KATHMANDU, Dec 10: The Department of Cooperatives has instructed all cooperative institutions to ensure that no individual holds executive positions in more than one cooperative at the same time. The directive has enforced the provision in the Cooperative Act, which states that one person may serve as an executive in only one cooperative at a given time.
The cooperatives department issued the instruction on Monday, citing Section 41(5) of the Cooperative Act, 2074, which restricts individuals to a single executive role, and Section 44(1)(c), which states that any executive holding a position in another cooperative cannot continue in their existing post.
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Despite repeated directives and guidelines from regulatory bodies, the department said some individuals were still serving in multiple executive roles. It has therefore ordered all cooperatives and executives to immediately comply with the legal provisions.
The directive also refers to guidelines issued by the National Cooperative Regulatory Authority, unified directives issued for promoting good governance in cooperative institutions, and Nepal Rastra Bank's regulatory standards for cooperatives engaged in savings and credit activities. These provisions state that no member may serve as an executive or office bearer in more than one cooperative during the same term.
The issue of dual and multiple office-bearers has been repeatedly highlighted by the media, including cases involving the National Cooperative Bank and various cooperative unions. The department said the latest directive follows public concerns regarding the lack of compliance with the law.
The cooperatives department emphasized that adhering to the Act and regulatory guidelines is crucial to promoting good governance, preventing conflicts of interest and misuse of resources, and maintaining the legal legitimacy of executive committees.
Regulatory bodies responsible for cooperative oversight have also been instructed to strictly monitor compliance and take action under the Cooperative Act and Rules if violations are found.
