(1) Bank has to publish in public the report of management auditing or auditing within one year of the control of the commercial bank or financial institution which declared problematic under the provision of Clause (o) of Sub-Section (1) of Section 86C either conducted itself or by others.
(2) Whatever may be mentioned in the Companies Act or any other prevailing law, on the basis of the management auditing or auditing report under Sub-section (1) if bank convinced that the controlled commercial bank or financial institution can operate properly it can carry out following corrective actions as per necessity:-
(a) Issue order to manage and operate the transaction to the board of director by releasing the suspension order issued under the provision of Clause (o) Sub-Section (1) of Section 86C,
(b) Assign the management and operation of transaction to the new board of director formed among the shareholders of such commercial bank or financial institution by removing suspended board of director under the provision of Clause
(o) of Sub-section (1) of Section 86C,
(c) Call or cause to call the general meeting of the shareholders of such commercial bank or financial institution to elect the new board of director for the management and operation of transaction after removing suspended board of director under the provision of Clause (o) of Sub- section (1) of Section 86C, or
(d) Carry out any other corrective measures, which the bank thinks appropriate.
(3) Bank by public notice may issue the order to implement or cause to implement the following actions on the basis of the management audit or account audit report under Sub-section (1) or report of the official appointed by the bank.
(a) To sale, distribute and transfer of shares of any shareholders to the proper person to whom bank think, in the price determined by the committee constituted having representation from the Securities Board Nepal, Chartered Accountant Association Nepal and other outside expert being based on the criteria determined by the bank.
(b) Transfer or cause to transfer partially or fully the assets and liabilities of the problematic commercial bank or financial institution to any commercial
bank, financial institution or any other body being based in the terms and criteria determined by the bank.
(c) To merge partially or fully the assets and liabilities of the problematic commercial bank or financial institution with any commercial bank, financial institution or any other body which bank may think proper, being based in the limitation of the Section 86J.
(d) To establish or cause to establish new commercial bank or financial institution in the investment of the Government of Nepal which also get the assets and
liabilities of problematic commercial bank or financial institution under the provision of Section 86J and 86K.
(4) Bank can confiscate the shares which are not sold, distributed and transferred because of any reason under Clause (a) of Sub-section (3), and bank can sell, distribute and transfer such share any manner which it think proper to any body with the advise of the committee constituted under Clause (a) of Sub-section (3).
(5) Bank may provide reasonable opportunity of hearing to the
stakeholder about the proposed issue before taking any decision against any commercial bank or financial institution under Sub-section (3). Provided that, if the bank feels that prior opportunity of hearing can make negative effect to the interest of such commercial bank or financial institution, its depositors, shareholders, creditors or general public, the bank can provide opportunity of hearing as soon as possible after making such decision and if the bank satisfied with the reason and basis presented during the time of hearing it can change or repeal the decision as per necessity.