Communication Corporation Act, 2028 (1972)


Published: 1972

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$20 per month, or Get a Day Pass for only USD$4.99.
communication corporation Act, 2028 English
1
Communication Corporation Act, 2028 (1972)

Date of Authentication and Publication
2028.12.20 (2 April 1972)
Amendments:
1. Communication Related Some Nepal Acts
Amendment Act, 2029(1972) 2029.6.5 (20 August 1972)
2. Administration of Justice Reforms
Act, 2031(1974) 2031.4.18 (2 August 1974)
3. Judicial Administration Reforms
(Fourth Amendment) Act, 2043 (1986) 2043.7.24 (10 Nov. 1986)
4. Communication Corporation
(First Amendment) Act, 2045 (1988) 2045.7.10 (26 Oct. 1988)
5. Communication Corporation
(Second Amendment) Act, 2053 (1996) 2053.8.26 (11 Dec. 1996)
6. Republic Strengthening and Some Nepal
Laws Amendment Act, 2066 (2010) 2066.10.7 (21 Jan.2010)

Act number 15 of the year 2028 (1972)

An Act made to establish and form Communication Corporation in
Consonance with the National Communication Service Plan

2

Preamble: Whereas, it is expedient to make some necessary legal provisions on
communication corporations in order to provide communication services through
various means to the general public in a simple, easily accessible and cost
effective manner in consonance with the National Communication Service Plan
and to keep on improving the living standards of the people generally by
improving their economic condition, by also getting them to be involved as much
as possible in the operation of such corporations, in consonance with the National
Communication Service Plan, for the consolidation of ational unity and economic
development;
Now, therefore, be it enacted by His Majesty King Mahendra Bir Bikram
Shah Dev on the advice and with the consent of the Rastriya Panchayat.
Chapter-1
Preliminary
1. Short title, extension and commencement: (1) This Act may be called
as the "Communication Corporation Act, 2028 (1972).”
(2) This Act shall extend throughout………….Nepal.1
(3) This Act shall come into force immediately.
2. Definitions: Unless the subject or the context otherwise requires, in this
Act:
(a) "Corporation" means the Corporation established under Section 3.
(b) “Board of Directors” means the board of directors of the
Corporation.
1 Amended by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066.

3
(c) "General Manager" means the general manager of the Corporation,
and this term also includes the person officiating for the general
manager.
(d) "Shareholder" means a person who subscribes a share of a
corporation established under this Act.
(e) "Director" means a director of the Corporation, and this term also
includes the person presiding over the Board.
(f) "Prescribed" or "as prescribed" means prescribed or as prescribed in
the Rules or Bye-laws2 framed under this Act.
Chapter-2
Establishment, capital and provision
3. Establishment of the Corporation: (1) The Government of Nepal may,
if it appears necessary or appropriate to operate any communication service
for the national interest and knowledge, information, entertainment, facility
or economic interest of the people generally, establi h and form any
corporation, by publishing a notice in the Nepal Gazette, setting out the
following matters:
(a) Name of the corporation,
(b) Place of head office of the corporation,
(c) Objectives, functions and duties of the corporati n.
(2) If it is necessary to alter the name, place of head office and
objectives, functions and duties of the corporation established pursuant to
Sub-section (1), the Government of Nepal may make such an alteration, by
publishing a notice in the Nepal Gazette.
2 Amended by the Second Amendment.

4
4. Power of corporation to open branch office: The Corporation may,
with the approval of the Government of Nepal, open its branch office, as
required, in addition to its head office.
5. Corporation to be deemed as a body corporate: (1) The Corporation
shall be an autonomous body corporate with perpetual succession.
(2) The Corporation shall have a separate seal of its wn for all of its
activities.
(3) The Corporation may, subject to this Act and the prevailing
Nepal laws, acquire, use, sell and dispose of any movable and immovable
property, like an individual.
(4) The Corporation may sue by its name and be also sued by the
same name.
6. Capital, share and shareholders of the Corporation: (1) The
authorized capital of each Corporation shall be as determined by the
Government of Nepal.
(2) The Government of Nepal shall subscribe at least Fifty One
percent shares of the Corporation, out of the total c pital of the
Corporation, and a maximum of Twenty Five3 percent shares shall be sold
to the employees of4 the Corporation, as prescribed. The remaining share
shall be sold to the people generally. Any employee shall not sell the
subscribed by him or her while he or she serves for the Corporation.
(3) Each share shall be indivisible.
(4) Restriction may generally be made on the sale of shares in excess
of the prescribed percentage to any person or company except any
employee of the Corporation. 3 Amended by the Communication Related Some Nepal Acts mendment Act, 2029. 4 Amended by the Communication Related Some Nepal Acts mendment Act, 2029.

