SECP revokes licences of 280 NGOs
These ‘not for profit’ companies cannot receive funds through any source
These ‘not for profit’ companies cannot receive funds through any source. PHOTO: FILE
ISLAMABAD:
Securities & Exchange Commission of Pakistan (SECP) has so far revoked the licenses of 280 non-governmental organizations (NGOs) companies under section 42 (5) of the Companies Act 2017. The licenses were revoked as on January 2, 2019.
According to details provided by SECP, 135 NGOs were based in Islamabad, 46 in Lahore, 73 in Karachi, 12 in Peshawar, 2 in Sukkur, 4 in Faisalabad, 7 in Multan and one in Quetta.
The SECP stated that the NGOs which had their licences revoked would have to put an end to all their activities and were only allowed to ensure recovery of their dues, if any.
These “not for profit” companies cannot receive funds through any source and their properties and assets could be transferred to another NGO under section 42 of Companies Act 2017 after a time period of 90 days when their dues and loans have been paid off. However, they still would need clearance from SECP.
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The section 42 of the Companies Act is related to the licensing of associations with charitable and not for profit objects. Under the said provisions of law, the Commission may at any time by order in writing, revoke a license granted, with such directions as it may deem fit, on being satisfied that the company or its management has failed to comply with any of the terms or conditions subject to which a license is granted or any of the requirements specified or any regulations are not met or complied with.
Apart from this, SECP can revoke the license of any NGO that is being run by persons who are involved in money laundering or terror financing.
Securities & Exchange Commission of Pakistan (SECP) has so far revoked the licenses of 280 non-governmental organizations (NGOs) companies under section 42 (5) of the Companies Act 2017. The licenses were revoked as on January 2, 2019.
According to details provided by SECP, 135 NGOs were based in Islamabad, 46 in Lahore, 73 in Karachi, 12 in Peshawar, 2 in Sukkur, 4 in Faisalabad, 7 in Multan and one in Quetta.
The SECP stated that the NGOs which had their licences revoked would have to put an end to all their activities and were only allowed to ensure recovery of their dues, if any.
These “not for profit” companies cannot receive funds through any source and their properties and assets could be transferred to another NGO under section 42 of Companies Act 2017 after a time period of 90 days when their dues and loans have been paid off. However, they still would need clearance from SECP.
Sindh, SECP to set up business registration portal
The section 42 of the Companies Act is related to the licensing of associations with charitable and not for profit objects. Under the said provisions of law, the Commission may at any time by order in writing, revoke a license granted, with such directions as it may deem fit, on being satisfied that the company or its management has failed to comply with any of the terms or conditions subject to which a license is granted or any of the requirements specified or any regulations are not met or complied with.
Apart from this, SECP can revoke the license of any NGO that is being run by persons who are involved in money laundering or terror financing.