conflict in nepal

Women's Rights in Nepal

NEPAL-- WOMEN'S RIGHTS

THE CONFLICT AND WOMEN'S RIGHTS

Julie Bridgham's film, "Sari Soldiers: Women on the Frontline in Nepal", examines the lives of six different women and their involvement in Nepal's civil war. The Nepali stories include a Royal Nepal Army soldier, a Maoist, a mother of a "disappeared" daughter, an anti-Maoist village activist, a human rights attorney, and a street protester. Her film shows the role of women on all sides of the conflict as well as the greater political and human rights issues in Nepal. Women's rights are human rights, and there have been many instances of human rights abuses during the civil war. Even before the conflict began, women held an inferior position in society. The conflict only exascerbated these inequalities and exposed the vulnerability of the female population in Nepal.

Women have all too often been the unrecognized victims in the conflict because they already had limited access to protection, justice, and equal human rights. The Maoist rebel-Government conflict has created more chaotic conditions for most women in Nepal, especially those living in rural areas. The economic impact of the war has been even worse for the female population because alltoo often they had little before the war and they have limited access to education and other resources. The overwhelming majority of women victimized by Maoists are suffering incredibly because of the lack of timely financial support. Many women are left to fend for themselves economically when their husbands and sons are forced to fight in the war. They are forced to continue their work as well as take over for their missing spouse, while still trying to support and raise their children. Even worse, when a woman's husband is killed, she has no secure source of income for herself or her family, except for a small pension from the army. Already living in impoverished conditions, the conflict in Nepal has only made the situation more unbearable for the thousands of women who must deal with the emotional trauma of losing a family member as well as more economic burdens. Nepali women are the majority of the poor who stand to lose access to critical social services, especially if they are in an area that is mostly under rebel control.

Women in Nepal are also directly affected by the conflict because they are heavily recruited to fight for either side and they are often targets of violence and coercion. Maoists constantly target women and try to recruit them with propaganda about changing the situation of the rural population. The recruitment of women into the activities of the Maoist cause inhibits many women from working and caring for their children. Especially in rural areas, human rights abuses targeted at girls in schools are driving many Nepali families to keep their girls out of school, thus perpetuating the system of inferiority that already exists. In areas of Nepal where the conflict is the worst (the west), many girls are already not attending school because women and girls are most often abducted outside of their homes.

Perhaps the most devastating factor in the fight for women's rights in Nepal is the effect the conflict has on the participatory role of women. Maintenance of national security and peace is an important factor for economic growth and development and the empowerment of women. Violence, political participation, and attacks on women are discouraging political participation and endangering any gains that had previously been made on women's rights in Nepal. Participation in local political groups and community groups becomes more of a burden during times of conflict and it can also become dangerous. Program's targeted at women and other marginalized populations are no longer a priority and are very hard to sustain in the midst of conflict and danger. Yet, if Nepalese women are to play an equal part in security and maintaining peace, they must be empowered politically and economically. Because of gender discrimination, the needs of women themselves have been the first to be sacrificed during times of conflict. Women have been excluded from political decision-making, jeapordizing even more their rights for the future.

"Sari Soldiers: Women on the Frontline in Nepal" examines the role of women in Nepali society from every angle. It also shows how the conflict has impacted women of all economic, political, and regional backgrounds. The film not only looks at the individual struggles of each of the six women, it frames these struggles against a backdrop of economic and political strife. In the next blog, I will discuss the legal framework of this conflict and the human rights abuses that have been documented

