Update on the Development of a Code of Governance for Town Councils
A comply-or-explain framework may strengthen town councils' fiduciary practices and accountability, potentially improving governance of funds used to operate and maintain housing estates.
MND appointed EY and an Advisory Panel to develop a Town Council governance code for public consultation, targeting introduction by early the following year.
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At the passing of the Town Councils (Amendment) Bill in March 2017, MND had shared that it would be working with the Town Councils (TCs) to develop a Code of Governance (“Code”) for TCs. The Code will set out principles of good governance and highlight best practices that can guide the TCs in better executing their fiduciary responsibilities and improving accountability. TCs will be encouraged to adopt these practices through a comply-or-explain regime.
MND has appointed Ernst & Young Advisory Pte Ltd (EY) to assist MND in developing the draft Code. Besides providing expertise on governance best practices, EY will be engaging the TCs to better understand their current governance practices and operations, so as to develop a Code that is relevant for the TCs.
MND has also appointed an Advisory Panel, comprising experienced academics, governance experts and industry practitioners, to advise MND on the development and implementation of the Code. The Panel will provide expert views and perspectives on the governance principles and practices which the TCs can adopt, taking into consideration the TCs’ operating context. The list of Panel members is included in the Annex.
MND will be seeking the public’s feedback on the draft Code in the second half of this year, with a view to introduce the Code by early next year. Implementation details will be shared at a later stage.