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,

Types of Merger Structures Permissible Under Companies & Other Business Entities Act [Chapter 24:31]

Introduction The Companies and Other Business Entities Act (hereinafter “The COBE Act”) which came into force on the 13th of February 2020 introduced a statutory merger procedure. The COBE Act was widely drafted with the aim to introduce and permit various merger structures. In this regard the provisions of section 229 of the COBE Act

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

The Solvency and Liquidity Test under the Companies and Other Business Entities Act (Chapter 24:31) – Zimbabwe

One of the major additions to the new Companies and Other Entities Act [Chapter 24:31] (hereinafter “the Act”) in Zimbabwe, is the inclusion of a solvency and liquidity test in Section 102. The previous Companies Act [Chapter 24:03] (now repealed) did not address this aspect. The solvency and liquidity test ought to be utilized by

Board Composition: The Companies and other Business Entities Act (Chapter 24:31)

The board of directors is the custodian and focal point for corporate governance. The composition of the board is therefore crucial to enable it to effectively carry out its governance role and improve corporate governance in any company. It is thus essential for all companies to strive to achieve the right mix and balance of

THE FUNCTIONS OF A COMPANY SECRETARY UNDER THE COMPANIES & OTHER BUSINESS ENTITIES ACT [CHAPTER 24:31] – ZIMBABWE

In Zimbabwe we now have a new Companies & Other Business Entities Act [Chapter 24:31] (referred to as the new Companies Act) which came into force on the 13th of February 2020. The new Companies Act requires every company to appoint at least one company secretary who is ordinarily resident in Zimbabwe (section 198(1)). It

Conflict of Interest Provisions in the Companies and Other Entities Act Chapter 24:31 – Zimbabwe

An important addition to the new Companies and Other Entities Act Chapter 24:31 (“the Act”) is the duty directors have to disclose conflict of interest. The duty has always existed under common law[1] however it is now codified in the Act, under sections 56 to 58. The regulation of directors’ conflicts of interests is a