-2005
6A
Act A1219
14-02-2005
7
Act A1219
14-02-2005
10
Act A1219
14-02-2005
15
Act A1219
14-02-2005
17
Act 160
29-08-1975
Act A1219
14-02-2005
18
Act A1219
14-02-2005
19
Act A1219
14-02-2005
20
Act A1219
14-02-2005
21
Act A1219
14-02-2005
DICETAK OLEH
PERCETAKAN NASIONAL MALAYSIA BERHAD,
KUALA LUMPUR
BAGI PIHAK DAN DENGAN PERINTAH KERAJAAN MALAYSIA