chhatramani/nepal_legal_acts_corpus_english huggingface dataset:
Civil Service Act, 1993

The investigating officer shall follow the prescribed procedure. 67. Punishment proposal to be made before ordering special punishment: Before ordering special punishment, if the authority empowered to order departmental punishment finds that no defence has been submitted within the period given for submitting defence under section 66, or that the defence submitted is not satisfactory, he/she shall give a reasonable period to such civil servant to show cause why the proposed punishment should not be imposed. 68. Consultation with the Public Service Commission: In the course of departmental proceedings, if the defence given by the concerned civil servant under section 66 or the explanation given under section 67 is not satisfactory and it appears that the employee should be punished, the authority empowered to order departmental punishment shall propose the punishment to be given to such employee and consult the Public Service Commission. 69. 70. Effect on decision not affected: Minor procedural defects that do not materially affect the proceedings conducted by an authorised officer under this Act or the rules made under this Act in respect of a civil servant shall not affect the decision. Chapter 10

Miscellaneous

71. Leave to be received by civil servants: Civil servants shall receive the following leaves as prescribed:
(a) Casual and festival leave,
(b) Home leave,
(c) Sick leave,
(d) Maternity leave,

Inserted by the Second Amendment.(d1) Maternity care leave
(e) Bereavement leave,
(f) Study leave,
(g) Extraordinary leave. Inserted by the Second Amendment.</

(३) कार्यक्षमता मूल्याङ्कनद्वारा हुने बढुवा सम्बन्धी ऐनको व्यवस्था प्रारम्भ नभएसम्मका लागि सम्वत् २०६२ साल आषाढ ३० गतेभन्दा अघि कायम रहेका प्रचलित व्यवस्था लागू हुनेछ । ३. न्याय प्रशासन ऐन संशोधन गर्ने ऐन, २०७२ द्वारा रूपान्तर भएका शब्दहरू :-
“पुनरावेदन अदालत” को सट्टा “उच्च अदालत”

४. केही नेपाल ऐन संशोधन गर्ने ऐन, २०७२ द्वारा रूपान्तर भएका शब्दहरू:-
“कानून, न्याय, तथा संसदीय व्यवस्था मन्त्रालय”, “कानून, न्याय, संविधानसभा तथा संसदीय मामिला मन्त्रालय” वा “कानून, न्याय तथा संविधानसभा व्यवस्था मन्त्रालय” को सट्टा “कानून, न्याय, तथा संसदीय मामिला मन्त्रालय” ।
Debt Recovery of Banks and Financial Institutions Act, 2002

Bank and Financial Institution Loan Recovery Act, 2058

Royal Seal and Publication Date
2058.10.17

Certification and Publication Date
2063.07.19

Amending Acts

1. Bank and Financial Institution Loan Recovery (First Amendment) Act, 2063† 2063.07.19
2. Republic Strengthening and Some Nepal Laws Amendment Act, 2066@ 2066.01.07
3. Bank and Financial Institution Loan Recovery (Second Amendment) Act, 2066 2066.01.13
4. Some Nepal Acts Amendment Act, 2072 2072.11.13

Act No. 16 of the year 2058



An Act Made to Provide for the Recovery of Loans of Banks and Financial Institutions

Preamble: Whereas it is desirable to make provision for the expeditious hearing and disposal of cases relating to the recovery of loans of banks and financial institutions and for the recovery of principal, interest and amounts due from borrowers,

Therefore, in the first year of the reign of His Majesty King Gyanendra Bir Bikram Shah Dev, Parliament has enacted this Act. Chapter-1

Preliminary

1. Short Title and Commencement: (1) This Act may be called the "Bank and Financial Institution Loan Recovery Act, 2058".

(2) This Act shall come into force on such date as the Government of Nepal may appoint by notification published in the Nepal Gazette. 2. Definitions: Unless the subject or context otherwise requires, in this Act,-

(a) "Bank and Financial Institution" means a bank or financial institution established pursuant to the prevailing law.

(b) "Tribunal" means a tribunal established pursuant to Section 4.

(c) "Member" means a member of a tribunal established pursuant to Section 4, and this term shall also include the Chairperson of the Tribunal.

(d) "Appellate Tribunal" means an appellate tribunal established pursuant to Section 8.

(e) "Appellate Officer" means a person appointed pursuant to Section 9.

(f) "Loan" means the principal and interest of credit provided by a bank or financial institution to a borrower, with or without taking movable or immovable property, collateral, mortgage, other necessary security, or guarantee, and this term shall also include amounts receivable from off-balance sheet transactions or fees, commission, and interest chargeable thereon.

(g) "Borrower" means a person, firm, company, or organized institution established pursuant to prevailing law that takes a loan from a bank or financial institution, and this term shall also include a guarantor.

(h) "Loan Recovery Officer" means an officer designated pursuant to Section 28.

