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Source transcription retained verbatim; legal completeness, OCR accuracy and current consolidation unverified.", "text_sha256": "f46ee1b775154446eaa1105bced6f4b4efda7ae1874edd6305fb007b162cff1e", "source_sha256": "f46ee1b775154446eaa1105bced6f4b4efda7ae1874edd6305fb007b162cff1e", "text_version_id": "law:pk-code-d62563090a5309e6:sha256:f46ee1b775154446eaa1105bced6f4b4efda7ae1874edd6305fb007b162cff1e", "quality_flags": [], "encoding": "UTF-8", "text": "Page 1 of 19 \r\n \r\n \r\n \r\n \r\n \r\nSMALL AND MEDIUM ENTERPRISES DEVELOPMENT \r\nAUTHORITY ORDINANCE, 2002 \r\n \r\n \r\n \r\nCONTENTS \r\n \r\nCHAPTER I \r\nPRELIMINARY \r\n \r\n1. Short title, extent and commencement. \r\n2. Definitions. \r\nCHAPTER II \r\nTHE AUTHORITY \r\n \r\n3. Establishment of the Authority. \r\n4. Powers and functions of the Authority. \r\nCHAPTER III \r\nBOARD AND COMMITTEES \r\n \r\n5. Exercise of the powers and functions of the Authority to be vested in a Board. \r\n \r\n6. Composition of the Board. \r\n7. Powers and functions of the Board. \r\n8. Meetings of the Board. \r\n9. Committees. \r\n10. The Chairman of the Board. \r\n11. Powers and functions of the Chairman. \r\nCHAPTER V \r\nTHE CHIEF EXECUTIVE OFFICER \r\n \r\n12. The Chief Executive Officer. \r\n\r\n \r\nPage 2 of 19 \r\n \r\n13. Qualifications of the Chief Executive Officer. \r\n14. Disqualification of the Chief Executive Officer. \r\n15. Powers and functions of the Chief Executive Officer. \r\nCHAPTER VI \r\nDELEGATION OF POWERS \r\n \r\n16. Delegation of powers, duties and functions. \r\nCHAPTER VII \r\nTHE EXECUTIVE SECRETARY \r\n \r\n17. The Executive Secretary. \r\nCHAPTER VIII \r\nESTABLISHMENT \r\n \r\n18. Appointment of employees, etc. \r\n19. Conditions of service and disciplinary powers. \r\nCHAPTER IX \r\nRESIGNATION AND REMOVAL \r\n \r\n20. Resignation. \r\n21. Removal of Member. \r\nCHAPTER X \r\nFINANCE, AUDIT AND ACCOUNTS \r\n \r\n22. Fund. \r\n23. Expenditure to be charged to the Fund. \r\n24. Accounts, annual financial report and audit. \r\n25. Investment. \r\n26. Bank accounts. \r\nCHAPTER XI \r\nANNUAL REPORT \r\n \r\n27. Annual report. \r\nCHAPTER XII \r\nGENERAL AND MISCELLANEOUS PROVISIONS \r\n \r\n \r\n28. Limitation of liability. \r\n \r\nPage 3 of 19 \r\n \r\n29. Right of recovery as arrears of land revenue. \r\nPOWER OF THE FEDERAL GOVERNMENT \r\nTO ISSUE POLICY GUIDELINES \r\n \r\n30. Power of the Federal Government to issue policy guidelines. \r\n31. Chief Executive Officer, Members, employees, etc. of the Authority to be public \r\n servants. \r\n32. Indemnity. \r\n33. Winding up. \r\n34. Common seal. \r\n35. Ordinance to override other laws. \r\n36. Power to make rules. \r\n37. Power to make regulations. \r\n38. Removal of difficulties. \r\n39. Savings. \r\n40. Repeal. \r\n \r\n \r\n \r\nPage 4 of 19 \r\n \r\nSMALL AND MEDIUM ENTERPRISES DEVELOPMENT AUTHORITY \r\nORDINANCE 2002 \r\n \r\nORDINANCE XXXIX OF 2002 \r\n \r\nAn \r\nOrdinance \r\n \r\nto provide for the, establishment of the Small and Medium Enterprises Development \r\n Authority as an autonomous body under the Federal Government for encouraging and \r\n facilitating the development and growth of small and medium enterprises in Pakistan \r\n \r\nWHEREAS it is expedient for the establishment of a Small and Medium Enterprises \r\nDevelopment Authority to provide requisite support services for encouraging and facilitating the \r\ndevelopment and growth of small and medium enterprises in Pakistan by way of policy making and \r\nthrough the pr ovisions of resources and support services and to pro vide for matters connected \r\ntherewith and ancillary thereto; \r\n \r\nAND WHEREAS the President is satisfied t hat circumstances exist which render it \r\nnecessary to take immediate action; \r\n \r\nNOW, THEREFORE, in pursuance of the Proclamation of Emergency of the fourteenth day \r\nof October, 1999, and the Provisional Constitution Ord er No. 1 of 1999, read with the \r\nProvisional Constitution (Amendment) Order No. 9 of 1999, and in exercise of all powers \r\nenabling him in that behalf, the President of the Islamic Republic of Pakistanis pleased to make \r\nand promulgate the following Ordinance: — \r\n \r\nCHAPTER I \r\nPRELIMINARY \r\n \r\n 1. Short title, extent and commencement.—(1) This Ordinance may be called the \r\nSmall and Medium Enterprises Development Authority Ordinance 2002. \r\n (2) It extends to the whole of Pakistan. \r\n (3) It shall come into force at once. \r\n \r\n 2. Definitions. In this Ordinance, unless there is anything repugnant in the subject or \r\ncontext,— \r\n \r\n(a) “Authority” means the Small and Medium Enterprises Development \r\nAuthority established under section 3; \r\n \r\n(b) “Board” means the Board of the Authority constituted under section 5; \r\n \r\n(c) “Chairman” means the Chairman of the board; \r\n \r\n \r\nPage 5 of 19 \r\n \r\n(d) “Chief Executive Officer” means the Chief Executive Officer of the \r\nAuthority \r\n(e) “Committee” means a committee constituted by the Board; \r\n \r\n(f) “employee” means any officer or servant of the Authority; \r\n \r\n(g) “Executive Secretary” means the Executive Secretary of