5
(5) The liability of shareholders of the Corporation shall be
limited.
7. Disqualification for shareholder: Any person, other than a citizen of
Nepal or a company or cooperative body registered under the Nepal laws or
a corporation or body corporate established under th Nepal Acts may not
subscribe shares of or be a shareholder of the Corporation without
obtaining approval of the Government of Nepal.
8. Power to receive grant and borrow loan: The Corporation may, by
obtaining approval of the Government of Nepal, borrow cash or in-kind or
accept a grant as required to increase its running capital. After the provision
of the general meeting, in so borrowing a loan or accepting a grant from
any foreign country or agency, the general meeting shall also be consulted.
9. Care and provision of the Corporation: Except as otherwise provided
in this Act, the Board of Directors shall look after, direct and manage all
functions and affairs of the Corporation, subject to general direction by the
Government of Nepal. Provided that Board of Directors may so delegate
such duties and powers, out of the duties and powers set forth in this Act or
the Rules framed under this Act as it deems necessary and appropriate to
the General Manager or a sub-committee consisting of one or more
directors or other officers of the Corporation as to be performed and carried
out by them.
10. Formation of the Board of Directors and tenure of directors5: (1)
The Board of Directors (hereinafter referred to as "Board") of each
Corporation shall consist of Five directors as follows:
(a) The general manager of the Corporation,
5 Amended by the Communication Related Some Nepal Acts mendment Act, 2029.

6
(b) One person elected by the general meeting from
amongst the non-governmental shareholders,
(c) One person nominated by the Government of Nepal in
respect of the governmental shares,
(d) One person nominated by the Government of Nepal
from amongst the persons who are renowned in the
field related with the working scope of the
Corporation, and
(e) One person elected from the shareholder employees of
the Corporation.
(2) Until provision of election from the general meeting or that of
election from the shareholder employees under Clause (e) of Sub-section
(1), the Government of Nepal shall also nominate the directors as required
to be elected from the shareholders.
(3) The Government of Nepal shall designate the chairperson of the
Board and the general manager of the Corporation shall preside over the
Board.
(3a)6 The tenure of the directors elected or nominated under Clauses
(b), (c), (d) and (e) shall be Four years, and upon expiration of their tenure,
they may be re-elected or re-appointed.
(4)7 Notwithstanding anything contained in Sub-section (3a), the
Government of Nepal may nominate any other person in the place of a
director nominated under Clauses (c) and (d) of Sub-section (1) prior to the
completion of the tenure of such a director.
6 Inserted by the First Amendment. 7 Amended by the First Amendment.

7
(5) Upon assumption of office after being elected8 by the general
meeting or employees of the Corporation, the directors nominated by the
Government of Nepal shall ipso facto relive of office in relation to them.
Provided that, this Sub-section shall not be deemed to bar the
appointment or nomination of the person so relived of to the office of
director.
(6) …………………….9
11. Disqualification for director: Any of the following persons shall not be
eligible to be a director or hold the office of director:
(a) Who is of unsound mind or is insane;
(b) Who is convicted by a court of a criminal offens involving moral
turpitude, and sentenced to imprisonment for a term xceeding Six
months and a period of Five years has not lapsed from the date of the
service of such a sentence of imprisonment;
(c) Who has become insolvent; or
(d) Who has personal interest of any kind in any contract or transaction
of the Corporation.
12. Circumstance where director may be removed: (1) Any elected
director may be removed by a majority of the shareholders present at the
general meeting, in the following circumstance:
(a) If he or she suffers any disqualification set forth in
Section 11,
(b) If he or she absents from the meeting of the Board for
more than Three consecutive meetings without
8 Amended by the Communication Related Some Nepal Acts mendment Act, 2029. 9 Deleted by the First Amendment.

