chhatramani/Nepal-Legal-Text-Corpus-44laws huggingface dataset:
Cooperatives Act 2074

Chapter 18 Problematic Organisations or Associations

Section 107: Inventory to be prepared
For the purpose of Section 106, the Management Committee shall prepare an inventory as follows:
(a) Name list of the members, depositors, borrowers of the problematic Organisation or Association and of the persons or organisations to which the Organisation or Association has to make payments,
(b) Inventory of immovable assets, including apartments in the name of the problematic Organisation, or Association, or having an investment of the Organisation or Association,
(c) Details of cash deposited in banks, gold, silver owned and share investment in the names of members and employees of the problematic Organisation or Association, or in the name of their family members,
(d) Record of land and buildings mortgaged by the problematic Organisation or Association for obtaining loans,
(e) Record of all movable or immovable assets of the problematic Organisation or Association located in Nepal or in any place abroad.

Cooperatives Act 2074

Chapter 18 Problematic Organisations or Associations

Section 108: Provisions concerning Payment of Liabilities
1) The Management Committee shall set the following order of priority for payment of liabilities of the problematic Organisation or Association:
(a) Payment of savings to members according to the terms and conditions set at the time of depositing the amount,
(b) Payment of government dues or claims on the assets of such an Organisation or Association or assets referred to in clause (l) of Section 106,
(c) Payment of persons paying an advance amount to the problematic Organisation or Association for the apartment or land,
(d) Payment of the amount to the creditors of the problematic Organisation or Association.
2) In case the assets of the problematic Organisation or Association are not sufficient to pay all liabilities of such a problematic Organisation or Association under this Section, the Management Committee may refund the savings of and make payment of liabilities to the members on a pro rata basis. While refunding savings of members in such a manner, the Management Committee shall accord priority to small depositors as prescribed.

Cooperatives Act 2074

Chapter 18 Problematic Organisations or Associations

Section 109: Authority may be delegated
The Management Committee may, while managing assets of the problematic Organisation or Association, delegate some of its authority to the Chairperson or a member of the Management Committee or to a government officer to use and exercise.

Cooperatives Act 2074

Chapter 18 Problematic Organisations or Associations

Section 110: To be borne from Assets of Organisation or Association
In case the expenses to be incurred in the course of managing assets of the problematic Organisation or Association cannot be met for the time being from the assets of such an Organisation or Association, the Government of Nepal may make available an amount for that purpose.
Cooperatives Act 2074

Chapter 18 Problematic Organisations or Associations

Section 111: Authority to be suspended ipso facto
1) The authority of the Board, manager, and employees of the problematic Organisation or Association shall
ipso facto
be suspended from the date the Management Committee is formed under this Act.
2) Notwithstanding anything contained in sub-Section (1), the Management Committee may for the purpose of management of assets and payment of liabilities, release the suspension and engage the members, manager and employees of the problematic Organization or Association for carrying out functions relating to management of assets and payment of liabilities of such Organization or Association.
3) In case the Management Committee deputes for work pursuant to sub-section (2), it shall be the duty of the concerned person to bear the responsibility accordingly.

Cooperatives Act 2074

Chapter 18 Problematic Organisations or Associations

Section 112: Notice to be given for submission of liabilities
Once the Management Committee begins its work, it shall publish a public notice in a national-level daily newspaper to the members, depositors, and creditors of the problematic organisation or association specifying a time limit of at least fifteen days to submit claims for the amount to be repaid to them.

Cooperatives Act 2074

Chapter 18 Problematic Organisations or Associations

Section 113: Audit Report to be prepared
The Management Committee shall, within six months from the date of commencement of works by it, prepare an audit report of the problematic Organisation or Association, and the report shall be made public.

Cooperatives Act 2074

Chapter 18 Problematic Organisations or Associations

Section 114: Remedial Actions may be taken
The Management Committee, in case there are reasons and bases that the problematic Organisation or Association could operate again based on the audit report prepared under this Act, may carry out the following remedial actions:
(a) To order the Board to carry on management or functions and transactions,
(b) To ask to carry on management or functions and transactions having formed an interim committee from amongst the shareholding members of the concerned Organisation or Association,
(c) To dissolve the Board and call a General Meeting of such Organisation or Association and to cause the formation of a new Board for carrying on management or functions and transactions,
(d) In case the Central Sectoral Cooperative Organisation in which the concerned Organisation or Association is a member, or the National Cooperatives Federation submits a credible action plan for resuming the operations of the problematic Organisation or Association, entrust such responsibility to with on terms and conditions prescribed,
(e) To take other reformatory and remedial measures which the Management Committee deems appropriate.
Cooperatives Act 2074

