ISLAMABAD: With the cancellation of licences of 13 “not-for-profit organisations”, a total of 303 NPOs have been delisted so far by the Securities and Exchange Commission of Pakistan (SECP).
The NPOs are registered under section 42 of the Companies Act, 2017, and the licences of 13 NPOs have been revoked over non-compliance with statutory requirements, including filing of accounts and tax returns.
According to the SECP, some of these companies have been dormant since incorporation, meaning that the organisations did not even become operational. After the cancellation of their licences, these companies will have to follow the procedure for voluntary closure.
As per the law, if an organisation has no assets and liabilities, it will have to apply for taking its name off the register of companies in terms of section 43 of the Companies Act, 2017, read with the Associations with Charitable and Not for Profit Objects Regulations, 2018.
More than 1,000 NPOs are registered with the SECP and a total of 303 have been delisted for various reasons. A senior official of the SECP said delisting was a regular exercise and not linked to any international obligation, including those related to the Financial Action Task Force.
“Many entities, including the Aga Khan University Hospital, were delisted by their management,” the official said.
“There are many reasons for winding up of NPOs as the managements of many entities even decide to become a commercial company — that is for profit or some merge their operations with another NGO or NPO and close one organisation,” the official added.
Published in Dawn, August 9th, 2019