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Final Project Report Presented to Prof Umer Niaz Presented By Ramzan Idrees M.Com 4 th  Roll No 007

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Final Project Report

Presented to

Prof Umer Niaz

Presented By

Ramzan Idrees

M.Com 4th 

Roll No 007

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Name

Shawal Developer Hotel Limited

Industry

Hotel Industry

Supervisor

Prof. Bilal Ahmed

IntroductionThe hotel has a grand façade, which leads into an elegantly decorated lobby presenting an eye

catching blend of National and International décor. The multi lingual staff at the front desk

ensures that all guests' needs are met instantly. The hotel has 500 luxurious and well appointed

guests' rooms, which cater to all the needs of the business and holiday travelers. These rooms

include Presidential Suites, Executive Suites and Business Suites beside Standard Rooms,

Deluxe Rooms, Executive Rooms and Executive Deluxe Rooms.

History

The hotel business has been present in Pakistan since its independence in 1947. In Pakistan this

industry contributes a large proportion to the country’s economy. The hotel industry contributes

to a large percentage of the country’s revenue. At first ther e were not many hotels to begin with

 but as time passes, the country saw the gradual establishment of local and international hotels.

The greatest growth in the hotel industry was seen in the late 80s and then some in early 90s. The

number of hotels in the country increased from 845 in 1991 to 1150 in 1996, showing a growth

of more than 26% with the fastest growth in the number of hotels seen in 1993 which tapered off

to 2.4% in 1995 before picking up again in 1996.

However, the industry began to experience a downfall with time, mostly due to governmentinstability and terrorism. In August 2008, hotel occupancy rates fell, an alarming sign given to

Pakistani Hotels. By the beginning of fourth quarter 2008, the Pakistan THL sector (Tourism,

Hospitality and leisure) was starting to see major consequences of the economic crisis in the

form of negative indicators in the hotel industry, a slowdown in the gaming sector and increased

 preference to quick service restaurants as opposed to dining ones.

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Goal

it is our cherished goal to be the industry leader in hotel business by establishing a complete,

unique, distinctive and truly a five star deluxe hotel complex.

Development Constraints and Competition

The four major hotels have not changed much in terms of new ventures since their establishment.

The only major highlight in this regard was the takeover of Holiday Inn by Marriott. Another

constraint with regards to hotel development are the terrorist attacks that have plagues the

country for some time now. This has led to a huge drop in foreign visitors to the country.

Changes in government have also created problems as each has its own rules and priorities.

Economic downfall also means that citizens are in not a position to use these hotels.

Fast food chains like Mc Donald’s, KFC and Hardees are providing significant competition to

these hotels, which have comparatively higher prices than the fast food chains. The restrictions

on dinner menus of weddings are also an important problem. Visitors to Pakistan prefer staying

with family and friends due to the constant threat by suicide bombers.

Factors Affecting the Tourism and Hotel industry in Pakistan:

As the hotel and Tourism industry are very much inter related as the factors that influence the

one industry also effects the other industry regarding the hotel and tourism industry. As Pakistan

is the country with the rich variety of tourism destinations like high mountains, rivers, oceans,

forest, lakes, ancient monuments fertile plains and valleys but its tourism industry is not growing

as it should be, since the year 2006 which had the record revenue generation from the industry no

such revenue is generated till now. The factors that cause this decline in the industry and which

 pretend the industry from growing are discussed below.

Unfavorable and unstable Political Conditions:

Pakistan political condition are unstable since the establishment of the country, till now no

 political party has completed its five years tenure in the government, political condition remains

unstable as each political party keeps on generating blames and civil out bust moments against

the ruling government, due to the instability the country situation are always in the instability,

strikes, march and other political tools are used on the daily basis which affects the economy and

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the industry. Due to this political condition no such action have yet been taken for the

development of the tourism industry since the year 2006 when the year was acclaimed as the

year of tourism industry of Pakistan.

Lack of Proper Infrastructure:

Pakistan lacks in the industry due the improper infrastructure, roads are inadequate while the

railway is near to destruction while the air ports are only located in the three major cities. Many

tourists find it difficult to travel in the northern and eastern side of the country due to in

appropriate infrastructure.

Inability to reinstate the Natural Disasters:

Since the earthquake and floods in the area of tourism like Bala kot and other northern areas still

the government haven’t reinstate the condition of those infected area from the past 7 years. This

is the inability of the government that could not cope with the natural disasters and cannot

reinstate the tourist destination to be available for the tourism.

Terrorism

One of the major factors that affect the tourism industry is the terrorism in the country, Since

Pakistan have taken part in the war against terrorism since 9/11, many terrorism activities and

incidents have been faced by the country which repels the tourist to visit these destination. Swat

valley which was considered as the jewel for tourism was destroyed during the operations againstthe terrorist who were operating through that area. Many other areas such as Gilgit, Abbotabad

and other valleys are infected through terrorism.

Rising Inflation

The rising prices and inflation in the country due to the economy of Pakistan had also created an

impact in the tourism industry. As the prices of transportation, food , hotels stay and

accommodation have been increased many national tourist now lost the charm in travelling to the

northern and other tourist destinations.

Swot Analysis of Hotel Industry

The strengths of the industry include having several quality hotels in the country that are able to

meet the demands of tourists.

1. You can also find international players in the industry and here’s good news for you 

2. The manpower costs are the lowest.

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3. The country has many tourist destinations that offer potential growth for hotel owners.

Weakness

The industry also has weaknesses and this includes the following –  

1. land is expensive in Pakistan

2. Most hotels are staffed heavily! The tax structure in the country is also higher as

compared to other countries

3. The hotel rooms in the country are far lesser as well.

4. The services offered by hotels are limited and will not meet with the world standards.

Opportunities

The opportunities are also promising in this country.

1.  You see, the demand for tourists is also easily managed. The peak season in the

country is from September to March. Over the long term, the hotel industry has

growth potential. When it comes to diverse topography,. The heritage hotels are great

and can provide tourists with a unique experience. Having an online presence like a

website or the option of online hotel booking can be beneficial.

