TRADE
ORGANISATIONS ACT, 2013
[AS PASSED BY THE NATIONAL ASSEMBLY] A
Bill
to provide for the
registration and regulation of trade organisations
WHEREAS
it is expedient to ensure appropriate representation of all
genders and business sectors at all levels in trade
organizations and that they play significant role in developing policy
framework for improving business environment and economic growth;
AND
WHEREAS it is imperative to define the purpose, role,
responsibilities and operational framework
including code of corporate governance for trade organizations; and for matters
connected therewith or incidental thereto; It is enacted as follows:-
CHAPTER I
PRELIMINARY
1.
Short
title, extent, application and commencement. (1) This Act may be called the
Trade Organizations Act, 2013.
(2)
It extends to the whole of Pakistan.
(3)
It shall apply to trade organizations whose
objects and business are not confined to a province,
(4)
It shall come into force at once.
2.
Definitions.—In
this Act, unless there is anything repugnant in the subject or context,-
(a)
“administrator” means an Administrator appointed
under this Act;
(b)
“articles” mean the articles of association of a
trade organisation;
(c)
“district” means an administrative district
notified by the Provincial Governments from time to time;
(d)
“division” means an administrative division
notified by the provincial government from time to time;
(e)
“Executive Committee” means the Board of
Directors, the Managing Committee or any other body, by whatever name called,
of a registered trade organisation responsible for the management or conduct of
the affairs of such trade organisation;
(f)
“existing trade organisation” means an
organisation licensed under the Trade Organisations Ordinance, 196I(XLV of
1961);
(g)
“licence” means a licence granted to a trade
organisation under section 3 of this Act;
(h)
“Member of the Executive Committee” includes a
Director where the Executive Committee is a Board of Directors and the
Chairman, Senior
Vice Chairman, Vice Chairman, President, Senior
Vice-President and Vice President of a trade organisation licensed under this
Act;
(i)
“member of a trade organisation” means a firm
and includes a proprietorship, an association of persons, a partnership, a
company or a multinational corporation, engaged in trade, industry or services
and enrolled as a member of a trade organisation licensed under this Act;
(j)
“memorandum” means the memorandum and the
articles of association of a trade organisation;
(k)
“office bearers” means President, Senior Vice
President, Vice-President, Chairman, Senior Vice-Chairman and Vice Chairman of
a trade organization;
(1) “Ordinance”
means the Companies Ordinance, 1984 (XLVII of 1984);
(m) “prescribed”
means prescribed by the rules made under this Act; (n) “register” means the
Register of Companies required to be kept under section 147 of the Ordinance;
(o)
“registered trade organisation” means a trade
organisation registered under the Ordinance;
(p)
“Regulator” means the Regulator of the Trade
Organisations appointed by the Federal Government and includes an officer
empowered by the Federal Government to perform the functions of the Regulator
under this Act;
(q “repealed ordinance” means the
Trade Organizations Ordinance 1961 (XLV of 1961);
(r)
“trade organisation” means an organisation which.-
(i)
is capable of being formed as a limited company
within the meaning of the Ordinance;
(ii)
is formed or intended to be formed with the
object of promoting any trade, industry or service or any combination thereof;
(iii)
prohibits payment of any profits to its members;
and
(iv)
applies its income and profits for achieving its
objects.
(s)
“small traders and small business” means a member of
trade organization whose number of employees is less than twenty, annual
business turnover ranges between two million rupees to twenty million rupees,
all utility bills do not exceed one million rupees per annum and neither such
small trader or small business is owned or controlled by a Provincial
Government nor it carries on trade or business confined to only one Province;
and
(t)
“small industry” means a member of trade organization
which is a manufacturing concern having an industry less than twenty employees,
whose annual turnover ranges between two million rupees to twenty million
rupees, utility bills do not exceed one million rupees per annum, and is
neither owned or controlled by a Provincial Government nor carries on trade or
business confined to only one Province.
3. Licensing and registration of trade organisations.—(1)
Notwithstanding anything contained in the Ordinance or in any other law for the
time being in force relating to registration of societies, bodies or
associations of persons, no trade organisation shall be registered under the
Ordinance or such other law unless it holds a licence granted by the Federal
Government authorizing it to be so registered.