the Board: \r\n \r\n(h) “Federal Government” for purposes of this Ordin ance means the Ministry of \r\nIndustries and Production; \r\n \r\n(i) “Fund” means the fund established under section 22; \r\n \r\n(j) “Member” means a member of the Board including the Chairman; \r\n \r\n(k) “Person” means any n atural p erson or Legal entity, including an individual, \r\nassociation of persons, partnership, company, corporation, statutory body, \r\ntrust, society, or any other legal entity; \r\n \r\n(l) “prescribed” means prescribed by the rules made under this Ordinance; \r\n \r\n(m) “private sector” means any field of activity not in the public sector or of any \r\nstatutory body or anybody which is owned or controlled, wholly or \r\npartially, by the Federal Government or a Provincial Government except a \r\nuniversity or an educational or research institute; \r\n \r\n(n) “regulations” means the regulations made under this Ordinance; \r\n \r\n(o) “rules” means the rules made under this Ordinance; and \r\n \r\n(p) “S.M.E.s” means all entities declared or defined by the Federal \r\nGovernment to be small or medium enterprises for the purposes this \r\nOrdinance. \r\n \r\nCHAPTER II \r\nTHE AUTHORITY \r\n \r\n 3. Establishment of the Authority.—(1) There shall be established an Authority to be \r\ncalled the Small and Medium Enterprises Development Authority for carrying out the purposes and \r\nobjectives of this Ordinance. \r\n \r\n (2) The Authority shall be a body corporate having perpetual succession and a common seal, \r\nwith power, subject to the provisions of this Ordinance, to acquire, take-over, hold and dispose \r\nof property, both moveable and immovable, to inter into contracts and shall by the said name sue \r\nand be sued. \r\n \r\n (3) The Authority shall have the sole and exclusive right to have and se all emblems, motto, \r\nlogo, decorations, descriptive or d esignating marks and title now or heretofore used by the \r\n \r\nPage 6 of 19 \r\n \r\nAuthority, the name “Small and Medium Enterprise Development Authority or any similar \r\ngrammatical variation thereof and shall also have the sole and exclusive right to have and to use \r\nany emblems, motto, logo decorations, descriptive or designating marks or titles hereafter adopted \r\nby the Authority for carrying out its objectives. \r\n \r\n(4) The Head Office of the Authority shall be at Lahore or at any other place as the \r\nFederal Government may, by notification in the official Gazette, specify. \r\n \r\n(5) The Authority may establish regional offices at such other places and in such \r\nnumbers as the Board may, from time to time, deem fit. \r\n \r\n 4. Powers and functions of the Authority.—(1) The Authority shall have all such powers \r\nas may be necessary to perform its duties and functions under this Ordinance. \r\n \r\n (2) Without prejudice to the generality of the foregoing provision, the Authority shall \r\nexercise and perform the following powers and functions, namely:— \r\n \r\n(a) to facilitate on policy-making and to provide overall planning, programming, \r\nresearch and evaluation of matters relating to S.M.E.s in Pakistan; \r\n \r\n(b) to identify research parameters and priorities and broad thrusts; \r\n \r\n(c) to conduct professional overall monitoring and external evaluation of \r\nS.M.E.s; \r\n \r\n(d) to advise the Federal Government for allocation of funds to identify \r\nresearch and planning priorities; \r\n \r\n(e) to initiate, take, continue, implement and perform any and all activities for \r\nencouraging and facilitating the growth and development of S.M.E.s'; \r\n \r\n(f) to protect the interests of S.M.E.s in accordance with the provisions of this \r\nOrdinance and any rules and regulations made thereunder; \r\n \r\n(g) to act as a resource base for providing expertise, information, data, statistics \r\nincluding but not limited to, economic, commercial, business and \r\nindustrial areas and such other resources as deemed appropriate or necessary \r\nfor S.M.E.s; \r\n \r\n(h) to provide, arrange and facilitate support services, including but not limited \r\nto technical, financial, managerial, legal, marketing, commercial industrial \r\nand such other services as deemed appropriate or necessary for S.M.E.s. \r\n \r\n(i) to establish any association of persons, firm, company, body or corporation \r\nconcerning S.M.E.s in Pakistan; \r\n \r\n(j) to engage and enter into agreements with financial and other institutions, and \r\nfinancial, legal, accounting, valuation and other specialists, for the \r\n \r\nPage 7 of 19 \r\n \r\npurposes of fulfilling the aims and objectives of the Authority; \r\n \r\n(k) to borrow money and secure or discharge any debt or obligation binding on \r\nthe Authority in such manner as may be thought fit; \r\n \r\n (l) to sell, improve, manage, develop; exchange, mortgage, let or rent, grant \r\nlicences, easements, options, servitudes and other rights over and in any \r\nother manner deal with or dispose the real and personal property, assets, \r\nrights and effects of the Authority; \r\n \r\n(m) to op en and maintain the Authority's accounts with banks and financial \r\ninstitutions \r\n \r\n(n) to enter into any