The Triple Oppression of Dalit Women in Nepal

Women's Issues
DALIT WOMEN:
The Triple Oppression of Dalit Women in Nepal by Durga Sob
Background
Nepal is a country characterised not only by biodiversity but also by socio-cultural diversity. Meanwhile, Nepalese political and social life is primarily dominated by the Hindu religion, which divides Hindu society into four varnas, namely, Brahmins, Kshatriyas, Vaishyas and Sudras. Over a period of time, casteism developed a rigid hierarchical society with the purity and pollution of castes. In this manufactured caste hierarchy, Brahmins lie at the top, and Sudras, or Dalits, lie at the bottom of society.
The word dalit literally means "a person immersed in a swamp." Traditionally, Dalits have been treated inhumanely as "Untouchables." Although untouchability was abolished by the New National Code of Nepal in 1963, its practice still continues. The people belonging to this community are living in a swamp of illiteracy, exploitation, marginalisation, absolute poverty and, above all, caste discrimination. Dalit women, however, are triply oppressed: (1) oppressed by the so-called high caste people, which equally affects both male and female Dalits, (2) oppressed by the design of the Hindu patriarchal system and (3) oppressed by Dalit males.
It is estimated that the Dalit community constitutes 20 percent of the total population of the country, or four million people, and that the population of Dalit women is half of this figure, i.e., two million people. In general, Dalits are characterised as being illiterate, unemployed, landless, poor, ignorant, exploited, docile, unhygienic, dirty, sick and ignored by the rest of society. The Dalit community has lost its self-respect and dignity as a result of centuries of social discrimination, oppression, exploitation and suppression. Despite being marginalised, Dalits are skilled artisans. However, statistics have revealed that Dalits are far behind in the development process compared to other caste groups. Unlike other ethnic groups, Dalits are scattered throughout the country.
In today's context of the globalisation of women's issues, Nepalese women from different segments of society are also raising their voices against discrimination and exploitation. The government has already established the Women Development Ministry to monitor national and international women's issues, which can be viewed as a good initiative. Unfortunately, the Dalit women's issue has not been recognised yet as a national issue. In addition, the so-called "mainstream" women's movement, led by high caste women, ignore Dalit women and their concerns.
In general, the status of women in Nepal is very low, like in other South Asian countries. Among them though, Dalit women face the worst conditions and oppression. Dalit women are living a history of pain, agony, sorrow, misconduct, maltreatment and suffering. They are not only the victim of gender discrimination but also the victim of casteism. Moreover, the lives of Dalit women are spiralling downward from bad to worse. There is no controversy among development planners and workers that there has been very little impact on raising the status of Dalit women from the development initiatives implemented thus far in Nepal.
The Condition of Dalit Women
The difficult lives of Dalit women are perhaps best revealed by studying the social, economic, educational, health and political conditions of Dalit women, which are outlined below.
Social Condition: Untouchability
Though outlawed since 1963 and made punishable by the Constitution of the Kingdom of Nepal in 1990, untouchability is still practised. Thus, Dalits are treated as socially untouchable even in a democracy. This can be observed around the periphery of the Kathmandu Valley and in the rural areas. Even in public places, such as schools, Dalit students face discrimination. The entire Dalit community is exploited and discriminated on the grounds of caste, but women, as noted earlier, are further victimised.
Untouchability related to women is practised in many ways that affect all Dalit women every day. For example, when Dalit women fetch water from public water taps, wells, etc., they suffer from mental as well as physical assaults. Moreover, by traditional cultural practise, women usually are the member of the family that worships in the temple; but in Nepal, Dalit women are not allowed to enter the temples nor are they allowed to enter the house of upper caste people.
Meanwhile, intercaste marriage is socially disapproved, and Dalit women are the principal victims of this system. If a girl from an upper caste family marries a lower caste boy, for instance, then she is accepted by the boy's family. However, when a marriage takes place between an upper caste boy and a lower caste girl, problems occur as she is not accepted by her husband's family. Subsequently, she is mentally and physically abused and abandoned in many cases.
Economic Condition: Exploitation
Most Dalits have their own traditional occupation, but they are economically exploited. It is estimated that more than 50 percent of the total population of the country lives below the absolute poverty line. Dalits, due to their history of discrimination, exploitation and abuse, constitute a large proportion of this number-approximately 90 percent of the total Dalit population of four million people. Since women have no economic power in the family, it clearly indicates the economic condition of Dalit women. These women have to work hard as labourers to earn a living, but they receive very little in return. Moreover, payment is mostly in kind, and their pay does not justify the intensity of the work. There is no doubt that Dalit women are more economically exploited than their upper caste women counterparts.
Education Condition: Illiteracy
The literacy rate of Dalit women is very low in comparison with high caste women. The present literacy rate of men is 66 percent, and the education rate for women is 30 percent. However, the literacy rate of the Dalit community is 16 percent; and for Dalit women, the literacy rate is only 7 percent. Among two million Dalit women, there are hardly 10 to 15 graduates and postgraduates. Ignorance, absolute poverty, caste and gender discrimination can be considered as the explanation for such statistics.
Health Condition: Lowest Life Expectancy
In Nepal, the life expectancy of women is lower than that of men (Nepal is one of the three countries in the world where women live less than men). Compared though to the so-called "upper caste people," the health condition of Dalits is very miserable. For example, a very backward Dalit caste-the Mushar of Terai -has a life span of 42 years against the national average of 55 years. Moreover, gynecological diseases, like a prolapsed uterus, are very common among Dalit women. They do not know much about birth control and spacing and become pregnant every year. Furthermore, because of illiteracy and ignorance, they live in filthy and unhygienic conditions which further deteriorates their health. The children of Dalits are also severely malnourished. As Dalits do not have easy access to clean drinking water in most places, they are compelled to drink polluted water and thus suffer from various gastrointestinal diseases. In this environment, both the mortality and fertility rates are high.
Political Condition: Non-Representation
Nepalese society is patriarchal, and the involvement of women in public life is not encouraged. This social prohibition applies to politics too. Thus, although Nepali women comprise 52 percent of the country's population, their representation in politics is among the lowest in Asia, i.e., as low as 5 percent. This is in spite of the 1990 Nepalese Constitution in which there is a mandatory provision that 5 percent of all candidates put forward by the country's national parties should be women. However, there were no mandatory rules for women to be represented in local government. In 1997 though, 5 percent of the seats were reserved for women in local government, and yet this rule cannot embrace Dalit women.
Dalits are about 20 percent of the total population, but Dalits are not represented in national-level politics. Presently, there are four nominated parliamentarians in the National Assembly, but there is none that have been elected to the Lower House of Parliament. If the representation of men is so negligible, then one can easily imagine the political participation of Dalit women.
Sexual Exploitation: Trafficking
Because of poverty, ignorance and illiteracy, Dalit women and young girls are compelled to be involved in prostitution. One of the Dalit castes-Badi-is regarded as the prostitute caste. In addition, there is the trafficking of girls. Most of the Dalit girls taken by the brokers are trafficked to Indian brothels. In addition, many women working in carpet factories, hotels and government and private offices are sexually harassed and exploited. Because of the untouchability problem related to caste, Dalit women are deprived of the opportunity of working in the moneymaking professions, i.e., opening teashops and restaurants. Their time is spent on earning subsistence wages, and they do not have time to think about improving their condition.
Solutions
We feel very uncomfortable in reporting that very few efforts have been made by the government of Nepal to eradicate the problems of Dalits in general and of Dalit women in particular.
In recent years, particularly after the restoration of multiparty democracy, the women's movement has gained momentum with the emergence of many women's organisations and leaders. Unfortunately, none of these women's organisations have taken the issues and plight of two million Dalit women seriously. This is why we established an organisation dedicated to the rights and emancipation of Dalit women.
As mentioned above, there is a serious lack of consciousness among the entire Dalit community about their fundamental human rights. Therefore, they accept all forms of discrimination and exploitation as God's grace to them. Meanwhile, the outside world has been silent about caste exploitation and discrimination.
In recent years, we, a few educated Dalit women, have come forward to move the issue forward. We intend to influence the government, donor agencies and international non-governmental organisations (NGOs), enabling them to realise the harsh reality of Dalit women and to direct resources for the upliftment of these downtrodden women. We also plan to agitate at the local level against caste discrimination and violence and to join hands with other like-minded organisations.
The vast problems of Dalits and Dalit women cannot be solved through the efforts of one or two organisations though. Therefore, we strongly feel that all national forces should join hands together. In this spirit, we would like to offer the recommendations below.
(1) Various programmes should be launched to uplift the living conditions of two million Dalit women.
(2) Scholarships should be provided from primary to higher education to all Dalit girls.
(3) The practice of untouchability in all public places, like schools, water sources and teashops, should be punished with immediate effect.
(4) All laws and acts which discriminate against Dalits and Dalit women should be rescinded immediately, and a law should be formulated and enforced to discourage the practice of untouchability.
(5) Intercaste marriage between Dalits and non-Dalits should be promoted and protected.
(6) There should be reserved seats for Dalit women in appropriate constitutional bodies, and these seats should be reserved for Dalit women in elections from the local to the national level.
(7) The government should abide by the U.N. International Convention on the Elimination of All Forms of Racial Discrimination.
(8) Dalits and Dalit women should be represented in the National Human Rights Commission.
(9) A separate commission at the national and the international level should be formed to identify the problems of Dalit women and to make recommendations to resolve these issues.
As for national and international NGOs, it is recommended that they consider the steps that follow.
(1) A series of in-depth studies should be undertaken about Dalit women.
(2) All NGOs should declare Dalits as one of their target groups of development and should formulate specific programmes to improve their lives.
(3) All human rights organisations should network with Dalit organisations and expose the human rights problems of Dalit women at the national and international level.
(4) The government of Nepal should be pressured to implement all of the U.N. conventions on human rights.
(5) International NGOs especially should give priority to Dalits and Dalit women in employment and involve them in the formulation of plans and programmes for the Dalit community.


