Cooperatives Act 2074

Chapter 2 Formation and Registration of Cooperative Organisation

Section 18: Working Area of Cooperative Organisation
1) The working areas of a cooperative Organisation at the time of registration shall be as follows:
(a) In case of an Organisation carrying out the main transaction of savings and credits, one ward in case of  another Municipal Corporation or Sub-Municipal Corporation,
(b) In case of an Organisation carrying out the main transaction of savings and credits and in case of an  Organisation in a Municipality or Rural Municipality, in one Local Level only on the following basis as prescribed:-
1) Common bond executed for mutual practice of self-reliance among members,
2) Number of the members required for operating services in  a commercial manner,
3) Convenient place for having participatory democratic control of members in the operation of the Organisation.
2) Notwithstanding anything contained in sub-Section (1), after two years of registration and operation of commercial service by an Organisation, it may extend its working areas as follows on the following bases:-
a) Additional working areas required to increase the number of members in the course of increment of commercial operation of the Organisation,
b) Creative measures are followed for maintaining direct control of members in the transaction of business of the organisation,
c) This is not contrary to the standards determined pursuant to sub-Section (6) of Section 15.
3) Notwithstanding anything contained in sub-Section (2), working areas may be extended on the grounds of the nature of settlement of members, convenient place, local settings, and other specific commercial needs as topography prescribed.
4) Notwithstanding anything contained elsewhere in this Section, the working areas of an Organisation may be extended to one local level or district or more than one district or more than one province which requires wider working areas due to expansion of commercial areas such as hydropower project, education, linguistic, literary cultural, health services, communication, production, storage and pro cessing special agro or forests products or increase of participation of members.
5) The working areas of the Organisations which are in operation at the commencement of this Act shall be deemed to have been maintained time of the under this Act.
Provided that those organisations shall have to submit to the Registrar or the authority authorised by the Registrar business operation report till the date of commencement of this Act within one year from the commencement of this Act specifying the following details:-
(a) Condition of the spread of membership distribution in the existing working areas in terms of province, district, local level and ward,
(b) Condition of commercial service operations according to current working areas in terms of province, district, local level and ward,
(c) Other details as prescribed.
6) After submission of the business operations report pursuant to sub-Section (5), the Registrar or the authority authorised by the Registrar shall conduct necessary inquiry and may issue directive to the concerned Cooperative Organisation to re determine the working areas as follows:-
a) To decrease the working areas by removing province, district, local level and ward which does not have extension of membership referred to in the distribution of clause (a) of sub-Section (5) or which have less number of members than the prescribed number or which does not have geographical continuity,
b) To decrease the working areas by removing province, district, local level and ward where any commercial service is not being operated or commercial services is operated in less than the prescribed amount or proportion than the proscribed amount of the total transaction according to the statement referred to in clause (b) of sub-Section (5),
c) To maintain appropriate working areas by decreasing province, district, local level and ward with a view to increase commercial efficiency of the organisation to sustain the operational case of the Organisation and to maintain participatory democratic control of members in the operation of the organisation;
d) To maintain appropriate working areas by removing the additional working areas of province, district, local level and ward in order facilitate the acquisition of membership of district or province Sectoral association or of the district or province Cooperative Organisation easier for the commercial or promotional services.
7) In case the Registrar or the authority authorised by the Registrar gives directives pursuant to sub-Section (6), the Cooperative Organisation shall have to amend to the Byelaws within one year and re-determine its working areas.
8) In case the concerned Cooperative Organisation does not re-determine the working areas pursuant to sub-Section (7), the Registrar or the authority authorised by the Registrar shall re-determine the working areas of the Organisation within a period of three months subject to sub-Section (2).
9) In case a Cooperative Organisation,, the working areas of which has been re determined by the Registrar or the authority authorised by the Registrar pursuant to sub-Section (8) does not satisfy with the redetermination of the working areas, it may file an application for review to the Registrar in case the decision has been made by the authority authorised by the Registrar and to the ministry in case the decision is make by the Registrar within 35 days from the date of receipt of the information of the redetermination.
10) The Registrar or Ministry shall have to complete the review on the application received pursuant to in sub-Section (9) within sixty days.
11) Notwithstanding anything contained elsewhere in this Section, a Cooperative Organisation may at any time bring amendment to the Byelaws to decrease the working areas on voluntary basis.
12) Other provisions relating to redetermination of working areas shall be as prescribed.
13) The process of expansion of working areas pursuant to sub-Sections (2) and (3) shall be as prescribed.