Application of funds
50. (1) The funds of a registered trade union may, subject to the rules thereof and to this Act, be expended only for the following objects—
(a) the payment of salaries, allowances and expenses to officers and employees of the trade union;
(b) the payment of costs and expenses of the administration of the trade union including audit of the account of the funds of the trade union;
(c) the prosecution or defence of any legal proceeding to which the trade union or any member thereof is a party, when such prosecution or defence is undertaken for the purpose of securing or protecting any right of the trade union as such or any right arising out of the relations of any member with his employer, or with a person whom the member employs;
(d) the expenses incurred in the settlement of disputes under Part VI;
(e) the conduct of trade disputes on behalf of the trade union or any member thereof provided that such trade disputes do not contravene this Act or any other written law;
(f) the compensation of members for loss arising out of trade disputes involving such members provided that such trade disputes do not contravene this Act or any other written law;
(g) allowances to members or their dependants on account of death, old age, sickness, accidents or unemployment of such members;
(h) the payment of fees in respect of affiliation with, or membership of, any federation of trade unions registered under Part XII, or any consultative or similar body in respect of which permission has been given by the Director General under subsection 76A(1) or the Director General has been notified under subsection 76A(2);
(i) the payment of—
(i) all train fares, other essential transport expenses, cost of board and lodging, supported by vouchers, or such amounts as are laid down by the union;
(ii) the amount of actual wages lost by representatives of trade unions attending meetings connected with or related to the promotion of industrial relations or attending to any matters as required by the Director General in relation to this Act or any regulations;
(iii) expenditure for the purpose of the establishment or maintenance of a federation of trade unions registered under Part XII, or a consultative or similar body in respect of which permission has been given by the Director General under subsection 76A(1) or the Director General has been notified under subsection 76A(2);
(j) the editing, printing, publication and circulation of any journal, magazine, news sheet or other printed literature published by the registered trade union for the advancement of its objects or the promotion of the interests of the members in accordance with its registered objects and rules;
(k) the conduct of social, sporting, educational and charitable activities of the members;
(l) the payment of premia to insurance companies registered in Malaysia as may from time to time be approved by the Director General.
(2) The Minister may by notification in the Gazette add to, delete from or amend the objects specified in subsection (1).
Prohibition of payment of fines or penalties
51. The funds of a registered trade union shall not be applied either directly or indirectly in payment of the whole or part of any fine or penalty imposed upon any person by sentence or order of a court.
Prohibition of use of funds for political objects
52. (1) The funds of a registered trade union shall not be applied either directly or indirectly in any payment whatsoever to a political party or in furtherance of any political object.
(2) The expression “political object” referred to in subsection (1) includes—
(a) the payment of any expenses incurred either directly or indirectly by a candidate or prospective candidate for election to the Dewan Rakyat or any Dewan Undangan Negeri before, during or after the election in connection with his candidature or election;
(b) the holding of any meeting or the distribution of any literature or documents in support of any such candidate or prospective candidate;
(c) the maintenance of any person who is a member of the Dewan Rakyat or any Dewan Undangan Negeri;
(d) the registration of electors or the selection of a candidate for membership of the Dewan Rakyat or any Dewan Undangan Negeri;
(e) the holding of political meetings of any kind, or the distribution of political literature or political documents of any kind; or
(f) any object which the Minister may by notification in the Gazette specify.
Injunction to restrain misuse of funds
53. An injunction restraining any unauthorized or unlawful expenditure of the funds of a registered trade union may be granted on the application of any five persons having a sufficient interest in the relief sought, or of the Director General, or of the Public Prosecutor.
Preservation of funds of registered trade union
54. (1) Where a notice has been given by the Director General to a trade union under subsection 15(2A), the Director General may, where he is satisfied that it is likely that the funds of the union may be misused, by order direct any bank in Malaysia not to pay any money out of nor to pay cheques drawn on the account of such union for a specified period not exceeding six months.
(2) Any officer of the bank who complies with an order of the Director General under subsection (1) shall be relieved of any liability to any other person in respect of the payment prohibited by such order.
(3) The manager of any bank which fails to comply with an order of the Director General under subsection (1) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding three thousand ringgit, or to imprisonment for a term not exceeding three years, or to both.
(4) The Director General shall cause to be published in the Gazette the name of any trade union in respect of which any order is made under subsection (1).
(5)–(7) (Deleted by Act A483).