agreements with any authorities, Federal or Provincial, \r\nautonomous, semi-autonomous, municipal, local or otherwise that may be \r\nconducive to the Authority's aims or objectives, or any one of them, and to \r\nobtain from any such authority, rights, privileges and concessions which the \r\nAuthority may deem desirable to obtain and to carry out, exercise and \r\ncomply with any such arrangements, rights, privileges and concessions ; \r\n \r\n(o) to have and possess all powers and functions enumerated in sections 7, 11 \r\nand 15 as entrusted to the Board, the Chairman and the Chief Executive \r\nOfficer respectively; \r\n \r\n(p) to perform such other functions as may be assigned by the Federal \r\nGovernment to achieve the alms and objectives of this Ordinance; and \r\n \r\n(q) to do all other acts, deeds and things incidental to or ancillary for the \r\npurposes of achieving the objects of this Ordinance. \r\n \r\nCHAPTER III \r\nBOARD AND COMMITTEES \r\n \r\n5. Exercise of the powers and functions of the Authority to be vested in a Board. The \r\npowers and functions of the Authority and the general and overall direction, management, control \r\nand superintendence of the affairs of the Authority shall vest in a Board and all actions, \r\ndecisions, guidelines, directions, orders and policies made or issued by the Board in the exercise of \r\nthe said powers and functions shall be deemed to have been made and issued by the Authority. \r\n \r\n 6. Composition of the Board.—(1) The Board shall consist of the following members, \r\nnamely:— \r\n \r\n(a) the Chairman; \r\n \r\n(b) the Secretary, Industries and Production Division, Government of Pakistan; \r\n \r\n(c) the Secretary, Finance Division, Ministry of Finance, Revenue and Economic \r\nAffairs, Government of Pakistan; \r\n \r\nPage 8 of 19 \r\n \r\n \r\n(d) the Secretary, Commerce Division, Government of Pakistan; \r\n \r\n(e) the Chairman, Central Board of Revenue, Government of Pakistan; \r\n \r\n(f) the Chief Executive Officer; \r\n \r\n(g) six persons from the private sector and, as far as possible, amongst them \r\nat least one from each Province of Pakistan who are reputed for their integrity, \r\ncompetence, expertise, knowledge and experience in the spheres including \r\nbut not limited to economics, commerce, business, trade, industry, law, \r\nactuarial sciences, accountancy, banking, finance, marketing, technology, \r\nacademia, or other spheres of expertise and who are capable of and able \r\nto positi vely contribute towards the aims, objectives and functions of the \r\nAuthority. \r\n \r\n(2) The Members mentioned in clauses (b) to (e) of sub-section (1) shall be ex officio \r\nMembers. \r\n \r\n(3) If any Member referred to in clauses (b) to (e) of sub-section (1) sent from Pakistan, or \r\nis unable to attend a Meeting of the Board, he may authority officer, not below the rank of \r\nAdditional Secretary or Joint Secretary of his Division, to act as a Member and such officer, if \r\napproved by the Board, may act, as Member and participate in the Board Meeting for such period \r\nof time and for such number of Meetings as may be permitted by the Board. \r\n \r\n(4) A Member, other than an ex officio member, shall be appointed by the Federal \r\nGovernment in consultation with the Chairman, and shall hold office for a term of three years \r\nand may be eligible for re-appointment for only one additional term not exceeding three years. \r\n \r\n 7. Powers and functions of the Board. Subject to the provisions of this Ordinance, the \r\nBoard shall,— \r\n \r\n(i) exercise executive control over the affairs of the Authority; \r\n \r\n(ii) manage and administer affairs of the Authority; \r\n \r\n(iii) approve the annual budget of the Authority; \r\n \r\n(iv) ask for any information or call for the record of any matter relating to \r\nS.M.E.s, pending before or decided by the Authority or any committee \r\nconstituted by the Authority; \r\n \r\n(v) ask for any information or call for the record of any matter relating to \r\nS.M.E.s, from any ministry, division, department, section, statutory body, \r\ncorporation, agency of the Federal of Provincial Government concerning any \r\npolicy, relating to S.M.E.s subject to the constitutional and legal \r\nrequirements, for r eview and appropriate action as and if n ecessary. The \r\nconcerned ministry, division, department, section, statutory body, corporation, \r\n \r\nPage 9 of 19 \r\n \r\nagency of the Federal or Provincial Government, which after the receipt of \r\nsuch request, shall, within a reasonable period of time, provide the requisite \r\ninformation or record to the Authority; \r\n \r\n(vi) assist and facilitate banks and other institutions in developing appropriate \r\nprogrammes for the promotion and development of S.M.E.s; \r\n \r\n(vii) enter into all such negotiations, agreements and contracts and rescind or vary \r\nall such agreements or contracts, and to execute all such documents and \r\ndo all acts, deeds and things, in the name and on behalf of the Authority as \r\nmay, be considered necessary, expedient or proper or in relation to any of \r\nthe matters aforesaid or otherwise, for the purposes of the