(1) After the commencement of this Act, national, state and local level sports organizations may establish association, state and local level sports associations in accordance with prevailing laws.
(2) According to sub-section (1), the following criteria should be fulfilled while establishing sports association:-
(a) Only one sports association should be constituted for a sport,
(b) There should be a provision in the statutes of sports associations that one person cannot be an officer of more than one sports association at the same time,
(c) There should be a provision in the statute of the sports association that the office bearers and members of the sports association should be elected every four years according to the democratic system and that the income and expenditure of the association should be audited every year according to the prevailing law,
(d) There should be a provision to enforce the code of conduct for officials and players of sports associations,
(e) Fulfillment of other standards as specified.
(3) The sports association or organization formed according to sub-section (1) shall be autonomous.
(4) The term of office of the office bearers and members of the Sports Association established in accordance with sub-section (1) shall be four years and the office bearers of the Sports Association may be re-elected for the same position normally. Explanation: For the purpose of this section, "officer of sports association" means the president, vice-president, general secretary, secretary and treasurer of the association. (5) The following persons cannot be elected or nominated in the Sports Association:-
(a) Non-Nepali citizens,
(b) proved to have embezzled revenue, public or government property,
(c) Arrears of money received from the Council,
(d) being an employee or instructor of the Council,
(e) having been convicted of corruption, extortion, human trafficking and trafficking, sale, distribution and exportation or importation of narcotic drugs, money laundering, misappropriation of passports, kidnapping offences, organized crime or criminal offense of moral turpitude or any other criminal offense for one year or If such judgment is final, punishable by more imprisonment,
(f) If it is proved that he has absconded while representing the nation and returned later,
(g) If it is proven that the player has been sexually abused.