Kathmandu. KATHMANDU: The Kathmandu Metropolitan City (KMC) has warned of scrapping cooperatives failing to submit their annual financial statements on time.
The metropolis has issued a notice warning to this effect. “As per Section 66 (3) of the Kathmandu Metropolitan City Cooperative Act, 2074 BS, those cooperatives that have not submitted their details to the Department by holding annual general meeting for the last two fiscal years will be considered inactive and violating the values, values and principles of cooperatives and the Department will take legal action against the process of dissolution of the cooperatives,” reads the notice.
According to Clause 28 (2) and 104 of the Kathmandu Metropolitan City Cooperative Act, 2074, the cooperatives have to hold the general meeting within six months from the end of each fiscal year and submit their annual report to the metropolis within 15 days of the date of conclusion of the meeting. Even now, some co-operatives have held their annual general meeting in the fiscal year 2081. The KMC has directed the cooperatives to hold the annual general meeting immediately and submit the decision of the AGM and annual reports to the Department of Cooperatives as they have not submitted the audit report, decision of the general meeting and annual report up to 82 years.
KMC has also urged the KMC to provide necessary support to the monitoring and inspection team deputed by the KMC for monitoring the cooperatives that fall under the regulatory jurisdiction of the KMC as per the Kathmandu Metropolitan City Cooperative Act, 2074 BS.