collected by
Sujan Babu Adhikari

Fire destroys over 500 huts in Bhutanese refugee camps

NHRN
Kathmandu, March 22:  A massive fire broke out at the Bhutanese refugee camps in Goldhaap, Jhapa, on Tuesday, destroying over 500 huts out of the total 739. Some 150 huts were dismantled to bring fire under control.
The fire started at about 7.30 am in the morning from the hut owned by Rabilal Timsina of sector B-2 hut number 18 when he was performing puja, informed camp secretary Chiranjibi Rai.
Six fire brigade vehicles and security personnel took the fire in control in three hours.
The fire has also destroyed the godown of World Food Programme and a health centre run by the Association for Medical Doctors of Asia (AMDA) Nepal that provides primary health care to the refugees.
According to secretary Rai, the chief district officer of Jhapa earlier today visited the camp and assured of emergency relief aid. According to him, certain amount of cash would be provided to the owners of the huts destroyed in the fire.
Around 3000 refugees displaced by fire are taking temporary shelter in the camp school and in the nearby forest.
Meanwhile, a second fire that broke out in Sanischare camp of Morang district this afternoon gutted 180 huts. Some 25 huts were dismantled by refugees and security personnel to prevent further damage.
Sanischare camp secretary Champa Singh Rai told Nepalnews that all four sub-sectors of sector B, sub-sector A-5 and C-2 were destroyed by the fire.
"Officials from the UN Refugee Agency, various aid agencies and government representatives visited the camp and assured possible support to the displaced refugees as soon as possible," he said.
The cause of fire that has displaced around 1500 people in Sanischare camp is not yet known.
This is the third major fire in Goldhaap camp which had been totally destroyed by fire twice while Sanischare has witnessed a major mishap like this for the first time.

