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A legal opinion has been made public concluding that there are no legal obstacles in the process of transforming the Independent Power Producers’ Association, Nepal (IPPAN) into a federation.

In a detailed legal opinion provided by Advocate Homkant Chaulagain, it is stated that IPPAN’s 23rd Annual General Assembly, statute amendment, and the process of converting into a federation can be carried out in accordance with prevailing laws and the organization’s statute.

IPPAN had decided during its 21st Annual General Assembly held on 6th June 2023, to amend and rewrite its existing statute. Following that decision, a committee was formed under the coordination of advisor Bhanubhakta Pokharel, including Advocate Homkant Chaulagain, organizational representatives, and experts, to carry forward the statute amendment and rewriting process.

According to the legal opinion, during the amendment process, discussions were held with various stakeholders, legal consultations were carried out, and suggestions were collected before finalizing the revised draft. Consultations were also held with energy experts, former chairpersons, office bearers, and legal professionals.

Proposal for Federation Transformation

The opinion states that a proposal to transform IPPAN into a “federation” has also been advanced. This includes a concept to incorporate women, private sector, and various energy-related organizations under a new structure.

In this context, IPPAN had raised four main legal questions:

- Whether there is any legal obstacle to holding the AGM and convention on time.

- Whether meetings can be held even if the organization is not renewed.

- What is the legal status if federation transformation is not recorded at the District
Administration Office.

- Whether there is any legal obstruction if the president himself has already proposed the convention.

No Legal Obstacle to Holding AGM

Advocate Chaulagain’s opinion states that since holding an annual general meeting is a mandatory obligation under the statute, there is no legal obstruction to conducting the AGM and convention on the scheduled time.

It further states that once the executive committee has decided and issued public notice, there is no legal basis to stop the AGM. Since the general assembly is the supreme body of the organization, it holds the authority to make necessary decisions.

AGM Can Be Held Even Without Renewal

The legal opinion also clarifies the issue of renewal. It states that even if the organization was not renewed in fiscal year 2024/25, it does not prevent holding the AGM.

According to the law, the organization can complete renewal by submitting required documents, audit reports, and paying penalties after conducting the AGM. Therefore, lack of renewal is not a valid reason to stop the AGM or convention.

Federation Decision is Valid

The opinion states that even if the decision to transform IPPAN into a federation made by the 23rd AGM was not immediately recorded at the District Administration Office, it cannot be considered invalid.

Since the general assembly is the supreme decision-making body, implementation responsibility lies with the executive committee. Administrative recording can be completed later, and therefore validity of the decision cannot be questioned solely on that basis.

President’s Proposal Cannot Stop Convention

In its final conclusion, the legal opinion states that since the IPPAN president himself proposed the federation agenda, the executive committee approved it, and the convention has already been called, there is no legal basis to stop it.

It further states that under the statute, annual general meetings and conventions must be conducted as regular processes and cannot be postponed on the basis of disputes.

This legal opinion, issued at a time when the issue of transforming IPPAN into a federation has become a subject of internal debate, concludes that the proposed process is legally valid.

Jalasarokar