Charity organizations worry about difficulties in recruiting directors if the majority of their tenures are limited up to 10 years
Charity organizations worry about difficulties in recruiting directors if the majority of their tenures are limited up to 10 years
20/09/2016
Lin Xinhui
The Charity Council has the intention to limit the tenure of two-thirds of directors being appointed by charity organizations to a maximum of 10 years in order to promote the board’s renewal. The heads of the charities being interviewed pointed out that the renewal of board of directors has some benefits. However, there are few who are willing to serve as directors and the proposed new regulations may increase the difficulty of charities seeking directors.
Mr. Toh Soon Huat, Chairman of Sian Chay Medical Institution, said that members of the board of directors need to have a certain understanding of charity work. They are doing voluntary services, taking up responsibilities for managing organizations without earning a salary. More often, they contribute from their own money. So there are not many choices for suitable director candidates.
“It’s really hard for charities to find the right people for the job of directors. If the capable person is willing to serve, why put a limit on their tenure? The ratio of limitation on two-thirds of the directors is too high. It would be better to reduce it to a third. ”
The Charity Council launched a four-week public consultation exercise to raise public views and feedback on the proposed new charity guidelines. The new regulations planned to be implemented by the Council next year include limiting the tenure of the directors of the charity, publishing the individual income ranges of the three highest salaried employees and setting up a reporting mechanism.
The NGOs said the new regulations had little impact because they had some regulatory measures already under the existing regulations. But the proposal to restrict the term of office of the directors was a cause for concern to the charity groups. Frequent changes in directors may affect the stability of operation
In the interview, Executive Director of the Fei Yue Family Service Centre, Mr Leng Chin Fai, said that as a director, some people would have to bear certain legal responsibilities. Today, many people would rather not accept the appointment of full-time directors but offer assistance as consultants. It makes it more difficult to identify suitable directors.
He also pointed out that if the turnover of the Board of Directors is too frequent, “new ideas and ways of working” may lead to changes in the operation of institutions, affecting the stability of the institutions.
The type of charity groups is very broad, with education, art, medical and other institutions.
Mr. Patrick Lee , President of Kwong Wai Shiu Hospital, said that the proposed more stringent regulatory guidelines are intended to set the “best practices”. But the nature and operation of the various public service organizations vary, there cannot be a “one size fits all” method in the implementation of the new regulations.
Mr. Lee also served as the Secretary-General of Singapore Federation of Chinese Clan Association, Chairman of the Board of Yang Zheng Foundation, and Directors of the Singapore Chinese Orchestra. He pointed out that some institutions, especially with long history, may have restrictions on the origin of directors and other candidates, “which will narrow the scope of directors”, if the term is also limited, it is difficult to induct new members.
“We certainly want to take advantage of this opportunity to see more capable people, especially professionals to come forward to make us improve. We are not refusing new blood, the question is whether there is enough talent to help us rejuvenate.”