Threats

1. The manpower is not trained well and so the industry is easily affected by the country’seconomic conditions.

STRATEGIC PLANNING:

“The process of developing and maintaining a strategic fit between the organization's goals and

capabilities and its changing marketing opportunities.” It relies on developing a clear mission

supporting objectives, a sound business portfolio, and coordinated functional strategies. As we

know that Pearl Continental has a strong image among five star hotels and has an established

name in the hotel industry. Shawal developer Hotel limited has an effective strategic planning

at its centralized and decentralized levels. It has defined its goals and objectives at every leveland tries to compete with the changing marketing opportunities The strategic planning of the

hotel is turned into detailed supporting objectives that guide the whole hotel. Each separate

division of the hotel decides what portfolio of businesses and services is best for the hotel and

how much support to give each separate division. Each separate division and service rate must

develop detailed marketing and other departmental plans that support the wide plan of

the hotel.

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The effective strategic planning originates:

Customer Satisfaction

Innovation,

Variation of Services

Provision of Peaceful & Attractive Environment

Due to this strong strategic planning Shawal developer Hotel has achieved a great name &

image in the hotel industry. The planning and control officer of the hotel involves in all type of

strategic planning and looking at what has happened in the past and forecasting what is likely to

happen in the future:

To the Hotel

To its Competitors

To the Market

The hotel has best strategic planning which involves the

Hotel’s performance and of conditions in the market place. Among all these conditions involves

the needs and wants of consumers and the activities of competitors to satisfy them. Forecasting

 phase is the important aspect of the strategic planning process in this hotel. Forecasting of the

hotel depends on all the future conditions provided by the hotel. Goals are very important for

every organization. The next step of strategic planning process is the goal setting. This is no

easy task. The manager of the hotel must select from a large number of alternatives and

conflicting goals those will most effectively guide the hotel's effort. The marketing concept

suggests that the overall goal of a hotel should be to satisfy consumer needs at a profit. The hotel

involves issues of organization and scheduling for the implementation of the strategic planning.

All the managers in the hotel are decision makers. They must implemental all the steps of

 planning.

FUNCTIONAL DEPARTMENTS

Shawal Developer Hotel limited is one of the best hotel of Pakistan.

All credit goes to the functional dept. of hotel, whose dedication and dexterity has been the one

vital source of success of this venture. Some major departments and their function are

discussed, namely

Personnel department

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Front office department

Public relations department

Marketing department

Purchasing department

Cost / Inventory controller department

Account department

House keeping department

Security department

Engineering department

PEST Analysis

Political

Political instability in Pakistan can lead to changes in laws and policies which can be in favor or

against the hotel industry sector.

Economic

Economy of Pakistan is facing issues about employment, inflation, illiteracy, which hinders

 business growth.

Social

Cultural issues can be there but still as there are a number of multinational companies there,

therefore, cultural issues are not prominent.

Technology

People are highly skilled and Shawal Delve per Hotel Limited can introduce new technology to

increase competencies.

SWOT ANALYSIS

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STRENGTHS

Internal pros or plus points of an organization.

Quality Product

Shawal Delve per Hotel Limited is the symbol of quality with respect to its offering i.e.;

restaurants

Excellent Services

Shawal Delve per Hotel Limited aims at providing excellent services to all type of customers .

Competitive Advantage

Shawal Delve per Hotel Limited has an edge over its competitor’s i.e.; it provides executive club

services.

Financial Strength

Shawal Delve per Hotel Limited is financially strong hotel because in the current economic

conditions it is maintaining its position because of financial strength.

Favorable Reputation/Image

Shawal Delve per Hotel Limited has captured the favorable image in the mind of the Customers

Organized Management

Shawal Delve per Hotel Limited’s management is highly qualified, competent and organized. 

Market Research

Shawal Delve per Hotel Limited has its own research department, which scans the customers

need and their responses to the different

 products/services

Services with Latest Technology

Shawal Delve per Hotel Limited has its control room in which the rooms and halls temperature

is controlled and maintained according to the environment and customer’s requirement. 

WEAKNESSES

Internal cons or negative points of an organization.

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High Prices

Shawal Delve per Hotel Limited charges very high prices for all of its services especially room

facility and most of the people in Pakistan can’t afford it. 

Lack of co-ordination

There is much lack of co-ordination among its workers

OPPORTUNITIES

External pros or plus points of an organization.

Expand Product Line

Shawal Delve per Hotel Limited can expand their product line by offering other facilities like

home delivery of food etc;

Enter the New Market

Shawal Delve per Hotel Limited can enter the new market by opening its branches in cities like

Multan, Faisalabad etc;

Attract the Tourists

Shawal Delve per Hotel Limited can attract a large number of tourists by advertising in

international magazines and journals.

Diversify to Broad Risk

Shawal Delve per Hotel Limited should diversify their product, production and services as were

 because you must not rely heavily and put your resources on one product.

Improve Customer Relationship

Shawal Delve per Hotel Limited can improve its relationship with its customers by providing

different incentive plans.

THREATS

External cons or negative points of an organization.

Worst Economic Conditions

Present economic conditions are not favorable for the growth and flourishment of hotel industry.

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Increased Sales Tax

Sales tax has increased which results in the increased customer prices and reduced sales level.

Restrict Government Policy

Restriction imposed by the government regarding tax

Decrease in Customers Purchasing Power

Increase in overall prices has decreased the customers’ purchasing power for all the products. 

Reasons Why You Must Conduct Feasibility Study Before Starting a business

1.  A feasibility study will help you to determine the profitability of the business

2.  A feasibility study will help prove to the entrepreneur, venture capitalists, lenders and

investors the existence of the market, the liquidity of the business venture and the expected

return on investment.3.  A feasibility study will help you identify the flaws, business challenges, strengths,

weaknesses, opportunities, threats and unforeseen circumstances that might affect the

success and sustainability of the business venture

4.  Before starting a business, a feasibility study will enable you estimate the financial, human

and technological resources that will be needed to ensure the successful launching of the

 business.

5.  Feasibility study will help you to determine the amount of capital required to start the

 business. It will also help you in establishing the budget plan, working capital and cash flow

 projections of the business.

Scope of the Feasibility report:

  Develop consistently, alternative scopes and options for the project before determining the

Best Value solution to proceed with.

  Have only committed a relatively small amount of money to understand the project and its

chances of success, before committing larger sums of money associated with project

implementation.

