(1) The initial authorized share capital  of the Authority shall be as prescribed by Government of Nepal by notification in the Nepal Gazette, and such capital shall be divided into shares in the number as prescribed therein.
(2) The Authority may increase or reduce its initial authorized share capital with the permission of Government of Nepal and in case the Share
Capital of the Authority is reduced, the nominal value of the Share Capital, shall also be reduced in proportion to the Share Capital.
(3) Only the shares left unsubscribed after the purchase of shares by Nepal Government from among those issued by the Authority shall be offered
for public sale.
(4) The liability of shareholders of the Authority shall be limited.
(5) Each share shall be indivisible, and each shareholder shall be entitled to cast one vote for each share subscribed by him/her at the general
meeting of shareholders,
 5A. Power to purchase shares
: The Authority may purchase share of industries connected with Electricity in accordance with the resolution passed by the general meeting after arrangements have been made for such meeting, and with the approval of Government of Nepal until arrangements are made for such meeting.