ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has made it mandatory for the Non-Profit Organisations and Non-Governmental Organisations to disclose in their financial statements the details of payment of meeting fee/reimbursement of actual expenses for attending board meetings/committees of board.
The SECP has issued a notification here on Wednesday to amend the Associations with Charitable and Not for Profit Objects Regulations, 2018.
Through the revised regulations, the SECP has amended the conditions applicable to "section 42 companies".
According to the amended regulations, the directors’ report as attached to the financial statements of Association shall disclose the payment of meeting fee and reimbursement of actual expenses incurred by each director including chief executive for attending meetings of board and committees of board.
The SECP stated that the directors and the chief executive officer shall be entitled for reimbursement or payment of actual expenses incurred by them for attending meetings and they may also receive fee for attending meetings of the board or a committee of board, as determined by the board.
Provided further that the board, in the case of public sector company, shall also comply with all applicable laws, instructions and policies of the relevant line ministry, if any, while approving amount of meeting fee for attending meetings of board and committee of the board, the SECP added.
The SECP has also revised the definition of "benefits" under the Associations with Charitable and Not for Profit Objects Regulations, 2018.
Under the amended regulations, the "benefits" means all monetary and non-monetary favors of any kind received from the company directly or indirectly including but not limited to company maintained car, medical plan, house rent, loans and advances but does not include official travelling reimbursements, boarding and lodging expenses incurred on attending official meetings or expenses incurred in attending office as per entitlement or any meeting fee for attending the meetings of the board or a committee of board as determined by the board of directors.
Copyright Business Recorder, 2021
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