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Do not Distribute Bonus during Loss: Supreme Court

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Do not Distribute Bonus during Loss: Supreme Court
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May 2: The Supreme Court has issued an order to the concerned authorities to examine whether a company is in loss or profit prior to distributing bonus.

The apex court ruling comes in the wake of a writ petition filed at the SC against the interference of the Commission for the Investigation of Abuse of Authority, the Ministry of Finance and Nepal Rastra Bank against the distribution of bonus by Nepal Bank Limited.

In a response to the writ petition, a joint bench of justices of Ishwor Prasad Khatiwoda and Bam Kumar Shrestha issued the final verdict 10 months ago but the full text of the verdict was published only on Tuesday, March 2.  

It is not appropriate to distribute bonus if the institution is in loss, reads the verdict.

Earlier, when the bank was about to distribute bonus of three years in 2012/13, a complaint had been filed at the CIAA to stop the process which the complainants said was illegal. After investigation, the CIAA has issued an order to the bank to stop distributing bonus. The CIAA had also sent a copy of the order to the finance ministry and the central bank. The central bank and the finance ministry had separately written to Nepal Bank not to distribute the bonus.

Bhuwaneshwor Ghimire, central committee chair of Nepal Bank chapter of Nepal National Employees Organisation moved the SC arguing that the letters of the CIAA and the finance ministry and NRB had violated their right to receive bonus.

 

 

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