COMPANIES AND OTHER BUS. Normal ACT - veritaszim

Companies and Other Business entities

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Cap. 24:31 No. 4/2019

COMPANIES AND OTHER BUSINESS ENTITIES ACT [CHAPTER 24:31]

ARRANGEMENT OF SECTIONSS

CHAPTER I

Preliminary and administration

PART I

Preliminary

Section 1. Short title and date of commencement. 2. Interpretation. 3. When persons deemed to be associates and when persons deemed to control

companies 4. Non-application of Act to certain institutions. 5. Registrable business entities.

PART II

administration

6. OfficefortheRegistrationofCompaniesandOtherBusinessEntities;Registrar,registries and inspectorate.

7. FundsofCompaniesOffice. 8.AnnualandotherreportsofCompaniesOffice. 9. Form of registers and other documents. 10. Forms and tables and application of certain Schedules and licences. 11. Registrar’s power to refuse registration. 12. Extensionoftimeforlodgingreturns,etc. 13. Proofofcertainfactsbyaffidavit. 14. Inspection and copies of documents inCompaniesOffice and production of

documentsinevidence. 15. Additional copies of returns or documents. 16. Replacement of lost documents. 17. ExemptionfromliabilityforactsoromissionsofCompaniesOfficeandpersons

employed therein.

CHAPTER II

Provisions Common to ComPanies and Private Business CorPorations

PART I

General

18. Registrationofconstitutivedocuments. 19. Incorporationofcompaniesandprivatebusinesscorporationsandcapacityand

powers thereof. 20. Effect of registration of constitutive documents and limitation of liability of

membersofcompaniesandprivatebusinesscorporations.

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This Act was gazetted in a Government Gazette Extraordinary dated 15th November 2019.

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Accepted set by Gladys

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21. Availabilityandpublicityofconstitutivedocuments. 22. Noconstructivenoticeofconstitutivedocumentsorotherpublicdocuments. 23. Copiesofconstitutivedocumentstoembodyalterations. 24. Presumptionofregularity;liabilitynotaffectedbyfraud. 25. Prohibition of undesirable name. 26. Change of name. 27. Statement of objects of registered business entity and effect thereof. 28. Provisionsinconnectionwithuseofnamesbyregisteredbusinessentities. 29. Lawful use of assumed names by registered business entities. 30. Publication of directors’ or members’ names. 31. Postaladdress,electronicmailaddressandregisteredoffice.32. Ratificationofcontracts. 33. Form of contracts. 34. Promissory notes and bills of exchange. 35. Execution of documents domestically and in foreign countries. 36. Officialsealforuseinforeigncountries. 37. Authentication of documents.

PART II

insPection and investiGation

38. Purposesofinspectionsandinvestigationsandpowersinconnectiontherewith.39. InvestigationbyRegistrar. 40. Investigationonrequestofminorityshareholders. 41. Investigationtodetermineownershiporcontrol. 42. Investigationofregisteredbusinessentity’saffairsinothercases. 43. Power of inspectors to investigate related registeredor unregisteredbusiness

entities. 44. Productionofrecordsandevidenceoninvestigation. 45. Registrar’s report. 46. Proceedings on Registrar’s report. 47. Expensesofinvestigationofaffairsofregisteredbusinessentity. 48. Powertorequireinformationastoholdersofshares,debenturesorinterests. 49. Powertoimposerestrictionsonshares,debenturesorinterests. 50. Savingforlegalpractitionersandbankers. 51. Reportfollowinginvestigationtobeevidence.

PART III

defunct Business entities

52. Strikingoffofdefunctbusinessentitiesfromregisterandremedyforpersonsaggrievedbystrikingoff.

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53. Undistributed property of dissolved or defunct company or private businesscorporation: bona vacantia orders

PART IVcommon Provisions RelatinG to fiduciary duties, remedies and LeGal

ProceedinGs

Subpart A: Duties of office bearers of companies and private business corporation

54. Duty of care and business judgment rule. 55. Duty of loyalty.

Subpart B: Duty of loyalty – conflicts of interest 56. Transactionsinvolvingconflictofinterest. 57. Dutytodiscloseconflictofinterest. 58. Avoidanceandotherremediesforconflict-of-interesttransactions.

Subpart C: Other legal proceedings and remedies 59. Power of court to grant relief to defendants or potential defendants in certain cases 60. Direct actions by members. 61. Derivativeactionsbymembersonentity’sbehalf. 62. Courtremediesindeadlock,fraud,oppressionandothersituations;piercingthe

corporateveil. 63. Security for costs. 64. Serviceofdocuments. 65.Allegationsofvoidness,impropriety,etc.byregisteredbusinessentities.

Subpart D: Indemnification and insurance 66. Indemnificationandinsuranceofpersonsreferredtoinsections54,55and57.

