Section 88: Dissolution and Revocation of Registration

1) The Board may, in regard to any Cooperative Organisation having taken a decision to dissolve such a Cooperative Organisation by the majority of the then prevailing members of the General Meeting, submit to the Registrar or the authority authorised by the Registrar for approval of the dissolution in the following circumstances:

(a) In case it is not possible to attain the objectives and functions stated in the bylaws,

(b) In case it does not serve the interests of the members.

2) In case it seems appropriate to dissolve the Cooperative Organisation while inquiring into the application submitted pursuant to sub-Section (1), the Registrar or the authority authorised by the Registrar may revoke the registration of such a Cooperative Organisation.

3) Notwithstanding anything contained in sub-Section (2), the Registrar or the authority authorised by the Registrar may revoke registration of a Cooperative Organisation in the following circumstances:

(a) In case it is inactive for a consecutive period of two years without any transaction,

(b) In case any Cooperative Organisation frequently commits any act in violation of this Act or Rules framed under this Act,

(c) In case it commits any act against its objectives referred to in the Byelaws,

(d) In case it commits an act against the values, norms and principles of cooperatives.

4) Before revoking the registration pursuant to sub-Section (2) or (3), the Registrar or the authorised representative of the Registrar shall provide a time of fifteen days to such a Cooperative Organisation for a hearing.

5) In case of revocation of registration of a Cooperative Organisation pursuant to sub-Section (2) or (3), such Cooperative Organisation shall be deemed to have been dissolved.

6) Notwithstanding anything contained sub-Section (2) or (3), the Registrar shall have to obtain approval of the Ministry before revoking registration of the Cooperative Organization which has obtained a grant amount exceeding the ceiling specified by Government of Nepal and of the Nepal Rastra Bank before revoking the registration of the Cooperative Bank.

7) In case of revocation of registration of a Cooperative Organisation pursuant to sub-Section (2) or (3), a registration certificate of such a Cooperative Organisation, Cooperative Association or Cooperative Bank shall be deemed to have been, ipso facto, void.

8) Nothing stated in this Section shall be deemed to have prejudiced the provisions relating to deregistration of the Cooperative Bank.