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Section 5
Formation of District Co-operative Union
: In order to support the development, promotion and marketing of cooperative business, at least fifteen organizations or district-related cooperative unions registered according to Section 15 may form a District Co-operative Union. But,
(1) At least seven organizations in the districts of the remote areas designated as 'A' category by the Government of Nepal can form a district cooperative association.
(2) While forming the association in this way, more than fifty percent of the registered cooperative associations should be included across the district.