The Companies Act 2017 has empowered the Securities and Exchange Commission of Pakistan (SECP) to grant exemption from the requirement for a director of a company to hold National Tax Number (NTN) as per the provisions of Income Tax Ordinance, 2001.
According to Section 153 of the Companies Act, 2017, a person shall not be eligible for appointment as a director of a company, if he does not hold National Tax Number as per the provisions of Income Tax Ordinance, 2001. Provided that the Commission may grant exemption from the requirement of this clause as may be notified.
The section 153 (Ineligibility of certain persons to become director) said: A person shall not be eligible for appointment as a director of a company, if he is a minor; of unsound mind; has applied to be adjudicated as an insolvent and his application is pending; is an undischarged insolvent; convicted by a court of law for an offence involving moral turpitude; debarred from holding such office under any provision of this Act and lacking fiduciary behaviour and a declaration to this effect has been made by the Court under Section 212 at any time during the preceding five years.
A person shall not be eligible for appointment as a director of a company, if he does not hold National Tax Number as per the provisions of Income Tax Ordinance, 2001. Provided that the Commission may grant exemption from the requirement of this clause as may be notified.