Additional Requirements have been Added by NRB for those Wishing to Serve as Company Promoters or CEOs

According to the recent amendments to the Companies Act, Nepal Rastra Bank (NRB) has circulated notification about the requirements for an individual to serve as a promoter and chief executive officer in a company.

An individual who is advocating the creation and incorporation of the Company is known as a promoter. Whereas, the chief executive officer (CEO) holds the highest position within an organization and is in charge of putting into action the organization's current plans and policies and enhancing its financial stability.

Here are the additional requirements to be passed before being appointed to the higher position of promoter and CEO of an organization:

1. Such a person is not convicted of fraud or corruption or dishonesty.
2. Five years have passed after the sentence was served, regardless of whether the police report contains a criminal background (Criminal Record) or not.
3. It has been five years since the person was cleared after serving their sentence if they are listed as having a criminal record in the police report.