(2) No licence shall be
granted for registration under the Ordinance to a trade organisation unless it
is—
(a)
a Federation of Chambers of Commerce and
Industry, organized on allPakistan basis, to represent Chambers and
Associations referred to in clauses (b), (c), (d) and (f):
Provided that a licence for registration as a Federation of Chambers of
Commerce and Industry shall not be granted to more than one trade organisation;
(b)
a Chamber of Commerce and Industry organized to
represent trade, industry and services in a district. Such a Chamber
representing less than the prescribed number of persons shall not be granted
licence. Where the number of persons desiring to form a Chamber is less than
the prescribed number of persons, they may join a licensed Chamber of the
adjoining district:
Provided that the Federal Government may, by
notification in official gazette, combine one or more districts for the purpose
of grant of only one licence. In such a case the Federal Government may allow
the districts so combined to form a Town Association under clause (e);
(c)
a Women’s Chamber of Commerce and Industry
organized to represent the women entrepreneurs engaged in trade, industry or
services in each administrative division but such a Chamber representing less
than the prescribed number of women entrepreneurs shall not be granted licence
and where the number of women entrepreneurs desiring to form a Chamber is less
than the prescribed number, they may join an adjoining Women’s Chamber of
Commerce and Industry:
Provided that nothing contained in this clause shall debar a woman
entrepreneur to become member of a Chamber in clause (b) if such woman
entrepreneur otherwise fulfills the criteria of membership of the respective
chamber. Further provided that nothing contained in this clause shall debar the
required number of women entrepreneurs to form district women Chambers of
Commerce if they otherwise fulfills the criteria of formation of a district
chamber. .
(d)
an association with membership on all-Pakistan
basis organized to represent a specific trade, industry or service or any
combination thereof:
Provided that a licence for registration as an all-Pakistan association
shall not be granted to more than two trade organisations in the same sector,
one of which must be an organization representing small business, small traders
or small industry:
Provided further that whether a specific activity in trade, industry or
service is an independent sector or only a sub-sector shall be determined by
the Government, whose decision in this respect shall be final;
(e)
a Town Association, organized to represent
trade, industry and services in a town, tehsil, taluka or a district where
there is no chamber and such Town Association shall be affiliated with the
Chamber of the concerned district:
Provided that when a town, tehsil or taluka
is upgraded as a district or is granted licence under clause (b), the Town
Association in that town, tehsil, taluka or district shall cease to exist with
immediate effect; and
(f)
a Chamber of Small Traders organized to
represent small businesses, small traders and small industry, in each district,
provided that they otherwise qualify to form a chamber under this Act.
(3)
Notwithstanding the provisions of clause (b) and
(d) of sub-section (2), where the membership of a chamber in a district attains
the minimum prescribed number for grant of licence to a chamber under this Act,
such persons shall be entitled to form and apply for grant of licence as a
chamber.
(4)
On grant of licence to a Chamber under sub-section
(3), the firms and companies, which had obtained membership in the Chamber of
an adjoining district, shall be deemed to have de-registered from membership
register of the adjoining Chamber.
(5)
Application for grant of licence of a trade
organisation shall be submitted to the Federal Government in the prescribed
Application Form.
(6)
A trade organisation shall be granted licence on
such terms and subject to such conditions as may be prescribed.
(7)
Licence shall be granted to a trade organisation
for a period of five years.
(8)
A trade organisation holding a licence shall be
registered under the
Ordinance as a company with
limited liability without the addition of the word
“limited” to its name and on such
registration shall enjoy all the privileges of a limited company and be subject
to all its obligations except those of—
(a) using
the word “limited” as any part of its name;
(b) publishing
its name; and
(c) sending
lists of members to the registrar.
(9)
The Federal Government may, by notification in
the official gazette, grant exemption to any trade organisation from any
provision of this Act and such exemption may be for such period and subject to
such conditions as may be specified in the notification:
Provided that no such exemption shall be
granted to a trade organisation unless the Federal Government is satisfied that
it would be in the public interest to do so.
4.