  Identify the most significant risks facing the project, should it proceed to implementation.

  Test the identified project scope and definition against the reasons for undertaking the project.

  Be the time of the project where most value can be added, through the creativity and

experience of those involved, where ideas can be considered and tested in a safe environment.

  Test the sponsor's level of commitment and enthusiasm to see the project through, when the

resulting conclusions and recommendations are presented.

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Memorandum of association

1.  The name of the Association shall be “ Shawal Hotel Developer Limited”. 

2.  The Head Office of the Association will be situated in Islambad. 

3. 

The objects for which the Association is established, are as follows: (a)  To establish Zonal and/or Regional Office at such place of places as may be considered

expedient by the Association or as may be required by Government from time to time and

to manage and control such office and to delegate such powers to them as may seem

conductive for attaining all or any of the objects of the Association.

(b) To Advance, Protect, Safeguard and Promote the rights, interests, and privileges of person,

Firms, Companies or Corporations Owning or Managing Hotels, Restaurants or Clubs in

Pakistan (hereinafter referred to as “Hotels”) and to represent to Government and other

Authorities concerned their grievances and seek redress thereof.

(c)  To diffuse among its members information on all matters affecting hotels and to collect, print, publish, issue and circulate such papers, periodicals, books, circulars, statistics and

other literary undertakings as may seen conductive to any of these objects.

(d) To create unity and sympathy among the members of the Association and to encourage

them to work on co-operative lines in order to safeguard their own interests and to convene,

held conferences and conventions for the deliberations and study of subjects connected with

the development of hotels in Pakistan.

(e)  To file, prosecute or defend or concur join or aid in filing prosecuting or defending any

such actions, suits, applications, appeals or proceedings as the Association may think

 proper or conductive to the objects of the Association.

(f)  To enter into any arrangements with the Central, Provincial or Local Government or

Authorities (Municipal, Port Trust, Railway, Local or otherwise ) that may seem conductive

to the objects of the Association or any of them, and to obtain from any such Government

or authorities any rights, privileges and concessions which the Association may think

desirable to obtain and to carry out, exercise and to comply with such arrangements, rights,

 privileges and concessions and to ensure equality of treatment by Government and other

 public authorities and to nominate delegates and advisers, etc., to represent the Association

on such government and Public Bodies.

(g)  To take all necessary steps for promoting, supporting or opposing legislation or other

actions either by Government or and department thereof or by any local body or bodies or

 by any individuals affecting the interests of the members of the Association and in general

to take initiative to secure and promote development of hotels on modern lines.

(h) To make representations to the local, central or other authorities concerned on any matter

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affecting the commercial, economic and other interests of the members of the Association.

(i)  To ensure that the demands of the customers are attended to within reasonable limits set

down by the Association.

(j)  To adjudicate as a body any dispute in which one or more members of the Association may

 become in the ordinary course of business.

(k) To take measures for the eradication of unethical business practices from the field of trade,

commerce and industry.

(l)  To subscribe to, and become a member of, the Federation of Pakistan Chamber of

Commerce & Industry and co-operate with any other international organization whether

incorporated or not, whose objects are altogether or in part, similar to those of this

Association and to procure from and communicate to any such organization such

information as may be or likely to forward the objects of this Association. Provided that the

Association shall not be affiliated with any foreign or international organization without the prior permission of Government.

(m) To purchase, take on lease, hire or otherwise acquire land, building and any other movable

or immovable properties or any rights or privileges necessary or convenient and to

constructs, alter and maintain the building required for the use and purposes of the

Association.

(n) To issue appeals and collect funds for the national, educational, social and humanitarian

 purposes and to subscribe to any local and other charities and to grant donations for any

 public purposes and to provide Provident Fund or Superannuation Fund or Funds for the

employees, their widows or dependents and grant scholarships to deserving students for

foreign studies in the field of management and administration of hotels.

(o)  To sign, seal, execute and deliver all instruments, deeds, documents and writing whatsoever

that may be found to be necessary or expedient in relation to the aforesaid objects or the

affairs or the interests of the Association.

(p) To admit new members to the Association upon such terms and conditions as may from

time to time be determined.

(q) To borrow money or raise or secure the payment of money in such a manner as the

Association may think fit, and in particular by the issue of debentures, charged upon all or

any property (present and future) of the Association and to purchase, redeem or pay off any

such securities.

(r)  To appoint Arbitrators for settling disputes and differences between members.

(s)  To promote harmonious relations between the members of Association and their employees

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and to concede such benefits and concessions to the latter as are found to be reasonable and

legitimate.

(t)  To organize, establish technical schools, colleges and institutions to impart practical

knowledge for the efficient control and management of hotels.

(u) To do all such other things as are incidental or conductive to the above objects or any of

them.

4.  The Association shall not be an association for profit and the income and property

of the Association shall be applied solely towards the promotion of the objects of

the Association as set forth in the Memorandum of Association; and no portion

thereof shall be paid by way of profit to the members of the Association. Provided

that to thing herein shall prevent the payment, in good faith, of remuneration to any

officer or servant of the Association or to any members thereof or other persons in

lieu of any services actually rendered to the Association. 

5.  The liability of the member shall be limited, but if any member pays or receives

any dividend, bonus or other profit in contravention of paragraph-4 hereinbefore,

his liability shall become unlimited. 

6.  Every member of the Association undertakes to contribute to the assets of the

Association in the event of the same being wound up during the time that he is a

member or within one year afterwards for payment of the debts and liabilities of the

Association contracted before the time at which he ceases to be member and of

costs, charges and expenses of winding up the same and for adjustments of the

rights of the contributories amongst themselves such amount as may be required

not exceeding Rs. 100.00. 

7.  If upon the winding up or dissolution of the Association there remains after

satisfaction of all its debts and liabilities any property whatsoever, the same shall

not be paid to or distributed among the members of the Association but shall be

given or transferred to any other institution or institutions having objects similar to

the objects of the Association as may be determined by the members of the

Association, at or before the time of dissolution, and in default thereof, by such

courts as may have jurisdiction in the matter. 

8.  For the purposes or registration the number of members of the Association shall be

unlimited. 

