Conversion of corporation owned by government of Nepal into Company

Conversion of corporation owned by government of Nepal into Company

(1) If the Government of Nepal wishes to convert a public corporation incorporated under the prevailing law, fully or partly owned by the Government of Nepal, or a development board formed under the Development Board Act, 2013 (1956) into a company, such corporation or board can be converted into a public company and incorporated under this Act.

(2) Notwithstanding anything contained elsewhere in this Act, there shall be no restriction on the number of promoters, shareholders, in the incorporation of a company as referred to in Sub-section (1).

(3) The movable and the immovable properties of the corporation or board as referred to in Sub-section (1) may be evaluated and converted into the share capital of the company to be incorporated pursuant to Sub-section (1), and where such conversion is made, all assets and liabilities of such corporation or board shall devolve on such company, except as otherwise provided in the articles of associations.

(4) Notwithstanding anything contained elsewhere in this Act, the number of directors of a company incorporated under this section shall be as specified in the articles of association of the company; and no such directors shall be required to subscribe any shares to become a director.

(5) A company as referred to in this section may sell its shares in bulk to the private sector through the stock exchange or directly by negotiations.