Legal System of Corporate Management in Nepal

Company, an association of people, has been established to carry out specific goals under law. The contemporary development of human world is possible only through the incorporation of the people to accomplish specific goals. It has specific organic structures i.e. Board of Directors, Management Committee, Audit Committee, other Committees etc. The meeting of Board of Director has to record in a minute, which is enforceable through the body of the company. Decision making process is unanimous; otherwise, there can be voting for decision and dissent opinion has also been recorded in the minutes. The function of Board of Directors should be endorsed by the Annual General Meeting or Special General Meeting. Annual meeting requires attendance with prescribed quorum. The financial health is examined by internal and external auditors. There should be effective control system in the company with separation of power, rule of law and check and balance.