Authority ; \r\n \r\n(viii) deal with, make arrangements, sign contracts with Go vernment, semi- \r\nGovernment, autonomous bodies, corporations, local Government and other \r\ninstitutions; \r\n \r\n(ix) sell, deal in and dispose of all articles and goods of the Authority ; \r\n \r\n (x) engage, employ, fix and pay the remuneration and remove, dismiss or \r\ndischarge all employees and other persons employed in, or in connection \r\nwith, the Authority's business; \r\n \r\n(xi) transfer employees from one department to another department; \r\n \r\n(xii) employ advisers, experts and consultants for the Authority; \r\n \r\n(xiii) review the performance of any person employed or engaged by the Board \r\nor the Chief Executive Officer, from time to time, and issue such directions \r\nas it may deem fit, appropriate or necessary; \r\n \r\n(xiv) make and give receipt, release and discharge, all moneys payable to the \r\nAuthority or for the claims and demands of the Authority; \r\n \r\n(xv) receive money or goods on behalf of the Authority; \r\n \r\n(xvi) give effectual discharge for moneys payable to the Authority and for its \r\nclaims and demands; \r\n \r\n(xvii) draw, accept, endorse and negotiate all such cheques, bills of exchange, \r\npromissory notes and Government and other securities as shall be necessary \r\nin or for carrying on the affairs of the Authority whether the account \r\nmay be overdrawn or not. \r\n \r\n(xviii) provide for the welfare of employees or ex-employees of the Authority \r\nand the wives, widows or families or the dependents of such persons in such \r\nmanner as it may think fit; \r\n \r\n \r\nPage 10 of 19 \r\n \r\n(xix) open, maintain and operate accounts or letters of credit for any amount \r\nwith any bank or banks and to give instructions for operation of such \r\naccounts; \r\n \r\n (xx) institute, commence, defend, compromise, withdraw or abandon any legal \r\nproceedings by or against the Authority or its employees or otherwise \r\nconcerning the affairs of the Authority; \r\n \r\n(xxi) Appear before any Court of law, civil, criminal, revenue excise income-tax, \r\nspecial courts, tribunals, whether original or appellate, Provincial High \r\nCourts and the Supreme Court of Pakistan and other authorities for and on \r\nbehalf of the Authority and to institute, apply for transfer of suits and other \r\nproceedings, conduct, prosecute and defend suits and legal jurisdiction, sign \r\npowers of attorney or other authorizations, statements, pleadings and \r\npetitions on behalf of the Authority and to represent, defend and safeguard \r\nthe interest of Authority; \r\n \r\n(xxii) purchase or take on lease or otherwise acquire for the Authority, land, \r\nbuildings, rights and privileges for the purpose of offices or premises of the \r\nAuthority at such prices and generally on such terms as it may think necessary \r\nand expedient, to build, alter and furnish offices, houses or premises and \r\nlet or sub-let any such houses or premises in, portion or otherwise; \r\n \r\n(xxiii) demand and enforce payment, delivery, transfer of any dues for recovery and \r\nreceive from all and any persons, body corporate or corporations, firm or \r\ncompanies whatsoever, all moneys, securities for moneys, debts and claims \r\nof all kinds and demand; enforce, deliver and receive any property of all kinds \r\nwhether belonging to the Authority as security or in trust or h eld by any \r\nperson or company in trust or by way of security for the Authority; \r\n \r\n(xxiv) appoint and nominate attorneys, agents, managers for the Authority for such \r\npurposes and with such powers, authorities and discretion and for such \r\nperiod and subject to such conditions as he may, front time to time, think fit \r\nand authorise them to exercise any or all such powers and functions; \r\n \r\n(xxv) assign or sub-contract work of the Authority to private sector persons or \r\notherwise; (xxvi) see that the Ordinance and the rules and regulations made \r\nthereunder are duly observed and to ensure such observance; \r\n \r\n(xxvii) make, formulate, lay down, review and approve policies and plans relating \r\nto the aims and objectives of the Authority; \r\n \r\n(xxviii) advise the Authority on all matters relating to its policies, plans, aim and \r\nobjectives; \r\n(xxix) review the development and growth of S.M.E.s in Pakistan and make \r\nrecommendations and policies therefore; \r\n \r\n(xxx) make, formulate, lay down and approve regulations on behalf of the \r\nAuthority; \r\n \r\nPage 11 of 19 \r\n \r\n \r\n(xxxi) approve the annual financial budget of the Authority; \r\n \r\n(xxxii) seek advice from any person relating to any matter under its jurisdiction; \r\n \r\n(xxxiii)constitute such committees as it may deem fit or consider necessary or \r\nexpedient to assist the Board in the performance of its functions under \r\nthis Ordinance and to review the performance of such committees \r\n \r\n(xxxiv) maintain and preserve the Fund of the Authority; \r\n \r\n(xxxv) lay down the terms and conditions of the employees, experts, advisers and \r\nconsultants of the Authority; \r\n \r\n(xxxvi) to assist and facilitate banks and other institutions in developing appropriate \r\nprogrammes for promotion and development of S.M.E.s; \r\n \r\n(xxxvii)recommend suitable persons for the appointment as the Chief Executive \r\nOfficer; and \r\n \r\n(xxxviii)do or to perform such other acts, deeds and things as may be necessary and \r\nincidental thereto. \r\n \r\n 8. Meetings of the Board.