Directors of cooperatives asked to vacate dual positions within 30 days

KATHMANDU, JULY 4: The Department of Cooperatives has declared that an individual cannot simultaneously serve as the director of multiple cooperative institutions. It yesterday directed all cooperatives to ensure compliance by relinquishing any additional positions if a person is holding more than one.

This directive aligns with Section 41 (5) of the Cooperatives Act 2074 BS, which stipulates that a person can only be the director of a single cooperative institution at a time. The department has emphasized that adherence to this regulation will be monitored, and legal action will be taken against violators, according to the cooperative department registrar.

Additionally, the department issued a circular today addressing the rescheduling of loans for cooperative borrowers for three months. It states that for debtors struggling to regularize their loans due to various circumstances, the department will evaluate the impact on the debtor member.

Based on the member's demand, need, and justification, 50 percent of the interest payment will be required only for those borrowers who were not categorized as bad debtors in the previous year and who have not previously received this facility.

 

 

 

 

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