Regulation 60 on Non-Profit Companies Regulation

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  • Year:
  • Country: Jordan
  • Language: English
  • Document Type: Domestic Law or Regulation
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In compliance with Article 31 of the Constitution
Based upon the Decree of the C abinet on 24/4/2007

Regulation No. 60 for the Year 2007
Regulation for Non -Profit C ompanies
Issued in compliance with Article 7, Section 5 of the Companies L aw
No. 22 of 1997

Article 1 – This regulat ion is to be called (T he Regulation for Non -Profit Companies
for Y ear 1997), and is to be enacted from the date of its publication in the Official

Article 2 – The following words and phrases wherever they are mentioned i n this
regulation should have the following meanings unless stated otherwise:

The Law: The active Companies Law
The M inister: The Minister of Industry and C ommerce
The Circuit: The circuit on mentoring companies
The Overseer: The overseer on companie s
The R egister: The register o f non -profit companies
The Company: Any company registered in compliance with the law and this regulation
and does not aim at accomplishing profits, and if any revenues were
accomplished the y are not to be distributed to the company holders

Article 3 – The company is subject to the provisions of the active legislations when
registering or conducting its activities concerning any issue this regulation does not

Article 4 – The company is to be registered with the ove rseer in a special record
called “Non -profit Companies Register” in serial numbers with respect to its
registration date, and all changes and alteration the befall the company are to be
recorded in it.

Article 5 – It is stipulated that the objectives of the company are to provide social,
humanitarian, health, environmental, educational, cultural, athletic , or any similar
services of non -profit nature approved by the overseer.

Article 6 –
A- The company registration application is to be applied to the o verseer in the special
form prepared by the circuit, with the company contract or its establishing contract, its
articles of association, and any other documents or information required by the
overseer or the active legislations attached.

B- It is stipula ted that the overseer is provided with the address of the company, its
phone numbers and B.O. box number within three months of its registration, as well
as any change that befalls any of them within a month, subject to legal liability.

Article 7 – It is stipulated that the name (title) of the company and its commercial
name, if applicable, with the phrase “non -profit” annexed, is printed on all the

documents and publications used by the company in its activities and in the contracts
held with other parti es

Article 8 –
A- Any net revenues achieved by the company are considered a part of its treasury,
and may not be used except for the realization of its objectives and the goals for
which it was established, the expansion of its activities and increasing its capital.

B– The company may not, by any means, distribute any of its net revenues directly or
indirectly among its partners or share -holders.

C- The company is to adopt a wage schedule for its employer similar to that of their
peers in the job marke t.

Article 9 – The company is not allowed to do the following:

A – receive or accept subsidies, donations, grants or finance from a non -Jordanian
party without obtaining the approval of the Cabinet of Ministers based on the
reference of the minister or t he minister of competent jurisdiction, and according to a
written petition t hat includes a detailed information on the parties, causes and sources
of these funds.

B – Give, by any means, any financial or material donations inside the kingdom
without obtai ning the approval of the minister or the minister of competent
jurisdiction, and according to a written petition that includes a detailed information on
the parties, causes and sources of these funds.

Article 10 – A member of the company is not allowed to have direct or indirect
interest with any profit company implementing the projects of the company.

Article 11 – The company may hold any seminars or conferences inside or outside the
kingdom, call for them, preparing or participating in their preparation , publish or send
any reports, research papers or information related to its activities in compliance with
the active legislations. The minister or the minister of competent jurisdiction has the
right to oversee the outputs of these seminars or conferences .

Article 12 –
A– The company has to provide the overseer with an annual report describing its
actions, activities and the sources of its funds, with a balance sheet ratified by those
commissioned to sign for by the company and its auditor attached, acco rding to the
assets, or any other information required.

B – The company is to keep its correspondence regularly and in special records as
well as its meeting, decisions, balance sheets, all its proprieties, and activities done or
to be done to achieve its objectives.

C – The overseer, or whomever he assigns by a written commission from inside or
outside the circuit to the task of monitoring the company, may check its records and
registers for verification of information, sources of funds, items of expendi ture, its
commitment to its objectives and the requirements of the law and this regulation.

D – In case the company violates the provisions of this regulation or the law, the legal
procedures stated by the law are to be applied, and the company is to defr ay the
expenses of check for verification, in the sum estimated by the minister.

Article 13 – Any foreign company working outside the company may establish a non –
profit branch, if all conditions and requirements of non -active foreign companies
stated by the law and the active legislations are fulfilled, subject to the provisions of
this regulation.

Article 14 – The expenses of the announcements made by the overseer in compliance
with this law and regulation are to be covered by the company involved.

Art icle 15 – In addition to the provisions on liquidation in the law on companies, the
minister may, based on the reference of the overseer, may issue a warning to the
company to rectify its situation within a month, otherwise the minister, based on the
refer ence of the overseer, is to transfer the company for liquidation in any of the
following cases:

A- If it has violated the provisions of the law, this regulation, its articles of association
or its establishing contract
B- If it has conducted actions outsi de the framework of its objectives
C- If any of its activities resulted in a violation of public order or public morals.

Article 16 – The funds of the company and its remaining assets after liquidation as

A – The partners and sharehold ers are given back their actual shares of the capital at
the moment of establishment, and if the assets are less than the original shares, they
are distributed with respect to the original ratio of participation.

B – If the assets are more than the capita l, the remainder devolves to the Scientific
Research Fund, any other non -profit company, public institutions or NGOs with
similar objectives by a decree of the minister, based on the reference of the overseer.

Article 17 – Non profit companies that are ac tive after the enactment of this regulation
are considered as if they were established under it, and will have to adjust its status in
compliance with its provision within one year of enactment under legal liability.