KATHMANDU: The Department of Cooperatives has directed all cooperatives across the country to immediately enforce the legal provision that bars any individual from serving as a board member in more than one cooperative at a time.
Issuing a circular on Monday, the Department instructed cooperatives to fully implement Section 41 of the Cooperative Act 2017, after repeated reminders were ignored. The provision aims to prevent conflict of interest and strengthen governance within the cooperative sector.
According to the directive, complaints had been received that some individuals were still holding dual positions in multiple cooperatives, despite earlier instructions to end the practice. “Since reports continue to indicate that certain individuals remain active as board members in more than one cooperative, this directive has been issued to ensure immediate compliance with the legal provision,” the Department said.
The Department has also asked all regulatory bodies responsible for oversight of cooperatives to intensify monitoring, inspection, regulation and supervision to verify whether the rule is being enforced.
Comment