What are the legal duties of company directors in Nepal?

Corporate & Company Law

Company directors are responsible for acting within the company’s objectives, complying with the Companies Act and the company’s constitutional documents, protecting company records, making required disclosures and ensuring statutory information is submitted on time.

Key responsibilities

Directors should:

  • act within the company’s lawful objectives;
  • follow the Memorandum and Articles of Association;
  • safeguard company records;
  • maintain proper governance and decision records;
  • make required disclosures of interests;
  • submit required information to OCR and other authorities;
  • avoid misuse of authority or company property;
  • act in the interests of the company.

OCR’s own FAQ states that directors are responsible not only for operating the company according to its objectives, but also for preserving documents and ensuring legally required information is filed with OCR and other bodies.

Liability

A director can face personal consequences where the Companies Act or another law imposes responsibility for misconduct, failure to file, bad faith or unauthorized actions.

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