(i) "Prescribed" or "as prescribed" means prescribed or as prescribed in rules made under this Act. 3.
Debt Recovery of Banks and Financial Institutions Act, 2002

3. Banks and Financial Institutions to Which the Provisions of this Act Shall Apply: The provisions of this Act shall apply to cases relating to the recovery of loans of the following banks and financial institutions:-

(a) Agricultural Development Bank established under the Agricultural Development Bank Act, 2024,

(b) Commercial banks established under the Commercial Bank Act, 2031,

(c) Nepal Industrial Development Corporation established under the Nepal Industrial Development Corporation Act, 2046,

(d) Other financial institutions specified by Nepal Rastra Bank from time to time. Provided that, the provisions of this Act shall not apply when recovering a loan with a principal amount of less than five hundred thousand rupees. Chapter-2

Establishment and Constitution of Tribunals and Appellate Tribunals

4. Establishment and Constitution of Tribunals: (1) For the purpose of initiating proceedings and adjudicating cases relating to the recovery of loans of banks and financial institutions, the Government of Nepal may, by notification published in the Nepal Gazette, establish Loan Recovery Tribunals as required.

(2) The seat and territorial jurisdiction of a tribunal established pursuant to Sub-section (1) shall be as specified in such notification.

(3) Each tribunal shall have the following members:-

(a) Law Member,
(b) Banking Member, and
(c) Accounts Member. Inserted by the Second Amendment.(3a) If the workload in the tribunal increases, the Government of Nepal may increase the number of members. Inserted by the Second Amendment.(3b) Where members are added pursuant to Sub-section (3a), the tribunal shall have Benches as required, and each Bench shall consist of a Law, Banking, and Accounts Member. Inserted by the Second Amendment.(3c) Where a tribunal has more than one Bench, the Chairperson shall constitute the Benches and assign cases. Amended by the Second Amendment.(4) The Chairperson of the tribunal shall be the Law Member, and in the case of more than one Law Member, the Law Member appointed first, in the absence of such Law Member, another Law Member, and in the absence of or despite the presence of such Law Member, the Banking Member appointed first, and in the absence of that Banking Member as well, the Banking Member present shall be the Chairperson of the tribunal.

(5) Notwithstanding anything contained elsewhere in this Section, the Government of Nepal may, by notification published in the Nepal Gazette, expand the territorial jurisdiction of a tribunal and confer authority to initiate proceedings and adjudicate loan recovery cases. 5. Appointment of Members: The Government of Nepal shall, by notification published in the Nepal Gazette, appoint Members from among persons who possess the qualifications prescribed pursuant to Section 6. Provided that, while appointing Banking and Accounts Members, the Government of Nepal shall consult Nepal Rastra Bank. 6.
Debt Recovery of Banks and Financial Institutions Act, 2002

5. Appointment of Members: The Government of Nepal shall, by notification published in the Nepal Gazette, appoint Members from among persons who possess the qualifications prescribed pursuant to Section 6. Provided that, while appointing Banking and Accounts Members, the Government of Nepal shall consult Nepal Rastra Bank. 6. Qualifications for Members: A person shall possess the following qualifications to become a Member:-

(a) For a Law Member: a person who is or has been a Judge of a District Court or is qualified to be such a Judge,

(b) For a Banking Member: a person who has obtained at least a Master's Degree in Economics or Commerce and has at least ten years of experience at the officer level of at least the second class in a bank or financial institution established under prevailing law,

(c) For an Accounts Member: a person who has obtained a Master's Degree in Commerce or has passed the Chartered Accountancy or equivalent examination and obtained a certificate of auditor of at least "B" class, and has at least ten years of experience in auditing work related to the banking or financial sector. 7. Term of Office of Members: A Member shall hold office for a term of five years from the date of appointment and may be reappointed. 8. Establishment of Appellate Tribunals: (1) For the purpose of hearing appeals against decisions made by a tribunal under this Act, the Government of Nepal may, by notification published in the Nepal Gazette, establish Loan Recovery Appellate Tribunals as required.

(2) While establishing an appellate tribunal pursuant to Sub-section (1), the seat and territorial jurisdiction of such appellate tribunal shall also be specified.

(3) The Government of Nepal may, by notification published in the Nepal Gazette, designate an appellate tribunal to hear appeals against orders or decisions made by a tribunal outside its territorial jurisdiction. 9. Appointment of Appellate Officer: The Government of Nepal may, Amended by Some Nepal Acts Amendment Act, 2072. by notification published in the Nepal Gazette, appoint a person who is or has been a Judge of a High Court or is qualified to be such a Judge, to the position of Appellate Officer of the Appellate Tribunal. 10. Term of Office of Appellate Officer: The Appellate Officer shall hold office for a term of five years from the date of appointment and may be reappointed. 11. Remuneration and Facilities: The remuneration, facilities, and other terms of service of a Member and Appellate Officer shall be as prescribed. 12.
Debt Recovery of Banks and Financial Institutions Act, 2002

Term of Office of Appellate Officer: The Appellate Officer shall hold office for a term of five years from the date of appointment and may be reappointed. 11. Remuneration and Facilities: The remuneration, facilities, and other terms of service of a Member and Appellate Officer shall be as prescribed. 12. Circumstances of Ceasing to Hold Office: (1) A Member or Appellate Officer shall cease to hold office in the following circumstances:-

(a) Upon expiry of the term of office under this Act,
(b) Upon resignation from office being accepted by the Government of Nepal,
(c) Upon removal by the Government of Nepal on the grounds of misconduct or lack of competence.

