Kathmandu – The Kathmandu Metropolitan City (KMC) has urged cooperatives operating under its jurisdiction to submit their reports in accordance with the law. It has also warned of legal action against those failing to comply.
In a notice issued today, KMC reminded cooperatives of the legal requirement under the Kathmandu Metropolitan City Cooperative Act, 2074, which mandates them to hold an annual general meeting within six months of the end of each fiscal year and submit their reports to KMC within fifteen days. However, several cooperatives have yet to submit their audit reports, general meeting decisions, and the annual report for the fiscal year 2080/81.
KMC has emphasized that cooperatives failing to hold a general meeting or submit their financial records for two consecutive fiscal years will be declared inactive, and the dismissal process will be initiated. The notice further stated that details of inactive cooperatives will be made public, and legal proceedings will be carried out as per Section 66(3) of the Cooperatives Act, 2074.
Additionally, KMC reiterated its authority to monitor cooperatives under Part 16 of the Cooperatives Act and requested full cooperation from the concerned organizations during regulatory inspections.
The Metropolitan City has urged cooperatives to submit their reports on time to ensure transparency and maintain public trust in the sector.