Revocation
of licences of existing trade organisations.—(1) Except as
hereinafter provided, and notwithstanding anything in any other law for the
time being in force and memorandum and articles of association of any trade
organisation, any licence granted under section 3 of the repealed ordinance to
an existing trade organisation shall stand revoked with effect from December
30, 2006, and such trade organisation shall be required to apply for grant of
licence under this Act by the date notified by the Federal Government:
Provided that revocation
of licence of a trade organisation shall not prevent its members from assuming
office, subject to section 11, consequent upon elections under the repealed
Ordinance.
(2)
The Federal Government shall decide on
application for grant of licence within such period of its filing as notified
by the Federal Government.
(3)
An existing trade organisation which has applied
for grant of licence within the time notified by the Federal Government shall
continue to function as a trade organisation until the Federal Government
decides its application for grant of licence and until the first elections are
held according to rules made under this Act.
5.
Privileges
and obligations of trade organisations.—(1) A licensed and
registered trade organisation shall be a body corporate with perpetual
succession and a common seal and may sue and be sued in its own name and,
subject to and for the purposes of this Act, may enter into contracts and may
acquire, purchase, take, hold and enjoy movable and immovable property of every
description and may convey, assign, surrender, yield up, charge, mortgage,
demise, re-assign, transfer or otherwise dispose off or deal with, any movable
or immovable property or any interest vested in it, upon such terms as it deems
fit.
(2)
The liability of members of a licensed and
registered trade organisation shall be limited to their membership
subscription.
(3)
No trade organisation other than a licensed and
registered trade organisation shall use in its name or title the word
“Federation” or “Chamber” or
“Association” except an existing
trade organisation which has applied for grant of licence under this Act:
Provided that nothing in sub-section (3) shall
apply to a company, association or body of persons formed for promoting art,
science, religion, charity, sports, any profession other than trade, commerce,
industry, service or any other subject which the Government may, by
notification in the official gazette specify in this behalf.
6.
Renewal of
licence.—-(1) A licensed trade organisation shall require renewal of
its licence every five years.
(2)
Application for renewal of licence shall be made
to the Regulator ninety days prior to the expiry of licence:
Provided that the Regulator, on sufficient
cause being shown, by an order in writing, may extend the period not exceeding
thirty days.
(3)
Annual accounts and performance of a trade
organisation shall be audited by a firm of chartered accountants, and the
reports thereof shall be submitted to the Regulator along with the renewal,
application.
(4)
The Regulator, on receipt of the application for
renewal of licence, shall endeavour to decide before the expiry of the licence.
7.
Cancellation
of licence and exemption.—(1) The licence granted to a trade
organisation shall be cancelled by the Federal Government where:-
(a)
a trade organisation fails to apply for renewal
of the licence granted under section 3 of this Act within the prescribed or
extended period allowed by the Regulator;
(b)
a trade organisation fails to apply for
membership of the Federation of Pakistan Chambers of Commerce and industry
within one month of grant of licence;
(c)
a trade organisation fails to get registration
under the Ordinance;
(d)
a trade organisation is found to be non-existent
at the registered address or is non-operational;
(e)
a trade organisation is not holding elections or
operating according to the provisions of the memorandum within the prescribed
period;
(f)
a trade organisation is not complying with the
orders and directions of the Federal Government or Regulator issued under this
Act of the prescribed rules;
(g)
a trade organisation is not discharging
statutory obligations as a Limited Company incurred under the Ordinance;
(h)
a trade organisation is not discharging
statutory obligations under this Act or prescribed rules;
(i)
a trade organisation fails to pay the penalties
imposed under this Act within the prescribed period;
(j)
the Federal Government cancels any exemption
granted to a trade
organisation, under sub-section (9)
of section 3;
(k)
the trade organisation is engaged in activities
other than those for which it was established;
(l)
the trade organisation has lost its
representative character, or its membership remains below the prescribed
threshold over a period of two years; and
(m) the
financial or performance audit report of a trade organisation states that:-
(i)
the income and profits of the trade organisation
are spent for
purpose other than those for which it was established;V
*■ *
(ii)
the trade organisation does not remain
financially viable.
(2)
Where the Federal Government intends to cancel
the licence of a trade organisation, granted under section 3 of this Act, it
shall issue a show cause notice to such trade organisation specifying the
grounds for its intention to cancel the licence and provide adequate
opportunity of being heard before deciding the matter.
