Voluntary Corporate Rescue as a lifeline for distressed businesses – Zimbabwe

It is common economic parlance, that there are worldwide supply chain problems. The war in Europe and other global issues have resulted in higher inflation and an increasingly uncertain economic outlook, which has negatively affected companies globally, and specifically in Zimbabwe.  In addition, research from Morgan & Co, published in their Economic Outlook Report 2023,

Corporate Governance in Microfinance in Zimbabwe

On the 6th of January 2023, the Registrar of Microfinance Institutions (hereinafter ‘the Registrar’) released a press statement highlighting that following an onsite examination of the Zimbabwe Women’s Microfinance Bank Limited in December 2022, corporate governance weaknesses were identified at the institution. This is not the only institution that has been found wanting, in corporate

Board evaluations for effective governance in Zimbabwe

The idea of self-assessment is one that is uncomfortable to many individuals. It is a daunting task because of the fear of discovering inadequacy or some other insufficiency during the process. More so for those individuals in the public eye or those held with high regard in society, as they are more likely to suffer

Landlords granted right of automatic cancellation in breach by the Supreme Court

On the 25th of October 2022, the Supreme Court of Zimbabwe handed down a seminal judgment in the case of Rolen Trading (Private) Limited v Parkside Holdings (Private) Limited SC 106/2022. In the judgment the Court held, amongst other things, that where there is a written lease agreement with set dates on which rent should

Law on Guarantees in Zimbabwe

In this week’s blog post we discuss Zimbabwean law on contracts of guarantee. What is a contract of Guarantee? In simple terms a guarantee contract is an autonomous agreement between the guarantor and the creditor. It is essentially a promise by one party (the “guarantor”) that a second party (the “principal debtor”) will fulfil his

Essentials of a Partnership Contract in Zimbabwe

In this week’s blog post we discuss partnership agreements, essential clauses and guidelines for registration. What is a partnership agreement? A partnership contract is a document which outlines the way a business partnership will be run. In terms of the Companies and Other Business entities Act, in Zimbabwe a partnership may have between 2 and

CONTRACT LAW IN ZIMBABWE – Key Differences between contracts regulating employee and independent contractor

We are currently doing a series titled “Contract Law in Zimbabwe”. This week we look at the key differences between employment contracts and a contract in which an independent contractor is engaged. We also consider how the courts in Zimbabwe determine which category the contract falls under, between the two. As well as potential risks

Smart contracts – viable solution for secure contracting in the Corona Virus Era

With the dawn of corona virus, having parties meet to sign contracts poses potentially serious health risks and resultantly delays in the finalization of transactions. Although parties may elect to sign the documents electronically, the security and reliability of electronic signatures may lead to unnecessary and protracted disputes. A potential solution lies in the adoption

Shareholders role in Corporate Governance under the Companies and Other Business Entities Act [Chapter 24:31] in Zimbabwe

[i] Author – Beatrice Moyo Corporate governance is the practice by which companies are managed and controlled to ensure responsible behaviour of the company, and to achieve maximum level of efficiency and profitability. Corporate governance seeks to, amongst other things, balance the interests of internal and external stakeholders, one of the material stakeholders, being the