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Company Act Nepal

In: Business and Management

Submitted By bjkarki
Words 50125
Pages 201
THE COMPANIES ACT, 2063 (2006)
Date of Authentication: 2063.7.17.6
7 kartik 2063 ( 3 November 2006)
1. The Act Amending Some Nepal Acts, 2064

2064.5.9 (26 August 2007)

ACT NO. 18 OF THE YEAR 2063 (2006)

An Act made to amend and consolidate the law relating to companies
Preamble: Whereas, it is expedient to amend and consolidate the law relating to companies in order to bring about dynamism in the economic development of the country by promoting investment in the industry, trade and business sectors through economic liberalization and make the incorporation, operation and administration of companies much easier, simpler and more transparent; Now, therefore, be it enacted by the House of Representatives in the First Year of the issuance of the Proclamation of the House of Representatives, 2063
(2006).

Chapter 1
PRELIMINARY
1.

Short title and commencement: (1) This act may be called as the
“Companies Act, 2063(2006)”.
(2) This Act shall be deemed to have come into force on 20
Ashwin 2063 (6 October 2006).

2.

Definitions: In this Act, unless the subject or the context otherwise requires, (a)

“Company” means a company incorporated under this Act.

1

(b)

“Private company” means a private company incorporated under this Act.

(c)

“Public company” means a company other than a private company.

(d)

“Holding company” means

a company-having

control over a subsidiary company.
(e)

“Subsidiary company” means a company controlled by a holding company.

(f)

“Foreign company” means a company incorporated outside Nepal.

(g)

“Listed company” means public company which has its securities listed in the stock exchange.

(h)

“company not distributing profits” means company incorporated under Chapter 19 on conditions that it shall not be entitled to distribute or pay to its members any dividends...

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