(3)
The Federal Government shall notify, in the
official gazette, cancellation of licence of a trade organisation.
(4)
Where the licence is cancelled on any ground
mentioned in clause (d), (e), (f), (g), (h),(i), (k), (l) and (m) of
sub-section (1) members of the trade organisation concerned found responsible
by the Federal Government for the grounds of cancellation shall be debarred
from sponsoring the proposal for grant of licence or de novo licence to a trade organisation or becoming member of or
holding any office of any trade organisation for a period not exceeding three
years.
(5)
Where the licence of a trade organisation has
been cancelled under subsection (1), a member or member of executive committee
or employee of such trade organisation continues to impersonate as member,
member of executive committee or employee of the trade organisation, such
person shall be liable to penalties under section 24.
8.
Cancellation
of registration.-—(1) Notwithstanding anything contained in the
Ordinance or any other law for the time being in force,-
(a)
the registration of a trade organisation under
the Ordinance shall be deemed to have been cancelled with immediate effect if
the licence granted to such trade organisation has been cancelled by the
Federal Government under section 7;
(b)
the registration of an existing trade
organisation shall stand cancelled with immediate effect if such a trade organisation
has failed to apply for grant of fresh licence within the time notified by the
Federal Government;
(c)
the registration of an existing trade
organisation under the Ordinance shall stand cancelled on 1st July, 2008,
unless it has been granted licence by the Federal Government under section 3.
(2)
The registrar shall strike off the register, and
publish in the official gazette, the names of all such trade organisations
whose registration has been cancelled under sub-section(1).
(3)
All affairs of a trade organisation whose
registration stands cancelled under subsection (1) shall be wound up in a
manner as determined by the Federal Government.
9.
Grant of
licence de novo.—(1) Where
licence of a trade organisation is cancelled under section 7 the Federal
Government may consider grant of licence de
novo after a period of one year from the date of cancellation of licence:
Provided that where
the licence of a trade organisation was cancelled under clause (a) of sub-section (1) of section 7, the Federal Government
may consider the grant of licence de novo
at an earlier date.
(2) The trade
organisation seeking licence under sub-section (1) shall be required to make an
application in such form and manner as may be prescribed.
10.
Membership
of trade organisations.—(1) Chambers and sector specific
associations on all-Pakistan basis, granted licence under this Act, shall apply
for membership of the Federation of Pakistan Chambers of Commerce and Industry
within thirty days of grant of licence under this Act.
(2)
Upon an application by a trade organisation
under sub-section (1), the Federation of Pakistan Chambers of Commerce and
Industry shall enroll such trade organisation as its member within thirty days
and where such an enrolment is not decided within thirty days, the matter shall
be referred to the Regulator along with the reasons for not allowing enrolment
and the Regulator shall decide the matter within thirty days.
(3)
A chamber or an association which is a member of
the Federation of Chambers of Commerce and Industry shall be eligible to vote
in the election of office-bearers and committees of the Federation on
completion of two years of grant of licence:
Provided that the existing trade
organisations, on grant of licence under this Act, shall be deemed to be
members of the Federation and shall be entitled to vote.
(4)
Proprietorships, associations of persons,
partnerships, companies or multinational corporations engaged in trade,
industry or services shall be entitled to enrolment as members of chambers and
associations on fulfillment of the prescribed conditions.
(5)
Notwithstanding anything contained in any other
law for the time being in force any person engaged in trade, industry or
service, or any combination thereof, shall be entitled to be enrolled as a
member of a registered trade organisation except where such person is otherwise
disqualified for any of the reasons as may be prescribed.
(6)
Where a person, qualified to be enrolled as a
member of a trade organisation, is refused enrolment or the enrolment is unduly
delayed, on a complaint by the aggrieved person, the Regulator may direct the
trade organisation concerned to enroll such person as a member on fulfillment
of the prescribed requirements.
(7)
New members of the chambers and associations
shall be eligible to vote on completion of two years of their enrolment and
payment of all dues:
Provided that old members of the chambers and
associations at the time of renewal of membership which has been discontinued
due to non-payment of subscription dues shall be eligible to vote on completion
of one year of their reenrolment and payment of all dues.
