Kathmandu. The Electricity Regulatory Commission (ERC) is preparing to issue the Standards on Corporate Good Governance of Licensed Institutions, 2082. The commission has also prepared a draft for the same. It has urged the stakeholders to provide their opinions, suggestions, suggestions and feedback within a month.

According to the draft, the licensed institution should ensure that there is no representation of all categories of shareholders including at least one woman director in the case of the board of directors of the licensed institution where there is a woman shareholder.

No more than 1 person from the same family will be allowed to become a director in the same period. If the post of director remains vacant for any reason, it cannot be kept vacant for more than 35 days. “A licensed organization should not allow more than one person from the same family to be represented on the board of directors during the same period.”

Similarly, the organization has set conditions for the appointment of an independent director. The licensed entity may appoint a person who has at least 10 years of experience in the field of company management or has at least ten years of experience in the work related to company management or has at least a bachelor’s degree in law, finance, finance, management, accounting statistics or administration as an independent director ।

As such, a person appointed as an independent director shall not be appointed as the chairman or managing director of a licensed body of the company or a similar executive position. Similarly, a person owning 1 percent or more shares of a licensed entity or a member of his or her family member or close relative shall not be eligible to be an independent director.

It is stated that the organization should determine the areas to be spent by coordinating with the commission before spending the amount under social responsibility. The draft also includes the issue of procurement bylaws and procurement process. The licensed institution shall prepare and implement procurement bye-laws following the basic principles and provisions related to public procurement to make the procurement process transparent and competitive.

Provision shall be made to prohibit the company, firm or joint venture company or institution directly or indirectly associated with the project constructed or operated by the licensee to participate in the construction, consultancy service or supply of goods.

The organization has to prepare bylaws for the employees, make public its financial and financial status from time to time and submit details related to its performance to the commission within 3 months of the end of the fiscal year.