ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has notified the draft Associations with Charitable and Not-for-Profit Objects (Licensing and Corporate Governance) Regulations, 2017, to obtain public opinion.
The draft regulations have been placed on the SECP’s website for comments and feedback by all stakeholders and the general public.
The draft regulations specify procedure for grant of licences to charitable and non-profit organization, incorporation of association as a public limited company, conditions applicable to such companies, fit and proper criteria for the promoters, members, directors and chief executive officers.
And provision for revocation of licence and subsequent transfer of assets to another company licensed under section 42 of the Companies Act, 2017, responsibilities, powers and functions of the board of directors, corporate and financial reporting framework and monthly reporting requirements.
The associations may apply for grant of licence for the promotion of a single or multiple objects. The SECP may grant the licence if the promoters, proposed directors and chief executive officers are compliant with the fit and proper criteria. Within 30 days of getting the licence, the association shall apply for its incorporation as a company.