THE LEGAL REGULATION OF NON-PROFIT CORPOTATIONS AND THEIR WORK CHALLENGES IN PALESTINE
Publication Type
Original research
Authors

       The current study tested the legal regulation of the non-profit corporations (NPCs) in Palestine, as NPCs were regulated by the Palestinian Legislature in the Decree-Law Code No. 6 of 2008. This legislation helped NPCs to engage with different kinds of community services especially because their role implements as a third sector which helps in society developing process.

In 2010, the Palestinian Council of Ministers issued a new regulation regarding NPCs, and the Corporations Controller was granted the authority to register them, supervise them, and control their activities, then NPCs start struggling in doing their role and now they are facing “existential challenge” to their legal regulation, which affected negatively their activities.

          The study concluded that NPCs constitute an important part of the economies of some countries, as they work alongside profitable corporations and associations without aiming to achieve profit, but rather to provide the public benefit to society. For these reasons, NPCs have been legislatively organized in Palestine, aiming to contribute to the development process that is necessary in light of the Palestinian difficult reality in various respects. But, despite their legal regulation, NPCs face strict measures by multiple supervisory bodies, represented by the issuing of regulations that give the government strict powers over this type of corporations, such as preventing these companies from accepting grants and donations except by an order of the Council of Ministers and within long procedures. Moreover, the Palestinian Council of Ministers, recently, issued an administrative order to stop the registration of NPCs.

Based on the current findings, study recommends facilitating the role of NPCs by suggesting new strategies which including developing the management system of these corporations and offer the governmental support to help them achieving their goals.

       The current study tested the legal regulation of the non-profit corporations (NPCs) in Palestine, as NPCs were regulated by the Palestinian Legislature in the Decree-Law Code No. 6 of 2008. This legislation helped NPCs to engage with different kinds of community services especially because their role implements as a third sector which helps in society developing process.

In 2010, the Palestinian Council of Ministers issued a new regulation regarding NPCs, and the Corporations Controller was granted the authority to register them, supervise them, and control their activities, then NPCs start struggling in doing their role and now they are facing “existential challenge” to their legal regulation, which affected negatively their activities.

          The study concluded that NPCs constitute an important part of the economies of some countries, as they work alongside profitable corporations and associations without aiming to achieve profit, but rather to provide the public benefit to society. For these reasons, NPCs have been legislatively organized in Palestine, aiming to contribute to the development process that is necessary in light of the Palestinian difficult reality in various respects. But, despite their legal regulation, NPCs face strict measures by multiple supervisory bodies, represented by the issuing of regulations that give the government strict powers over this type of corporations, such as preventing these companies from accepting grants and donations except by an order of the Council of Ministers and within long procedures. Moreover, the Palestinian Council of Ministers, recently, issued an administrative order to stop the registration of NPCs.

Based on the current findings, study recommends facilitating the role of NPCs by suggesting new strategies which including developing the management system of these corporations and offer the governmental support to help them achieving their goals.

Journal
Title
Journal of Legal, Ethical and Regulatory Issues
Publisher
Journal of Legal, Ethical and Regulatory Issues
Publisher Country
United Kingdom
Indexing
Scopus
Impact Factor
None
Publication Type
Both (Printed and Online)
Volume
25
Year
2020
Pages
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