Chapter 18 Problematic Organisations or Associations

Section 115: Management Committee may write to take action
1) The Management Committee may, in the course of carrying out functions relating to asset management or paying liabilities of the problematic Organisation or Association, write to the concerned agency to take actions as follows:
(a) To freeze the transactions, accounts or other movable or immovable assets of a member of the Board or an employee or his or her family member,
(b) Not to issue a passport to a member of the Board, manager or employees or to suspend such passports if issued,
(c) To include the names of the members or persons not paying back the loans of the problematic Organization or Association in the blacklist.
2) In case the writing referred to in sub-section (1) is received, the concerned agency shall carry out the action accordingly and inform the Management Committee about it.

Cooperatives Act 2074

Chapter 18 Problematic Organisations or Associations

Section 116: Recommendation may be made
1) The Management Committee may recommend taking departmental actions or other actions against any official or employee who does not cooperate in, or obstructs the course of, the functions of management of assets or payment of liabilities of the problematic Organisation or Association.
2) In case a recommendation referred to in sub-Section (1) is received, the concerned authority shall take departmental or other actions according to the prevailing laws.
3) While carry out the functions of management of assets or payment of liabilities of the problematic Organization or Association, in case the Management Committee has reasonable ground to believe that offences referred to in Section 122 have been committed, it may write to the agency having authority to conduct investigation and bring prosecution according to the prevailing laws.

Cooperatives Act 2074

Chapter 18 Problematic Organisations or Associations

Section 117: Report to be submitted
The Management Committee shall, within one month of completion of the performance of management of assets or payment of liabilities of the problematic Organisation or Association, submit a report to the Ministry stating the following details:
(a) Refund of the members’ amount of savings,
(b) Liabilities paid,
(c) Details of the remaining assets and liabilities,
(d) Recommendations relating to policies to be adopted by Government of Nepal with regard to the operation of an organisation or Association,
(e) Other details as deemed appropriate by the Management Committee.

Cooperatives Act 2074

Chapter 18 Problematic Organisations or Associations

Section 118: Terms and conditions of services of chairperson and members of Management Committee
1) The chairperson and members of the Management Committee shall be the whole-time officials.
2) Remuneration and other benefits of the chairperson and members of the Management Committee shall be as specified by the Government of Nepal.
3) No chairperson or member of the Management Committee shall disclose to an unauthorised person any information he/she learns in the course of carrying out official business.
Cooperatives Act 2074

Chapter 18 Problematic Organisations or Associations

Section 119: Cooperative may be sought
1) The Management Committee may seek the cooperation of other agencies as necessary to carry out its Functions, duties, and powers.
2) It shall be the duty of all concerned to extend cooperation as sought by the Management Committee.
3) While carrying out functions of management of assets or payment of liabilities of the problematic Organisation or Association, the Management Committee may move its activities in coordination with other concerned agencies.

Cooperatives Act 2074

Chapter 18 Problematic Organisations or Associations

Section 120: Expert Service may be sought
1) The Management Committee may procure the Expert services of technicians or experts in the concerned subjects as necessary.
2) The Management Committee may, for procuring technical or expert services, provide remuneration and facilities, having fulfilled the procedures under the prevailing laws relating to public procurement.

Cooperatives Act 2074

Chapter 18 Problematic Organisations or Associations

Section 121: Provisions concerning Employees of Management Committee
The Ministry shall make available the necessary human and physical resources for the secretariat of the Management Committee.
Cooperatives Act 2074

Chapter 19 Offences, Punishment, Fines and Appeal

Section 123: Saving of actions taken in good faith
1) No official or employee of the Ministry, Department or a cooperative Organisation or Association shall be individually or collectively liable for any act done in good faith according to Rules, bylaws or Directives framed under this Act.
2) Notwithstanding contained sub-section (1), no act done without fulfilling the procedures and with
malafide
intention shall be saved.