—(1) The Board shall meet not less than twice in a calendar \r\nyear. \r\n \r\n(2) the Meetings of the Board shall be presided over by the Chairman or, in his absence, by \r\nany other Member as the Board may determine; \r\n \r\n (3) Six Members including at least two ex-officio Members shall constitute a quorum for a \r\nmeeting of the Board. \r\n \r\n(4) The decision of the Board shall be taken by the Majority of its Members, each of \r\nwhom shall have a single vote, including the Chairman. In case of a t ie, the Chairman or, in his \r\nabsence, the person chairing the meeting, shall have a casting vote. \r\n \r\n(5) No actor proceeding of the Board shall be invalid merely on the ground o f the \r\nexistence of any vacancy in, or any other defect in the constitution of, the Board. \r\n \r\n 9. Committees. The Board may, for the purpose of obtaining advice and assistance in \r\ncarrying out the purposes of this Ordinance, constitute committee consisting of the Members of the \r\nBoard and any other suitable person or persons as it may deem fit. \r\n \r\nCHAPTER IV \r\nTHE CHAIRMAN \r\n \r\n 10. The Chairman of the Board. The Federal Minister for Industries and Production, \r\nGovernment of Pakistan, shall be the ex-officio Chairman of the Board. \r\n \r\nPage 12 of 19 \r\n \r\n \r\n 11. Powers and functions of the Chairman.—(1) The Chairman may ask for any \r\ninformation or call for the record of any matter, pending before or decided by the Board, the Chief \r\nExecutive Officer or any committee, relating to S.M.E.s and may ask for information, from any \r\nMinistry, statutory body, corporation, agency of the Federal or Provincial Government concerning \r\nany policy, relating to S.M.E.s for review and appropriate action, as and if necessary. The \r\nconcerned Ministry, statutory body, corporation, agency of the Federal or Provincial Government, \r\nwhich after the receipt of such request, shall, within a reasonable period of time, provide the \r\nrequisite information or record to the Chairman. \r\n \r\n(2) The Chairman may take appropriate and necessary action on any report submitted to \r\nhim by the Board, the Chief Executive Officer, a member or a committee. \r\n \r\n (3) The Chairman may review the performance of the Board, the Chief Executive Officer, a \r\nMember or a committee, from time to time, and issue such directions as the Chairman may deem \r\nfit. \r\n \r\nCHAPTER V \r\nTHE CHIEF EXECUTIVE OFFICER \r\n \r\n 12. The Chief Executive Officer.—(1) There shall be a Chief Executive Officer of the \r\nAuthority who shall be appointed by the Federal Government subject to such terms and \r\nconditions as may be determined by the Federal Government. \r\n \r\n(2) The Chief Executive Officer shall be appointed for a term of three years which may be \r\nextended to only one additional term of not exceeding three years. \r\n \r\n 13. Qualifications of the Chief Executive Officer. A person shad not be qualified to be \r\nappointed as the Chief Executive Officer or a Member of the Authority unless he— \r\n \r\n(a) is a citizen of Pakistan; \r\n \r\n(b) is not less than forty years of age; \r\n \r\n(c) is a person who is well-qualified, experienced and of known integrity and \r\ncompetence. \r\n \r\n 14. Dis qualification of t he Chief Executive Officer. No p erson shall be appointed or \r\ncontinue as a Chief Executive Officer of the Authority if he— \r\n \r\n(a) is of unsound mind and has been so declared by a competent authority; \r\n \r\n(b) is adjudged an undischarged insolvent; \r\n \r\n(c) ceases to be a citizen of Pakistan, or acquires the citizenship of a foreign \r\nstate; \r\n \r\n(d) has at any time been convicted of an offence which, in the opinion of the \r\n \r\nPage 13 of 19 \r\n \r\nFederal Government, is an offence involving moral turpitude; \r\n \r\n(e) has been dismissed, removed or compulsorily retired from the service of \r\nPakistan on the ground of misconduct; \r\n \r\n(f) is found guilty of a corrupt or illegal practice under any low for the time \r\nbeing in force; \r\n \r\n(g) has after the establishment of Pakistan, worked against the integrity of the \r\ncountry; \r\n \r\n(h) is not capable of discharging his duties by reason of physical, \r\npsychological or mental unfitness or ill-health and has been so declared by a \r\nmedical board appointed by the Board and comprising of three registered and \r\nlicensed medical practitioners; \r\n \r\n(i) absents himself from all the Meetings of the Board, without sufficient cause \r\nand leave of absence from the Board, for a continuous period of six months \r\nor, if l ess than three meetings are held within such a period, from three \r\nconsecutive meetings of the Board; \r\n \r\n(j) remains absent without leave from the Authority for more than seven days, \r\nor \r\n \r\n(k) refuses or fails to discharge or, in the opinion of the Board, becomes \r\nincapable of effectively discharging his responsibilities under this Ordinance. \r\n \r\n 15. Powers and functions of the Chief Executive Officer. The Chief Executive Officer \r\nshall exercise such powers and perform such functions as may be assigned to him by the Board. \r\n \r\nCHAPTER VI \r\nDELEGATION OF POWERS \r\n \r\n 16. Delegation of powers, duties and functions. The Board may, subject to such \r\nconditions and limitations as it may deem fit to impose, delegate all or any of its powers, \r\nduties or functions to the Chairman, the Chief Executive Officer, a member, a committee or any \r\nofficer of the Authority, as it may deem fit. \r\n \r\nCHAPTER VII \r\nTHE EXECUTIVE SECRETARY \r\n \r\n 17. The Executive Secretary.