Individuals prohibited from holding director positions simultaneously in multiple cooperative institutions

KATHMANDU: The Department of Cooperatives has announced that an individual cannot simultaneously hold the directorship of two or more cooperative institutions.

The department on Tuesday issued instructions to all cooperatives, emphasising the need for individuals to maintain a single position and relinquish any dual roles they may currently hold.

Section 41 (5) of the Cooperatives Act 2074 BS stipulates that a person can serve as the director of only one cooperative institution at a time. The department further clarified that strict monitoring will ensure compliance with this directive, and legal action will be taken against those who violate it, as stated by the cooperative department registrar.

Additionally, the department has issued a circular today to reschedule loans for cooperative borrowers. For debtors facing difficulties in loan repayment due to circumstances, the circular outlines a provision: based on evaluation and considering the impact on the debtor member, 50% of the interest payment will be made. This applies only to borrowers who were not classified as bad debtors last year and did not previously receive this facility.