Director Dipak Narsingha Shrestha withdrew the case after all BoK board members agreed to brush aside their differences and work together for the sake of the depositors and shareholders. They also forwarded a letter to the Nepal Rastra Bank (NRB) informing it about the withdrawal of the case, a source told myrepublica.com.
The central bank had suspended the board and taken control of its management on May 20, amid deepening disputes among the promoters of the bank. The action was taken on the basis of a charge that the board had failed to safeguard the interests of the bank´s promoters and depositors.
After the decision, the central bank had sent a four-member NRB board led by its director Laxmi Prapanna Niraula to manage the bank.
Prior to the action, the central bank had sought clarification from the BoK board over its decision to remove Radhesh Pant from the post of Managing Director (MD) after it was convinced that a due process was not followed to oust him. It had also instructed the suspended board members to resolve their disputes.
In a letter to the NRB, the suspended BoK board members have also admitted that their split and engagements into disputes was a mistake, said the source.
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