Sujan Babu Adhikari

co-operative

Financial Cooperatives, Role And Risks In Economy Arhan Sthapit AMID the resource crunch witnessed across the economy against the increasing public demand, cooperatives have become a new phenomenon today. Experience has proved that cooperatives are effective organisations in delivering public goods and services in an efficient and cost-effective way. Therefore, they could be proposed as a launch pad for securing economic growth in countries like ours where public delivery and production systems are still weak, and, consumers unorganised. Yet, a large number of risks have also surfaced over a period of time while attempting to activate cooperatives in this very economic process. Nepali roots The cooperative movement that has become so widespread these days has its original roots in the Guthi system institutionalised in the Kathmandu Valley society since time immemorial. In ancient times, the common goal of a group of people and families was achieved through collective access to property, returns and expenses by promoting the guthi as a ‘kinship-based social institution’. Over the centuries, the cooperative movement has modified itself to come to what we have established today as a system. It is now based on at least seven principles. Open membership, democratic control and management, and equality are the key principles. Likewise, other important principles are suitable service to its members, financial stability, promotion of cooperative education or lesson, and social responsibility. The role of cooperatives in Nepal’s financial sector should be substantial as this sector has witnessed a strong presence, particularly after the enforcement of the Cooperative Act, 1992. The law has provided for cooperatives to conduct ‘limited’ financial transactions akin to the banking services. And in a short period of time, the operation of such cooperatives has emerged throughout the nation. There are more than 20,000 cooperatives registered with the Department of Cooperatives of the Nepal Government in all the 75 districts. Out of them, more than 8,000 savings and credit cooperatives are in operation across the country. The existing financial legislation has recognised them as Class-D financial institutions. They cover more than 2.2 million Nepalese as members, while serving more than 10 million people. Additionally, a few more thousand multi-purpose cooperatives are also operating financial transactions, as per the Department’s official data. Such coverage in terms of membership and geography highlights the cooperatives’ role in the economy. The annual turnover of cooperatives is estimated at 80 billion Nepalese rupees (approx US$ 1.08 billion). Given the size of the Nepalese economy, measured in terms of GDP, the cooperatives’ turnover and its contribution to the economy are not small. Cooperatives operating in the financial sector are highly instrumental not only in mobilising scattered savings across the nation, but in also providing the people, including economically backward and underprivileged citizens, easy access to savings and credit facilities. They serve as an effective catalyst to bridging the people at the grassroots with resources in the community. The testimony to it is the rising popularity and growth of financial cooperatives in the recent years; tens of thousands of such cooperatives are now in operation in the nation. Some of the credit and savings cooperatives have command over a wide range of depositors and credit-users in different communities; their turnover even exceeds that of finance companies, i.e., Class-C financial institutions. It amplifies the present and potential role of such cooperatives in the country’s financial sector. The growth naturally brings about not only opportunities but also risks and threats. As a natural law, control and proper regulation should always get tougher, as the number and size of the organisations grow. Hence, there is an imperative need of a control mechanism on the cooperative business. Nepal Rastra Bank or similar other regulatory authority must be there to play such a role so as to avert financial aberrations and anomalies orchestrated by ill-intentioned cooperatives. In the absence of such an authority, haphazard investment practices, including those in riskier real-estate projects, are reportedly going unabated in the recent years, posing threats to the community and economy. The threats are more serious to economically vulnerable depositors associated with the cooperatives. Credibility and security are the two key factors critical in the context of savings and credit cooperatives in Nepal. Such cooperatives’ managers are required to know how much risk they can absorb in the given situation. There is an imperative need to devise a customised mechanism of credit analysis and evaluation that they need to perform before making investment decisions. The managers should build professionalism in taking ‘calculative’ risks instead of ‘speculative’ risks. A code of conduct based on the standards of social responsibility of business (SRB) - one of the principles of cooperatives - should be developed and implemented effectively under the supervision of a well-functioning regulatory authority. It is highly desirable that cooperatives’ common forums like the Nepal Federation of Savings & Credit Cooperative Unions Ltd and National Cooperative Federation of Nepal play a constructive role. Their collaboration with the regulatory authority and professional banking bodies could be instrumental in developing and implementing an effective framework for investment and deposit mobilisation. National campaign Provided that these measures are taken proactively, the country could accomplish the ongoing national campaign "Cooperatives In Every Village, Employment In Every Household" that has been launched in view of the imperative importance of cooperatives in boosting and accelerating economic growth through employment generation and fund mobilization.

Cooperatives Act, 1992

 

                                                            Cooperatives Act, 1992

 

 

(A law enacted to provide for cooperative societies and unions)

 

History

 

May 15, 1992                                                                                      First promulgated. Nepal Rajapatra, Vol. 42, No. 7 (E), Jestha 2, 2049

 

December 6, 2000                                                            First Amendment. Nepal Rajapatra, Vol. 50, No. 45 (E), Marga 21, 2057

 

Consolidated Text

 

 

Preamble: Whereas it is desirable to make arrangements relating to the formation and operation of cooperative societies and unions of different categories for enabling the farmers, artisans, low capital and income groups, laborers, landless and unemployed people, or social workers, of the country to work for the economic and social development of the general consumers on the basis of mutual cooperation and cooperative spirit, now therefore, the Parliament has enacted this law in the 21st year of the reign of His Majesty King Birendra Bir Bikram Shah Dev.

 

                                                                                        Chapter 1

                                                                                      Preliminary

 

 

1.            Short Title and Commencement

 

(1)          This law may be called the Cooperatives Act, 1992.

 

(2)          It shall come into force at once.

 

2.            Definitions

 

Unless otherwise meant with reference to the subject or context, in this Act,

 

(a)          Society or Union means a cooperative society or union registered under Section 5.

 

(b)          Member means any individual, society, association, or other agency acquiring membership of a society or union by purchasing its shares according to its bye-rules.

 

(c)           Board means the Board of Directors of the society or union formed according to its bye-rules.

 

(d)          Registrar means the Registrar appointed under Section 21.

 

(e)          General Assembly means the General Assembly of the concerned society or union.

 

(f)           Bye-Rules mean the bye-rules of the concerned society or union.

 

(g)          Prescribed or as prescribed means prescribed or in the manner prescribed in the rules framed under this Act.

 

                                                                                        Chapter 2

                                                                   Formation of Society or Union

 

3.            Formation of Society or Union

 

(1)          Societies or unions may be formed as follows with the objectives of providing services and facilities for the economic and social development of the members according to cooperative principles:

 

(a)          A primary society comprising at least 25 members.

 

(b)          A union dealing in any particular field with at least five societies according to Clause (a) as its members.

 

(c)           A District Cooperative Union with at least five societies as mentioned in Clause (a), or unions dealing in any particular field as mentioned in Clause (b), or both, as its members.