8
permission of the Board and the reason for such
absence is not reasonable in the opinion of the
Government of Nepal in the case of a nominated
director and of the general meeting in the case of an
elected director,
(c) If he or she is proved to have partnership in any
contract entered into with the Corporation in violation
of Section 18.10
(2) In the case of a director elected from amongst the shareholder
employees, if a majority of such shareholder employees adopts a resolution
of no-confidence.
13. Resignation of directors and fulfillment of vacancy: (1) Any
nominated director and elected director may resign from office by giving a
notice in writing to the Government of Nepal and to the Board,
respectively. Upon acceptance of resignation, he or she shall be deemed to
have abandoned the office.
(2) If the office of a nominated or elected director falls vacant
because of his or her death, resignation or any other cause, the vacancy
shall be fulfilled by nomination or election, and the director so elected or
nominated shall hold the office only for the remainder of the term of the
predecessor.
(3) Any acts of the Board already done shall not be invalid by the
reason only that any irregularity was made in the formation of the Board or
that the office of any director fell vacant.
10 Amended by the Communication Related Some Nepal Acts mendment Act, 2029.

9
14. Remuneration of directors: The shares of the Corporation shall be
provided as prescribed, to the chairperson or members of the Board of
Directors, in consideration for the remuneration.
15. Meetings of the Board: (1) The meeting of the Board shall be held at
such place and time as specified by the Board, and the rules of procedures
of the Board shall be as prescribed. In the absence of the chairperson,
meetings of the Board shall be presided over by a director selected by the
directors from amongst themselves.
Provided that, the meeting shall be called for at le st Six times a year
in a manner that an interval between any two meetings shall not exceed
Three months.
(2) No meeting of the Board shall be held unless it i attended by a
majority of the then members of the Board.
(3) The decision of a majority of the directors who attend and vote at
the meeting of the Board shall be binding. Normally, the presiding person
shall not vote, but, in the event of a tie, the presiding person may exercise
the casting vote.
16. Appointment of general manager, advisers and employees: (1) The
Government of Nepal may appoint one general manager nd such other
advisers as may be required, and the Board may appoint other employees,
for the operation of the affairs of each Corporation. The terms and
conditions of service, tenure11 and remuneration of the persons so appointed
shall be as prescribed.
(2) Appointment and terms and conditions of service of employees
may be so made that the employees of the Corporation has to subscribe the
11 Amended by the Communication Related Some Nepal Acts mendment Act, 2029.

10
shares of the Corporation mandatorily from such figure of remuneration as
drawn each month as prescribed.
Provided that, no share shall be sold to the employees who have
been appointed on the temporary basis and on the contra t service.
17. Director not to take part in meeting: The general manager or
employee who is a director pursuant to Section 10 shall not be allowed to
take part, in the capacity of the director, in a meeting of the Board to take
action against the general manager or that employee.
18. Restriction on director and general manager of the Corporation:
The director or general manager of the Corporation shall not be a partner in
any contract with the Corporation.
Provided that, immediately when each director or the general
manager knows that he or she has directly or indirectly any concern
(conflict of interest) in any contract to be submitted to the Board for its
consideration, proposing something taken or taken or given or to be given
by the Corporation, such a director or general manager shall disclose the
matter to the meeting of12 the Board as soon as possible. The matter so
disclosed shall be recorded in the minutes, and the concerned director shall
not take part in any deliberations or decisions made by the Board in relation
to that contract.
19. To obtain approval of the Government of Nepal: The Corporation
shall not do the following act without obtaining prior approval of the
Government of Nepal:
(a) To purchase or obtain any immovable property valued at more than
Ten Million Rupees, or
12 Amended by the Communication Related Some Nepal Acts mendment Act, 2029.

11
(b) To take or furnish security of any immovable property for a term
more than Ten years, or
(c) To sell or transmit any property or right or facility valued at more
than Five Hundred Thousand Rupees.
Chapter-4
General meeting
20. To submit programs: (1) The Board shall, at least Three months in
advance of the commencement of its financial year, propose and submit
programs on operations to be carried out by the Corporation in the coming
financial year, statements of incomes and expenses of development works,
capital investment and details of additional employees, if so required, and
financial statements to the general meeting for appoval.
(2) If the Corporation desires to do any other special business, in
addition to the programmes already submitted pursuant to Sub-section (1),
in any financial year, and it makes a substantial change in the proposed
economic cost, the Corporation shall submit such supplementary programs
and the costs to be borne when remaining and amounts to be received in the
said financial year to the general meeting for approval.
(3) Until the provision of the general meeting, the Board shall
submit the statements as referred to in Sub-sections (1) and (2) to the
Government of Nepal.
21. General Meetings: (1) A general meetings (hereinafter referred to as the
annual general meetings) shall be held at the head office or the Corporation
in each year within Ninety days after the date of cl sure of annual accounts
of the Corporation after the sale of shares of at le st Five percent value of
the share capital issued by the Corporation for sale. If at least Five percent

