Pvt sector calls to revisit Company Act

KATHMANDU,JAN 13: 

Experts insisted on the establishment of company registrar office outside the Kathmandu Valley too.

“The current Company Act does not mention the establishment of company registrar office at the major commercial cities,” said former secretary of Ministry of Law and Justice Madhab Poudel, addressing an interaction organised by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) here in the Valley today.

“There are also major industrial areas outside Kathmandu Valley.”

The Company Act must mention the establishment of company registrar office at those cities out side the valley to facilitate the entrepreneurs.

According to Poudel, the Company Act was the most liberal among the South Asian countries but it lacks timely reform.

“It’s high time to reform the existing Company Act 

to make it more liberal matching the present context,” he said, adding that there are a number of duplications in the company registration process that should be revised.

President of Institute of Chartered Accountants of Nepal Sudarshan Raj Pandey focused on the need to amend the existing Company Act to promote investment and develop required plans and polices.

During an interaction programme, the umbrella organisation of domestic private sector presented its suggestion for the amendments in the Company Act 2063.

“The Current Company Act needs amendment according to the present context,” it said, adding that it should be more focused on investment promotion and security.

Meanwhile, the federation also suggested to amend the provision to transform private company into public ones. “Reforms are required for organising a management committee meeting process and rights of the managers during the meeting,” it said.

The revision is also needed in the provisions of floating shares on premium and dividend distribution to the government owned companies, apart from good corporate governance, strengthening the regulators and provisions under the first annual general meeting, according to the private sector.

The country needs laws that could boost the investors’ confidence as they have been losing confidence on governance due to instability coupled with the age-old Acts and regulations making it difficult to operate businesses.

Source: THT