 

(d)          The Central Cooperative Union with at least 25 societies as mentioned in Clause (a), or at least five unions dealing in any particular field as mentioned in Clause (b), as its members.

 

(e)          The National Cooperative Union with at least 15 unions as mentioned in Clause (b), (c), and (d) as its members.

 

(2)          Notwithstanding anything contained in Sub-Section (1), several district cooperative unions, or unions dealing in a particular field of the same nature in the same district, or several central cooperative unions of the same nature, shall not be formed.

 

(3)          The jurisdiction of a society or union shall be as prescribed in its bye-rules.

 

4.            Application for Registration of Societies or Unions

 

(1)          The concerned members must submit an application to the Registrar for the registration of a society or union formed under Section 3.

 

(2)          The application mentioned in Sub-Section (1) must be accompanied by two copies of the bye-rules of the concerned society or union, its work plan, and particulars of the shares which the members have agreed to subscribe, and must have been signed at least by the members mentioned in Section 3.

 

5.            Registration of Society or Union

 

(1)          On receipt of application for the registration of a society or union according to Section 4, the Registrar shall conduct necessary investigations to ascertain whether or not the bye-rules of such society or union conform to cooperative principles.

 

(2)          If, after conducting investigations under Sub-Section (1), the Registrar so deems appropriate, he shall issue a certificate of registration in the prescribed manner after registering such society or union.

 

6.            Registration May Be Refused

 

(1)          If, after conducting investigations under Sub-Section (1) of Section 5, the Registrar considers it necessary to make any amendment, he shall notify the persons who have applied for the registration of concerned society or union for such amendment within 15 days.

 

(2)          In case the applicants refuse to make amendments according to the notice issued under Sub-Section (1), or do not do so within 35 days after receiving such notice, the Registrar may refuse to register such  society or union. He must notify the applicants accordingly, indicating the reasons why registration has been refused.

 

(3)          In case the Registrar has refused to register any society or union according to Sub-Section (2), the applicants may submit a complaint to HMG if they are not satisfied.

 

7.            Society or Union To Be Corporate Body

 

(1)          The society or union shall be an autonomous and corporate body with perpetual succession.

 

(2)          The society or union shall have a separate seal of its own for all of its business.

 

(3)          The society or union may acquire, use, and otherwise dispose of movable and immovable property like an individual.

 

(4)          The society or union may sue or be sued in its own name like an individual.

 

8.            Liability of Society or Union to be Limited

 

(1)          The liability of a society or union shall be limited.

 

(2)          Every society or union shall use the word "Cooperative" in its name and the word "Limited" at the end.

 

                                                                                        Chapter 3

                                                                 Membership of Society or Union

 

9.            Membership of Society

 

(1)          Nepali citizens of the following categories may become members of the society:

 

(a)          Persons who have applied for the registration of the society.

 

(b)          Persons residing in the area under the jurisdiction of the society who desire to obtain the services of the society by purchasing the shares sold under Section 23, agree to bear the responsibility of membership, and fulfil the conditions mentioned in the bye-rules.

 

(c)           Agencies which purchase the shares sold under Sub-Section (1) of Section 23.

 

(2)          A person who desires to become a member of the society must apply to its Board.

 

(3)          In case the Board refuses to grant membership to any applicant, the latter may complain to the General Assembly. The decision made by the General Assembly in that respect shall be final.

 

(4)          Persons who have become members by virtue of their compulsory savings having been converted into share capital shall ipso facto lose their membership after they get refundment of their savings.

 

10.          Membership of Union

 

(1)          Societies coming under the jurisdiction of a union dealing in any particular field may acquire its membership in accordance with the arrangements made in its bye-rules.

 

(2)          All societies within the concerned district, as well as all unions dealing in any particular field, may become members of a district cooperative union according to arrangements made in its bye-rules.

 

                               (3)          Societies and unions dealing in any particular field may become members of the central cooperative union in accordance with the arrangements made in its bye-rules.

 

(4)          All unions, as well as other agencies as provided for in the bye-rules of the National Cooperative Union, may become members of the National Cooperative Union.

 

(5)          Agencies which purchase shares sold according to Sub-Section (1) of Section 23 may become members of the concerned union.

 

11.          Termination of Membership

 

The membership of societies or unions shall terminate in the prescribed circumstances.

 

 

                                                                                        Chapter 4

                                                                              Working Procedure

 

12.          Bye-Rules

 

(1)          Subject to this Act and the rules framed hereunder, a society or union may frame bye-rules to run its business. Such bye-rules shall come into force after they are approved by the Registrar.

 

(2)          The operation and management of every society or union shall be in accordance with its bye-rules.

 

(3)          The bye-rules must mention the name of the society or union, its address, its jurisdiction, objectives, procedure of operation, and other prescribed particulars.

 

(4)          Bye-rules may be amended by the two-thirds majority of the members of the concerned society or union present at a general meeting.

 

(5)          The bye-rules amended according to Sub-Section (4) shall come into force after these are approved by the Registrar.

 

13.          General Assembly

 

(1)          Every society or union shall have a General Assembly.

 

(2)          All members of a society shall be members of its General Assembly.

 

(3)          The General Assembly of a union shall comprise members as mentioned in its bye-rules.

 

14.          Functions, Duties, and Powers of the General Assembly

 

The functions, duties, and powers of the General Assembly shall be as follows:

 

(a)          To examine and endorse the annual accounts of the society or union.