12
shareholders make an application in writing or the Board considers
necessary so to do, the extra-ordinary general meetings of the Corporation
may be called at any other time.
(2) No general meetings may be deemed to be attended by a quorum
unless it is attended by at least One-thirds of shareholders in person or by
proxy. General meetings called for the second time upon not being attended
by the quorum may be deemed to be attended by the quorum if it is
attended by one Sixth of the shareholders.
Provided that, if the general meetings called for the second time is
not even attended by a quorum as mentioned, a submision containing that
matter shall be made to the Government of Nepal, and it shall be done as
sanctioned.
(3) The shareholders present at the annual general meetings shall
discuss the annual accounts, profit and loss account, matters contained in
the auditor's report in relation thereto and the Board's report on the affairs
of the Corporation carried out throughout the previous year. These matters
shall be submitted to the Government of Nepal until the provision of the
annual general meetings is made.
(4)13 A shareholder may cast vote at the rate of one votfor each one
percent share of the total capital of the Corporatin subscribed by the
shareholder.
Provided that:
(a) No shareholder who has subscribed shares less than
one percent of the total capital of the Corporation shall
be entitled to case vote.
13 Amended by the Communication Related Some Nepal Acts mendment Act, 2029.

13
(b) If the share percentage is more than one unit, the
shareholder shall be entitled to case vote only equal to
the lower unit until the higher unit is achieved.
(5)14 No shareholder may exercise vote without being present at the
general meetings in person or by proxy.
(6) Any decision at the generals meeting shall be made by a simple
majority of the shareholder attending and voting thereat.
22. Power of Government of Nepal to make decision: If there is
divergence of opinion between the general meeting and the board on the
operation of the Corporation, a submission shall be made to the
Government of Nepal for its decision, and the decision made by the
Government of Nepal shall be final.
Chapter-5
Fund, accounts and audit
23. Fund of the Corporation: (1) The Corporation shall have a separate
fund of its own. All amounts received by the Corporation including loans
and grants shall be credited to the fund, and expenses to be made on behalf
of the Corporation shall also be chargeable on that fund.
(2) All amounts of the fund shall be deposited in a bank prescribed
by the Government of Nepal.
(3) The Board shall have powers to make such expenses as
considered appropriate for the activities authorized pursuant to this Act and
the Rules framed under this Act.
14 Amended by the Communication Related Some Nepal Acts mendment Act, 2029.

14
24. To bear liabilities by the Corporation: If department, board or
corporation of the Government of Nepal is converted into the Corporation
under this Act, such liabilities out of the contracts and agreements entered
into by the Government of Nepal on behalf of such a department, board or
corporation prior to such conversion as specified by the Government of
Nepal shall be borne by the Corporation so established upon conversion.
25. Mode of maintaining accounts: Accounts of incomes and expenses of
the Corporation shall be maintained in such form and manner as may be
approved by the Government of Nepal.
26. Distribution of profits: The distribution and use of profits made by the
Corporation shall be as prescribed.
27. Audit: (1) The annual general meeting shall appoint the auditor, and the
remuneration of the auditor shall be as specified by the meeting. Such an
auditor shall have obtained license to perform audit in accordance with the
Nepal law.
Provided that, audit shall be performed by the auditor designated by
the Government of Nepal until the first annual general meeting is held.
(2) The auditor may inspect and examine any accounts and
documents of the Corporation, and it shall be the duty of all the concerned
employees of the Corporation to render assistance in that act.
(3) The auditor shall submit a copy of the audit report made by him
or her to the Government of Nepal and another copy t the annual general
meeting of the Corporation, and such a report shall clearly state the
following matters:
(a) Whether annual accounts and profit and loss account
have been so properly and duly maintained, clearly

15
indicating all required matters as to reflect the actu l
financial condition of the Corporation or not;
(b) Whether the Corporation has provided any such
explanation or information as sought or not, and if so
provided, whether it is satisfactory or not.
(4) The Government of Nepal may, based on the report received
pursuant to Sub-section (3), and on the advice of the annual15 general
meetings, give direction to the Corporation for necessary reform or
provision.
Chapter-6
Miscellaneous
28. To take oath to maintain secrecy and not to sabotage: Prior
assumption of their office, each director, general m nager, officer and other
employee of the Corporation shall take an oath as set forth in the Schedule.
29. Power of Government of Nepal to make inquiries: (1) The
Government of Nepal may, by publishing a notice in the Nepal Gazette,
appoint any inspector or committee to inquire into any activity of the
Corporation.
(2) The inspector appointed or committee formed pursuant to Sub-
section (1) may examine all accounts and documents of the Corporation.
(3) The procedures to be followed and terms to be observed by the
inspector appointed or committee formed pursuant to Sub-section (1) in
making inquiries shall be as specified by the Government of Nepal.
15 Inserted by the Communication Related Some Nepal Acts mendment Act, 2029.