9.  True accounts shall be kept of the sums of money received and expended by the

Association and the matter in respect of which such receipts and expenditure takes

 place, and of the property, assets and liabilities of the Association, and subject to

any reasonable restrictions as to the time and manner of inspecting the same that

may be imposed in accordance with the regulations for the time being of the

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Association shall be open to the inspection of the members. Once at least in every

year, the accounts of the Association shall be examined and the correctness of the

Income and Expenditure and of the Balance Sheet ascertained by a qualified

auditor or auditors. 

10. Amendments to this Memorandum of Association shall be subject to the approvalof the government and shall also be made when required by the Government in

 public interest.

We, the several persons whose names and addresses are subscribed hereunder are

desirous of being formed into an Association in pursuance of this Memorandum of

Association: 

1.  n these Articles unless there is anything repugnant or inconsistent in the context:-

“ACT” means the Companies Act, 1913, as amended and now in force in Pakistan

and any reference to any provision thereof shall be read as a reference to such

 provision as amended or re-enacted by any statute for the time being in force.

“Association” means the “PAKISTAN HOTELS ASSOCIATION”. 

“HOTELS” means and includes “Hotels”, Restaurants and/or Clubs”. 

“Articles” means these Articles of Association as originally framed or as altered

from time to time by Special Resolution.

“Extraordinary Resolution” and “Special Resolution” have the meanings assignedto them respectively by the Act.

“Committee” means the “Executive Committee” which shall be responsible for the

Management and Administration of the Association.

“Office Bearers” means and includes the Chairman, the Vice Chairman and

Members of the Executive Committee of the Association.

“Seal” means the Common Seal for the time being of the Association.  

“Month” means a calendar month. 

“Year” means the year beginning from 1st January and ending on 31st December. 

“In Writing” and “Written” include printing, lithography and other modes

representing or reproducing words in a visible form.

Words importing the singular number include the plural number and vice-versa.

Words important the masculine gender only include the feminine gender.

Words importing person include bodies corporate or not incorporated.

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2. The subscribers to the Memorandum of Association and such other persons as may

 be admitted to membership hereafter in accordance with these Articles shall be

members of the Association and their names shall be entered in the Register of

Members.

3. Any person, firm, company or corporation owning or managing a hotel in Pakistanshall be eligible for membership of the Association.

4. Any person, firm, company or corporation desirous of becoming a member, shall

sign and deliver an application in the prescribed form of the Association which shall

 be:

Rates of Subscription as revised w.e.f._____________________________

4 & 5 Star Hotels: Subscription: Rs.

Admission Fee: Rs.

1, 2 & 3 Star Hotels: Subscription: Rs.

Admission Fee: Rs.

5. The Executive Committee of the Association shall have full right to accept or reject

any application of membership without assigning any reason. In case of rejection,

the admission fee and annual subscription paid by the applicant shall be refunded to

him and no further application shall be entertained from him for a period of one year

from the date of rejection of his last application.

6. The annual membership subscription shall become due to payment on the 1st Januaryeach year and shall be for the period ending 31st December of that year. A notice

for payment shall be sent to all members at least 30 days in advance of the due date.

If any member fails to pay the subscription, another notice shall be served on him

not later than the 10th January with a clear warning that if he still failed o pay the

subscription at the latest by the 31st January, he shall cease to be a member of the

Association and his name shall be removed from the Register of Member with effect

from 1st February of that year. The member shall nevertheless remain liable for

 payment of all the dues to the Association. He shall not be readmitted as a member,

unless he has paid the admission fee afresh and cleared all the dues outstanding

against him.

7.  (a)  Any member may resign from the Association by giving thirty days notice in

writing to the Committee and upon the expiration of the notice, he shall cease to be

member. The member who has resigned or whose name has been removed from the

Register for non-payment of subscription or expelled from the Association, shall

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remain liable to pay all dues to the Association up to the date of resignation,

removal or expulsion from the Association.

(b)  Any member, who has resigned or whose name has been removed from the

Register or has been expelled from the Association, shall not be entitled to refund

of any money paid to the Association

8.  (a)  A member shall be liable to be fined or expelled or his rights and privileges being

withdrawn for any of the following reasons by a resolution of the committee passed

in a meeting specially convened for the purposes by two third majority of the

members present:

(i)   Neglecting or refusing to submit to, abide by, or carry out any decision of the

Committee.

(ii)  Indulging in any unethical business practices in the field or trade, commerce or

industry.

(iii)  International violation of the rules and regulations and bye-laws of the Association.

Failure to pay arbitration fee or find or any other due demand of the Association.

Provided that a member shall not expelled by the Committee unless he has been given an

opportunity of explaining his position in writing and/or in person. Provided further that the

member so expelled shall have the right to appeal within 30 days from the date of expulsion

of the General Body of the Association. Provided further that when such an appeal is made

 by the member, the Committee shall arrange to convene a meeting of the General Body

within 30 days from the date of receipt of that appeal and the decision of the General Bodyin the matter shall be final.

(b)  A member shall cease to be a member of the Associations:-

(i)  if he is found to be a unsound mind by a court of competent jurisdiction; or

(ii)  if he is adjudged insolvent; or

(iii)  if he is punished with imprisonment for any offence involving moral turpitude;

(iv)  if he changes the name and style of the firm, company or corporation without

the consent of the Committee.(v)  if he is found to be a unsound mind by a court of competent jurisdiction; or

9.  The member whose name has been removed from the register due to expulsion,

resignation or non-payment of subscription shall be eligible for re-enrolment on

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  (d)  To pay the annual subscription of the Association regularly.

(e)  To bring to the notice of the Committee any matter likely to cause any loss or harm

to the interests of the Association in whatsoever manner.

(f)  To accept and abide by all the decisions of the Committee in all matters. Provided

that an appeal against the decision of the Committee can be made to the General

Body of the Association and that the decision of the General Body shall be final.

(g)  To report to the Committee all the information considered necessary for promoting

the aims and objects of the Association.

(h)  To take part in the deliberations at the meetings of the Association which a member

is entitled to attend and to abide by the rules framed for the conduct of business of

the meetings from time to time.

(i)  (i) To assist and cooperate with the Committee n eradicating unethical business

 practices from the field of trade, commerce and industry.