(2) Before issuing an order of removal under Clause (c) of Sub-section (1), the Government of Nepal shall give such person a reasonable opportunity to defend himself/herself. 13. Filling of Vacancies: If a vacancy occurs in the office of a Member or Appellate Officer pursuant to Section 12 or for any other reason, such vacancy shall be filled for the remaining term of such person through the procedure pursuant to Section 5 or Section 9. Chapter 3

Jurisdiction and Procedure of Tribunals and Appellate Tribunals

14. Functions, Duties, and Jurisdiction: (1) After a tribunal is established under this Act, it shall have the authority to initiate proceedings and adjudicate cases relating to the recovery of loans of banks and financial institutions within its jurisdiction.

(2) The jurisdiction of the tribunal shall be exercised collectively by all three members. The opinion of the majority shall be deemed to be the decision of the tribunal.

(3) Notwithstanding anything contained in Sub-section (2), if two members, including a Law Member, are present, the case may be proceeded with and adjudicated.
Debt Recovery of Banks and Financial Institutions Act, 2002

The opinion of the majority shall be deemed to be the decision of the tribunal.

(3) Notwithstanding anything contained in Sub-section (2), if two members, including a Law Member, are present, the case may be proceeded with and adjudicated. If two members other than the Law Member are present, other proceedings may be conducted except for making a decision or issuing a final order on the case.

(4) If unanimity cannot be reached during the hearing and adjudication of a case in the presence of two members pursuant to Sub-section (3), the case shall be presented in the presence of the absent member as well.

(5) If a majority cannot be formed even after presentation pursuant to Sub-section (4), the matter shall be sent in writing to the Appellate Tribunal for resolution.

(6) After an appellate tribunal is established, it shall have the final authority to hear appeals against orders given by tribunals within its jurisdiction.

(7) Notwithstanding anything contained elsewhere in this Act, a bank or financial institution may only file a petition regarding loan recovery if the following conditions are fulfilled in relation to the loan to be recovered by it:-

(a) Sufficient discussions and activities must have been carried out to settle the loan with the borrower,
(b) Sufficient action must have been taken by the bank or financial institution for loan recovery, and the loan could not be recovered. 15. Petition to Be Filed in the Tribunal: (1) If a bank or financial institution is unable to recover the amount due to be recovered from the borrower, it shall file a complaint petition in the prescribed format, with the prescribed fee attached, within the following periods before the Tribunal to have such amount recovered:-

(a) In the case of loans that had already become due at the time of commencement of this Act, within Amended by First Amendment.five years from the date of commencement of this Act.
(b) In the case of loans becoming due after the commencement of this Act, within Amended by First Amendment.four years from the date they became due.

(2) While filing a petition pursuant to Sub-section (1), the concerned bank or financial institution shall also deposit with the Tribunal in advance an amount equal to 0.25 percent of the claimed amount as a loan recovery fee.

(3) Within fifteen days from the date of receipt of the complaint petition pursuant to Sub-section (1), the Tribunal shall issue a notice to the respondent to submit a reply with evidence and proof within fifteen days, and the respondent shall submit the reply within that period.
Debt Recovery of Banks and Financial Institutions Act, 2002

Provided that, if the respondent is unable to submit the reply within that period due to circumstances beyond control and files a petition stating the reason thereof within the subsequent fifteen days, and if the content of such petition appears reasonable, the Tribunal may extend the period by up to fifteen days. 16. Power to Issue Interim Orders: (1) In relation to a case pending before the Tribunal, if the Tribunal, based on a petition by a party, considers it necessary to attach movable or immovable property owned, possessed, or entitled to by the borrower or the guarantor, which was kept as collateral for the loan, to prevent its transfer, alienation, or sale, the Tribunal may issue an interim order to the concerned office to attach such property until further order.

(2) It shall be the duty of the concerned office to comply with the order pursuant to Sub-section (1). 17. Period for Proceedings and Disposal of Cases: The Tribunal shall, within one hundred and fifty days from the date of submission of the reply, if submitted, or from the date of expiry of the period for submitting the reply, if not submitted, complete the final proceedings and disposal of cases filed under this Act. Provided that, the final proceedings and disposal of a case shall not be completed until the period for granting an extension, as per Sub-section (3) of Section 15, has expired. 18. Pronouncement of Decision: (1) The decision made by the Tribunal shall be pronounced to the parties present or their attorneys, and a receipt acknowledging having heard the decision shall be obtained from them.

(2) If the concerned party or its attorney is absent at the time of making the decision, information of the decision shall be sent to them within seven days of the decision being made. 19. Right to Appeal: (1) A party dissatisfied with a decision made by the Tribunal may, within fifteen days from the date of receipt of a copy of such decision, file an appeal before the concerned Appellate Tribunal in the prescribed format, paying the prescribed appeal fee.

