Govt enforces directive limiting cooperative directorships to one per individual

July 4, 2024, 11:33:24 AM |

KATHMANDU: The government has issued a stringent directive requiring individuals to hold directorship in only one cooperative at a time. This move aims to ensure better governance and accountability within the cooperative sector. According to a recent circular from the Department of Cooperatives, individuals must adhere strictly to Section 41(5) of the Cooperatives Act, 2074, which limits directors to a single cooperative appointment.

The directive highlights the need for immediate compliance, stressing that individuals currently serving as directors in multiple cooperatives must decide on one role within 30 days of the directive’s issuance. This measure is seen as a crucial step towards enhancing transparency and efficiency within cooperatives, which play a significant role in the country’s economy by fostering local development and financial inclusion.

The Department of Cooperatives has warned that failure to comply with this directive will result in legal repercussions, as outlined in the department’s letter. Legal actions could include fines, disqualification from directorship, or other penalties as per the Cooperative Act. The department’s circular underscores the government’s commitment to enforcing this rule strictly to avoid conflicts of interest and improve cooperative management.

This directive is expected to have a substantial impact on the cooperative sector, prompting many directors to reassess their roles and affiliations. It is anticipated that this move will lead to more dedicated and focused leadership within individual cooperatives, ultimately benefiting their members and stakeholders.

The cooperative sector is urged to take this directive seriously and ensure swift compliance. Cooperative members are also encouraged to support the enforcement of this rule, recognizing its potential to foster a more robust and accountable cooperative movement in the country. The Department of Cooperatives will be closely monitoring the implementation of this directive to ensure adherence and take necessary actions against non-compliance.

Fiscal Nepal |

Thursday July 4, 2024, 11:33:24 AM |