12. (a)  A register of Members shall be maintained at the registered office by the Association in

which, shall be set forth the names, addresses and other particulars of all members

together with those of their representatives for the time being and in which, all changes

taking place from time to time shall be recorded. There shall also be an entry in the

Register indicating the nature of business carried on by each member.

(b)  Every member shall have the right of inspection of the Register and, if he is not

satisfied with the entry or entries made therein, he may request for necessarycorrections to be made in them.

13. The member whose name has been removed from the register due to expulsion,

resignation or non-payment of subscription shall be eligible for re-enrolment on

 payment of admission fee afresh and all arrears outstanding against him. Provided

that a member who is expelled from the Association, shall not be re-admitted

 before the expiry of one year from the date of expulsion.Chairman: 1

Vice Chairman: 2

Members: 9

Total: 12

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14. Besides the Central Office, the Association shall have two Zonal Offices one each

in East Pakistan and West Pakistan at such places as may be determined by the

Committee. Provided that if the total number of members enrolled in any zone of

Pakistan is less than six, no Zonal Office shall be set up in the Zone.

15. The affairs of the Zonal Office shall be vested in a body called the ZonalCommittee, which shall consist of:-

Vice Chairman: 2

Members: 9

Total: 12

16. The Zonal Committee will correspond with the provincial or local Governments or

Administration and various authorities or the Central Government in the provinces

on matters which concern the provinces, provided that:-

(i)  On any matter having an all Pakistan bearing if the Executive Committee of theAssociation differs with the Zonal Committee, the opinion expressed or

recommendations or nominations made by the latter shall also be forwarded to the

government along with the views of the Zonal Committee.

(ii)  They shall not directly correspond with the Ministries of the Central Government and

that where a matter concern’s the Central Government, it shall be progressed by or

through the Executive Committee.

17. The Zonal Committee will correspond with the provincial or local Governments or

Administration and various authorities or the Central Government in the provinces

on matters which concern the provinces, provided that:-

(i)  Zonal Committee shall function under the over-all authority of the Executive

Committee and shall carry out pertains functions given to them by the latter from

time to time.

(ii)  The Zonal Office may set up Regional Office, with the permission of the Executive

Committee of the Association, at such place or places within their jurisdiction as

may be considered necessary from time to time. If and when such offices are set up,

their powers and scope of functions, composition of Branch Committees, etc., shall

 be laid down by the Zonal Office concerned in consultation with the ExecutiveCommittee.

18. The Zonal Committee will correspond with the provincial or local Governments or

Administration and various authorities or the Central Government in the provinces

on matters which concern the provinces, provided that:-

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 19. (i)  Out of the 12 office bearers of the Executive Committee as provided in Article 13, 6

each shall be elected from among the members of the Association belonging to East

and West Pakistan. Provided that if sufficient number of members has not been

enrolled in any Zone, the number of seats reserved for the Zone on the Committee,

shall stand reduced accordingly

(ii)  The election shall be held by secret ballot including postal ballot. The election of

office-bearers shall be completed before, and announced at, the Annual General

Meeting of the Association.

(iii)  The top office-bearers shall be deemed to have been automatically retired from their

respective offices on completion of their annual terms of office, but for the purposes of

continued representation of the Committee, they shall be treated at par with the other

Members of the Committee.

(iv)  One-third of the representative of members from each Zone shall retire every year and

shall be those, who have completed three consecutive terms of office on the committee.Provided that those to retire on the completion of the first and second yearly terms

immediately after coming into force of these Articles, shall be determined as follows:-

(a)  On completion of the

first term

The name of one-third representative to retire shall be

drawn by ballot by the Committee.

(b)  On completion of the

second term

The names of one-third representative to retire shall be

drawn by ballot by from out of the two-third

representative who continued in office on completion o

the first term.

(v)  The members shall elect the number of representatives required to fill the vacancies

caused by retirement of their representatives except that at the time of the first election

to be held under these Articles they shall elect the total number of representatives as

laid down in Articles 13 read with Clause ( i ) above.

(vi)  The representative so elected under Clause ( v ) above, together with those already

continuing on the committee shall then elect from among their own number the top

office-bearers, the remaining representatives being called Members of the Committee,

the top office-bearers shall be elected by and from amongst the total strength of the

representative elected on the Committee under these Articles. Provided further that outof the two Vice-Chairman of the Committee one each shall belong to East and West

Zone.

(vii)  Casual vacancies of Members shall be filled by the Committee from Amongst the

members of the Zone to which to outgoing Member belonged. Those of the top office-

 bearers shall be filled by the Committee from amongst its existing Members and the

resultant vacancy of the Members shall be filled by co-option. Provided that no such

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vacancy shall be filled under this clause during the first 90 days as well as 270 days

after the holding of the annual election.

The term “Casual Vacancy “ shall include all vacancies occurring, for any reason,

after announcement of the result of the annual election.

(viii)  The top office-bearers shall be eligible to be re-elected for three consecutive terms

subject to the restriction laid down in Clause (vi).

(ix)  On retirement from the Committee, the retiring representative or his firm acting

through any other representative shall not be eligible to stand for election to the

Committee for the next two annual terms. Provided that:-

(a)  If the number of members eligible to stand for election is less than the number

of representative to be elected, the retired Member shall be entitled to put up

candidate (s) other than his/their retiring representative (s) to stand for re-

election before the expiry of two terms specified in this clause.

(b)  If a retiring representative has interest in more than one firm or concern, his

firm other than the one as whose representative he held office on the

Committee, shall be eligible to contest the election through a candidate other

than the retiring representative.

(c)   No firm of concern shall be entitled to be represented at the time of elections

through a person other than the one, who is a Proprietor, Partner, Director,

Managing Agent, an elected office-bearer, Secretary or a responsible officer osuch firm or concern

(x)  A candidate who desires to stand for election must be proposed by one member and

seconded by another.

(xi)   No member shall vote for more than the number of vacancies available on the

Committee, provided that on the occasion of the first election, votes shall be given in

favor of as many candidates as there are seats on the Committee. Provided further

that, if the required number of members from any Zone has not been enrolled, the

seats reserved for them shall remain unfilled for the whole term

(xii)  The names of the office-bearers of the Committee shall be announced at the Annual

General Meeting of the Association. The office-bearers for the preceding year shall

retire, and the newly elected ones shall take over their respective offices, at the

Annual General Meeting.

