Company Facts

A lawyer produces a useful handbook for company secretaries

By A CORRESSPONDENT

In the context of the economic liberalization process Nepal has embarked on for more than a decade, companies have come to play a very important role in national life. Ranging from small family or partnership concerns to the faceless multinational corporation, private companies have been making their presence felt in many shapes and forms.

With the restoration of multiparty democracy and the acceleration of economic reforms, the number of private companies has increased drastically. So have the nature and scope of legal and other complications private companies have to face in day-to-day affairs.

At a time when company secretaries and other entrepreneurs have been facing a paucity of law books, advocate Trilochan Gautam's new volume on company law has come out as a vital aid. In an effort to define the role of the company secretary, Gautam explains various clauses of the company law and how they affect the business environment. Although a growing number of companies are registered in the country each year, Nepal has yet to adopt modern methods of management. A large part of this weakness rests on the absence of appropriate body of literature on the subject.

Since private companies have to deal with many complications in the course of their operations, entrepreneurs require reading material on various facets of company law and their implications for their firms. "Company law is a well recognized subject in the legal curriculumÖ and its exact scope is vague since the word company has no strictly legal meaning," says Gautam.

From the nature of companies to a historical perspective of their growth, Gautam has taken special pains to explain the relevant elements in detail. A company is an institution like the state, which requires an act like the constitution to define its role and functions.

Despite the nascent history of companies, Nepal has many laws and regulations governing their operations. Following the restoration of democracy, the government introduced a new Company Act, which comprises many clauses that conform to international standards and practices. As Nepal proceeds to harmonize itself with the international norms of commercial activities, the role and functions of companies will go on  hanging in significant ways.

In his book, Gautam also discusses cases and complexities of legal and other issues. While rules and regulations have changed, secretaries often have trouble because they are not familiar with their consequences and implications. Gautam's effort to explain the basic laws and regulations that are critical to solving day-to-day problems in companies is commendable.

Gautam cites many cases to illustrate how complicated managing a company can be. Apart from dealing with the complexities of the Company Act, the author also discusses the important role of company secretaries. Gautam also discusses arbitration and other methods of settling disputes.

Gautam cites international principles and theories in such areas as dissolution of companies and mechanisms for settling internal disputes. This book should prove useful to students, lawyers, company shareholders, law teachers and company members alike. As it is written in Nepali, it can be expected to fulfil the needs of a wider audience.

Company Act and Working Modalities of Company Secretary 
By Trilochan Gautam
Price: Rs 350
Publisher: Trilochan Gautam
Distribution: Pairabi Books and Stationary Center, Putalisadak,
Kathmandu
Pages: 349