(2) Within seven days from the date of registration of an appeal pursuant to Sub-section (1), the Appellate Tribunal shall issue a notice to the respondent to submit a reply with evidence and proof within thirty days, and the respondent shall submit the reply within that period. Provided that, if the respondent is unable to submit the reply within that period due to circumstances beyond control and files a petition stating the reason thereof, the Appellate Tribunal may extend the period by fifteen days. 20.
Debt Recovery of Banks and Financial Institutions Act, 2002

Provided that, if the respondent is unable to submit the reply within that period due to circumstances beyond control and files a petition stating the reason thereof, the Appellate Tribunal may extend the period by fifteen days. 20. Settlement Possible: (1) Notwithstanding anything contained elsewhere in this Act, in any case pending for proceedings and disposal under this Act, if both the complainant and the respondent submit a petition to the Tribunal or Appellate Tribunal stating their intention to settle, the content of such petition shall be read out and explained to both the plaintiff and the respondent, and the meaning and consequences thereof shall be properly explained and made understood. If both parties agree after such explanation, the Tribunal or Appellate Tribunal may effect a settlement, regardless of the stage the case proceedings have reached.

(2) When effecting a settlement pursuant to Sub-section (1), an amount equal to 0.50 percent of the claimed amount shall be deposited with the Tribunal as a settlement fee, fifty percent each by both the complainant and the respondent. The fee payable by the complainant for such settlement shall be deducted from the loan recovery fee deposited in advance by him/her pursuant to Sub-section (2) of Section 15.

(3) For the implementation of the settlement made pursuant to Sub-section (1), the Tribunal effecting such settlement shall issue an order to the Loan Recovery Officer. 21. Implementation of Decision: (1) After the Tribunal has pronounced a decision pursuant to Section 18, if an appeal is filed against that decision, after receiving the decision of the Appellate Tribunal, and if no appeal is filed, after the period for filing an appeal has expired, an order shall be issued in the name of the Loan Recovery Officer to implement the decision.

(2) While issuing an order pursuant to Sub-section (1), the Tribunal may also specify the period for implementation of the decision. 22. Deposit Required for Appeal: When appealing under Section 19, the borrower shall deposit in cash thirty percent of the amount determined to be recovered according to the decision of the Tribunal as a deposit. 23. Period for Disposal of Appeal: The Appellate Tribunal shall, within ninety days from the date of submission of the reply to the appeal, if submitted, or from the date of expiry of the period for submitting such reply, if not submitted, complete the final proceedings and disposal of the appeal filed under this Act and send information thereof to the concerned tribunal within fifteen days from the date of final disposal. 24.
Debt Recovery of Banks and Financial Institutions Act, 2002

24. Powers and Procedure of Tribunals and Appellate Tribunals: (1) While conducting proceedings and disposing of cases filed under this Act, the Tribunal and Appellate Tribunal may, subject to this Act or rules made under this Act, determine their own procedure.

(2) While conducting proceedings and disposing of cases filed under this Act, the Tribunal or Appellate Tribunal shall have the same powers as a court under prevailing law, including the power to issue notices, summon plaintiffs, defendants, witnesses, administer oaths, record statements, examine evidence and necessary documents or details, require submission of documents, require deposit of security, and impose penalties. Chapter-4

Loan Recovery Methods

25. Loan Recovery Methods: (1) After receiving an order of the Tribunal, the Loan Recovery Officer shall recover the loan amount from the borrower within the period specified in such order and cause it to be given to the concerned bank or financial institution.

(2) While recovering the principal and interest of the loan, the Loan Recovery Officer may, subject to prevailing law, adopt the following methods:-

(a) Seize or auction sell the movable or immovable property of the borrower, whether kept as collateral or not,
(b) Seize or auction sell the movable or immovable property of the guarantor,
(c) In the case of a specific person being the borrower or guarantor, arrest such person and detain him/her in custody under prevailing law. 26. Liability of Guarantor: (1) The liability of a guarantor for a borrower shall be limited to the extent of the amount guaranteed.

(2) Notwithstanding anything contained in prevailing law, the liability under Sub-section (1) may be recovered directly from the guarantor. 27. Order of Loan Recovery Officer to Be Equivalent to Order of Tribunal: (1) In the context of loan recovery under this Act, an order given by the Loan Recovery Officer shall be equivalent to an order given by the Tribunal, and it shall be the duty of all concerned to comply with such order.

(2) If any person disobeys an order given by the Loan Recovery Officer under this Act, the Tribunal may initiate proceedings against such person for contempt of the Tribunal under Section 30. Chapter-5

Miscellaneous

28. Designation of Loan Recovery Officer: (1) The Government of Nepal may designate an officer of at least the gazetted second class as a Loan Recovery Officer.

(2) The functions, duties, and powers of the Loan Recovery Officer shall be as prescribed. 29. Provision Relating to Other Employees: In addition to the Loan Recovery Officer, the Government of Nepal shall provide necessary employees for the operation of the Tribunal and Appellate Tribunal. 30.
Debt Recovery of Banks and Financial Institutions Act, 2002

29. Provision Relating to Other Employees: In addition to the Loan Recovery Officer, the Government of Nepal shall provide necessary employees for the operation of the Tribunal and Appellate Tribunal. 30. Power to Initiate Contempt Proceedings: (1) The Tribunal or Appellate Tribunal may initiate proceedings for contempt of itself.

(2) If the Tribunal finds that contempt has been committed, it may punish the accused with a fine of up to one thousand rupees or imprisonment for up to one month, or both.

