The Not For Profit Articles of Association is a crucial document required for establishing and operating a not-for-profit organization in Pakistan. It is mandated by the Companies Act 2017 and must comply with Section 42 requirements and SECP regulations. This document is essential when founding a new not-for-profit organization or updating the constitutional framework of an existing one. It contains detailed provisions about the organization's charitable purposes, governance structure, membership rights, financial management, and dissolution procedures. The Articles serve as the primary reference for resolving internal disputes and guiding organizational decisions. In the Pakistani jurisdiction, this document must be carefully drafted to ensure tax-exempt status and maintain compliance with various regulatory requirements, including those related to foreign funding and social welfare activities.
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1. Name and Registered Office: States the organization's name and registered office location in Pakistan
2. Objects and Powers: Detailed description of charitable/not-for-profit purposes and activities, ensuring compliance with Section 42 requirements
3. Application of Income and Property: Stipulates that income and property must be applied solely towards promotion of objects
4. Limited Liability: Declaration of members' limited liability
5. Prohibition on Payment of Dividends: Express prohibition on payment of dividends to members
6. Membership: Categories of membership, admission criteria, and termination procedures
7. General Meetings: Procedures for annual and extraordinary general meetings
8. Proceedings at General Meetings: Rules for conducting meetings, voting procedures, and quorum requirements
9. Board of Directors: Composition, appointment, removal, and powers of the board
10. Powers and Duties of Directors: Detailed description of directors' authorities and responsibilities
11. Proceedings of Directors: Rules for board meetings, decision-making, and record-keeping
12. Chief Executive: Appointment, removal, and powers of the Chief Executive
13. Secretary: Role and responsibilities of the company secretary
14. Seal: Provisions regarding the company seal and its use
15. Financial Matters: Financial management, accounts, audit requirements
16. Dissolution: Procedures for winding up and asset distribution
1. Branch Offices: Include when organization plans to operate multiple offices
2. International Operations: Include for organizations planning international activities
3. Specialized Committees: Include when specific oversight committees are needed (e.g., audit, fundraising)
4. Religious/Cultural Provisions: Include for faith-based or cultural organizations
5. Dispute Resolution: Include detailed arbitration/mediation procedures if desired
6. Electronic Communications: Include provisions for virtual meetings and electronic voting
7. Founder Members Rights: Include if special rights are to be given to founding members
8. Emergency Powers: Include procedures for emergency decision-making
1. Schedule 1: Initial Members: List of founding members with their details
2. Schedule 2: Initial Directors: List of first directors with their details and terms
3. Schedule 3: Proxy Form: Standard form for proxy appointments
4. Schedule 4: Membership Categories: Detailed description of different membership categories and rights
5. Schedule 5: Code of Conduct: Ethical guidelines for members and directors
6. Schedule 6: Financial Authority Matrix: Approval limits and financial decision-making framework
7. Appendix A: Organizational Structure: Detailed organizational hierarchy and reporting relationships
8. Appendix B: Terms of Reference: Detailed terms for various committees and office bearers
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