(xiii)  (xiii) Accidental error or omission to send any notice, nomination papers, etc., to any

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member shall not invalidate the ballot or election.

(ix)  On retirement from the Committee, the retiring representative or his firm acting

through any other representative shall not be eligible to stand for election to the

Committee for the next two annual terms. Provided that:-

(xiv)  The candidates, who receive the largest number of votes, shall be deemed to have

 been elected.

(xv)  In the event of equality of votes between two or more members, the case shall be

decided by drawing a lot. The member in whose favor the lot is drawn shall be

declared to have been elected.

(xvi)  Two representative of any one member shall not be eligible to stand for election.

(xvii)   No Member, who has not paid his subscription before the election takes place, shall

 be eligible to stand for election or to exercise his right of vote.

(xviii)  No Member, who has not been enrolled three months before the date of election, shall

 be entitled to vote or stand for election or nominate a candidate for election. Provided

that this clause shall not apply to the preliminary meetings and the first election of the

Association to be held immediately after its incorporation.

(xix)  Every Member of the Association shall be entitled to one vote only. Provided that at

the time of election, he shall be entitled to sue his vote in favor of as many candidates

as there may be vacancies for his favor of as many candidates as there may be

vacancies for his favor of as many candidates as there may be vacancies for his class

of members.

(xx)  The Committee for the time being in office shall prepare program for the annual

election of the required number of Members to the new Committee and shall cause

notice about the election to be issued to all the members of the Association.

20. (a)  The first General Meeting of the Association shall be held within 90 days from the date

of incorporation of the Association and thereafter once at least in every calendar year at

such time, date and place as may be determined by the Committee, but in any case not

more than 15 months shall elapse between any two General Meetings, such meetings

shall be called Annual General Meeting.

(b)  The following business shall be transacted at the Annual General Meeting:

(i)  Confirmation of the Minutes of the last General Meeting.

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 (ii)  Consideration of the Annual Report of the retiring Committee.

(iii) Adoption of the audited statements of the Accounts of the Association.

(iv)  Appointment of Auditors.

(v)  Announcement of the names of the office-bearers of the new Committee.

(vi)  Transaction of any business as may be on the Agenda, or any other business with

the permission of the Chair

(c)  The meeting of the Association, other than the Annual General Meeting, shall be called

Extra-Ordinary or Special General Meetings and shall be held at any time and at such

 places as the Committee may deem convenient for the disposal of the business of the

Association.

(d)  An Extra-ordinary or Special General Meeting may be held on a requisition signed by

at least 5 Members of the Association specifying clearly the business desired to be

transacted.

(e)  The Secretary upon requisition made in writing by at least 5 members of the

Association shall convene an Extra-ordinary General Meeting and such meeting shall

 be called within 21 days from the date of receipt of such requisition, and a notice of

such meeting under the signature of the Secretary shall be circulated among all the

members of the Association for their information at least 14 days before the time

appointed.

(f)  If the Secretary does not proceed within 21 days from the date of the requisition so

made to cause a meeting to be called, the requisitionists or a majority of them may

themselves call the meeting, but in either case any meeting so called shall be held

within 3 months from the date of requisition. Every meeting so called by the

requisitionists shall be called in the same manner or as nearly as possible in which

meetings are to be called by the Secretary.

(g)  Any requisition for an Extra-ordinary or Special General Meeting shall express the

object of the meeting and must be signed by the requisitionists and should be sent to the

Secretary at the Head Office by registered post acknowledgement due.

(h)  At least 6 members of the Association present in person or by proxy, qualified for the

time being, will form a quorum for the Annual General or Extra-ordinary or Special

General Meeting and no business shall be transacted at such meetings unless there is a

quorum. No quorum shall, however, be required for any adjourned meeting.

(i)  If within half-an-hour from the time appointed for the Extra-ordinary or Special

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General Meeting, the quorum is not formed, the meeting, if convened upon requisition

shall be dissolved, but in any case it shall stand adjourned to the next day at the same

time and place.

(j)  At least 14 days’ notice for Annual General Meetings intended to pass an ordinary

r esolution and at least 21 days’ notice for an Extra-ordinary or Special Meetingintended to pass special resolution specifying the place, date and hour of the meeting,

shall be circulated to all the members of the Association along with the notice of

meeting. Non receipt of such notice by any member shall not invalidate the proceedings

at such meetings.

(k)  The Chairman may, upon the consent of members, adjourn any meeting from time to

time and place to place, but no business shall be transacted at any adjourned meeting

other than the business left unfinished at the meeting from which adjournment took

 place.

(l)  Every resolution submitted to a General Meeting, whether Ordinary or Special shall bedecided by ballot or by show of hands as the member present may decided. Unless

there by anything contrary to these Articles such resolution shall be passed by a simple

majority vote. In the case of equality of votes, the Chairman or whosoever presiding

shall have a casting someone from among themselves to preside over the meeting.

(m)  The Chairman or in his absence any of the two Vice Chairman or in the absence of all

of them, the members present may choose someone from among themselves to preside

over the meeting.

(n)  At any General Meeting unless a poll is demanded by at least one third of members

 present at the meeting, a declaration by the Chairman or whosoever by presiding that a

resolution has been carried or lost an entry to that effect in the Minutes Book shall be

conclusive evidence of the fact without proof of the number or proportion of the votes

recorded in favor of or against the resolution.

(o)  Minutes of the proceedings of all meetings of the Association shall be recorded by the

Secretary in a Minute Book to be kept by him for this purpose and shall be

countersigned by the person, who presided over the meeting. The Book shall be open to

inspection by Members of the Association at any reasonable time..

(p)  (p) Every resolution duly passed at any General Meeting shall be binding upon allmembers.

21. Every Member shall have one vote and no more, subject to the provision made in

Clause ( xix ) of Article 19.

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22.  No Member shall be entitled to vote at any meeting unless all moneys due from

him to the Association have been paid or if he has resigned or ceased to be a

member or has been expelled from the Association

23. On a poll votes may be given either personally or by proxy. Provided that no

Member shall vote by proxy so long as a resolution of its Directors in accordancewith the provisions of Section 80 of the Companies Act, 1913 is in force, A proxy

shall be appointed in writing under the hand of the appointer or of such an

appointer is a Corporation, under its Common Seal.