PART Voffences and defaults common to ReGistered Business Entities

67. Penalties for false statements and oaths. 68. Fraudulent,recklessorgrosslynegligentconductofbusiness. 69. Fraudulent, reckless orwilful failure offinancial accounting; falsification of

records. 70. Power to restrain fraudulent persons from managing companies or controlling

PBCs. 71. Unlawful personation and misrepresentation in relation to shares and interests. 72. Obligationtomaintainandfilebeneficialownershipinformation.73. Prohibitionofconcealmentofbeneficialownership.74. Indemnityandcivilandcriminalliabilityofofficersandauditorsofcompanies

andmembersofPBCs.

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CHAPTER III

comPanies

PART I

introduction

Sub-Part A: Incorporation of companies and matters incidental thereto 75. Prohibition of association or partnership exceeding twenty persons. 76. Mode of forming company. 77. Memorandum of company. 78. Signing of memorandum. 79. Alteration of memorandum. 80. Groupvotingonamendmentstomemorandum. 81. Articles of association and alteration thereof. 82. Power to dispense with “Limited” in certain cases.

Sub-Part B: Membership of company 83. Membershipofcompany;personalliabilitywherebusinesscarriedonwithno

members. 84. Membership of holding company.

Sub-Part C: Private companies 85. Definitionofprivatecompanyandconsequencesofdefaultincomplyingwith

conditionsforprivatecompany.86. Statementinlieuofprospectusonceasingtobeprivatecompany.

Sub-Part D: Co-operative companies

87. Definitionofco-operativecompanyandconsequencesofdefaultincomplyingwithconditionsforco-operativecompany

88. Co-operativecompanytomaintainreservefund.

89. Votingrightsofmembersofco-operativecompany.

90. Applicationofsurplusassetsonliquidationofco-operativecompany.

91. Special method for reduction of share capital.

92. Disposalofproduceofmemberstoorthroughco-operativecompany.

93. Sharesorinterestofmembers:chargeandset-off,andimmunityfromattachmentor sale in execution.

94. Companyceasingtobeco-operativecompany.

PART II

share caPital and deBentures

Sub-Part A: General nature of share capital of companies

95. Legalnatureofsharesandrequirementtohaveshareholders.

96. Authorisation for shares.

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97. Preferences,rights,limitationsandothershareterms.

98. Issuing shares.

99. Subscriptionforadditionalsharesinprivatecompanies.

100. Consideration for shares.

101. Options for subscription for shares or debentures.

102. Solvencyandliquiditytest.

Sub-Part B: Prospectus 103. Dating of prospectus. 104. Matters to be stated and reports to be set out in prospectus. 105. Expert’s consent to issue of prospectus containing statement by him or her. 106. Registration of prospectus.107. Non-registrationof prospectus; unapproved alterationof termsmentioned in

prospectus or in statement in lieu of prospectus.108. Civilliabilityformisstatementsinprospectus. 109. Criminal liability for misstatements in prospectus.110. UnderwritingcontractandaffidavittobedeliveredtoRegistrar. 111. Document containing offer of shares or debentures for sale to be deemed to be

prospectus.112. Interpretationofprovisionsrelatingtoprospectus. 113. Construction of references to offering shares or debentures to public. 114. Restrictions on offering shares for subscription or sale.

Sub-Part C: Allotment115. Prohibitionofallotmentunlessminimumsubscriptionreceived. 116. Prohibition of allotment in certain cases unless statement in lieu of prospectus

deliveredtoRegistrar. 117. Effect of irregular allotment.118. Allotmentvoidableifapplicationformnotattachedtoprospectus. 119. Application for and allotment of shares.120. Allotmentofsharesanddebenturestobedealtinonstockexchange. 121. Register and return as to allotments.

Sub-Part D: Commissions and discounts 122. Power to pay certain commissions and prohibition of payment of all other com-

missions,discounts. 123. Financial assistance by company for purchase of its own or its holding company’s

shares.

Sub-Part E: Issue of shares at premium or discount and redeemable preference shares

124. Application of share premiums. 125. Power to issue shares at a discount.

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126. Power to issue redeemable shares.127. Financing at redemption.128. Power of company to purchase own shares.129. Authorityrequiredbycompanytopurchaseitsownshares.130. Cession or renunciation of rights.131. Payments for rights to purchase or for release thereof.132. Disclosure by company of purchase of own shares.133. Capitalredemptionreserve.134. Effect of failure by company to redeem or purchase shares

Sub-Part F: Miscellaneous provisions as to share capital135. Power of company to arrange for different amounts being paid on shares.136. Reserveliabilityofcompany.137. Capitalisation shares.138. Distributions must be authorised by board.139. Existingshareholders’rightoffirstrefusaltonewshares.140. NoticetoRegistrarofconsolidationofsharecapital,conversionofsharesinto

stock.141. Notice of increase of share capital.142. Payment of interest out of capital.143. Variation of rights attaching to shares.

Sub-Part G: Reduction of share capital144. Special resolution for reduction of share capital.145. Applicationtocourttoconfirmorder,objectionsbycreditors.146. Orderconfirmingreduction.147. Registration of order and minute of reduction.148. Liability of members in respect of reduced shares.149. Penalty for concealing name of creditor.

