Zimbabwe to amend Companies Act

Zimbabwe to amend Companies Act
Published: 18 January 2018
THE Ministry of Justice, Legal and Parliamentary Affairs has drafted amendments to the Companies Act (Chapter 24:03), which will soon be tabled before Parliament as government seeks to reform laws that inhibit doing business.

Zimbabwe is ranked 159 among 190 countries in the ease of doing business on the latest World Bank annual ratings.

Since taking over power in November from former president Robert Mugabe, President Emmerson Mnangagwa has made several overtures aimed at attracting capital into the country. He has also undertaken to relax the country's local ownership law, which were considered to be a major hindrance to foreign investment.

Justice Minister, Ziyambi Ziyambi, said amendments to the Companies Act would be done within the 100 day targets set by the new President to reshape the country's economic terrain.

"The new government has prioritised the economic turnaround of the country in the shortest possible time and already we will soon be tabling the Companies Amendment Bill before Parliament," said Ziyambi in an interview with The Financial Gazette.

"The current piece of legislation is outdated and makes it cumbersome for one to bring investment into the country, which is one of the reasons which chases away investors. We want to do this as soon as possible in the first 100 days which were proclaimed by the President to ensure that there is economic turnaround," added Ziyambi.

Currently, the procedures of starting and operating a business are considered to be relatively cumbersome, while the costs are regarded as punitive.

The proposed amendments will entrench a culture of good corporate governance in light of several bank failures attributed to poor oversight by directors. It also provides for electronic records filing and combines the Private Business Corporations Act and the Companies Act.
- fingaz
Tags: Ziyambi,


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