Kathmandu, May 16
A directive issued by Minister of Industry, Commerce and Supplies Matrika Prasad Yadav to the Office of the Company Registrar has landed in controversy after it was revealed that it was not in line with law.
Yadav on 11 July 2018, had issued a directive to the OCR asking it to approve transfer of shares of companies only in presence of the two parties during a transaction or in presence of someone with power of attorney issued by a court or Nepali embassies abroad, if the parties concerned lived abroad. He had also directed the OCR to keep records and ensure the court and the embassies kept records.
However, in a meeting of the Parliamentary Delegation Management and Government Assurance Committee today, Industry Secretary Yam Kumari Khatiwada and OCR Registrar Bhuvan Hari Aryal conceded that Yadav’s directive was not in line with the law.
In the meeting convened to discuss a complaint filed seeking annulment of the directive, Khatiwada said although the Company Act did not have any provisions allowing the minister to issue such a directive, the minister did so with good intention.
“Although the directive is in line with the Good Governance Act, it is the Company Act that governs companies,” she said. “So we cannot say the directive it is in line with the law.”
The committee’s member and Nepali Congress lawmaker Radheshyam Adhikari questioned whether the embassies and the court should abide by the minister’s directive.
The committee’s Chairperson Ram Narayan Bidari said it would decide the issue after seeking a clarification from minister Yadav.
A version of this article appears in print on May 17, 2019 of The Himalayan Times.