16
30. Power of Government of Nepal to give direction: If the Government
of Nepal considers necessary so to do for national interest, it may give
direction as follows to the Corporation, and it shall be duty of the
Corporation to abide such a direction:
(a) To operate any service with or without specifying any specific area,
(b) Refrain from doing any act being done by the Corporation in any
specific area, or to alter such an act or close the same totally,
(c) Not to do any act about to be done by the Corporation.
31. Liaison with Government of Nepal: In making contact by the
Corporation with the Government of Nepal in the course of performing its
activities or in giving direction by the Government of Nepal to the
Corporation, such contact or direction shall be made or given through the
Ministry of Communication.
31A.16 Local taxes not to be levied: No local tax of any type shall be levied on
the transaction of the Corporation.
32. Saving of officers against loss or damage: The directors or employees
of the Corporation shall not be held individually liable for any loss or
damage caused or to be caused from any act done or purported to be done
by them in good faith in the course of performing their duties in accordance
with this Act and the Rules framed hereunder.
33. Penalties: (1) If a person who has the duty to maintain any accounts or
submit any report pursuant to this or the Rules framed under this Act,
knowingly or with ulterior motive, conceals the truth and state a false
matter in such accounts or report or other documents or alters the contents
or attempts to do such an act, that person shall be lia l to the punishment
16 Inserted by the First Amendment.

17
of imprisonment for a term not exceeding Three years or a fine of up to
Three Thousand Rupees or with both punishments.
(2) If any director or employee of the Corporation causes loss to the
Corporation by doing any act knowingly or recklessly or with ulterior
motive by doing any act other that that set forth in Sub-section (1), such a
director or employee shall be liable to the punishment of imprisonment for
a term not exceeding One year or a fine of up to One Thousand Rupees.
(3) If any person obstructs the inspector appointed or committee
formed under Section 29 with his or her business or does not provide,
except for any reasonable reason, such document or information to the
inspector or committee as demanded, without any reasonable reason, or
commits recklessness in the provision of such document or information,
such a person shall be liable to the punishment of a fine of up to One
Thousand Rupees.
(4) If any person uses the name of the Corporation in any prospectus
or advertisement without obtaining written permission of the Corporation,
the person shall be liable to the punishment of imprisonment for a term not
exceeding Six months or a fine of up to One Thousand Rupees or with both
punishments.
(5) If any person who was the then director or general manager of
the Corporation becomes a partner in a written contract made with the
Corporation in violation of Section 18 and without making disclosure as
required under that Section and makes or attempts to make any undue
benefit in that capacity, that person shall be liable to the punishment of
imprisonment for a term not exceeding Two years or a fine of up to Five
Thousand Rupees or with both punishments.

18
(6) If the Corporation has suffered any loss or damage from any
offence punishable under this Section, the amount of such loss or damage
shall also be recovered from the offender.
34. ……………….17.
35. Powers of Government of Nepal to frame Rules: (1) The
Government of Nepal may frame Rules in order to accomplish the
objectives of this Act.
36. Power to frame Bye-laws: (1) The Corporation may frame bye-laws
subject to this Act or the Rules framed under this Act.
(2) The Bye-laws framed pursuant to Sub-section (1) shall come into
force only upon being approved by the Government of Nepal.
37. Saving: The matters set forth in this Act and the Rules framed under this
Act shall be governed by the same, and the other matters shall be governed
by the prevailing Nepal laws.
17 Repealed by the Judicial Administration Reforms (Fourth Amendment) Act, 2043.

19

Schedule
(Relating to Section 28)
Oath of honesty and secrecy

I…………………… swear that I shall honestly and with truth and faith perform
my duties in the capacity of the director or general m nager or employee or
inspector or officer of the Corporation or in relation to the affairs entrusted to my
office in the Corporation, to the best of my knowledg . I again swear that I shall
not disclose or cause to be disclosed any information relating to the Corporation to
any unauthorized person or allow any book or document relating to the
Corporation and in custody of the Corporation to any person for inspection or
receipt.