—(1) There shall be an Executive Secretary who shall be \r\nappointed by the Board on the basis of such qualification and on such terms and conditions as \r\nmay be prescribed. \r\n \r\n(2) The Executive Secretary shall exercise all such powers and perform all such \r\nfunctions, as may be assigned to him by the Board. \r\n \r\n \r\nPage 14 of 19 \r\n \r\n(3) The Executive Secretary shall be responsible for calling the meetings of the Board \r\non the direction of the Chairman, the Chief Executive Officer or on a requisition by the majority \r\nof the Members, as the case may be. \r\n \r\nCHAPTER VIII \r\nESTABLISHMENT \r\n \r\n 18. Appointment of employees, etc.—(1) The authority may appoint such employees as \r\nit may consider necessary for the efficient performance of its functions on such terms and \r\nconditions as may be prescribed. \r\n \r\n (2) All appointments and promotions in the Authority shall be in accordance with the \r\nservice rules and regulations of the Authority. \r\n \r\n(3) The Authority may engage experts, advisers and consultants on contract on such terms \r\nand conditions as it may determine. \r\n \r\n 19. Conditions of service and disciplinary powers. The Authority shall prescribe the-\r\nprocedure for the appointment and removal and other terms and conditions of service of its \r\nemployees and shall be competent to take disciplinary action against its employees. \r\n \r\nCHAPTER IX \r\nRESIGNATION AND REMOVAL \r\n \r\n 20. Resignation.—(1) The Chief Executive Officer or a Member, other than an ex officio \r\nMember, may, at any time, resign his office by writing under his hand addressed to the Chairman, \r\nsubject to the terms and conditions of his office. \r\n \r\n(2) An employee may, at any time, resign his post by writing under his hand addressed to the \r\nChief Executive Officer, subject to the terms and conditions of his employment. \r\n \r\n 21. Removal of Member. The Federal Government may, on the recommendation of the \r\nChairman, it any time, remove any Member, other than an ex officio Member, on any one or-\r\nmore of the grounds specified in section 14. \r\n \r\n \r\n \r\n \r\nCHAPTER X \r\nFINANCE, AUDIT AND ACCOUNTS \r\n \r\n22. Fund.—(1) There shall be established a Fund vested in t he Authority which shall be \r\nutilized by the Authority to meet all such costs and charges incurred in connection with its \r\nfunctions under this Ordinance. \r\n \r\n (2) The Fund shall consist of— \r\n \r\n(a) such funds as the Federal Government may, from time to time, grant to the \r\nAuthority; \r\n \r\nPage 15 of 19 \r\n \r\n \r\n(b) allocations made by the Federal Government from the Federal Consolidated \r\nFund or any other financial source available with the Federal Government; \r\n \r\n(c) annual grant (budget) obtained from the Federal Government; \r\n \r\n(d) non-repayable fees, and income, accruing to it under the law, donation. \r\nbequests, endowments, contributions, and other receipts provided to the \r\nAuthority by any person, agency, body, corporate (statutory or otherwise), \r\ninstitution approved by the Board; and \r\n \r\n(e) all other sums or property which may, in any manner, become payable to or \r\nbe vested in the Authority. \r\n \r\n 23. Expenditure to be charged to the Fund. The Fund shall be expended for the purposes \r\nof— \r\n \r\n(a) paying any expenditure lawfully incurred by the Authority or its constituents \r\nfor the purposes of this Ordinance; and \r\n \r\n(b) repaying any financial accommodation received or moneys borrowed under \r\nthis Ordinance and the profit, return, mark-up or interest due thereon, \r\nhowsoever called. \r\n \r\n 24. Accounts, annual financial report and audit.