24.  No person shall act as a proxy unless he is a member of unless be is appointed to

act at the meeting as proxy of representative for a Corporation. The instrument

appointing a proxy shall be deposited at the Registered Office of the Association

not less than forty eight hours before the time of holding of the meeting at which he

 proposes to vote.

25. A proxy shall exercise the right to cast only one vote for any one member inaddition to his own.

26. Any instrument appointing a proxy shall be in the following forms:-

I ______________________________ of ________________________________ being a

member of the Shawal HOTELS ASSOCIATION hereby appoint ____________________

of ______________________ as my proxy to vote for me at the ( Annual or Extra-ordinary

as the case may be ) / General Meeting of the Association to be held on the ___________day of _____________, 201 and at any adjournment thereof.

Signed this __________ day of _____________ 200 .

27. (a)  The Committee shall meet at least once every three months at such Places as may be

considered necessary.

(b)  Emergent meetings of the Committee may be convened by the Chairman or theSecretary in consultation with the Chairman. Notice of six days for the emergent

meeting and 14 days for ordinary meeting of the Committee shall be necessary. Notice

of emergent meetings so outside members shall be served by telegram.

(c)  On the signed requisition by at least 4 members of the Committee, specifying the

 purposes a special meeting of the Committee shall be convened by the Secretary within

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fifteen days of the receipt of such requisition.

(d)  One third of the total number of Members of the Committee shall form the quorum. If

30 minutes after the scheduled time of the meeting, the requisite quorum is not formed,

the Chairman in consultation with the Members present may adjourn the meeting. No

quorum shall be necessary at the adjourned meeting and the Member.

(e)  All resolution before the Committee shall be decided by the simple majority vote.

(f)  The Committee shall cause the proceedings of its meeting to be duly recorded in the

Minute Book.

(g)  The Chairman or in his absence, any of the two Vice Chairman or in the absence of all

of them, Member may be elected from amongst those present to preside at the meeting

of the Committee.

28.  The Executive Committee of the Association shall have the following powers and

functions:-

(i)  To carry out all the rules, aims and objects of the Association;

(ii)  To make arrangements for the Annual Elections of the Committee before retiring;

(iii)  To continue and to manage all the affairs of the Association until the next properly

constituted Committee takes over the charge in accordance with these Articles;

(iv)  To look after and manage all the property, movable and immovable held by the

Association;

(v)  To appoint Sub-Committee for any special purposes with such rules and regulations

as it may think fit;

(vi)  To delegate any of its powers to a Sub-Committee;

(vii)  To appoint Secretary and such other staffs, as may be considered necessary for the

efficient functioning of the Association and to regulate their terms and conditions of

service;

(viii)  To keep or cause to be kept by any one or more persons be entered true and complete

accounts of the monetary affairs and transactions of the Association;

(ix)  To frame and put into effect rules, regulations and bye-laws for the office

administration, elections, trade practices, arbitration, compensation allowance and

remuneration of the members of office-bearers for their services to the Association

and for all such purposes as are conductive to the promotion of the objects of the

Association and in a like manner rescind, add or alter such rules, regulations and bye-

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laws for the time being in force;

(x)  To secure for the Association Membership of the Federation of Pakistan Chambers of

Commerce and Industry with a view to promoting its objects;

(xi)  To present the vies of the Association on any matter relating to the objects of the

Association;

(xii)  To convene Ordinary or Extra-Ordinary General Meetings of the Association;

(xiii)  To nominate members to represent the Association on non-political public bodies;

(xiv)  To defray expenses of the delegates selected and deputed by the Association to

represent the Association at Conferences and Meetings of Trade and Industrial

Organizations of other Public Bodies held in any place, in or outside Pakistan;

 provided that no invitations shall be extended to any foreign organizations or

individuals, or shall be accepted from the later for participation in any Conference as

Meetings to be held in Pakistan or abroad without the prior permission ofGovernment;

(xv)  To remove or expel any member from the Association or re-admit such expelled

members;

(xvi)  To fill any vacancy caused by resignation or expulsion of any Member of the

Committee;

(xvii)  To commence, institute, prosecute and defend all such actions and/or suits as the

Committee may deem necessary or expedient on behalf of the Association and to

compromise or submit to arbitration any action, suit or dispute or difference as theCommittee in its discretion may think fit;

(xviii)  To deal with matters affecting all the members of the Association or the trade as a

whole; provided that in the event of difference of opinion with the Zonal Committee

which shall deal with all local problems, the views of the latter shall not be shut out

while corresponding particularly with the Government; and

(xix)  Generally to adopt and to carry out such measures, not inconsistent with the

Memorandum and Articles of Association, as may be considered necessary from time

to time in order to achieve the aims and objects of the Association.

29. (a) 

(i)  He shall be the Chief Executive of the Association. He shall whenever possible

 preside over all the meetings of the Committee and lead all deputations and

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delegations.

(ii)  He shall have the power to sanction any amount not exceeding Rs. 500/- at the time

 prior to consultation or assent of the committee and that amount shall be paid from

the funds of the Association. The approval of the Committee shall, however, be

obtained at its subsequent meeting.

(iii)  He shall summon all meetings of the Committee and the General Body of the

Association.

(iv)  He shall take votes of the members and declare the results of such counting of votes

and in the members and declare the results of such counting of votes and in the case

of equality of votes, he shall have his casting or second vote.

(b) 

In the absence of the Chairman, any of the two Vice Chairman, who may be

nominated by the Chairman or the Committee shall perform all or any of the

functions an duties of the Chairman.