(8)
Except for the membership and office-bearers
provided under this Act or prescribed rules, there shall not be any other
position by any nomenclature in a trade organisation.
11.
Organisation
and tenure of office-bearers and executive committee of trade organisations.—(1)
Notwithstanding anything in any other law for the time being in force and
memorandum and articles of association of any existing trade organisation the
tenure of office-bearers of all trade organisations shall be one year,-
(a)
in the case of the Federation of Pakistan
Chambers of Commerce and Industry from the 1st day of January to 31st
day of December;
(b)
in the case of all other trade organisations,
the 1st day of October to 30th day of September.
(2) The
organizational structure of trade organisations including composition and
tenure of Executive Committees and the manner of their elections shall be such
as prescribed.
12. Uniformity
in structure and autonomy of trade organizations.—(1) The
Federal Government shall propose to and
obtain approval from the Standing Committee on Commerce in the National
Assembly for a minimum, basic template of Memorandum for all trade
organisations to be registered under this Act;
(2)
The said template shall be in compliance with
the Ordinance and shall ensure integrity, transparency and efficiency in
maintaining the roll of voting members, election of office bearers, fiduciary
responsibility and right of the individual members of the trade organisation;
(3)
After approval, the Federal Government shall
publish in the Gazette of Pakistan the basic template of Memorandum for all
trade organisations to be registered under this Act;
(4)
Apart from adherence to the basic template, the
registered trade organisations shall be autonomous to make changes in its
Memorandum in compliance with the Ordinance.
13.
The
Regulator.—(1) The Federal Government may, by notification in the
official gazette, appoint or empower an officer to perform the functions of
Regulator of trade organisations under this Act.
(2)
The Federal Government may appoint or empower
such other officers with such designations as it deems fit for performing under
the superintendence and direction of the Regulator, such functions of the
Regulator, under this Act as he may, from time to time, authorise them to
discharge.
(3)
The Regulator may, by order in writing,-
(a)
review any function, matter, case or decision of
any officer; or
(b)
withdraw any function, matter or case from any
officer or staff, and deal with such function, matter or case himself either de novo or from the stage it was so
withdrawn, or transfer the same to another officer or staff at any stage.
14.
Powers and
functions of the Regulator.—(1) All acts and proceedings of a
registered trade organisation shall be subject to the control of the Federal
Government and, subject to such control the affairs of such trade organisation
shall be managed and conducted in such manner as the Regulator may, from time
to time, direct.
(2)
The Regulator shall, for the purpose of this
Act, have the same powers as are vested in a Civil Court under the Code of
Civil Procedures 1908 (Act V of 1908) in respect of the following matters,
namely
(a)
summoning and enforcing the attendance of any
person and examining him on oath;
(b)
compelling the production of documents;
(c)
receiving evidence on affidavit; and
(d)
issuing commission for the examination of
witnesses.
(3)
Notwithstanding anything contained in any law
for the time being in force or in the articles or memorandum of a registered trade
organisation and without prejudice to the generality of the foregoing
provisions, the Regulator shall exercise the powers to-
(a)
conduct enquiries into the affairs of a trade
organisation as may be necessary for the purposes of this Act;
(b)
inspect, with or without prior notice, any
office of such trade organisation including any of its branch or regional,
circle, zonal or liaison office, or any record or document found therein;
(c)
attend any meeting of the general body or the
Executive Committee of such trade organisation or of any committee or other
body set up or appointed to transact any business, or to conduct any affair, of
such trade organisation;
(d)
watch and supervise, or cause to be watched and
supervised, any election
held by, or for the purpose of electing persons to
the Executive Committee or other body
including a region, circle or zone of any such trade organisation;
(e)
act as a final forum of appeals against the
decisions of any person, committee or office-bearers of a trade organisation in
matters relating to electoral process before the conduct of election; and
(f)
annul the results of any election held by any
trade organisation if he is satisfied—
(i)
upon his own knowledge and after such
investigation he may think fit to make; or
(ii)
upon a report made by a person authorised by him
to make
investigation for the purpose; or
(iii)
upon a complaint filed by an aggrieved person in
this behalf within
thirty days of the announcement of the results of such
election, that the irregularities in the conduct of such election justify such
annulment and, by order in writing, direct fresh election to be held within
such period as may be specified in the order;
(g)
give directions to persons or trade
organisations in matters concerning this
Act, or any rules or directive made there under;
(h)
impose and collect penalties and fines under
section 25; and (i) such
other powers as are provided by this Act.