(3) If the Appellate Tribunal finds that contempt has been committed, it may punish the accused with a fine of up to five thousand rupees or imprisonment for up to three months, or both.

(4) Notwithstanding anything contained in Sub-section (1) or (3), if the accused tenders an apology satisfactory to the concerned Tribunal or Appellate Tribunal, it may pardon the accused without imposing any punishment, or if punishment has already been imposed, reduce or remit such punishment, or order that the punishment not be implemented subject to fulfillment of specified conditions after suspending the punishment. 31. Bank or Financial Institution to Pay Amount: (1) After loan recovery is effected under this Act, the concerned bank or financial institution shall pay to the Tribunal one percent of the recovered loan amount as a loan recovery fee. While paying such loan recovery fee, the bank or financial institution shall pay only the remaining amount after deducting the amount deposited by it pursuant to Sub-section (2) of Section 15.

(2) The amount deposited pursuant to Sub-section (1) shall be deposited by the Tribunal in the consolidated fund as specified by the Government of Nepal. 32. Transfer of Cases: Cases relating to loans falling within the jurisdiction of this Act that are pending for disposal in the District Court and the High Court at the time of commencement of this Act shall be transferred to the concerned Tribunal or Appellate Tribunal. 33. Power to Make Rules: The Government of Nepal may make necessary rules for the purpose of implementing this Act.
Nepal Chartered Accountants Act, 1997

NEPAL CHARTERED ACCOUNTANTS ACT, 2053

Seal and Publication Date
2043.10.17

Amending Acts

1. Nepal Chartered Accountants (First Amendment) Act, 2059 2059.3.24

Certification and Publication Date

2. Republic Strengthening and Some Nepal Laws Amendment Act, 2066 2066.10.7
3. Some Nepal Acts Amendment Act, 2072 2072.11.13
4. Some Nepal Acts Amendment to Adapt to the Constitution of Nepal Act, 2075 2075.11.19

Act No. 22 of the year 2043



An Act Made to Establish and Manage the Institute of Chartered Accountants of Nepal

Preamble: Whereas, for the economic development of the nation, it is desirable to establish and manage the Institute of Chartered Accountants of Nepal to raise public awareness regarding the importance of accounts and the economic and social responsibility of the accounting profession, to enhance social recognition and trust in relation to the accounting profession, to make accounting professionals realize their responsibility towards the accounting profession and the importance of accounts, and to develop, protect and promote the accounting profession;

Now, therefore, Parliament has enacted this Act in the twenty-fifth year of the reign of His Majesty King Birendra Bir Bikram Shah Dev. Chapter - 1
Preliminary

1. Short Title and Commencement: (1) This Act may be called the "Nepal Chartered Accountants Act, 2043".
(2) Sections 29 and 49 of this Act shall come into force from the date appointed by the Government of Nepal by a notification published in the Nepal Gazette, and the other sections shall come into force immediately. 2.
Nepal Chartered Accountants Act, 1997

2. Definitions: Unless the subject or context otherwise requires, in this Act,-
(a) "Institute" means the Institute of Chartered Accountants of Nepal established pursuant to Section 3.
(b) "Council" means the Council formed pursuant to Section 7.
(c) "President" means the President of the Council.
(d) "Vice-President" means the Vice-President of the Council.
(e) "Council Member" means a member of the Council, and this term shall also include the President and Vice-President.
(f) "Executive Director" means the Executive Director appointed pursuant to Section 38.
(g) "Member" means a person who has registered his/her name with the Institute pursuant to this Act and has obtained membership of the Institute.
(h) "Chartered Accountant" means a person who has obtained membership of the Institute pursuant to subsection (2) of Section 16, as amended by the First Amendment.
(i1) "Fellow Chartered Accountant (F.C.A.)" means a person who has obtained membership of the Institute pursuant to Section 17.
(j) "Registered Auditor" means a person who has obtained the certificate of auditor pursuant to the Auditor Related Act, 2031.
(k) "Practising Certificate" means the certificate issued pursuant to Section 28 to practice the accounting profession professionally.
(l1) "Audit" means an audit conducted pursuant to prevailing law after obtaining a Practising Certificate.
(l2) "Foreign Accounting Professional Institute" means a national-level chartered accountants institute or an equivalent accounting professional institute which has the authority to regulate the public accounting profession in a foreign country.
(l3) "Accounting Standards Board" means the Accounting Standards Board formed pursuant to Section 15A.
(l4) "Auditing Standards Board" means the Auditing Standards Board formed pursuant to Section 15D.
(l5) "Accounting Standards" means accounting standards, and related directives and interpretations, established or recommended by the Accounting Standards Board to systematize and regulate the accounting profession and financial reporting.
(l6) "Auditing Standards" means auditing standards, and related directives and interpretations, established or recommended by the Auditing Standards Board to systematize and regulate the accounting profession and auditing.
(m) "Prescribed" or "as prescribed" means as prescribed or as provided for in the rules or regulations made under this Act. Chapter - 2
Establishment and Management of the Institute

