Chapter-2 Establishment, Formation and Provision

Chapter-2 Establishment, Formation and Provision
3. Establishment of the Fund:

(1)There shall be established a Fund by the name of the “Employee Provident Fund”. The following amounts shall be credited to the Fund; and expenses shall be chargeable on the Fund for all acts and activities as required to be done under this Act or the Rules framed hereunder:
(a) All amounts provided by the Government of Nepal or other persons for financial assistance to the Fund;
(b) All amounts deducted from the salary of employees and amounts added thereto by offices 26 pursuant to this Act;
(c) All amounts realized as interest and profits on and from the amounts of the Fund;
(d) All amounts credited to the civil provident fund, military monetary fund and employee provident fund in operation by the Government of Nepal prior to the commencement of this Act; and
(e) All amounts received by the Fund.
(2) 27 All amounts of the Fund shall be deposited in the Nepal Rastra Bank or any other bank specified by the Board.
Provided however that, the amounts of the Fund shall be deposited in the Land Revenue Office or Fund and Recovery Office in a place where such a bank is not available.
(3) The Fund shall be an autonomous 28 and body corporate with perpetual succession. This body shall have a separate seal of its own for all of its activities. It may sue by its name and be also sued by the same name.
(4) The Fund may, subject to this Act and the Rules framed under this Act, acquire, keep, transfer the ownership, sell and transmit 29 any movable and immovable property, and do all such other acts as may be necessary for the
accomplishment of the objects of this Act.
(5) The Head Office of the Fund shall be situated within Kathmandu Valley 30 , and the Fund may, as and when it so wishes, open branches and Sub-branches in other places of Nepal for the operation of its business smoothly.
4 31 . Formation of the Board:

(1) The Fund shall have one Board of Directors consisting of at least Seven directors:
(2) The Board as referred to in Sub-section (1) shall have the following directors:
(a) Person appointed by the Government of Nepal -Chairperson

(b) Three persons nominated by the Government of Nepal from various
services of the Government of Nepal -Director
(c) Two persons nominated by the Government of Nepal from amongst  banks, financial institutions and other corporate bodies -Director
(d) The Administrator of the Fund -Director
(3) In nominating directors pursuant to Clauses (b) and (c) of Subsection (2),  the Government of Nepal shall nominate such directors by turn from amongst various services of the Government of Nepal, banks, financial institutions and various bodies corporate.
(4) The tenure of the directors other than the administrator shall be Three years, and upon the expiration of their tenure, they may be reappointed or re- nominated for one more term.
(5) If the office of any director falls vacant prior to the completion of the tenure, the vacancy shall be filled for the remainder of term in accordance with the same process as was followed in the filling of the office previously.
(6) Notwithstanding anything contained elsewhere in this Section, the Government of Nepal may, at any time, alter the directors elected or nominated pursuant to Sub-section (2).
(7) The meeting allowance to which directors are entitled for taking part in the meeting of the Board shall be as specified by the Government of Nepal.
(8) An officer employee of the Fund shall act as the secretary of the Board.
5. 32 Disqualification for Director: Any of the following persons shall be deemed to be ineligible to be a director of the Board:

