Law ministry’s advice sought on amendment to TOA

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LAHORE: The Ministry of Commerce has sought advice from the Law Ministry on increasing the tenure of the office-bearers of trade organisations to two years through an amendment to Trade Organisation Act (TOA) 2013.

Due to anomalies and uncertainty, the authorities concerned are not issuing the mandatory election schedule for 2022-23 despite notices being issued to it by the regulator.

It was feared if this amendment attains finality in its current form, the aforementioned situation could disturb the entire structure and orgnisation of the trade bodies. It could potentially open up a floodgate of administrative and legal problems.

Commerce Ministry in its letter pointed out that the private member amendment bill moved by Senator Saleem Mandiwalla also addressed the tenure of the office-bearers of trade organisations but not that of the Executive Committee (EC) of the trade organisations, furthermore, the bill has retrospect effect i.e. it shall be implemented with effect from Jan 1.

The remaining changes as proposed vide the government bill have not been addressed in the private member’s bill which has left gaping lacunae in the administrative and legislative framework of the trade organisations.

The amendment has changed section 11(1) of the TOA 2013 up to the extent of tenure of the office-bearers and has not addressed that of the EC.

According to the TOA 2013, trade organisations, the electoral college is their EC for office bearers while the Federation of Pakistan Chambers of Commerce and Industry’s (FPCCI) electoral college is its general body (GB) for office bearers. The GB is nominated for one year only by all trade organisations.

In the case of the FPCCI, the trade organisation rule 2013 rule 20(10) stipulates that the tenure of both the GB including the EC and the office-bearers will be one year. As such anomaly has been created with this amendment i.e. the president of FPCCI cannot hold office for the second year as he has no representative standing on the GB for the next year.

Published in Dawn, October 26th, 2022

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