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

Board Inductions in Zimbabwe

Boards of directors comprise individuals from different backgrounds and with a variety of qualifications, who are appointed to use their different skills to ensure the efficient and responsible management of the company. It is therefore imperative that all board members understand the role of a board generally, their specific role on the board and what

Corporate Governance: Putting The Role of the Chairperson Into Perspective

While the role of Chairperson has become increasingly important as a result of the increasing pace, size and complexity of business activity globally, most directors only have a vague understanding of what the Chairperson’s job actually entails. From a legal perspective, Zimbabwe’s Companies and Other Business Entities Act does not provide any definition of the

The Evolving Role of a Company Secretary in the 21st Century

The traditional role of a company secretary has always been known as one of providing guidance to the board of directors with respect to their duties and responsibilities, ensuring that the company complies with all relevant laws and regulations and preparing minutes for board meetings and shareholder meetings, among other statutory duties. However, over the

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

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

Zimbabwean National Code on Corporate Governance – What you need to know

History Published in April 2015, the National Code of Corporate Governance of Zimbabwe (“ZimCode”) is the first national corporate governance code for private and state-owned companies. Prior to this code, corporate governance in Zimbabwe was regulated by the Companies Act (Chapter 24:03)(now repealed), the Zimbabwe Stock Exchange Act (Chapter 24:18) (“ZSE”) listing requirements (now repealed),