1. Good Governance
11/30/2018
By: Rohan Byanjankar

2. Corporate Governance
Corporate governance is the system of rules, practices and processes by which a company is directed and controlled. 
Corporate governance essentially involves balancing the interests of a company's many stakeholders, such as shareholders, management, customers, suppliers, financiers, government and the community.
11/30/2018
By: Rohan Byanjankar

3. What makes Good Governance?
11/30/2018
By: Rohan Byanjankar

4. Provisions Relating to Good Corporate Governance (Directives No. 6/067)
Provision relating to code of conduct to be observed by directors
Directors of the Licensed institution to observe minimum acceptable standard of Code of Conduct
Not to be Involve in activities against the interest of the licensed institution
Prohibition for part-time working
Prohibition to become Director of more than one licensed institution
11/30/2018
By: Rohan Byanjankar

5. Provisions Relating to Good Corporate Governance (Directives No. 6/067)
Provision relating to code of conduct to be observed by directors
Prohibition to misuse the position
Records and Reports to be maintained complete and accurate
Maintenance of confidentiality
Fair and Equal treatment
11/30/2018
By: Rohan Byanjankar

6. Provisions Relating to Good Corporate Governance (Directives No. 6/067)
Duties and Responsibilities of BODs
It shall select and appoint qualified and able executives by adopting appropriate Personal Administration Byelaws.
The licensed institution shall establish an Audit Committee to be headed by non- executive director
Regular internal audit shall be conducted through qualified internal auditors.
11/30/2018
By: Rohan Byanjankar

7. Provisions Relating to Good Corporate Governance (Directives No. 6/067)
Duties and Responsibilities of BODs
Supervise and monitor the activities with a higher degree of prudence and competence,
Directors may delegate authorities to employees, the ultimate responsibilities of the work of such employees lie on the director.
Directors shall keep themselves up to date with the condition of the business, its activities…
11/30/2018
By: Rohan Byanjankar

8. Provisions Relating to Good Corporate Governance (Directives No. 6/067)
Duties and Responsibilities of BODs
Directors shall be familiar with relevant laws, relating regulations, and guidelines
Professional Director of an institution shall not have subscribed the promoter share ownership of that institution
Directors shall keep themselves up to date with the condition of the business, its activities…
11/30/2018
By: Rohan Byanjankar

9. Provisions Relating to Good Corporate Governance (Directives No. 6/067)
Duties and Responsibilities of BODs
Every Director who has been elected/nominated to Bank/financial institution shall have to take an oath of office and secrecy within thirty five days from the date of his/her election/nomination.
11/30/2018
By: Rohan Byanjankar

10. Provisions Relating to Good Corporate Governance (Directives No. 6/067)
Appointment of Chief Executive
Having required professional experience in banking transaction
Having working experience at the senior level in banking and finance
Not having been declared bankrupt or convicted of an offence involving dishonesty or fraud
Not having involvement in doubtful transaction in investigation carried by NRB
11/30/2018
By: Rohan Byanjankar

11. Provisions Relating to Good Corporate Governance (Directives No. 6/067)
Appointment of Chief Executive
The Chief Executive shall not be eligible to work as an executive in other licensed institution.
BFIs Regulation Department and Supervision Department shall be informed about the appoint of Chief Executive
11/30/2018
By: Rohan Byanjankar

12. Provisions Relating to Good Corporate Governance (Directives No. 6/067)
Code of Conduct of Employees
Employees not be engaged in the activities against the interest of the licensed institutions
Permission for part time working
Prohibition to hold trusteeship
Prohibition to misuse the position
Prohibition to misuse of information
Maintenance of records and transaction
11/30/2018
By: Rohan Byanjankar

13. Provisions Relating to Good Corporate Governance (Directives No. 6/067)
Code of Conduct of Employees
Fair and Equal Treatment
Maintenance of Confidentiality
11/30/2018
By: Rohan Byanjankar

14. Provisions Relating to Good Corporate Governance (Directives No. 6/067)
Prohibition to Extend Credit to the Directors, Shareholders, Employees and Firms Related to Them
To the director and members of their undivided family
To the person, or firm in which the director or member of his undivided family is a manager, partner or agent
To the firm or company in which the director or the members of his undivided family owns share of more than 15 percent.
11/30/2018
By: Rohan Byanjankar

15. Provisions Relating to Good Corporate Governance (Directives No. 6/067)
Prohibited to be carried out by a Director, Chief Executive, Auditor, Board Secretary of bank and financial institution or by persons directly involved in management and accounting activities of bank
a) To purchase/sell of securities of the concerned bank and financial institution and its subsidiaries.
11/30/2018
By: Rohan Byanjankar

16. Provisions Relating to Good Corporate Governance (Directives No. 6/067)
Prohibited to be carried out by a Director, Chief Executive…
To pledge or accept or give in gift securities of the concerned bank and financial institution and its subsidiaries.
To allow transactions relating to the securities of the concerned bank and financial institution and its subsidiaries.
11/30/2018
By: Rohan Byanjankar

17. Provisions Relating to Good Corporate Governance (Directives No. 6/067)
Compliance with Law while recovering loans
The Concerned bank should give public notice to the concerned person or entity to replay the loan within 35 days.
Upon service of notice according to (a), concerned financial institution should recover the loan amount within the stipulated time.
11/30/2018
By: Rohan Byanjankar

18. Provisions Relating to Good Corporate Governance (Directives No. 6/067)
Compliance with Law while recovering loans
If the loan is not recovered, 100 percent provision shall be against such exposure
11/30/2018
By: Rohan Byanjankar

19. Download Unified Directives (English Version)
Source
Nepal Rastra Bank (2067). Unified Directives by Nepal Rastra Bank. Banks and Financial Institutions Regulation Department, Nepal Rastra Bank (p )
Download Unified Directives (English Version)
11/30/2018
By: Rohan Byanjankar

20. THANK YOU !!!
11/30/2018
By: Rohan Byanjankar