Cooperatives Act 2074

Chapter 19 Offences, Punishment, Fines and Appeal

Section 124: Punishment
1) Whoever commits any of the offences referred to in Section 122 shall be liable to the following punishments:
(a) For commission of the offences referred to in clauses (a), (c), (m) and (q), an imprisonment up to one year and a fine up to one hundred thousand rupees,
(b) For commission of the offence referred to in clause (l), an imprisonment up to two years and a fine up to two hundred thousand rupees,
(c) For commission of the offence referred to in clause (b), a fine equal to the claimed amount and imprisonment up to three years,
(d) For commission of the offences referred to in clauses (d), (e), (f) and (g) (h), (i), (j), (k), (o) and (p); the claimed amount shall be recovered, and equal amount shall be fined and following amount of imprisonment shall be imposed:
(1) If the claimed amount is up to one million rupees, imprisonment up to one year,
(2) If the claimed amount is above one million rupees and up to five million rupees, imprisonment from two to three years,
(3) If the claimed amount is above five million rupees and up to ten million rupees, imprisonment from three to four years,
(4) If the claimed amount is above ten million rupees and up to one hundred million rupees, imprisonment from four to six years,
(5) If the claimed amount is above one hundred million rupees and up to one billion rupees, imprisonment from six to eight years,
(6) If the claimed amount is whatsoever amount above one billion rupees, imprisonment from eight to ten years,
(e) For commission of the offence referred to in clause (n), an imprisonment of up to ten years.
2) Whoever attempts, abets, or assists to commit any offence referred to in Section 122 shall be liable to half of the punishment the offender in the first degree is liable to.
3) In case any Organisation or Association abets or assists in committing any offence referred to in Section 122, the chief executive or official or the person working in the capacity of an executive shall be liable to the punishment according to this Act.
Cooperatives Act 2074

Chapter 19 Offences, Punishment, Fines and Appeal

Section 126: To freeze transactions, accounts and assets
1) The Registrar or the authority authorised by the Registrar may, in addition to imposing a fine pursuant to Section 125 on the concerned Cooperative Organisation, recommend that the concerned agency freeze transactions, assets, bank accounts, and property of such a Cooperative Organisation for a period not exceeding months.
2) In case the recommendation is received pursuant to sub-section (1), the concerned agency shall have to freeze transactions, assets and bank accounts of such a Cooperative Organisation and inform the Registrar or the authority authorised by the Registrar.

Cooperatives Act 2074

Chapter 19 Offences, Punishment, Fines and Appeal

Section 127: Double Fine to be imposed
1
……. If a person or cooperative organisation that has been fined pursuant to Section 125 commits the same offence again, the Registrar or an officer authorised by the Registrar shall impose a double fine on such person or cooperative organisation for each subsequent offence.
1 Excluded by the Act to Amend Certain Nepal Acts, 2074.

Cooperatives Act 2074

Chapter 19 Offences, Punishment, Fines and Appeal

Section 128: Nepal Rastra Bank may punish
1) Notwithstanding anything contained elsewhere in this Act, the Nepal Rastra Bank may punish as follows on a Cooperative Bank that violate the terms and conditions specified at the time of granting of a by the Nepal Rastra Bank or orders issued from time to time or directives issued in the course of inspection, supervision or regulation:
(a) To issue a warning or admonition in writing,
(b) To cause the Board of Directors to execute a bond for carrying out reformative actions,
(c) To issue an order in writing to end frequent violations, to refrain from it and to begin reformative actions,
(d) To impose full or partial restrictions on carrying out transactions,
(e) To suspend or revoke the license of the Cooperative Bank.
2) In case a director or employee of a Cooperative Bank violates orders, directives issued by the Nepal Rastra Bank or terms of the license; fails to submit document, statement, statistics or record demanded at the time of inspection and supervision; within the specified time or commits any act against interests of the depositors or members, the Nepal Rastra Bank may impose the following punishment on such a director or an employee:-
(a) To issue a warning or admonition in writing,
(b) To suspend him or her,
(c) To impose a fine not exceeding five hundred thousand rupees,
(d) To order the Board to suspend the payment of the entire benefits, such as salary, allowances,
(e) To order the Board to remove such a person from the office if such a person is a director and to take departmental actions if such a person is an employee according to the Byelaws relating to terms and conditions of service.
3) While imposing the fine under this Section, he/she shall be provided with a reasonable opportunity to defend himself/herself.
Cooperatives Act 2074

Chapter 19 Offences, Punishment, Fines and Appeal

Section 129: To refer for investigation
In case the Ministry, Nepal Rastra Bank, the Registrar, or the authority authorised by the Registrar learns, in the course of exercising the functions, duties and powers under this Act, that anyone has committed an offence referred to in Section 122, it may write to the concerned agency to carry on investigation according to this Act with regard to such an offence.

Cooperatives Act 2074

Chapter 19 Offences, Punishment, Fines and Appeal

Section 130: Government of Nepal to be a plaintiff
The Government of Nepal shall be a plaintiff in a case involving an offence punishable pursuant to Section 124, and such a case shall be deemed to have been enlisted in Annexe-1 of the State Cases Act, 1993.

