News & Events

The Office of the Company Registrar (OCR) has issued Companies Directive 2072 (the "Directive"). Pursuant to the Directive, any non-governmental organization (NGO) cannot hold the shares of a private limited company or public limited company. Further, if any NGO has hold of the shares of the company prior to the issuance of the Companies Directive, such shares need to be divested by the NGO within a period of 2 years which have already expired. In view of this legal provision, the proposed interaction program helped to understand the legal restrictions, its practical implementation and possible way out.

In this regard an Interaction Program on Legal Regime on Shareholding of NGO in Companies was held on 20th December 2019 at Kumbeshwar Technical School (KTS), Kumbeshwar, Lalitpur. The Program was graciously hosted by Ms. Shradha Thapa, Director, Fair Trade Group (FTG) Nepal. Similarly, the program was facilitated by Mr. Narayan Chaulagain and Mr. Lekh Nath Bhattarai.  The program was held with the objective to orient on the legal provisions relating to restriction of any non-governmental organization (NGO) to hold the shares of a private limited company or public limited company (As per companies Directive 2072); how Office of the Company Registrar (OCR) has implemented such restriction and how business has been affected; what the courts of Nepal have made decision on the legality of the restriction and what are the options/alternatives available to the NGO/Company going forward.