3. Establishment of the Institute: (1) For the development of the accounting profession, an Institute has been established by the name of the Institute of Chartered Accountants of Nepal.
(2) The Institute shall be called "The Institute of Chartered Accountants of Nepal" in the English language.
(3) The head office of the Institute shall be located in the Kathmandu Valley, and the Institute may, as necessary, open its training centers and branch or sub-branch offices anywhere within Nepal deleted by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066.. 4.
Nepal Chartered Accountants Act, 1997

4. Institute to be an Autonomous Body: (1) The Institute shall be an autonomous and corporate body with perpetual succession.
(2) The Institute shall have its own separate seal for its business.
(3) The Institute may, like a person, acquire, use, sell or otherwise dispose of movable and immovable property.
(4) The Institute may, like a person, sue and be sued in its own name. 5. Objectives of the Institute: The objectives of the Institute shall be as follows:-
(a) To fulfill the role of a regulatory body, by strengthening and developing the accounting profession for the economic development of the nation, to motivate members to practice the accounting profession within the ambit of the Code of Conduct.
(b) To raise public awareness regarding the importance of accounts deleted by the First Amendment. and the economic and social responsibility of accounting professionals, and to enhance social recognition and trust in relation to the accounting profession.
(c) To make accounting professionals realize their responsibility towards the accounting profession and the importance of accounts, deleted by the First Amendment. and to develop, protect and promote the accounting profession.
(d) To develop the system of registration, qualification and examination of accounting professionals in accordance with international recognition and practices, in order to make the accounting profession dignified and trustworthy. 6. No Other Person to Use Name, Symbol and Rights of the Institute: After the establishment of the Institute pursuant to this Act, no person shall use a name or symbol similar to the name of the Institute, or issue any kind of certificate that the Institute issues to anyone, or give any kind of direction to anyone on behalf of the Institute, or exercise any kind of right that the Institute is entitled to exercise. Chapter - 3
Formation of the Council and its Powers, Duties and Functions

7.
Nepal Chartered Accountants Act, 1997

Chapter - 3
Formation of the Council and its Powers, Duties and Functions

7. Formation of the Council: (1) A Council shall be formed to systematically conduct the necessary programs for achieving the objectives of the Institute and to oversee and manage all the affairs of the Institute.
(2) Except as otherwise provided elsewhere in this Act, the Council shall, subject to this Act or the rules and regulations made under this Act, exercise all powers and perform all duties vested in the Institute.
(3) The Council shall consist of the following Council Members:-
as amended by the First Amendment.(a) Ten members elected by the Chartered Accountant Members from among themselves.
as amended by the First Amendment.(b) Four members elected by the Registered Auditor Members from among themselves.
(c) Three members nominated by the Government of Nepal, on the recommendation of the Auditor General, from among persons having experience in accounting.
(4) The Council Members from among those mentioned in clause (a) of sub-section (3) who are Fellow Chartered Accountants (F.C.A.) shall elect the President and Vice-President.
(5) The term of office of the President and Vice-President shall be one year, and after the expiry of the term, they may be re-elected for one more term.
(6) The term of office of Council Members shall be three years, and after the expiry of the term, they may be re-elected or re-nominated.
(7) The procedure relating to the election of Council Members shall be as prescribed.
(8) The powers, duties and functions of the President and Vice-President shall be as prescribed. 8. Circumstances for Not Continuing in Office as Council Member: (1) A Council Member shall not continue in office in the following circumstances:-
(a) If he/she ceases to be a member of the Institute,
Provided that this provision shall not apply to nominated Council Members.
(b) If the resignation tendered by the Council Member from his/her office is accepted by the Council.
(c) If he/she remains absent from three consecutive meetings of the Council without giving notice to the Council along with reasons.
(d) If the term of office expires.
(e) If it is proved that he/she has not complied with the conduct under Section 34.
(f) Upon death.
(2) While tendering resignation pursuant to clause (b) of sub-section (1), the President shall tender his/her resignation to the Vice-President, and other Council Members shall tender their resignation to the President. 9.
Nepal Chartered Accountants Act, 1997

10. Meetings and Decisions of the Council: (1) The Executive Director shall convene a meeting of the Council on the date, time and place designated by the President.
(2) Meetings of the Council shall ordinarily be held six times a year, and the interval between two meetings shall not exceed three months.
(3) The meeting of the Council shall be presided over by the President, and in his/her absence, by the Vice-President; and in the absence of both the President and Vice-President, the Council Member chosen by the Council Members from among themselves shall preside over the meeting.
(4) If twenty-five percent of the total number of Council Members submit a written request to the President stating that a meeting of the Council is necessary, the President shall, within fifteen days from the receipt of such request, direct the Executive Director to convene a meeting of the Council.
(5) If fifty percent of the total number of Council Members are present, the quorum for a meeting of the Council shall be deemed to be complete.
(6) The opinion of the majority in a meeting of the Council shall be deemed to be the decision of the Council; and in case of a tie, the person presiding over the meeting shall have a casting vote.
(7) The decision of the Council shall be certified by the Executive Director.
(8) If the Council deems necessary, it may invite any officer of the Government of Nepal or any domestic or foreign expert, consultant or distinguished person related to the accounting profession to participate in a meeting of the Council as an observer.
(9) Other procedures relating to meetings of the Council shall be as determined by the Council itself. 11.
Nepal Chartered Accountants Act, 1997