 

(b)          To elect the Board of Directors and the Accounts Committee, and take decisions on the question of removing any Director or dissolving any Committee.

 

 

(c)           To discuss the reports of the Board of Directors and the Accounts Committee, and issue directives.

 

(d)          To take decisions on the question of amending the bye-rules.

 

(e)          To take decisions on the question of dividing a society or union, or its amalgamation with any other society or union, or its dissolution.

 

15.          Meetings of the General Assembly

 

(1)          Every society or union must convene a preliminary general meeting within three months after it is registered.

 

(2)          Every society or union must convene an annual general meeting within six months after the expiry of each fiscal year.

 

(3)          In prescribed circumstances, the society or union may convene an extra-ordinary general meeting.

 

(4)          The quorum for meetings of the General Assembly shall be as prescribed.

 

Provided that while amending the bye-rules, the presence of 51 percent of the total ordinary membership of the General Assembly shall be necessary.

 

16.          Board of Directors

 

(1)          Every society or union shall have a Board of Directors.

 

(2)          The composition of the Board, and its functions, duties and powers, shall be as provided for in the bye-rules of the appropriate society or union.

 

(3)          The term of the Board shall be as provided for in the bye-rules, with a maximum term of five years.

 

(4)          The Board shall have elections held for a new Board before its term expires.

 

(5)          In case the Board does not hold elections within the time-limit mentioned in Sub-Section (4), any member may notify the Registrar accordingly.

 

(6)          On receipt of information according to Sub-Section (4), or even otherwise, the Registrar must hold elections for the Board of Directors within six months after the expiry of its term.

 

(7)          Until a new Board is elected according to Sub-Section (4) or Sub-Section (6), the existing Board may operate the business of the society or union in the manner provided for in the bye-rules.

 

 

17.          Accounts Committee

 

(1)          The General Assembly of every society may form an Accounts Committee consisting of three members, including the Convenor, through elections.

 

(2)          The Accounts Committee may have the internal audit of the society conducted in a regular manner, and furnish suggestions to the Board.

 

(3)          The Accounts Committee must present its report about the accounts to the General Assembly.

 

18.          Expulsion of Members of the Board or Dissolution of the Board

 

(1)          In case the General Assembly approves by a majority a resolution presented by 5 percent of the members maintaining that it will be appropriate to expel any elected member of the Board, or to dissolve the Board, such member may be expelled, or the Board dissolved.

 

(2)          In case any member of the Board is expelled according to Sub-Section (1), another member shall be elected by the General Assembly to fill up that seat for the remaining term.

 

(3)          In case the Board is dissolved according to Sub-Section (1), the General Assembly shall make arrangements for electing a new Board.

 

(4)          All the provisions mentioned in Sub-Section (1), Sub-Section (2), and Sub-Section (3) shall be applicable in connection with the expulsion of members of the Accounts Committee, or the dissolution of the Accounts Committee as well.

 

19.          Sub-Committees

 

(1)          For the purpose of operating the business of the society or union, the Board may form Sub-Committee as provided for in the bye-rules.

 

(2)          The functions, duties, and powers, as well as the working procedures, of Sub-Committees formed according to Sub-Section (1) shall be as provided for in the bye-rules.

 

20.          Appointment of Employees and Advisors

 

(1)          For the purpose of running the business of the society or union, the Board may appoint employees and advisors according to need in accordance with the procedure approved by the General Assembly.

 

(2)          The remunerations and other conditions of service of employees and advisors appointed under Sub-Section (1) shall be as mentioned in the bye-rules of the concerned society or union.

 

                                                                                        Chapter 5

                                                                                         Registrar

 

21.          Appointment of Registrar

 

(1)          Subject to this Act and the rules framed hereunder, HMG shall appoint a Registrar to register societies or unions, and perform other prescribed functions.

 

(2)          The remunerations and other conditions of service of the Registrar shall be as prescribed.

 

22.          Delegation of Authority

 

The Registrar may delegate any or all of the powers vested on him under this Act or the rules framed hereunder to any subordinate officer.

 

                                                                                        Chapter 6

                                                               Financial Sources and Mobilization

 

23.          Sale of Shares

 

(1)          The society or union may collect share capital through the sale of shares to persons within the area under its jurisdiction who are eligible to become members, as well as to members and other prescribed agencies.

 

(2)          With the approval of HMG, a society or union may sell shares amounting to not more than 20 percent of its total share capital to any foreign cooperative society or union which is a member of the International Cooperative Alliance.

 

(3)          A society must sell shares according to Sub-Section (1) in such a manner that no individual or society gets more than 20 percent of the total share capital.

 

Provided that this restriction shall not be applicable to HMG or a society or agency owned by it.

 

(4)          Irrespective of the number of shares purchased by any member, voting shall be only according to the principle of one person one vote while operating the business of the society or union.

 

24.          Loan Bonds and Loans

 

A society or union may issue loan bonds, or obtain loans from any local or foreign bank or any other agency.

 

Provided that before issuing loan bonds, or obtaining loans from a foreign bank, it must obtain the approval of HMG.

 

 

 

25.          HMG Guarantee for Loans

 

(1)          In case any society or union desires to obtain the guarantee of HMG for loan bonds issued by it, or loans to be obtained by it from any foreign bank or other agency, it must submit an application to HMG for that purpose.

 

(2)          HMG shall consider the application submitted according to Sub-Section (1) and, in case it so deems appropriate, provide guarantee for such loan bonds or loans. While providing such guarantee, HMG may prescribe necessary conditions and restrictions in respect to the redemption of such loan bonds or loans. The society or union must redeem such loan bonds or loans subject to such conditions and restrictions.

