The government has made it easy for private companies to issue shares at a premium. This provision has been made in the ordinance brought by the government to amend 26 laws to improve public services and improve the economic and business environment and investment.

According to the decision of the Council of Ministers, President Ramchandra Poudel has issued four ordinances to amend the two dozen laws that were recommended last Friday. The government claims that the ordinance will improve public services and increase investment.

The government has amended the Companies Act 2063 through an ordinance. "In the case of private companies, if the assets are more than the liabilities, the special resolution passed by the general assembly and the issuance of shares at a premium price has been simplified by removing the provision that currently requires additional approval from the company registrar's office and a 3-year audit," the ordinance states.

After the establishment of the company, the government has made provision that the founder or any other person can grant the right to purchase, issue or acquire rights to shares by any means other than cash. A special resolution must be passed by the general meeting of the company when issuing or selling shares or granting rights to the founder or any other person in any way other than cash. When the special resolution is passed, the shares can be issued or sold at a discount,'' said the instruction. 

The government has arranged for speedy arbitration to end the delay in resolving disputes arising from government contracts through arbitration. In order to further improve the arbitration proceedings, to provide a final form to the decision and to facilitate the implementation of the decision, the ordinance does not enforce the decision only if the court suspends the execution of the arbitration decision, and the arbitrator's decision is not only annulled by petition. 

"Sweat shares (shares obtained on the basis of business reputation, goodwill, know-how sharing) are further organized and it is arranged that 40 percent of the paid-up capital in the case of start-up enterprises and 20 percent of the shares in the case of companies can be provided to individuals," the ordinance said. The arrangement regarding the sale of employee shares received by the employees of the company has been clarified. Company registration can be done easily but the hassle of closing has been eliminated. The Ordinance also provides a 90% discount on fines imposed on companies due to non-disclosure and eases cancellation of company registration.

'In the current arrangement, only manufacturing industries can get facilities like exporting industries when they sell their products to industries within the special economic zone, the facility is also provided to the service industry,' the ordinance says, 'if the industries operating outside the special economic zone transfer such industries to the special economic zone. Tax exemption has also been arranged.' 

For the balance of the federal reserve fund, the government has arranged that the total or partial amount remaining in other government funds established in accordance with the prevailing law can be deposited in the federal reserve fund by the Ministry of Finance at the time of liability. The account of the amount received from such fund shall be kept by the office of the Comptroller General.

The details of other government funds will be updated by the Office of the Comptroller General. If it does not see the need to keep such fund in operation, the Government of Nepal can cancel it at any time,' the ordinance states, 'The Planning Commission, in coordination with the Ministry of Finance, will determine the resources available in the next 3 years and the limit of expenses that can be incurred for the purpose of formulating the medium-term expenditure structure and the budget and program of the next financial year. The forecast should be done by the end of January of the current financial year.' 

There is also a provision in the ordinance that the report on resource estimation and expenditure limits prepared by the resource estimation committee must be submitted to the finance minister by February 7 of every year. "Subject to the resource and expenditure limits set by the Resource Estimate Committee, the budget limits for the next 3 years, the medium-term expenditure structure outline, and the necessary funds for multi-year resource assurance of national pride projects should be submitted to the Minister of Finance within February 7 of each financial year. ,' the ordinance said. 

Based on the information received from the National Planning Commission, guidelines on budget limits and budget formulation should be prepared and sent by February 15. When formulating the budget, the proposed budget amount, programs or activities should be added, reduced, or modified based on the availability of resources, the need for spending, and the ability to spend. The government has made arrangements to give the final form. In case of substantial additions or changes in the proposed budget and program, the relevant accounting officer should be informed about it in the ordinance.