While forming committees pursuant to sub-section (1), members of one committee (excluding the President and Vice-President) shall not also serve on another committee. 14. Disciplinary Committee: (1) If any person lodges a complaint with the Institute stating that a member deleted by the First Amendment. has done any act as amended by the First Amendment. contrary to this Act or the rules or Code of Conduct made under this Act, or if the Institute receives such information, there shall be one Disciplinary Committee as follows to investigate into the matter and recommend necessary action to the Council:-
(a) A Fellow Chartered Accountant (F.C.A.) designated by the Council from among the Council Members mentioned in clause (a) of sub-section (3) of Section 7 - Chairperson
(b) Three members nominated by the Council from among the Council Members - Members
(c) Two members nominated by the Council from among the Members - Members
(d) One member nominated by the Auditor General - Member
(2) Notwithstanding anything contained in sub-section (1), if a complaint is lodged against the Chairperson or any member of the Disciplinary Committee for an act contrary to this Act or the rules, regulations or Code of Conduct made under this Act, such Chairperson or member shall not be entitled to participate and vote in the meeting held for the purpose of investigating into the complaint and recommending necessary action to the Council.
(3) The procedure relating to the meetings of the Disciplinary Committee and the term of office of the Chairperson and members of the Disciplinary Committee shall be as prescribed.
(4) The Disciplinary Committee shall have the same powers as a court for issuing orders against the concerned person and taking evidence and witnesses.
(5) The Disciplinary Committee shall make a recommendation to the Council along with its opinion and findings for necessary action against a member deleted by the First Amendment. found guilty upon investigation, and upon consideration of such recommendation, the Council may, according to the gravity of the offence, impose any of the following penalties on the concerned member deleted by the First Amendment. :-
(a) Warning,
(b) Removal from membership for a maximum period of five years,
(c) Prohibition from practicing the accounting profession for a specified period,
(d) as amended by the First Amendment.
Nepal Chartered Accountants Act, 1997

Cancellation of the Practising Certificate or membership certificate.
(6) If the Disciplinary Committee investigates and submits a recommendation to the Council along with its opinion and findings to take necessary action against a Council Member for any act contrary to this Act or the rules, regulations or Code of Conduct made under this Act, such Council Member shall not be entitled to participate and vote in that meeting of the Council while the Council decides on such recommendation.
(7) Before imposing a penalty pursuant to sub-section (5), the Council shall give the concerned deleted by the First Amendment. member a reasonable opportunity to present a defense.
(8) If the concerned member deleted by the First Amendment. is not satisfied with the decision under sub-section (5), he/she may appeal to the as amended by the Some Nepal Acts Amendment Act, 2072. High Court. 15. Executive Committee: (1) For the day-to-day operation of the Institute subject to the direction of the Council, an Executive Committee shall be formed consisting of the following members:-
(a) President - Chairperson
(b) Vice-President - Vice-Chairperson
(c) Two members nominated by the Council from among the Council Members - Members
(d) Executive Director - Member Secretary
(2) The powers, duties and functions of the Executive Committee and the procedure of its meetings shall be as prescribed. Chapter-3A. Accounting Standards Board

15A. Formation of Accounting Standards Board: added by the First Amendment.(1) For the systematization and regulation of the accounting profession and financial reporting, the Government of Nepal shall form an Accounting Standards Board.
(2) The Accounting Standards Board shall consist of the following members:-
(a) One person nominated by the Government of Nepal from among Fellow Chartered Accountants - Chairperson
(b) Representative, Ministry of Finance - Member
(c) as amended by the Some Nepal Acts Amendment to Adapt to the Constitution of Nepal Act, 2074. Representative, Office of the Auditor General - Member
(d) Representative, Office of the Comptroller General - Member
(e) Registrar, Office of the Company Registrar - Member
(f) as amended by the Some Nepal Acts Amendment to Adapt to the Constitution of Nepal Act, 2074. Director General, Inland Revenue Department - Member
(g) as amended by the Some Nepal Acts Amendment to Adapt to the Constitution of Nepal Act, 2074.
Nepal Chartered Accountants Act, 1997

Director General, Inland Revenue Department - Member
(g) as amended by the Some Nepal Acts Amendment to Adapt to the Constitution of Nepal Act, 2074. Chairperson or a representative designated by him/her, Nepal Securities Board - Member
(h) Five persons nominated by the Government of Nepal from among Chartered Accountants on the recommendation of the Council - Members
(i) One person nominated by the Government of Nepal from among Registered Auditor Members on the recommendation of the Council - Member
(3) The Accounting Standards Board may, if it deems necessary, invite relevant experts to participate in its meeting as observers.
(4) The term of office of the members mentioned in clauses (a), (h) and (i) of sub-section (2) shall be three years, and after the expiry of the term, they may be re-appointed or re-nominated.
(5) The procedure relating to the meetings of the Accounting Standards Board shall be as determined by the Board itself.
(6) The secretariat of the Accounting Standards Board shall be located at the head office of the Institute. 15B. Powers, Duties and Functions of the Accounting Standards Board: The powers, duties and functions of the Accounting Standards Board shall be as follows:-
(a) To establish Accounting Standards for systematizing and regulating the accounting profession and financial reporting, based on International Accounting Standards, among others,
(b) To prepare suitable methods for the development of Accounting Standards and publish materials related to Accounting Standards,
(c) To amend, improve and revise Accounting Standards,
(d) To interpret Accounting Standards,
(e) To perform other functions related to Accounting Standards. 15C. Circumstances for Not Continuing in Office: A member of the Accounting Standards Board shall not continue in office in any of the following circumstances:-
(a) If he/she resigns,
(b) If he/she remains absent from three consecutive meetings of the Accounting Standards Board without any notice,
(c) If he/she is convicted by a court on a criminal charge involving moral turpitude,
(d) If he/she becomes insane,
(e) If he/she is adjudged insolvent for inability to pay debts,
(f) Upon death,
(g) In the case of a member of the Institute, if his/her name is removed from the membership register book pursuant to Section 22. Chapter-3B. Auditing Standards Board

