The financial statements of the non-profit organizations and non-governmental organizations would now contain information about the details of payment of meeting fee/reimbursement of actual expenses for attending board meetings/committees of the board.
The Securities and Exchange Commission of Pakistan (SECP) has made this compulsory for the NPOs and NGOs through a notification issued here on Wednesday amending the Associations with Charitable and Not for Profit Objects Regulations, 2018.
Under the amended regulations, the directors’ report as attached to the financial statements of the Association shall disclose the payment of meeting fee and reimbursement of actual expenses incurred by each director including the chief executive for attending meetings of board and committees of the board, SECP directed the NPOs and NGOs (commonly known as companies registered under section 42).
The SECP stated that the directors and the chief executive officer shall be entitled to reimbursement or payment of actual expenses incurred by them for attending meetings and they may also receive a fee for attending meetings of the board or a committee of the 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 the amount of meeting fee for attending meetings of board and committee of the board, SECP added.
The SECP has also amended 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 traveling 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.