Section 47: Dissolution of Board

1) The General Meeting may dissolve the Board in any of the following circumstances:-

(a) In case transactions of the Cooperative Organization are at risk due to malafide acts of the Board,

(b) In case of failure to pay the liabilities to be paid by the Cooperative Organization within the specified time,

(c) In case of the commission of an act against the objective and business specified in the bylaws,

(d) In case the Board does not fulfil its responsibilities,

(e) In case of frequent violation of this Act or conditions referred to in Rules or the directives issued by the Registrar or the authority authorised by the Registrar.

2) In case the Board is dissolved pursuant to sub-Section (1), the General Meeting shall elect a new Board.

3) In case the Board does not comply with the directive issued by the Registrar or the authority authorised by the Registrar under this Act or Rules framed under this Act or on the basis of gravity of the subject matter found in the complaint filed or found in the course of inspection according to the report submitted to pursuant to sub-Section (2) of Section 40, the Registrar or office in-charge may give a time of six months for reform and if no reform is taken place even within that period, such a Board shall be dissolved.

4) In case the Board is dissolved pursuant to sub-Section (3), the Registrar or the authority authorised by the Registrar shall have to form an ad hoc Board as prescribed for holding an election of another Board within three months from the date of dissolution so made and to operate the daily transactions of the Cooperative Organization until the election is held.

5) Entire expenses incurred in the case of holding the next election under this Section shall be borne by the concerned Cooperative Organization.

6) Notwithstanding anything contained elsewhere in this Section, the Registrar shall obtain consultation from the Nepal Rastra Bank before dissolving the Board of a Cooperative Bank, and it shall be done according to the advice of the Nepal Rastra Bank in this regard.