Cooperative Societies Prohibited from Distributing More Than 15% Dividend

The government has amended the Cooperative Act of 2017 and issued an ordinance prohibiting cooperative societies from distributing dividends exceeding 15 percent. According to this ordinance, cooperative organizations cannot pay more than fifteen percent dividend on share capital.

Previously, cooperative societies were allowed to distribute up to 18 percent dividends. The ordinance, issued on April 30 in Kathmandu, introduces a new cap on dividend distribution for cooperatives. It explicitly states that dividends exceeding fifteen percent of share capital are not permitted.