Cooperatives Act 2074

Chapter 19 Offences, Punishment, Fines and Appeal

Section 131: Authority to adjudicate a case
Judicial proceedings and adjudication of a case involving an offence punishable pursuant to Section 124 shall be held by the concerned district court.

Cooperatives Act 2074

Chapter 19 Offences, Punishment, Fines and Appeal

Section 132: Statutory Limitation to file a complaint
1) The person who comes to know that an offence punishable pursuant to Section 124 has been committed or is going to be committed shall file a complaint within ninety days of coming into such information.
2) A person who comes to know that an offence to be fined pursuant to Section 124 has been committed shall file a complaint to the Registrar or the authority authorised by the Registrar within ninety days of coming into such information.

Cooperatives Act 2074

Chapter 19 Offences, Punishment, Fines and Appeal

Section 133: Appeal may be filed
1) A person who is not satisfied with the decision of denial to Registrar Cooperative Organization pursuant to Section 16 or of revocation of registration of Cooperative Organization pursuant to Section 88 may, within thirty-five days from the date of getting information of the decision, file an appeal to the Registrar in case the decision has been made by the authority authorised by the Registrar and to the Secretary of the Ministry in case the decision has been made by the Registrar.
2) The person who is not satisfied with the decision of fine referred to in Section 125, and of the punishment imposed pursuant to clauses (d) and (e) of sub-section (1) of Section 128 and clauses (c) and (d) and (e) of sub-section (2) of the same Section, he/she may file an appeal as follows within thirty five days from the date of getting information of the decision:-
(a) To the concerned district court in case the decision has been made by the authority authorised by the Registrar,
(b) To the concerned High Court in case the decision has been made by the Registrar.

Cooperatives Act 2074

Chapter 19 Offences, Punishment, Fines and Appeal

Section 134: Due Amount to be recovered
In case any amount of fine or any other due amount to be paid by any person under this Chapter is due, such an amount of fine or amount shall be recovered from him or her as government due.
Cooperatives Act 2074

Chapter 20 Miscellaneous Provisions

Section 135: Special Provisions concerning operation of Association
1) Notwithstanding anything contained elsewhere in this Act, buildings, land and similar types of other immovable property of organisations such as Sajha Yatayat, Sajha Prakashan, Sajha Swastha Sewa, Sajha Bhandar, Sajha Sewa, which are under the ownership or control of Government of Nepal, Provincial government or local level and having fifty five percent of share ownership of Government of Nepal at the commencement of this Act, shall not be sold, mortgaged or leased for a period of more than five years without approval of the Government of Nepal.
2) The Government of Nepal, Provincial government, or local level shall accord priority to managing services to be rendered by the organisations referred to in sub-Section (1). Collaboration may also be worked out by providing financial assistance to such organisations.
3) Notwithstanding anything contained elsewhere in this Act, other provisions as to the operation and management of the organisations referred to in sub-section (1) shall be as prescribed.

Cooperatives Act 2074

Chapter 20 Miscellaneous Provisions

Section 136: Exercise of Voting Right
1) Whatever number of shares of a Cooperative Organisation has been subscribed by any member, he/she may exercise the voting right in the operation of functions of the concerned Cooperative Organisation based on the one-member, one-vote principle.
2) Notwithstanding anything contained in sub-Section (1), in case of an Association, more than one representative may be sent as prescribed for the purpose of taking part in the General Meeting, and provisions concerning sending of the representatives shall be as prescribed.
3) Notwithstanding anything contained in sub-Section (2), no more than one member may be elected from one Organisation or Association in the Board of Accounts Supervision Committee of the concerned Association.

Cooperatives Act 2074

Chapter 20 Miscellaneous Provisions

Section 137: Social Audits may cause to be conducted
1) A Cooperative Organization may, for the purpose of attaining the objectives referred to in its byelaws, conduct a social audit on the decisions made and functions carried out by the Board, services received by members and level of satisfaction, positive impact made on economic, social, cultural, and environmental aspects of the members’ standard of life, and other aspects.
2) The Board shall submit to the General Meeting the report of the social audit conducted pursuant to sub-section (1) for the purpose of discussions.
3) The General Meeting shall, after having discussed the report of the social audit submitted pursuant to sub-Section (2), give necessary directives to the Board.
4) The concerned Cooperative Organisation shall submit one copy of the report of the social audit prepared under this Section to the Registrar or the authority authorised by him or her, and in case of a Cooperative Bank, one copy of such a report shall also be submitted to the Nepal Rastra Bank.