The Ministry of Commerce has allowed renewal of membership of Rice Exporters Association of Pakistan (Reap) to all those firms who have deposited renewal fee and submitted proof of filing Income Tax returns up to June 30.
In an order issued on July 28, the ministry said that all those Reap member firms to whom renewal is allowed should be included in the voters' list unless they are disqualified to vote for any reason other than renewal of their membership.
The ministry directed the Reap to report compliance of the above direction within 10 days of this order, failing which action under section 10 of the Trade Ordinance 1961 shall be taken.
The ministry in its order has said that a number of representations have been received in the Directorate of Trade Organisations, Ministry of Commerce against management of Reap declining renewal of membership to its member firms, and as a consequence thereof their exclusion from voters list, finalised for the forthcoming elections in September.
The renewal of membership is alleged to have been declined for non-submission of documents listed in the Circular No Reap/SIRC/10770 dated March 2, followed by reminders of various dates.
The said circular envisages production of following documents with renewal applications: Bank draft/Pay order for Rs 1500/-, proof of filing of Income Tax return/statement for the Tax Year 2004 (according to Income Tax Ordinance 2001), copy of membership of Chamber of Commerce and Industry, copy of NTN certificate, copy of National Identity Card (s) of the proprietor/partner/director of the firm, copy of partnership deed (in case of partnership), copy of Memorandum & Articles of Association of the firm (limited company) and evidence of export of rice in the financial year 2004-05.
The representers have contended that relevant articles of the Memorandum and Articles of Association (M&AoA) of the Reap and the government's instructions issued vide order No 5(2)/97-T.O.I. dated April 24, 1997 stipulate proof of filing income tax return for the relevant year. (Besides deposit of renewal fee) for renewal of membership and as such refusal to grant renewal for non-production of any additional documents is uncalled for and in violation of the M&AoA of REAP and hence unlawful and illegal.
The position has been examined in this Directorate in the light of Articles of Memorandum of Reap, aforesaid order of the Federal government and comments offered by the Chairman Reap vide his letter date June 27.
After going through the articles of M&AoA of the Reap, it is amply clear that for renewal of membership, deposit of annual/renewal fee and proof of filing income tax are the only mandatory requirements. The association may well be within its right to call for any information/documents from its members whenever it feels it necessary to update its record, but making production of these documents a condition for renewal and to refuse renewal for non-production of the same, is a transgression of the provisions of M&AoA, that too at a time when elections are only a few weeks away.
It amounts to denial of a basic right to the members and cannot be up-held. Asking for particulars of authorised representative of firms for every election at the renewal stage is also not mandatory. In terms of sub-articles 14(IV) (b) members are required to intimate secretary of the association only if a change is desired in the representation and that can be done within 7 days of the announcement of election schedule, which in this case, has been issued on July 7, 2005, the order said.
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