15.
Powers to
enter and search the premises.—(1) The Regulator or any officer
authorized in this behalf may, for the purpose of making any investigation,
enter any premises, where the Regulator or such authorized officer, as the case
may be, has reasons to believe that any article, books of account, computer
hardware or software, data recording devices, or other document relating to the
subject matter of investigation may be found, and may-
(a)
search such premises and inspect* any article,
books of account, computer hardware or software, data recording devices, or
other document;
(b)
take extracts or copies of such articles, books
of account, or any software data;
(c)
impound or seal such books of account, computer
hardware or software, data recording devices, or other documents; and
(d)
make inventory of such articles, books of
account, computer hardware or software, data recording devices, or other
documents found in such premises.
(2)
All searches made under sub-section (1) shall be
carried out, mutatis mutandis, in
accordance with the provisions of Code of Criminal Procedure, 1898 (Act V of
1898).
(3)
Before taking any action under this section, the
Regulator shall submit to the Federal Government in writing the evidence and
reasons for taking the said action.
16.
Supersession
of Executive Committee, office-bearers and appointment of
Administrator.—(1) Where the Federal
Government is in receipt of the findings of an investigation by the Regulator,
that the affairs of a registered trade organisation are not being properly
managed and that the interests of trade, industry or service so require, it
may, by order in writing, suspend or supersede the Executive Committee of such
trade organisation for such period, not exceeding six months, as may be
specified in the. order:
Provided that no such order shall
be made unless the Executive Committee, intended to be suspended or superseded,
has been given a notice in writing of and afforded an opportunity to make a
representation against, the intended supersession.
(2)
Where—
(a)
an Executive Committee is superseded under
sub-section (1);
(b)
in the opinion of the Federal Government, it is
not possible for any reason to reconstitute the Executive Committee at the due
time of such reconstitution, or
(c)
the Executive Committee is debarred by an order
of any Court, from discharging its functions, the Federal Government may
appoint, for such period, not exceeding six months, an Administrator to take
over the functions of such Committee and to manage and conduct the affairs of
the trade organisation:
Provided that when the period of supersession
is terminated or the Executive Committee is reconstituted or the order of the Court
is vacated before the expiry of the period for which the Administrator shall
have been appointed, the Federal Government may direct the Administrator to
relinquish the functions taken over by him in favour of the Executive
Committee.
(3)
Upon the appointment of an Administrator under
clause (a) or clause (b) of sub-section (2), the members of the Executive
Committee shall be deemed to have vacated their respective offices.
17. Administrator
to act under the control of Regulator.—(1) The
Administrator shall manage and conduct the
affairs of the trade organisation under the supervision and control of the
Regulator and in accordance with the rules, if any, made in this behalf by the
Federal Government and, until such rules are made, in accordance with such
directions as the Regulator may, from time to time, give.
(2) The rules and directions referred to in sub-section (1)
may provide for—
(a)
the appointment of an Advisory Committee
consisting of persons , selected from the members of the trade organisation to
assist the Administrator in the discharge of his functions;
(b)
holding of elections for the purpose of
reconstitution of the Executive Committee at any time considered appropriate
before the expiry of the term of appointment of the Administrator
(c)
compliance with the provisions of the Ordinance
to the extent applicable to the trade organisation except those relating to the
laying of the income and expenditure account and reading of the auditor’s
report in general meeting;
(d)
withholding, during the period of supersession
of the Executive Committee, of the general meeting of the trade organisation
other than the meeting to hold elections for reconstituting the Executive
Committee;
(e)
conduct of any business, during the period the
general meeting remains withheld, which requires the approval or assent of the
members at a general meeting;
(f)
the pay, allowances, remuneration and other
privileges, of the Administrator and the members of the advisory committee; and
(g)
such other matters as are necessary for
efficient management of the affairs of the trade organisation.
