(1) A Board of Directors shall be formed in order to operate or cause to operate the necessary programme smoothly to carry out the objectives of the Fund and to monitor and manage the entire acts and activities of the Fund.
(2) The board shall consist of the following members;
(a) Secretary, Ministry of housing and physical planning or a person designated by the Government of Nepal from among those who has special knowledge in the field of town development Chairperson
(b) Representative (Gazetted first class) from the Ministry of Finance Member
(c) Representative (Gazetted first class) from the Ministry of Local Development Member
(d) Five persons nominated by the Government of Nepal from amongst the mayors of Municipalities to be represented Five Development Regions Member
(e) Two persons nominated by the Board from amongst the economists having expertise in the
field of the operation of financial institution or among technicians serving in the field of town
development who holds a bachelor degree in engineering or amongst the persons who
represent the institution related to town development Member
(f) Executive director Member- secretary
(3) The tenure of the members nominated pursuant to Clause (d) or (e) of Sub-section (2) shall be two years. If the post of a nominated members falls vacant prior to the expiry of his/her term, the post shall be
filled for the remaining period following the same process which was initially followed to fulfill the post.
(4) The Board may, if it deems necessary, invite any national or foreign expert, an advisor or a renounced person engaged in the functions of town development as an observer to take part at the meeting of the Board.