ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has revoked the licence of 108 Associations Not for Profit (NGOs) under section 42 (4) of the Companies Ordinance, 1984 .
The licensed NGOs were bound to comply with the obligations and conditions applied at the time of grant of licence. Due to threat of terrorism in the country, it had been decided under the National Action Plan (NAP) that all the NGOs are required to renew their licences under section 42 (4).
For this purpose, SECP had launched a comprehensive effort with effect from January 1, 2015 against such NGOs and instructions were issued to all concerned for compliance. In first stage, 136 defaulter companies were served with notice for not filling accounts and application for renewal and revalidating the licence during the last 05 years. After affording the associations an opportunity of submitting a representation in opposition to the revocation, the SECP has finally revoked the licence of 108 companies and the matter of remaining will be decided soon.
Moreover, the SECP has send the list of 108 NGOs to concerned Registrars of the Company Registration Offices to start proceeding against these NGOs under section 439 of Companies Ordinance 1984.
SECP registers non-profit organizations – who are about to be formed for promoting commerce, art, science, religion, sports, social services, charity or any other useful object – under section 42 of the Companies Ordinance, 1984 for a period of five years. After completion of five years, these NGOs are required to submit application for renewal/revalidation of licence along annexed annual audited accounts, profiles of CEO, directors, details of donors, donation received and expensed, etc. The 108 NGOs failed in compiling with these requirements so there licences were revoked accordingly.