# Draft Code of Governance for Town Councils - **Source:** Ministry of National Development - **Published:** 2019-04-01T04:00:00.000Z - **Author:** Ministry of National Development - **Original:** https://www.mnd.gov.sg/newsroom/press-releases/view/draft-code-of-governance-for-town-councils - **Topics:** Investment & Capital Markets ## Featured rationale Stronger financial, operational and vendor-management practices may improve accountability for estate funds and support more effective maintenance of residents’ living environments. ## AI summary MND sought public feedback from 1 to 30 April 2019 on a comply-or-explain governance code for Town Councils managing about $2 billion. ## Original article The Ministry of National Development (MND) invites the public to provide feedback on the draft Code of Governance for Town Councils (TCs). The public can send their feedback to MND between 1 April 2019 and 30 April 2019. Background TCs were formed in 1989 to give elected Members of Parliament (MPs) the autonomy and latitude to run their own Towns, in partnership with the residents. Each Town can therefore develop its own character and identity, reflecting the aspirations of its residents and Town Councillors. Today, TCs collectively manage about $2 billion worth of public and residents’ monies. As public institutions entrusted with significant amounts of public funds, TCs should have good governance and management controls in place to remain transparent and accountable to their residents. In recent years, MND has taken steps to strengthen the regulatory framework for TCs, while allowing the TCs to continue to retain autonomy over their operations. At the passing of the Town Councils (Amendment) Bill in March 2017, MND had shared that it would be working with the TCs to develop a Code of Governance (“Code”) for TCs. The Code would complement the existing legislative framework by setting out principles of good governance and highlight best practices that can guide the TCs in better executing their fiduciary responsibilities and improving accountability. MND has worked with the appointed consultant, Ernst & Young Advisory Pte Ltd (EY) to draft the Code. MND has also appointed and consulted an Advisory Panel, comprising experienced academics, governance experts and industry practitioners, for their expert views and perspectives during the drafting process. In December 2018, MND consulted the TCs to seek their feedback on the draft Code. About the Draft Code The objectives of the Code are to: (a) Enhance the effectiveness of TCs by sharing recommended governance practices; (b) Provide guidance to the Town Councillors to help them carry out their fiduciary duties; (c) Improve the transparency of TCs’ operations to build public trust and confidence. The Code is based on five guiding principles, namely integrity, objectivity, accountability, fairness and transparency. These guiding principles underpin the provisions in the Code, which span four domains: (a) Council Effectiveness, (b) Internal Controls & Processes, (c) Financial Management and (d) Vendor Management (see Annex for details). The Code provisions set out best practices which TCs are encouraged to adopt, through a comply-or-explain regime. In drafting the Code, MND has taken reference from the Code of Charities and Institutions of Public Character and the Code of Corporate Governance where appropriate, and adapted the provisions to suit the unique operating context of TCs. The Code will help TCs to carry out their duties effectively in the best interests of residents, and achieve higher standards of accountability and transparency to their residents. Public Feedback The full text of the Code is available on the REACH portal at https://www.reach.gov.sg. Members of the public can submit their comments and suggestions on the draft Code by 30 April 2019, via the following channels: - Email to: feedback@mnd.gov.sg - Fax to: 6325 7254 - Post to: Ministry of National Development 5 Maxwell Road #21-00 Tower Block MND Complex Singapore 069110 Subject: Draft Code of Governance for Town Councils MND will take the public feedback into consideration when finalising the Code, and with an aim to launch the Code in the third quarter of 2019. ## Chinese translation > Translation model: grok_cli ### 市镇理事会治理守则草案 国家发展部（MND）邀请公众就市镇理事会（Town Councils，TCs）治理守则草案提供意见。公众可在2019年4月1日至2019年4月30日期间向国家发展部提交反馈。 背景 市镇理事会于1989年成立，旨在让当选国会议员（MPs）在与居民合作下，拥有管理各自市镇的自主权与空间。因此，每个市镇可发展自身特色与身份认同，反映其居民及市镇理事的期望。 如今，各市镇理事会合计管理约20亿新元的公共及居民资金。作为受托管理大量公共资金的公共机构，市镇理事会应具备良好的治理与管理管控，以对居民保持透明与问责。近年来，国家发展部已采取措施加强市镇理事会的监管框架，同时让市镇理事会继续保有运营自主权。 在2017年3月《市镇理事会（修正）法案》通过时，国家发展部曾表示将与各市镇理事会合作，制定市镇理事会治理守则（“守则”）。该守则将补充现有立法框架，阐明良好治理原则，并突显可指导市镇理事会更好履行受托责任、提高问责的最佳实践。 国家发展部已与受委顾问安永咨询私人有限公司（Ernst & Young Advisory Pte Ltd，EY）合作起草守则。国家发展部亦已委任并咨询一个咨询小组，成员包括资深学者、治理专家及业界从业者，在起草过程中提供专业意见与观点。2018年12月，国家发展部咨询了各市镇理事会，就守则草案征求意见。 关于守则草案 守则的目标为： （a）通过分享推荐的治理实践，提升市镇理事会的效能； （b）为市镇理事提供指引，协助他们履行受托责任； （c）提高市镇理事会运营的透明度，以建立公众信任与信心。 守则以五项指导原则为基础，即诚信、客观、问责、公平与透明。这些指导原则支撑守则各项条文，涵盖四个领域：（a）理事会效能、（b）内部控制与流程、（c）财务管理，以及（d）供应商管理（详见附件）。守则条文列明鼓励市镇理事会采纳的最佳实践，并通过“遵守或解释”（comply-or-explain）机制实施。 在起草守则时，国家发展部已酌情参考《慈善机构与公益机构守则》及《企业治理守则》，并调整条文以切合市镇理事会的独特运营环境。守则将有助市镇理事会有效履行职责，以居民最佳利益为依归，并达致对居民更高的问责与透明标准。 公众反馈 守则全文可在REACH门户网站 https://www.reach.gov.sg 查阅。公众可于2019年4月30日前，通过以下渠道就守则草案提交意见与建议： - 电邮至：feedback@mnd.gov.sg - 传真至：6325 7254 - 邮寄至：Ministry of National Development 5 Maxwell Road #21-00 Tower Block MND Complex Singapore 069110 主题：市镇理事会治理守则草案 国家发展部将在敲定守则时考虑公众反馈，并目标于2019年第三季推出守则。