—(1) The Authority shall maintain \r\nproper books of accounts and records on generally acceptable accounting principles, to explain all \r\nits transactions and to give true and fair view of its state of affairs. The books of accounts relating \r\nto a period of not less than ten ears immediately preceding the current year shall be preserved in \r\ngood order. \r\n \r\n (2) The Chief Executive Officer shall, in consultation with the Board, soon as may be \r\npracticable after the end of each financial year, cause an annual financial report to be prepared \r\non the accounts and financial activities of the Authority during that financial year which shall \r\ninclude a balance sheet of the annual profits and losses and an account of the annual income and \r\nexpenditure incurred by the Authority. \r\n \r\n(3) The accounts of the Authority shall be audited annually by a reputable firm of chartered \r\naccountants selected by the Board and, together with the report of the Auditors thereon, be \r\nsubmitted to the Board for approval by the 31st December each year. \r\n \r\n(4) A copy of the annual financial report shall be sent to the Chairman and shall also be \r\nmade available to the general public. \r\n \r\n(5) The audit shall be carried out in accordance with the professional standards of auditing \r\nprescribed by the Pakistan Institute of Chartered Accountants, and shall issue a report on the \r\naudit. \r\n \r\n 25. Investment. The Authority may insofar as moneys are not required to be expended \r\n \r\nPage 16 of 19 \r\n \r\nunder this Ordinance, make such investments as it may determine from time to time. \r\n \r\n 26. Bank accounts. The Authority shall open, maintain and operate one or more bank \r\naccounts in its name with any scheduled bank in Pakistan. \r\n \r\nCHAPTER XI \r\nANNUAL REPORT \r\n \r\n 27. Annual report.—(1) The Authority shall prepare, in such manner and form and at such \r\ntime each year, as may be prescribed, an Annual Report which shall include, among others, a \r\ncomprehensive review of its performance, the steps taken by the Authority towards the fulfilment \r\nof its aims and objectives and a true and full account of its operations and activities during the \r\nprevious year. \r\n \r\n (2) The Annual Report of the Authority shall be prepared under the direction of the Chief \r\nExecutive Officer. \r\n \r\n (3) The Annual Report shall be presented to the Board for its approval by the 31st \r\nDecember each year. \r\n \r\n(4) After its approval by the Board, a copy of the Annual Report shall sub mitted to the \r\nFederal Government and it shall also be made available to the general public. \r\n \r\nCHAPTER XII \r\nGENERAL AND MISCELLANEOUS PROVISIONS \r\n \r\n 28. Limitation of liability. The Authority shall not have any liability to any financial \r\ninstitution save in accordance with law. \r\n \r\n 29. Right of recovery as arrears of land revenue. Subject to law, the Authority shall be \r\nentitled to recover all outstanding amounts due to it as if they are arrears of land revenue under the \r\nLand Revenue Act, 1967 (West Pakistan Act XVII of 1967). \r\n \r\n \r\n \r\nPOWER OF THE FEDERAL GOVERNMENT \r\nTO ISSUE POLICY GUIDELINES \r\n \r\n 30. Power of the Federal Government to issue policy guidelines. The Federal Government \r\nmay, as and when it considers it necessary, issue guideline to the Authority on matters of policy, \r\nnot inconsistent with the provisions of this Ordinance or any rules made thereunder. \r\n \r\n 31. Chief Executive Officer, Members, employees, etc. of the Authority to be public \r\nservants. The Chief Executive Officer, Members and employees of the Authority, when acting or \r\npurporting to act in pursuance of any of the provisions of this Ordinance shall be deemed to be \r\npublic servants within the meaning of section 21 of the Pakistan Penal Code, 1860 (Act XLV of \r\n1860). \r\n \r\n \r\nPage 17 of 19 \r\n \r\n 32. Indemnity. No suit, prosecution or other legal proceedings shall lie against the \r\nAuthority, the Chairman, the Chief Executive Officer, the Members or employees of the Authority, \r\nin respect of anything done intended or purported to be done orders passed or proceedings taken by \r\nthe Authority, in good faith under this Ordinance or any of the rules or regulations made \r\nthereunder. \r\n \r\n 33. Winding up. No provision of law relating to the winding up of bodies corporate shall \r\napply to the Authority and the Authority shall not be wound up except by the orders of the \r\nFederal Government in such manner as the Federal Government may direct. \r\n \r\n 34. Common seal. The Authority shall have a common seal and such seal shall be kept in \r\nthe custody of the Chief Executive Officer or such other person as may be authorized by the Board. \r\nAll documents that are required or permitted to be executed under seal shall be specified and \r\nauthenticated in such manner as may be prescribed. \r\n \r\n 35. Ordinance to override other laws. This Ordinance shall have effect notwithstanding \r\nanything contained in any other law for the time being in force. \r\n \r\n 36. Power to make rules.—(1) The Federal Government may, by notification in the official \r\nGazette, make rules for carrying out the purposes and provisions of this Ordinance. \r\n \r\n(2) In particular, and without prejudice to the generality of the foregoing power, such rules \r\nmay provide for all or any of the following matters, namely:— \r\n \r\n(a) administration and conduct of business of the Authority; \r\n \r\n(b) conduct of business at the meetings of the Board and the Committees; \r\n \r\n(c) constitution of the Committees; \r\n \r\n(d) inance, audit and accounts of the Authority; \r\n \r\n(e) employment and service matters of the Authority; \r\n \r\n(f) control, restrictions and conditions subject to which the Authority may \r\nappoint employees; \r\n \r\n(g) terms and conditions of service of the Chairman, Members and the Chief \r\nExecutive Officer; \r\n \r\n(h) terms and conditions of service of the employees of the Authority; \r\n \r\n(i) powers, duties and functions of the Chairman and Chief Executive Officer; \r\n \r\n(j) conditions under which the Board may enter into arrangements with other \r\ninstitutions and organizations, whether public, private, government owned or \r\nautonomous bodies; \r\n \r\n \r\nPage 18 of 19 \r\n \r\n(k) manner in which the accounts of the Authority shall be maintained; \r\n \r\n(l) manner in which the Authority may invest its money; \r\n \r\n(m) manner, form and time in which the annual statement of accounts and annual \r\nreport shall be prepared; \r\n \r\n(n) any other matter which is to be, or may be prescribed or in respect of \r\nwhich provision is to be, or may be made, by the rules. \r\n \r\n 37. Power to make regulations.—(1) The Board may, by notification in the official \r\nGazette, make regulations, not inconsistent with the rules, to provide for all matters for which \r\nprovision is necessary or expedient for carrying out the purposes and provisions of this Ordinance. \r\n \r\n(2) In particular, and without prejudice to the generality of the foregoing power, such \r\nregulations may provide for all or any of the following matters, namely:— \r\n \r\n(a) time and place of the meetings of the Board and the Committees and the \r\nprocedure to be followed at such meetings; \r\n \r\n(b) manner in which and the purpose for which persons may be co-opted by the \r\nAuthority; \r\n(c) recruitment, selection and the terms and conditions of service of the \r\nemployees; \r\n(d) recruitment, selection and the terms and conditions of service of the \r\nExecutive Secretary; \r\n \r\n(e) duties, conduct and functions of the employees; \r\n \r\n(f) conduct and discipline of the employees; \r\n \r\n(g) constitution and management of provident or other funds for the \r\nemployees; \r\n \r\n(h) preparation of annual estimates of income and expenditure, profit and loss \r\nand supplementary estimates; \r\n \r\n(i) annual report; \r\n \r\n(j) manner in which payments are to be made by or on behalf of the Authority \r\nand the officers by whom orders for making deposits or investments for \r\nwithdrawals or any other disposal of the income or fund of the Authority \r\nshall be authenticated, made or signed; \r\n(k) custody and use of the common seal of the Authority; \r\n \r\n(l) efficient conduct and expeditious disposal of the affairs of the Authority \r\ngenerally; and \r\n \r\n(m) any other matter which is to be, or may be prescribed or in respect of which \r\n \r\nPage 19 of 19 \r\n \r\nprovision is to be, or may be made, by the regulations. \r\n \r\n 38. Removal of difficulties. If any difficulty arises in giving effect to any provision of \r\nthis Ordinance, the Federal Government may, by notification published in the Gazette, make such \r\nprovisions, not inconsistent with the provisions of this Ordinance, as may appear to it to be \r\nappropriate or necessary for the purpose of removing such a difficulty. \r\n \r\n 39. Savings.—Upon the commencement of this Ordinance,— \r\n \r\n(a) all funds, moneys, properties, rights and interests of whatever kind, \r\nissued, used, enjoyed, possessed owned or vested in the Small and Medium \r\nEnterprises Development Authority in existence immediately before such \r\ncommencement and all l iabilities legally subsisting against the said Small \r\nand Medium Enterprises Development Authority shall pass onto the \r\nAuthority as established under this Ordinance; \r\n \r\n(b) everything done, action taken, obligations and li abilities incurred, persons \r\nappointed or authorized and orders issued prior to such commencement \r\nshall be continued and be deemed to have been done, taken, incurred, \r\nappointed or authorized, instituted or issued by the Authority; and \r\n \r\n(c) all acts, deeds and thing done, orders passed, decisions taken, directions \r\nissued in pursuance of the Federal Government's Notification No. 5(20) \r\nE&FI/98, dated the 13 th October,1998, shall be d eemed to h ave b een done, \r\npassed, taken or issued under this Ordinance. \r\n \r\n 40. Repeal. The Federal Government's Notification No. 5(20) E&FI/98, dated the 13th \r\nOctober, 1998, is hereby repealed. \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n____________ \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\nRI - Date: 13-05-2024", "passage_offset_convention": "zero-based Unicode code points and UTF8 bytes; end exclusive", "passages": [ { "passage_id": "law:pk-code-d62563090a5309e6:sha256:f46ee1b775154446eaa1105bced6f4b4efda7ae1874edd6305fb007b162cff1e:chars-0-1791:4a7531dfc2703b30faac72b8465c4758a516f6317a39e78c14c507b7107fe526", "character_start": 0, "character_end": 1791, "utf8_byte_start": 0, "utf8_byte_end": 1791, "passage_sha256": "4a7531dfc2703b30faac72b8465c4758a516f6317a39e78c14c507b7107fe526", "reader_fragment": "p-0-1791-4a7531dfc2703b30" }, { "passage_id": "law:pk-code-d62563090a5309e6:sha256:f46ee1b775154446eaa1105bced6f4b4efda7ae1874edd6305fb007b162cff1e:chars-1791-3586:430c6a6de4d3f4f15e456061b3d0acd3c3bec93ad9bdaf6b26f08075ca71b54a", 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