(3) Any
expenditure incurred in connection with the management of a trade organisation
by the Administrator including pay, allowances and remuneration of the
Administrator and the members of the Advisory Committee shall be met as
expenses, and be a charge on the income, of the trade organisation:
Provided that the Federal Government may allow
remuneration, honorarium to and reimbursement of actual expenses incurred by
the Administrator in connection with performance of his functions to be met
from the Trade Organisations Fund.
18.
Restriction
on suits against trade organisations.—Notwithstanding anything
contained in any law for the time being in force or in the articles or
memorandum of a registered trade organisation, no suit or other legal
proceedings relating to affairs of a trade organisation shall be instituted or
commenced in any court except high court.
19.
Compulsory
membership of trade organisations.—(1) Notwithstanding anything
contained in any other law for the time being in force or in the articles or
memorandum of association of any trade organisation or other company or in any
agreement or other instrument, the Federal Government may,-
(a)
subject to any rules made in this behalf, by
order in writing, direct any firm, company or other concern engaged in any
trade, commerce, industry or service to be a member of registered trade
organisation specified in the order; or
(b)
if it considers expedient in the interest of
trade, commerce, industry, or service, by notification in the official gazette,
direct all such firms, companies or concerns or any class thereof engaged in
trade, commerce, industry or service, as may be specified in the notification
subject to exception if any, to be members of the registered trade organisation
or organisations specified in this behalf in such notification.
(2)
Upon the issue of an order or notification under
sub-section (1) the registered trade organisation concerned shall admit as its
member any firm, company or concern directed to be its member by such order or
notification.
20.
Restriction
on Membership.-—(1) No person shall be a member of more than such
number of trade organisations as the Federal Government may, by notification in
the official gazette, specify in this behalf.
(2)
A person convicted for any offence under this
Act shall not hold, or be eligible for holding, any office in a registered
trade organisation unless a period of five years has elapsed.
21.
Appeal.—(1)
Any person or trade organisation aggrieved by any decision or order of the
administrator may, within fourteen days of communication of such decision or
order, prefer appeal to the Regulator.
(2)
Any person or trade organisation aggrieved by
any decision or order of the Regulator may, within fourteen days of communication
of such decision or order, prefer appeal to the Federal Government whose
decision, subject to sub-section (4), shall be final.
(3)
On appeal under sub-section (1) the Regulator
or, as the case may be, the Federal Government may suspend the operation or execution
of the decision or order appealed against until the disposal of such appeal.
(4)
Any person aggrieved by the final order or
decision of the Federal Government involving a question of law may, within
thirty days of such order or decision, prefer appeal to the High Court.
22.
Delegation
of Powers.—(1) The Federal Government may, by notification in the
official gazette, direct that all or any of its powers under this Act shall, in
relation to such matters or subject to such conditions as may be specified therein,
also be exercisable by the Regulator.
(2)
The Regulator may, by order in writing,
authorise the Administrator or any other officer to exercise and perform any of
his powers and functions under this Act.
23. Federal
Government may carry out the functions of the Regulator.—
Notwithstanding
anything contained in any other provision of this Act, the Federal Government
may, by notification in the official gazette, direct that the powers and
functions of the Regulator shall, under such circumstances, or in such cases,
as may be specified in the notification, be exercised and performed by the
Federal Government and upon such notification reference to the Regulator in the
relevant provisions of tins Act shall be construed as reference to the Federal
Government and such provisions shall have effect accordingly.
24.
Power to
levy fee etc.—The Federal Government may levy and charge
prescribed
processing fee for grant of licence or renewal of licence to a trade
organisation, and for examining the performance reports, audited accounts, and
other documents submitted to the Federal Government or the Regulator.
25.
Penalty.—
Where a person contravenes any provision of this Act or any rule or order made,
or any direction or instruction given thereunder, or obstructs any officer or
person acting under or in pursuance of any such provision, rule, order,
direction, or instruction, shall be liable to penalty which may extend to one
hundred thousand rupees.
26.
Contravention
by companies, etc.—Where a person contravening or failing to comply
with, any provision of this Act or any rule, order or direction made or issued
there under is a company or other body corporate, every managing director,
director, manager, secretary or other officer or agent thereof shall, unless he
proves that the offence was committed without his knowledge or that he
exercised due diligence to prevent its commission, shall be liable to the
penalty as provided for such contravention or failure.
27.
