Directors of cooperatives asked to vacate dual positions within 30 days

The Department of Cooperatives has stated that one person cannot be the director of two or more cooperative institutions at the same time.

The department has today instructed all the cooperatives to maintain a single position by abandoning if someone is holding a double position.

Section 41 (5) of the Cooperatives Act 2074 BS states that a person can be the director of only one cooperative institution at the same time. The department also said that the implementation of this directive will be monitored and action will be taken according to the law against those violating it, said cooperative department registrar.

The department has also issued a circular today to reschedule the loans of the borrowers of the cooperatives for three months. “For those debtors who are unable to regularize their loans due to circumstances, considering the difficulty of repaying the loan, after evaluating the effect on the debtor member, based on the demand, need and justification of the member, 50 per cent of the interest payment will be made only in the case of those borrowers who were not listed as bad debtors last year and did not receive this facility before.