Kathmandu, September 22
Cooperative operators and chief executive officers (CEOs) will not be allowed to operate cooperative offices from houses owned by themselves or their relatives, according to a directive issued by the National Cooperative Regulatory Authority.
The authority has prohibited cooperatives from renting houses owned by their operators, CEOs or their family members for office operations. Cooperatives found violating the provision must relocate their offices within six months.
The authority has also made prior approval mandatory for savings and credit cooperatives seeking to register or change the objectives of institutions whose main business is savings and credit transactions. Cooperatives must submit an application to the authority for such approval.
Under the amended Regulatory Standards for Operating Cooperatives Engaged Mainly in Savings and Credit Transactions, proposed cooperatives must declare that their members are not members of other cooperatives of a similar nature. The proposed area of operation must also have geographical continuity.
The standards require cooperatives to submit a business plan covering at least five years and a commitment to maintain the prescribed qualifications of directors, accounting supervision committee members, managers and employees.
Applications for prior approval must also include a recommendation from the concerned local level. The authority will assess the feasibility of implementing the proposed business plan and conduct on-site inspections covering office infrastructure, security of savings, market conditions and potential investment areas.