(c) 

30.  Subject to the supervision, control and orders of the Chairman, the Secretary, who

shall be the whole-time paid employees of the Association, shall perform the

following duties:

(i)  To carry on and have charge of all correspondence of the Association;

(ii)  To have charge of all papers and documents of the general Body properties, Movableand Immovable, belonging to the Association;

(iii)  To issue and give notice of all the meetings of the General Body, Executive

Committee and various Sub-Committees of the Association;

(iv)  To keep and maintain accurate minutes of all meetings of the Association, Executive

Committee and its various Sub-Committees, and to get the signature of the Chairman

or of the person, who presided over the meeting on such minutes;

(v)  To prepare the Annual Report of the Association in consultation with the Committee

as well as the reports of all Sub-Committees of the Association;

(vi)  To circulate among the members of the Central Committee the minutes of its

meetings and proceedings of the various Sub-Committees and among the members of

the Association the Annual Report Notices and other information intended for

circulation;

(vii)  To circulate removal, expulsion or resignation of any person, firm company or

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corporation as a member of the Association;

(viii)  To notify all members of the Association of the impending annual election and the

results thereof;

(ix)  To collect all dues of the Association of the impending annual election and the

results thereof;

(x)  To keep and maintain accurate accounts of the Association and of the funds

connected with or in any way controlled by it;

(xi)  To ensure all payments on behalf of the Association in conformity with the decision

of the Committee and keep and imp-rest account of an amount of Rs. 500/-;

(xii)  To countersign all cheques issued on behalf of the Association which shall be signed

 by the Chairman and/or a Member of the Committee duly authorized in this behalf;

(xiii)  To represent the Association for all purposes whenever action arises before Court of

Justice in any suit or proceeding instituted by or against the Association provided

that he shall not be competent to compromise any suit of proceeding without the

sanction of the Committee;

(xiv)  To delegate any or all his/her functions to any of the staff of the Association

 provided that he / she shall remain responsible to the Committee for all acts done in

his/her behalf by such staff;

(xv)  To maintain administrative and disciplinary control over all staff of the Association

in accordance with the rules and regulations framed in this behalf by the Committee;

(xvi)  To do and perform all acts and deeds that he/she may expressly be required to do by

the Committee and generally all such other deeds as are incidental to his office.

(d) 

31. (a) He shall be the Chief Executive of the Association. He shall whenever possible

 preside over all the meetings of the Committee and lead all deputations and

delegations.

(b) The income of the Association derived from admission fee and annual subscription

of members enrolled in each Zone, shall be distributed between the Central Officeand the Zonal Office concerned in the ratio of 60:40 or in such other proportion as

may be considered conductive for the efficient functioning of the Central and Zonal

Office

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  (e) 

32.  The account books and other documents of the Committee shall be kept at the

headquarters of the Central Office of the Association and shall always be open to the

inspection of the members of the Association at such time or times during the office

hours and to such extent as the Committee may, from time to time, determine. The

Committee or the Chairman of the Association may refuse inspection of the any

document, which may in its or his opinion be likely to prejudice the interests of the

Association.

(f) 

33. (i) The Executive Committee shall provide a Common Seal for the Association. The

Seal shall be deposited with the Secretary and shall never be affixed to any document

except by the prior authority of the Committee or the Chairman for the time being

and at least one other Member or the Committee shall sign every such instrument to

which the Seal is affixed and all such instruments shall be countersigned by the

Secretary, provided any instrument bearing the Seal of the Association and issued for

a valuable consideration shall nevertheless be binding on the Association

notwithstanding any irregularity touching the authority of the Committee to issue the

same.

(ii) Deeds, Bonds and other contracts under the Seal made on behalf of the Association

and signed by the Chairman and Secretary of the person acting as the Chairman and

Secretary and one Member of the Committee shall be deemed to have been duly

executed.

(g) 

34.  The Committee shall appoint a panel of Arbitrators and all disputes and differences

 between members pertaining to, arising out of or relating to their business shall be

resolved by reference to sole arbitration of a person names in the Panel of Arbitrators

Panel, one to be appointed by each party to the reference. The provisions of

Arbitration Act, 1940 and any statutory modifications or amendments thereof shall

apply to such arbitration under this Article.

35.  A notice may be given by the Association to any member either personally or by

sending it by post to his registered address.

36.  When a notice is sent by post, service of the notice shall be deemed to be effected by

 properly addressing, prepaying and posting a letter containing the notice and unless

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contrary is proved shall be deemed to have been effected at the time at which the

letter would be delivered in the ordinary course of post.

37.  All provisions relating to the election of office-bearers of the Executive Committee,

its meetings and posers, General Meeting of the Association, etc., shall apply,

mutatis mutandis, to Zonal Committee, Zonal General Meetings, etc.

38.  Amendments in these Articles of Association shall be affected by a resolution passed

 by two-third majority of the members present at a Special or Extra-ordinary General

Meeting of the Association convened specially for this purpose in accordance with

these Articles. Provided that all amendments shall be subject to the approval of

Government and shall also be made when required by Government in public interest.

39.  Any dispute or difference of opinion in regard to the interpretation or scope of

application of these Articles of Association, which can not be resolved by theAssociation itself, shall be referred to the Director of Trade Organization under the

Trade Organization Ordinance, 1961 (XLV of 1961) and the ruling given by the

Director, shall be binding on the Association, its office-bearers and members.

40.  The signatories to the Memorandum and Articles of Association shall form and

Adhoc Committee, which will for all practical purposes, be treated as the Executive

Committee of the Association shall be elected in terms of the Articles.

(h) 

41.  Every Chairman / Vice Chairman / Secretary and Members and other Officers andServants of the Association shall be indemnified by the Association against, and it

shall be the duty of the Committee to pay out of the funds of the Association all cost,

losses, penalties and expenses, which any such person may incur or become liable to

 by reason of any contract entered into or act of deed done by, or committed by him as

such officer or servant or in any way in the discharge of his duties and no member or

other officers of the Association shall be liable for the act receipts, neglects or

defaults of any other or officer or for joining any receptor other act or conformity or

for any loss or expense happening to the Association through the insufficiency or

deficiency of title to any property acquired by order of the Committee for or on

 behalf of the Association or for the insufficiency or deficiency of depreciation of any

security in or upon which any of the moneys of the Association shall be invested or

for any loss occasioned by any error of judgment, default or oversight on his part or

for any loss, damage or misfortune whatever, which shall happen in the execution of

the duties of his office or in relation thereto unless the same happen through his own

dishonesty or willful neglect.We, the several persons whose names and addresses are

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subscribed hereto are desirous of being formed into an Association in pursuance of

these Articles of Association.