Section 7: Cancellation of licence and exemption.⸻ (1) The licence granted to a trade organisation

7. Cancellation of licence and exemption.⸻ (1) The licence granted to a trade organisation shall be cancelled by the 1[Regulator], 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 non­existent at the registered address or is non­operational; (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; 1Subs. by Act No. IV of 2025, s.5. (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 sub­section (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 purposes other than those for which it was established; (ii) the trade organisation does not remain financially viable. (2) Where the 1[Regulator] 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 1[Regulator] 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 sub­section (1) members of the trade organisation concerned found responsible by the 1[Regulator] 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) and 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.

Effective date: 2013-01-01

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