Section 3 — Application of Act to non-trading companies with purely provincial objects

(1) The powers conferred by this Act on the concerned
Minister-in-Charge of the Federal Government or the Commission, in relation to
companies which are not trading corporations and the objects of which are confined
to a single Province, may be exercised by the Minister-in-Charge of the Provincial
Government:

Provided that where the licence is issued by the Provincial Government or,
as the case may be, its concerned Minister -in-Charge, in exercise of the powers
conferred by this section, the company shall mention this fact in all its documents.

(2) A non-trading corporation formed under sub -section (1) extending
its operational activities beyond the territorial limits of its respective province shall
be liable to a penalty of level 3 on the standard scale and be wound up on the
application by the Commission.