Circular No. 16 of 2019 dated December 05, 2019 is issued by Company Law Division, Corporatization & Compliance Department of Securities and Exchange Commission of Pakistan (SECP) seeking attention of the organizations licensed under Section 42 of the Companies, Act 2017. i.e. PRIOR PERMISSION TO RECEIVE FOREIGN FUNDING/DONATIONS
SECP emphasized by notifying that certain companies which are licensed under Section 42 are not complying with Regulation # 7 of the Regulations titled “Associations with Charitable and Not for Profit Objects Regulations, 2018, which state that:
“the company shall not appeal, solicit, receive, or accept donations from foreign sources except with the prior permission, clearance or approval from the relevant authorities as may be required under any law or specified by the Government”.
Therefore, SECP, in order to ensure compliance of Regulation 7, directed all Companies licensed under section 42 of the Act, which intend to receive foreign funding/donations, to apply to the Commission along-with eight (08) sets of following documents for seeking prior permission from Ministry of Interior: –
Latest Memorandum & Articles of the Association of the company;
Certified copy of latest Form B of the company;
Resumes and affidavits of the chief executive and directors of the company as per the format specified in the Regulations; and
CNICs/passports of all the directors & chief executive of the Company.
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