The Securities and Exchange Commission of Pakistan (SECP) on Monday organised a round table conference on Corporate Governance Regulations for not-for-profit associations.
The conference was aimed at seeking feedback and suggestions from stakeholders on newly drafted licensing procedure and rules for NGOs. It was attended by representatives of NGOs, accountants, lawyers, consultants and members of the civil society.
It was the third roundtable organised by the SECP to consult the stakeholders for their feedback on draft regulations for NGOs.
Earlier, as part of its consultative drive of the SECP similar roundtable conferences have been held in Lahore and Karachi.
The commission has published the draft ‘Licensing and Corporate Governance Regulations, 2013’ for not-for-profit associations in April this year to elicit public opinion.
While appraising the participants of the salient features of the proposed regulations, Nazir Ahmed Shaheen, Executive Director, SECP said that the SECP has the mandate given by its enabling law, to register and license not-for-profit associations as limited liability companies.
Nazir Shaheen said that the new regulation regime for NGOs is aimed at consolidating the licensing policy and to improve the procedures, related to the licensing of not-for-profit associations.
It will ensure more logical checks in identifying genuine applicants for formation of corporate NGOs.
He informed the participants that the proposed regulations shall apply only to companies licensed under Section 42, of Companies Ordinance 1984.
The regulations specify prescribed form and documents for making application for seeking a license under Section 42 whereas promoters/directors are required to have sufficient skills, knowledge and experience and majority of whom shall have independent background.
According to the regulations, the board shall have a balance of executive and non-executive directors, including independent directors and those representing donors with the requisite skills, competence and knowledge.
The executive directors and those representing donors shall not be more than one third of the elected directors, including the chief executive.
The regulations also provide a liberal regime for small NGOs without compromising the essential requirements suggested for making their operations more transparent.
It was the third round table organised by the SECP to consult the stakeholders for their feedback on draft regulations for NGOs. Earlier, as part of its consultative drive of the SECP similar roundtable conferences have been held in Lahore and Karachi.