Duty to render accounts
55. (1) Every treasurer of a registered trade union and every other officer and employee thereof who is responsible for the accounts of the union or for the collection, disbursement, custody or control of the funds or moneys thereof, shall enter or cause to be entered in the accounts of such union a record of all receipts by and payments out of the funds of the union and shall, upon resigning or vacating his office or employment and at least once in every year at such time as may be specified by the rules of the union and at any other times at which he may be required to do so by a resolution of the members of the union or by the rules thereof, or by the Director General, render to the union and its members or to the Director General, as the case may be, a just and true account of all moneys received and paid by him during the period which has elapsed since the date of his assuming office, or if he has previously rendered an account, since the last date upon which he rendered such account, and of the balance remaining in his hands, at the time of rendering such account and of all bonds, securities, or other property of the trade union entrusted to his custody or under his control.
(2) The form of account may be prescribed by regulations.
(3) The account shall be verified by statutory declaration, and the union shall cause the account to be audited by some fit and proper person approved by the Director General.
(4) After the account has been audited, the treasurer or other officer or employee referred to in subsection (1) shall forthwith hand over to the trustees of the union, if required by them to do so, such balance as appears to be due from him, and also, if so required, all bonds, securities, effects, books, papers and property of the union in his hands or custody, or otherwise under his control.
Annual returns to be prepared as Director General may direct
56. (1) A general statement audited in the manner prescribed by regulations of the receipts, funds, effects, and expenditure of every registered trade union in respect of the period of twelve months ending on the thirty-first day of March in each year shall be transmitted by the secretary of the union to the Director General before the first day of October in every year, and shall show fully the assets and liabilities at that date, and the receipts and expenditure during the year preceding the date to which it is made out, of the trade union, and shall show separately the expenditure in respect of the several objects of the trade union, and shall be prepared and made out up to such date, in such form, and shall comprise such particulars, as the Director General may from time to time require; and every member of, and depositor in, any such trade union shall be entitled to receive, on application to the treasurer or secretary of that trade union, a copy of such general statement, without making any payment for the same.
(1A) The general statement referred to in subsection (1) shall be verified by statutory declaration, and the union shall cause the general statement to be audited by some fit and proper person approved by the Director General:
Provided that no trade union shall cause its general statement to be audited by the same person successively for a period of more than three years.
(1B) The Director General may, if he considers it necessary, by notice in writing—
(a) direct the attendance before him, at the place and time set out in the notice, of any person appointed to audit the general statement of a trade union for any purpose related to the audit; or
(b) direct any trade union to cause the general statement to be further audited in such manner as he may require.
(1C) All expenses incurred in complying with any direction of the Director General under subsection (1B) shall be borne by the trade union concerned.
(2) Together with the general statement referred to in subsection (1), the secretary of each registered trade union shall furnish to the Director General a copy of all alterations or amendments of rules, and of all new rules, and a list of all changes of officers, made by the union during the period of twelve months preceding the said thirty-first day of March, and a copy of the rules of the trade union in force, and particulars of its membership, on that day.
(3) Every member of a registered trade union shall be entitled to receive free of charge a copy of the general statement referred to in subsection (1) and the secretary of each registered trade union shall deliver a copy of such statement to every member of his union who makes application to him therefor.
(4) Any secretary of a registered trade union who fails to comply with any of the requirements of this section shall be guilty of an offence, and shall, on conviction before a Magistrate, be liable to a fine not exceeding one hundred ringgit for each day during which the default continues.
(5) Every person who wilfully makes or orders or causes or procures to be made any false entry in or omission from any account of a registered trade union or general statement, copy or list delivered to the Director General under subsections (1) and (2) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding one thousand ringgit, or to imprisonment for a term not exceeding six months, or to both.
Keeping and inspection of accounts and records
57. (1) Every registered trade union shall cause to be kept such account books and other records as may be prescribed by regulations.
(2) The books or records referred to in subsection (1), the records of a trade union’s proceedings, and a list of its members shall at all reasonable times be open to inspection by any member of the trade union, or any person having an interest in the funds of the trade union, or the Director General.
(3) The Director General may, acting for a member or on his own behalf, in any particular case, order the account books and other records of a trade union to be made available for inspection or audit by a fit and proper person approved by him.
(4) Every trade union which, and every member of its executive who, contravenes subsection (1) or (2) or fails to comply with any order under subsection (3) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding one thousand ringgit, or to imprisonment for a term not exceeding six months, or to both.