Law ministry

DOJ opinion sought on TOA amendment – Newspaper

LAHORE: The Department of Commerce has sought advice from the Department of Justice on increasing the term of office of board members of business organizations to two years through an amendment to the Business Organization Act 2013 (TOA).

Due to anomalies and uncertainties, the authorities concerned do not publish the calendar of compulsory elections for 2022-23 despite the notices sent to them by the regulator.

It was feared that if this amendment were to come to fruition in its present form, the above-mentioned situation could disrupt the whole structure and organization of the professional bodies. This could potentially open an avalanche of administrative and legal problems.

The Ministry of Commerce, in its letter, pointed out that the private member’s amendment bill proposed by Senator Saleem Mandiwalla also deals with the tenure of the members of the office of commercial organizations, but not that of the executive committee (CE ) commercial organizations. In addition, the bill has retrospective effect, ie it must be implemented with effect from 1 January.

The remaining changes as proposed by the government bill were not addressed in the private member’s bill which left gaping gaps in the administrative and legislative framework for professional organisations.

The amendment modified Article 11(1) of the TOA 2013 up to the term of office of officers and did not address that of the EC.

According to TOA 2013, Business Organizations, Electoral College is their EC for officers while Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Electoral College is its General Body (GB) for officers. office members. The GB is appointed for one year only by all professional organizations.

In the case of the FPCCI, Professional Organization Rule 2013 20(10) states that the term of the Board of Directors, including the EC, and officers will be one year. Such an anomaly has been created with this amendment, i.e. the President of the FPCCI cannot exercise his functions for the second year because he does not have a representative on the Board of Directors for the year next.

Posted in Dawn, October 26, 2022