added by the First Amendment.15D.
Nepal Chartered Accountants Act, 1997

Chapter-3B. Auditing Standards Board

added by the First Amendment.15D. Formation of Auditing Standards Board: (1) For the systematization and regulation of the accounting profession and auditing, the Government of Nepal shall form an Auditing Standards Board.
(2) The Auditing Standards Board shall consist of the following members:-
(a) One person nominated by the Government of Nepal from among Fellow Chartered Accountants - Chairperson
(b) Representative, Ministry of Finance - Member
as amended by the Some Nepal Acts Amendment to Adapt to the Constitution of Nepal Act, 2075.(c) Representative, Office of the Auditor General - Member
(d) Three persons nominated by the Government of Nepal from among Chartered Accountants on the recommendation of the Council - Members
(e) One person nominated by the Government of Nepal from among Registered Auditor Members on the recommendation of the Council - Member
(3) The Auditing Standards Board may, if it deems necessary, invite relevant experts to participate in its meeting as observers.
(4) The term of office of the members mentioned in clauses (a), (d) and (e) of sub-section (2) shall be three years, and after the expiry of the term, they may be re-appointed or re-nominated.
(5) The procedure relating to the meetings of the Auditing Standards Board shall be as determined by the Board itself.
(6) The secretariat of the Auditing Standards Board shall be located at the head office of the Institute. 15E. Powers, Duties and Functions of the Auditing Standards Board: The powers, duties and functions of the Auditing Standards Board shall be as follows:-
(a) To establish Auditing Standards for systematizing and regulating the accounting profession and financial reporting, based on International Standards on Auditing, among others,
(b) To prepare suitable methods for the development of Auditing Standards and publish materials related to Auditing Standards,
(c) To amend, improve and revise Auditing Standards,
(d) To interpret Auditing Standards,
(e) To perform other functions related to Auditing Standards. 15F. Circumstances for Not Continuing in Office: A member of the Auditing Standards Board shall not continue in office in any of the following circumstances:-
(a) If he/she resigns,
(b) If he/she remains absent from three consecutive meetings of the Auditing Standards Board without any notice,
(c) If he/she is convicted by a court on a criminal charge involving moral turpitude,
(d) If he/she becomes insane,
(e) If he/she is adjudged insolvent for inability to pay debts,
(f) Upon death,
(g) In the case of a member of the Institute, if his/her name is removed from the membership register book pursuant to Section 22. Chapter - 4

Membership of the Institute

as amended by the First Amendment.16.
Nepal Chartered Accountants Act, 1997

Chapter - 4

Membership of the Institute

as amended by the First Amendment.16. Membership of the Institute: (1) The membership of the Institute shall be classified into the following categories:-
(a) Chartered Accountant, and
(b) Registered Auditor.
(2) Subject to Section 18, a person who meets the following qualifications shall be granted membership as a Chartered Accountant:-
(a) At the time of commencement of this sub-section, a person who has passed the "Ka" class Chartered Accountancy examination pursuant to the Auditor Related Act, 2031 and obtained the "Kha" class Registered Auditor certificate.
(b) A person who has passed the Chartered Accountancy or equivalent examination from the Institute or a foreign accounting professional institute recognized by the Institute and has obtained professional training related to the accounting profession.
(3) Subject to Section 16, a person who, at the time of commencement of this sub-section, holds an auditor certificate of "Kha", "Ga" or "Gha" class pursuant to the Auditor Related Act, 2031 shall be granted membership as a Registered Auditor.

as amended by the First Amendment.17. Fellow Chartered Accountant (F.C.A.): The following members may be granted membership as a Fellow Chartered Accountant, as prescribed:-
(a) A person who, at the time of commencement of this Section, holds a "Ka" class Registered Auditor certificate pursuant to the Auditor Related Act, 2031,
(b) A Chartered Accountant member who has been engaged in the accounting profession for at least five years. 18. Disqualification for Membership Registration: The following persons shall not be considered qualified for registration as a member of the Institute:-
(a) A person who does not possess the qualifications under sub-sections (2) and (3) of Section 16,
(b) A person who has not completed the age of twenty-one years,
(c) deleted by the First Amendment.
(d) A person who is adjudged insolvent for inability to pay debts,
(e) A person who has been sentenced by a court on a criminal charge involving moral turpitude,
(f) A person who is insane. 19.