Policy Introduced to Freeze Assets of Cooperative Directors Before Declaring Institutions Problematic

The National Cooperative Regulatory Authority has implemented a provision to freeze the assets of directors and managers before declaring a cooperative institution problematic. Through an ordinance, the government has granted the authority the power to freeze assets and control electronic records. The arrangement also permits freezing assets, bank accounts, and imposing travel bans on related individuals prior to officially declaring the institution problematic. April 30, Kathmandu.

The National Cooperative Regulatory Authority has begun freezing the assets of directors and managers before recommending a cooperative institution be declared problematic. The government, through an ordinance, has assigned new responsibilities and powers to the authority, including asset freezing and management of the institution’s electronic records.

According to the amended Cooperative Act, 2017, before recommending a cooperative institution be declared problematic, the registrar or the authority can freeze the movable and immovable assets of responsible individuals such as the cooperative’s directors, borrower members, managers, accountable employees, members of the audit supervision committee, and members of the loan subcommittee.

Similarly, assets, transactions, bank accounts, and shares of others involved in embezzlement or causing losses can also be frozen. The ordinance also includes provisions to call in loans, control or freeze electronic records, and restrict foreign travel.