(a) Insolvent;
(b) Insane;
(c) Convicted by a court of a criminal offense involving moral turpitude, and sentenced to imprisonment for a term exceeding Six months;
(d) Obtained a contract from the Fund pursuant to Section 28 or has been a partner in such a contract;
(e) 33 Employee serving in a post below the Gazetted First Class of the Government of Nepal or the Tenth level of a body corporate or a level equivalent thereto; or
(f) Punished under Section 29.
6. 34 Fulfillment of vacancy: (1) A director shall be relieved of the office of director in the following circumstance:
(a) If he or she tenders resignation in writing and the resignation is accepted by the Government of Nepal;
(b) If he or she absents from the meeting of the Board for more than Three consecutive meetings, without giving a notice, accompanied by the reason, to the Board, and the reason for such absence is not reasonable
in the opinion of the Government of Nepal;
(c) 35 If the directors nominated pursuant to Clauses (b) and (c) of Sub- section (2) of Section 4 ceases to serve in the concerned bodies or institutions;
(d) If another person is appointed in his or her stead by the Government of Nepal prior to the completion of his or her term; or
(e) If he or she suffers any disqualification set forth in Section 5.
(2) If the chairperson or any director is not able to perform the functions of the
Board for some time because of illness or being on leave or other reason, the
Government of Nepal may temporarily appoint another person in his or her
stead for the performance of business during that period.
6A. 36 Appointment of administrator: (1) 37 The Government of Nepal shall appoint as the administrator any one depositor (Sanchayakarta) employee serving in the First Class of the Government of Nepal, officer first class or the
tenth class of the Fund or institution or a class equivalent thereto in order to perform the daily functions in the capacity of the administrative chief of the Fund.
(2) 38 The term of office of the administrator appointed pursuant to Sub-section (1) shall be Five years and he or she shall hold office at the pleasure of the Government of Nepal.
(3) The remuneration, facilities and other conditions of service of the administrator shall be as prescribed.
7. Provision: (1) The Government of Nepal may, seeking opinion of the Board, 39 give such directions as it deems necessary to the Board from time to time.
(2) The Board shall abide by the directions given pursuant to Subsection (1) and be responsible for performing all such functions of the Corporation as required to be performed by the Fund pursuant to this Act.
(3) The Board may so delegate the powers conferred to it under this Act to the administration or any Sub-committee as may be required. The administrator may so delegate the authority of functions vested in him or her as to be
performed by his or her subordinate official and employee at his or her responsibility for the smooth operation of the functions of the Fund.
8. 40 Meetings of the Board: (1) The meeting of the Board shall be held at such date, venue and time as specified by the chairperson.
(2) Meetings of the Board shall be held at least Six times in a year, and the interval between any two meetings shall not exceed Three months.
(3) Notwithstanding anything contained in Sub-section (2), the chairperson or the administrator in the absence of the chairperson shall call a meeting of the Board at any time when at least Three directors make a request, accompanied the agenda intended to be discussed, for the same in writing.
(4) No meeting of the Board shall be held unless it is attended by more than at least Fifty percent of the directors.
(5) Meetings of the Board shall be presided over by the chairperson. In the absence of the chairman, the meeting shall be presided over by a director selected by the directors from amongst themselves.
(6) The decision of a majority in the meeting of the Board shall be binding, and, in the event of a tie, the chairperson may exercise the casting vote.
(7) Minutes regarding the names of directors present in the meeting of the Board, the agenda and the decisions taken thereon shall be recorded in a separate book.
(8) Other Rules of procedures of the meetings of the Board shall be as determined by the Board itself.
9. Power of the Government of Nepal to suspend the Board: If the Government of Nepal considers that the Board is not capable of performing the functions required to be performed pursuant to this Act, it may, by publishing a
Notification in the Nepal Gazette, suspend the Board and appoint any person or institution in the place of the Board to perform the functions of the Board pursuant to this Act and all acts and actions done and taken by such a person or  institution under this Act and the Rules framed under this Act shall be recognized as if they were done and taken by the Board pursuant to this Act.
10. ……………… 41
11. Relation between the Government of Nepal and the Fund: In making correspondences by the Fund with the Government of Nepal on matters of obtaining opinion or approval of the Government of Nepal or of submitting
any information to the Government of Nepal pursuant to this Act, such correspondences shall be made through the Ministry of Finance 42 .
11A 43 . Monitoring and Inspection of the Fund: (1) The Ministry of Finance shall, as per the requirement, carry out inspection and monitoring of the activities of the Fund.
(2) Other provision with regard to monitoring and inspection shall be as prescribed by the Ministry of Finance