 

26.          Power to Undertake Banking Business

 

(1)          A society or union may accept saving deposits from its members and also supply loans to them.

 

(2)          A society or union must obtain the prior approval of the Nepal Rastra Bank in order to engage in other banking businesses, including accepting deposits and supplying loans, in addition to the businesses mentioned in Sub-Section (1), but only with its own members. Such societies or unions must comply with the terms and conditions prescribed and the directives issued by the Nepal Rastra Bank.

 

(3)          Every society or union which has been engaged in (such) businesses after being registered before the commencement of this Act must make arrangements for operating its businesses under Sub-Section (1) or Sub-Section (2) within one year from the date of commencement of this Act.

 

(4)          Notwithstanding anything contained elsewhere in this Act, societies or unions may unitedly establish a cooperative bank.

 

(5)          In case an application is filed for the establishment of a bank according to Sub-Section (4) along with the recommendation of the Nepal Rastra Bank, the Registrar may conduct necessary investigations and register such a bank.

 

(6)          A bank established after being registered under Sub-Section (5) may engage in any such banking businesses under the 1974 Commercial Bank Act as are approved by the Nepal Rastra Bank, and it shall be mandatory for such a bank to comply with the terms and conditions prescribed and the directives issued by the Nepal Rastra Bank from time to time.

 

27.          Distribution of Savings

 

(1)          After at least one-fourth of the net savings of any year is credited to the reserve fund, a society or union may use the balance to set up funds in the prescribed manner.

(2)          Funds other than the reserve funds may be used for the distribution of dividends or bonus within the limits mentioned in the bye-rules according to the objectives of the funds.

 

Provided that the amount of dividends in any year shall not exceed 15 percent of the share capital.

 

28.          Financial Cooperation Not To Be Provided

 

No society or union shall make contributions or provide any other type of financial cooperation to any political party, or any institution or association which works for any religion or sect.

 

29.          Contracts Not To Be Given

 

A society or union shall not grant its contract to any member of its Board or Accounts Committee or to any employee.

 

30.          Shares or Rights of Members Not To Be Sold by Auction

 

The shares or rights of any member in the principal capital of any society or union shall not be sold by auction in consideration of any loan or liability, other than the loans or liabilities of such society or unions.

 

                                                                                        Chapter 7

                                                                        Amalgamation or Division

 

31.          Amalgamation or Division

 

(1)          A two-thirds majority of the General Assembly of the concerned society or union is necessary for the amalgamation of two or more societies or unions, or the division of any society or union into two or more societies or unions. While taking such decision, the conditions and procedures of such amalgamation or division must also be mentioned.

 

(2)          On the basis of the decision taken under Sub-Section (1), the Registrar may amalgamate or divide the concerned society or union.

 

                                                                                        Chapter 8

                                                  Notices, Records, and Examination of Accounts

 

32.          Records of Decisions

 

Every society or union must maintain updated records of the meetings and other business of its General Assembly the Board, the Accounts Committee, and Sub-Committees.

 

33.          Accounts and Other Records

 

Every society and union must maintain records of the accounts of its entire business, as well as other necessary records, in the prescribed manner.

34.          Notice To Be Furnished

 

Every society or union shall submit an annual report of its business, the audit report, as well as a report containing the following particulars, to the Registrar or to an authority designated by him, within the prescribed time limit.

 

(a)          Policies and plans finalized in respect to the distribution of savings.

 

(b)          Names of Directors and their remaining term.

 

(c)           The date fixed for meetings of the General Assembly, and

 

(d)          Other particulars prescribed by the Registrar from time to time.

 

35.          Power to Seek Explanations and Clarifications

 

(1)          In case at least 5 percent of the members of any society or union submit an application to the effect that such society or union has not worked in a satisfactory manner, the Registrar may personally demand explanations or clarifications, or empower any officer in writing to do so.

 

(2)          In case the Registrar feels that any society or union is not conducting its business in a satisfactory manner, he may demand explanations and clarifications, or have any officer do so.

 

(3)          In case the Registrar, or any officer empowered by him according to Sub-Section (1) and Sub-Section (2), demands explanations and clarifications, it shall be the duty of every member and employee of the society or union to furnish the information requested and extend cooperation in every manner.

 

(4)          Notice of the results of the explanations or clarifications sought according to Sub-Section (1) or Sub-Section (2) shall be made available to such society or union in writing.

 

36.          Power to Conduct Inspection and Offer Suggestions

 

(1)          The Registrar, or an officer empowered by him, may inspect the society or union.

 

(2)          While conducting inspection according to Sub-Section (1), in case it is found that this Act or the rules or bye-rules framed hereunder are not being complied with, the concerned officer may offer necessary suggestions to make arrangements consistent with the Act, rules or bye-rules.

 

37.          Examinations of Accounts

 

(1)          A society or union must have the accounts of each financial year audited by a registered auditor approved by the Registrar or an officer designated by him within three months after the expiry of such financial year.

 

(2)          Notwithstanding anything contained in Sub-Section (1), the General Assembly of the concerned society or union may, with the approval of the Registrar, appoint a registered auditor for auditing its accounts.

 

(3)          While appointing an auditor according to Sub-Section (2), the same person or company shall not be appointed for more than three consecutive terms.

 

(4)          The report of the examination of accounts must be presented to the General Assembly for its endorsement.

