The Department of Cooperatives (DoC) has endorsed new guidelines for the cooperatives looking for their merger. The new guidelines seek to prevent rampant merging of cooperatives in the aftermath of the cooperatives facing financial problems.
In the new guidelines set by DoC, the cooperatives registered under the same working area can only go to the merger process. Similarly, the cooperatives concerned have to conduct a joint meeting including their members and the office bearers.
Similarly, a five-member task force should be formed to prepare the conditions and working guidelines for the merger of the cooperatives. The taskforce should get approval from the board meetings of the cooperatives concerned.
The cooperatives seeking merger are required to set a timeline for merger and develop an action plan. Similarly, they have to prepare an evaluation report of their assets and liabilities by recruiting a valuator. According to the new guidelines, the cooperatives concerned will have to publicize their merger plan through a national level media, giving the deadline of 15 days to receive public grievances.
The sector’s regulator has come up with a new guideline at a time when a large number of cooperatives have stepped up their efforts for merger. A large number of cooperatives are seen opting for merger after a number of cooperatives landed in financial problems.
On Saturday, 11 Kathmandu-based cooperatives announced their plan to merge with other cooperatives. Another five cooperatives had also declared their intention to go for a merger last week.