Trade
Organisations Fund.—(1) There shall be established a fund to be
known as the Trade Organisations Fund which shall consist of,-
grants made by the Federal Government and the Provincial
Governments;
(a)
fees and penalties collected by the Regulator;
and
(b)
contributions from local and foreign donors or
agencies.
(2)
The Federal Government shall make rules and
regulations for utilizing and incurring
expenditures from the Fund.
(3)
For the purpose of maintaining the Fund the
Federal Government may open and maintain accounts at such scheduled banks as it
may from time to time determine.
28.
Presumption
as to orders — Where an order purports to have been made or signed
by an authority or person in exercise of any power conferred by or under this
Act, a Court shall presume that such order was so made by that authority or
person.
29.
Mode of
recovery.—Any sum imposed as penalty under this Act shall be
recoverable as an arrear of land revenue.
30.
Indemnity.—No
suit, prosecution or other legal proceedings shall lie against any person for
anything which is, in good faith, done or intended to be done in pursuance of
this Act or any rule or order made or any direction given there under.
31.
Power to
make rules.—The Federal Government may, by notification in the
official Gazette, make rules for carrying out the purposes of this Act.
32.
Act to
override other laws.— The provisions of this Act shall have effect
notwithstanding anything to the contrary contained in any other law, for the
time being in force.
33.
Merger of
trade organisations.—Notwithstanding anything contained in any other
law for the time being in force or provisions contained in Memorandum and
Articles of Association of any trade organisation, the Federal Government may,
by notification in official gazette, direct any number of trade organisations
to merge if each of them is involved in the same or significantly similar
trade, industry or services or any combination thereof:
Provided
that if two or more trade organisations are involved in the same or
significantly similar trade, industry or services or any combination thereof
shall be determined by the Federal Government whose decision in this regard
shall be final.
34.
Transitional
provisions.—(1) All existing trade organisations, before submitting
application for grant of licence under this Act, shall alter their memorandum
and articles of association or any existing arrangement, and shall take such
other actions as are necessary to bring the constitution, working and
procedures of the existing trade organisations in conformity with the
provisions of this Act.
(2) Notwithstanding
anything contained in this Act, or any other law for the time being in force,
or provisions contained in the memorandum and articles of association of any
trade organisation, in order to bring the composition of the Federation of
Pakistan Chambers of Commerce and Industry, chambers and associations in
conformity with the provisions of this Act, the Federal Government may, within
six months of the commencement of this Act, pass any orders deemed appropriate
for this purpose. Such orders may include, but not limited to, extension of the
tenure of the office bearers and committees, or supersession of Executive
Committee, or appointment of administrator, or annulment of the elections of
any trade organisation including the Federation of Pakistan Chambers of
Commerce and Industry, held under the repealed ordinance or the order of the
court. Simultaneously, with the passing of such order, the Federal Government
shall issue schedule of election for the respective trade organisation.
35.
Repeal and
savings.— On the Commencement of this Act,—
(a)
the Trade Organisations Ordinance, 1961 (XLV of
1961), in its application to trade Organisations with objects and business not
confined to a province,
shall
stand repealed with effect from December 30th, 2006; and
(b)
save as otherwise expressly provided, nothing in
this Act, or any repeal effected thereby, shall affect or deemed to affect
anything done, action taken, investigation and proceedings commenced, or
orders, rules, regulations, appointment, documents or agreements made,
directions given, proceedings taken, or instruments executed or issued under or
in pursuance of the repealed ordinance and any such thing, action,
investigation, proceeding, orders, rule, regulation, appointment, deed,
document, directions, proceeding shall, if in force at the commencement of this
Act and not inconsistent with any of the provisions of this Act, continue to be
in force, and have effect as if it were respectively done, taken, commenced,
made, directed, given, executed or issued under corresponding provision of this
Act.
36.
Validation
of actions etc.—Anything done, actions taken, orders passed,
instruments made, proceedings initiated processes or communications issued,
powers conferred, assumed, exercised by the Federal Government or Regulator on
and after the 4th October, 2007 and before the commencement of this Act shall
be deemed to have been validly done, made, issued, taken, initiated, conferred,
assumed and exercised and the provisions of this Act shall have, and shall be
deemed always to have had effect accordingly.
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