The Department of Cooperatives has reissued the directive based on complaints that some individuals are still directors of more than one cooperative organization, contrary to the directive.
What you should know
The Department of Cooperatives has issued instructions for the effective implementation of the provision that a person cannot be the director of more than one cooperative at the same time.
This directive is old. However, contrary to the said directive, the Cooperatives Department has issued a new directive based on complaints that some people are still directors of more than one cooperative organization.
Section 41 (5) of the Cooperatives Act, 2074 BS provides that a person can be a director of only one cooperative organization at a time, and Section 44 (1) Clause (c) provides that a director cannot continue in his/her position if he/she is a director of another cooperative organization.
The following directives and standards have been issued by this department and cooperative regulatory bodies to implement this provision. However, they have not been implemented effectively. For the same reason, the department has issued the directive now.
‘Since complaints have been received that some people are still working as dual directors, despite the directive, this directive has been issued to all the concerned cooperative organizations and directors to implement the said legal provisions as soon as possible,’ the directive issued by the department states.
Earlier, the Department of Cooperatives had issued a directive on 19 Ashad 2081 and 17 Shrawan 2081 that a person should not be a director of more than one organization at the same time. The National Cooperative Regulatory Authority also issued the same provision in the Regulatory Standards for the Operation of Cooperative Organizations Mainly Engaged in Savings and Loans, 2082, issued on 9 Jestha 2082.
Similarly, the Unified Directive for the Promotion of Good Governance in Cooperative Organizations, 2082, issued on 32 Ashad 2082, Point No. 16. and the Directive and Standards for Cooperative Organizations Mainly Engaged in Savings and Loans, 2081, issued by the Nepal Rastra Bank on 208112/04, have also prohibited a person from being a director of more than one cooperative at the same time.
