Measures of far reaching consequences have been incorporated in the draft Trade Organisations Act 2006 (TOA-2006) relating to the registration and regulation of trade organisations in the country. The Ministry of Commerce has forwarded the draft to the Cabinet for approval, a copy of which was available here on Thursday.
With the coming into force of this Act, the Trade Organisations Ordinance, 1961 shall stand repealed. According to the transitional provisions of the Act, within three months of its commencement, all existing trade organisations 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.
The TOA, 2006 considers it important to ensure appropriate representation of all genders and business sectors at all levels in trade organisations and that they play significant role in developing policy framework for improving business environment and economic growth.
The provisions of this Act shall have over-riding effect notwithstanding anything to the contrary contained in any other law, for the time being in force, including the Companies Ordinance 1984, the Corporate Societies Act 1926 (VII of 1926) and Securities and Exchange Commission Act 1997.
The Government may appoint or empower an officer to perform the functions of Director General of Trade Organisations under this Act. All acts and proceedings of a registered trade organisation shall be subject to the control of the government, and subject to such control the affairs of such trade organisation shall be managed and conducted in such manner as the Director General may, from time to time, direct.
The Director General 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: summoning and enforcing the attendance of any person and examining him on oath, compelling the production of documents, receiving evidence on affidavit; and issuing commission for the examination of witnesses.
The Director General shall exercise the power to: conduct enquiries into the affairs of a trade organisation as may be necessary for the purposes of this Act. 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. 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.
Regarding the licensing and registration of trade organisation the Act says that no trade organisation shall be registered under the Companies Ordinance 1984 or such other law.
Unless it holds a licence granted by the government authorising it to be so registered. About the revocation of licences of existing trade organisations, it says that any licence granted under section 3 of the Trade Organisations Ordinance 1961 to an existing trade organisation stands revoked, and such trade organisation shall be required to apply for grant of licence under this Act within 90 days of its coming into force.
Similarly a licensed trade organisation shall require renewal of its licence every two years. Application for renewal of licence shall be made to the Director General 90 days prior to the expiry of every two years. Regarding the cancellation of registration the draft Act says that notwithstanding anything contained in the Companies Ordinance 1984 or any other law for the time being in force, the registration of a trade organisation under Companies Ordinance 1984 or Companies Act 1913 shall be deemed to have been cancelled with immediate effect if the licence granted to such trade organisation has been cancelled by the Government under section 7.
Where a licence of a trade organisation is cancelled under section 7 of this Act, the Government may consider grant of licence de novo after a period of one year from the date of cancellation of licence.
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.
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