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Author: Rojina

11. Agreement to be Concluded for Privatization

11. Agreement to be Concluded for Privatization :

(1) Prior to handing over an enterprise, an agreement shall be entered into between the offerer  and offeree specifying clearly the terms and conditions to be observed by both.
Provided, that no such agreement shall be required to be entered into where  the shares are being sold in open market to the general public, employees, and workers of the enterprise and private sector through capital markets or
any others means.
(2) The terms of payment to Government of Nepal on account of the privatization shall be clearly spelled out in the agreement to be concluded pursuant to Sub-Section (1).
( 3) The time schedule for handing over of the enterprise by Government of Nepal to the buyer and other terms and conditions that  Government of Nepal may wish to prescribe, in respect thereof, shall be clearly spelled out in the agreement to be concluded pursuant to Sub-Section (1).
(4) A brief note about the terms and conditions of the privatized enterprise shall be published within one month from the day of signing of the agreement, pursuant to Sub-Section (1) for information of the public.

12. Formation of Sub-Committee

12. Formation of Sub-Committee :

(1) The Committee may, if necessary, form Sub-Committee of experts for the purpose of privatization.
(2) The duties and functions of Sub-committee constituted pursuant to  Sub-Section (1) shall be as determined by the Committee.

13. Settlement of Disputes

13. Settlement of Disputes :

(1) If any dispute arises, in respect of any matter contained in the privatization agreement entered into between
Government of Nepal and the party participating in the privatization, such dispute shall be resolved through mutual consultation among concerned parties.
(2) If the dispute is not resolved pursuant to Sub-Section (1), such dispute, with the consent of both parties, may be referred to arbitration. The arbitration for resolving the dispute shall be conducted in accordance with
existing laws relating to arbitration or the Rules of Arbitration of the United Nations commission on International Trade Law (UNCITRAL).

(3) The venue of arbitration shall be Kathmandu and prevailing laws of the Kingdom of Nepal shall be applied in the process of arbitration.

14. Provisions Relating to Employees

14. Provisions Relating to Employees :

(1) Government of Nepal may, at the time of transferring the services of, and gratuity and other benefits
accrued to the workers to the enterprise of the new investor ensure the continuity of service of the present workers in the enterprise to be privatized.
(2) If, the continuity of service as mentioned in Sub-Section (1) could not be maintained, and thereby, the present employees and workers of the enterprise have to be retrenched, Government of Nepal may, on  recommendation of the Committee, retire such employees and workers subject to the provisions of Sub-Section (3).
(3) Where retrenchment is granted pursuant to Sub-Section (2), Government of Nepal shall on the recommendation of the Committee, arrange for reasonable compensation or benefits in respect of the present employees and workers being retired from the privatized enterprise.
(4) Government of Nepal shall make available to the present employees and worker of the privatized enterprise, shares of such enterprise free of cost or at discount price.

15. Facilities and Charges

15. Facilities and Charges :

(1) The privatized enterprises shall be entitled to the continuation of facilities given to its predecessors.
(2) While, transferring all movable and immovable assets including land of the privatized enterprise, both parties shall pay charges as per the prevailing law

16. Liquidation of Enterprises

16. Liquidation of Enterprises :

(1) If Government of Nepal in the process of privatization of any enterprise wholly owned by it finds it reasonable to
liquidate such enterprise it shall, not withstanding anything contained in the  prevalent laws, dissolve such enterprise by publishing a notification to that effect in the Nepal Gazette or shall take separate measure for such
liquidation.
(2) All arrears due to the enterprise liquidated pursuant to Sub-Section
(1) shall be recovered, in the manner, similar to the recovery of government dues.
(3) Government of Nepal , may transfer the assets and liabilities of the enterprise liquidated pursuant to Sub-Section (1) to any other body or may, on the recommendation of the Committee, grant remission in respect of the unusable property and unrecoverable liabilities.
(4) If all liabilities of the enterprise could not be fully settled from the assets of the enterprise, the residual liabilities shall be settled according to the existing laws.

18. Punishment

18. Punishment : Any person who hinders or obstructs, in any manner, the observance of this Act or the implementation of agreement concluded  here under or the process of privatization, His Majesty’s Government, may
punish such person with an imprisonment upto two months or with a fine upto five thousand rupees or both

19. Delegation of Powers

19. Delegation of Powers : The Committee may delegate some of the powers conferred on it by this Act to the chairperson, member or member-secretary, sub-committee, or any member of the sub-committee