The document discusses cooperative laws and bylaws in Nepal. It provides an overview of cooperatives and notes they are voluntary associations that work together for common economic, social, and cultural goals. Cooperatives in Nepal are governed by the Cooperative Act and associated bylaws. The main legislation is the Cooperative Act of 2074, which regulates establishment, registration, operations, and governance of cooperatives. Bylaws serve as an "owner's manual" that provides frameworks for organization, membership, management, finance, and audits. The laws and bylaws establish provisions for membership eligibility, management structures, financial transparency, and auditing to ensure accountability and compliance.

1. Cooperatives Laws and Bylaws of
Nepal
(Unveiling the intricate provisions and
regulations)
Prepared by :
Kabita poudel
Section- C ‘UGC’
Roll no - 18
Agricultural Marketives and Cooperatives

2. Overview of Cooperatives :
• A voluntary association of individuals or entities who work
together to achieve common economic , social and cultural
goals.
• Play a crucial role in promotion economic development and
empowering marginalized communities in Nepal.
• Cooperatives in Nepal are governed by the Cooperative Act
and its associated bylaws.

3. Cooperative Laws :
• All legal rules that shape a cooperative enterprise and regulate
its operations, such as law on cooperatives, national
constitutions, administrative Acts, cooperative bylaws etc
• The main legislation governing cooperatives in Nepal is the
Cooperative Act ,2074

4. Cooperatives bylaws :
• Crucial aspect of the cooperative sector in Nepal
• “Owner’s manual” for the cooperative business
• Provide a framework for the organization’s operation and
governance
• Included provisions related to membership ,management
,finance and audit
• Every cooperatives may have different bylaws according to
laws of Nepal . Some general laws and bylaws are stated below
:

5. 1)Cooperative Act 2048 BS:
• First cooperatives law in Nepal
• Stated requirement of minimum 25 members to establish cooperatives
• Stated thoughts of cooperatives as autonomous organization
• Arranged elected board committee
• Allowed provision of open membership
2. National Cooperative Policy 2069
Published in Nepal after UN declared 2012 as International Year of cooperatives
Aims of this act :
Increase awareness about cooperatives
Promote cooperatives related to agriculture and other production process
Increase accessibility of cooperatives

6. 3) Cooperative Laws 2074:
• Most recent cooperatives law in Nepal
• Explains the process of establishment, registration, working method, goals of
cooperative etc
• Regulates financial matters, ensuring proper management and auditing of
cooperatives funds
• Addresses dispute resolution mechanisms and penalties for non compliance
4) Model State Level Cooperative Act
• Published in 2018
• This act is prepared and executed by the state government based on framework
provided by central government
• Provision of establishment of District Cooperative Union and State cooperative
Union
• Clearly stated that without registration no one can run cooperatives

7. 5. Model Local Level Cooperative Act
• This act is prepared and executed by the local bodies based on the framework
provided by Central government

8. Some Provisions provided by Laws and Bylaws
of Nepal :

9. 1)Membership and eligibility :
a. Age requirement of at least 16 years
b. Residential requirement - Must be Nepali citizen
c. Membership fee - Certain fee is to be paid to be member of it
d. Share purchase -Must purchase minimum number of shares
e. Training - Must undergo training on cooperatives principles

10. 2) Management and Governance :
a. Organizational structure : Explanation of hierarchicial structure
b. Membership requirements : Overview of criterias
c. Board of Directors : Roles and responsibilities of BOD
d. General assembly : Information about the annual meetings
e. Rules and Regulations : Explaination to each members

11. 3) Financial and Accounting :
Plays a crucial role in sustainability and success of cooperative
To maintain transparency ,accountability and effective decision
making
4) Audit and Supervision :
Ensures compliance with laws and regulations,financial
transparency and good governance
Audit is done by qualified auditors appointed by the
cooperative and overseen by the Department of Cooperatives.

12. Importance of Cooperative Laws and Bylaws:
• Provides the legal framework and guidelines for the
establishment , operation and governance of cooperatives.
• Ensures transparency, accountability and democratic decision
making within the organizations