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

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 The previous Companies Act [Chapter 24:03] (now repealed) did not address this aspect.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 BOARDROOM SERIES – PART 3: LIABILITIES OF DIRECTORS UNDER THE COMPANIES & OTHER BUSINESS ENTITIES ACT [Chapter 24:31] – ZIMBABWE

1. Introduction In Part 1 of the Boardroom Series, I highlighted the role and function of the board of directors and in Part 2 of the same series, I discussed the statutory duties of directors introduced by the new Companies & Other Business Entities Act [Chapter 24:31] (hereinafter referred to as “the new Companies Act”). Part

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),