 

(5)          In case the General Assembly does not endorse the report of the examination of accounts presented to it according to Sub-Section (4), it may appoint another auditor and conduct investigations or a fresh audit.

 

(6)          The remunerations and facilities of the auditor shall be as determined by the General Assembly.

 

 

                                                                                        Chapter 9

                                                Immunities and Facilities for Societies and Unions

 

38.          Immunities and Facilities for Societies and Unions

 

(1)          Notwithstanding anything contained in current law, a society or union shall be entitled to the following immunities and facilities:

 

(a)          A society or union need not register any document relating to its transactions, except in the case of immovable property.

 

(b)          No revenue stamp fee or registration fee shall be charged on documents relating to transactions or sale or purchase of immovable property by a society or union, or in any other type of document.

 

(c)           No income tax shall be collected on the profits made by a society or union, and on the dividends received by its members. No house and compound rent tax or property tax shall be collected from a society or union.

 

(d)          Local taxes shall not be collected on goods dealt in by a society or union.

 

(2)          HMG may wholly or partially waive by notification in the Nepal Rajapatra according to current law customs duty or sales tax on machinery, industrial and agricultural equipment, parts thereof, raw materials, official equipment, and means of transport to be imported by a society or union for its use.

 

(3)          HMG may wholly or partially waive by notification in the Nepal Rajapatra according to current law the excise duty or sales tax due on any goods produced by any society or union.

 

(4)          A society or union engaged in industrial production shall be entitled to other immunities and facilities, as well as protection, due to industries under current law, in addition to the immunities mentioned in Sub-Section (1), (2) or (3) above.

 

39.          Collection of Arrears of Payment Due to Societies or Unions

 

The society or union, or the Registrar on its recommendation, may sell by auction according to the prescribed procedure the assets of any person who has defaulted in the repayment of loans obtained from the society or union, or of other arrears due to such society or union, or the amount or the value of the property of the society or union which he has misappropriated, along with interest thereon.

 

 

40.          Society or Union to Get Priority

 

In case any member defaults in the payment of any amount due to a society or union, provision shall be made for the settlement of the rights or claims of HMG, if any, to the property of such member, and the society or union shall have preemptive right to the balance.

 

                                                                                       Chapter 10

                                  Dissolution of Society or Union, and Cancellation of Registration

 

41.          Dissolution and Cancellation of Registration of Society or Union

 

(1)          A two-thirds majority of the total membership of the General Assembly of the society or union may take a decision to dissolve such society or union.

 

(2)          After receiving an application along with a copy of the decision taken under Sub-Section (1), the Registrar, or a person empowered by him, may cancel the registration of such society or union.

 

(3)          In case enquiries conducted according to Sub-Section (2) of Section 35, or inspection conducted according to Section 36, reveal that any society or union has conducted no transaction and has remained inactive for two consecutive years, or in case any society or union is found to have performed actions contrary to its objectives, the Registrar, or a person empowered by him, may cancel the registration of such society or union. In case registration is cancelled in this manner, the society or union shall be dissolved, and the certificate of its registration shall be ipso facto invalid.

 

42.          Appointment of Liquidator

 

(1)          In case a society or union is dissolved under Section 41, the Registrar, or a person empowered by him, shall appoint a liquidator to implement the related matter.

 

(2)          The functions, duties, powers and the remunerations of liquidator shall be as prescribed.

 

 

                                                                                       Chapter 11

                                                                              Fines and Penalties

 

 

43.          Fine For Failure to Submit Particulars

 

A society or union which does not submit a report under Section 34, or does not furnish information according to Sub-Section (3) of Section 35, shall be fined with an amount not exceeding Rs 1,500 on the order of the Registrar.

 

44.          Fine for Conducting Business by Using the Term "Cooperative"

 

Any person who engages in trade or other enterprise in contravention of Section 46, except in the case of a society or union registered under this Act, shall be fined with not more than Rs 2,000 on the order of the Registrar. In case such person repeats the offense, he shall be fined with an amount not exceeding Rs 5,000 for each additional offense.

 

45.          Appeals

 

The concerned society or union, or individual who is dissatisfied with the cancellation of the registration of any society or union by the Registrar or the person empowered by him according to Sub-Section (3) of Section 41, or with the order issued by the Registrar under Section 43 or Section 44, may file an appeal to the Appellate Court within 35 days.

 

 

                                                                                       Chapter 12

                                                                                   Miscellaneous

 

 

46.          Prohibition to Use The Term Cooperative or Any Equivalent Term

 

No person, firm, or institution, other than a society or union registered under this Act, may use the term cooperative, or its English equivalent, in his/its name or business.

47.          1964 Company Act Not To Be Applicable

 

The 1964 Company Act shall not be applicable in the case of societies or unions registered under this Act.

 

48.          Power to Frame Rules

 

(1)          HMG may frame necessary rules to implement the objectives of this Act.

 

(2)          Without prejudices to the generality of the powers conferred by Sub-Section (1), such rules may provide for the following matters in particular:

 

(a)          Specimen forms of application for registration of societies or unions, and certificate.

 

(b)          Powers and working procedures of general meetings and extraordinary general meetings of societies or unions.

 

(c)           Financial sources of societies or unions, and mobilization thereof.

 

(d)          Supervision and inspection of societies and unions.

 

49.          Repeal and Saving

 

(1)          The 1984 Cooperative Societies Act has been repealed.

 

(2)          Societies and unions registered under the 1984 Cooperative Societies Act shall be deemed to have been registered according to this Act.

 

Royal Seal Affixed on: Jestha 2, 2049 (June 15, 1992).