ISLAMABAD: In a bid to minimise ambiguities, the Securities and Exchange Commission of Pakistan (SECP) through a circular has made further modifications in conditions regarding grant of licence to Non-Governmental Organisations (NGOs).
The modifications were made for NGOs registered under Section 42 of the 1984 Companies Ordinance. It has been felt that existing conditions were prone to misuse in certain circumstances. For example, subscriber members of associations may try to circumvent the requirements of restriction on payment of remuneration to members by quitting from membership of association with the sole purpose to receive remuneration or hold a salaried office in the association.
Similarly, the requirement could be circumvented by remunerating a member of his/her family like son, daughter, brother, spouse, etc. Likewise, the restriction on remuneration to members was still open to misuse by indirectly receiving remuneration in a subsidiary entity of the association.
