Kathmandu Metropolitan City has announced specific terms and conditions for cooperative societies under its jurisdiction that wish to go for dissolution and registration cancellation.
New Rules for Closing Troubled Cooperatives
Kathmandu Metropolitan City (KMC) has introduced strict conditions for cooperatives that want to shut down. According to the Cooperative Act 2074, section 66, KMC has put forward these rules for those organizations that are facing trouble or wanting to cancel their registration.
Dhruva Kumar Kafle, who is chief of cooperative department in KMC, said that cooperatives which are inactive without any transaction for two consecutive years can start this process. Also, those cooperatives where two-third majority of members in general meeting decide to dissolve can apply for registration cancellation.
Required Documents and Process
To start the process, the cooperatives must submit several documents to the department. This includes application on cooperative letter pad, tax clearance certificate of business and rent from ward office, and certified copy of two-third majority decision from general meeting. They also need to provide full list of share members, savers, borrowers, and three-generation details of all board directors. Additionally, details of all movable and immovable assets except the loan investments must be submitted to the department.
Chief Kafle said that legal process will only move forward after receiving all these documents. Lately, KMC cooperative department has received applications from six thousand savers who are asking to return their savings. The total amount of saving return requested is Rs five arba twenty-seven crore.
Plans for Saving Refund
The department has plan to return savings of up to Rs five lakh to small savers within next one month. For big savers, they are coordinating to recover loans and refund money. Cooperative department usually works to register complaints, run discussions, and make settlements between directors and savers.
If they cannot reach agreement, department will recommend them for legal action. Currently, there are one thousand nine hundred twelve cooperatives registered in KMC. Out of them, only fifty percent submit their annual general meeting reports regularly. Kathmandu Metropolitan City is preparing to take legal action against those cooperatives who do not do their regular annual general meetings.
This article was originally published on https://bajarkochirfar.com. Translated with the help of AI and reviewed by our editorial team.
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