Sub-Part H: Transfer of shares and debentures, evidence of titles, etc.150. Numbering of shares.151. Transfer of title to shares and debentures.152. Prohibition of bearer shares.153. Evidenceoftitletoshares.154. Creationandregistrationofdebentures;contractstosubscribefordebentures.155. Register of mortgages and debentures and register of debenture holders.156. Branchregistersofdebentureholders.157. Power to re-issue redeemed debentures in certain cases.

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PART III

manaGement and administration of comPanies

Sub-Part A: Restrictions on commencement of business and register and index of members

158. Restrictions on commencement of business.159. Register and index ofmembers and use of register as presumptive proof of

membership.160. Inspection of register and index.161. Power to close register.162. Power of court to rectify register.163. Trusts in respect of shares.164. Powertokeepbranchregisterinforeigncountries.

Sub-Part B: Annual return and meetings and proceedings165. Annual return to be made by company.166. Statutory meeting and statutory report.167. Annual general meeting.168. Conveningofextraordinarygeneralmeetingonrequisition.169. Length of notice for calling meetings.170. Generalprovisionsastomeetingsandvotesandpowerofcourttoordermeeting.171.Proxiesandvotingonpoll.172. Procedure for compulsory adjournment.173. Representation of body corporates at meeting of company and of creditors.174. Circulation of members’ resolutions.175. Special resolutions.176. Written resolutions.177. Resolutionsrequiringspecialnotice.178. Registration and copies of special resolution.179. Resolutions passed at adjourned meetings.180. Minutes of meetings of members.181. Inspection of minutes.

Sub-Part C: Accounts and audit182. Keepingoffinancialrecords.183. Statement offinancial position and statement of comprehensive income and

financialyearofholdingcompanyandsubsidiary.184. Generalprovisionsastocontentsandformoffinancialstatements.185. Meaningofholdingcompany,subsidiaryandwhollyownedsubsidiary.186. Obligation to lay group accounts before holding company.187. Form and contents of group accounts.

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188. Accounts and auditor’s report to be annexed to signed statement offinancialposition.

189. Directors’reporttobeattachedtostatementoffinancialposition.190. Righttoreceivecopyofstatementoffinancialpositionandauditor’sreport.191. Appointment,remuneration,duties,powersandremovalofauditors.192. Disqualificationsforappointmentasauditor.193. Auditor’s report.194. Construction of references to documents annexed to accounts.

Sub-Part D: Directors and other officers195. Directors and their functions and responsibilities.196. Directors acting other than in person at meeting.197. Liabilityofdirectorsandprescribedofficers.198. Companysecretary:functions,qualificationsanddisqualifications.199. Restrictionsonappointmentoradvertisementofdirector;sharequalificationsof

directors.200. Disqualificationforappointmentasdirector.201. Appointmentofdirectorstobevotedonindividually.202. Removalandresignationofdirectors.203. Vacancies on board of directors.204. Quorumandvoterequired.205. Minutes of meeting of board and committees.206. Independentdirectorsrequiredforpubliccompanies.207. Shareholderapprovalofdirectors’emoluments.208. Prohibitionoffinancialassistancetodirectors.209. Approvalofcompanyrequisiteforpaymentbyittodirectorforlossofoffice.210. Approvalofcompanyrequisiteforpaymentinconnectionwithtransferof its

propertytodirectorforlossofoffice.211. Dutyofdirectortodisclosepaymentsforlossofoffice,madeinconnectionwith

transfer of shares in company.212. Provisionssupplementarytosections209,210and211.213. Register of directors’ share holdings.214. Prohibition of allotment of shares to directors save on same terms as to all

members,andrestrictiononsaleofundertakingsbydirectors.215. Particulars in accounts of directors’ salaries and pensions.216. Particularsinaccountsofloanstoofficers.217. Register of directors and secretaries.

Sub-Part E: Responsibilities of boards, audit committees of public company and corporate governance guidelines for public companies

218. Board’sroleandresponsibilities.219. Audit committee of public company.

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220.Corporategovernanceguidelinesforpubliccompanies.221.Officersofcompany.

Sub-Part F: Protection of minority shareholders222. Meaning of “member” and “company” in sections 223 to 225.223. Order on application of member.224. Order on application of Registrar.225. Powers of High Court in applications under sections 223 to 224.

Sub-Part G: Mergers etc.226. DefinitionsinChapterIIPartIII(G).227. Powertoundertakemergersandmajorassettransactions.228. Procedure for merger.229. Contents of contract of merger.230. Independentfinancialopinion.231. Effect of merger.232. Procedure for major asset transactions.233. Dissenting shareholders appraisal rights.

Sub-Part H: Takeovers234. DefinitionsinSub-PartH.235. Disclosureofpotentialcontrolacquisition.236. Acquisitionofcontrolblockofsharesofpubliccompany.237. Offer for remaining shares.238. Drag-along:rightofofferorwith90%tosqueezeoutminority.239. Tag-along:rightofminoritytosellouttoofferorhaving90%.

PART IV

foreiGn comPanies

Sub Part A: General240. DefinitionsinChapterIIIPartIV(A).241. Requirementsastoforeigncompanies.242. Furtheradministrativedutiesofforeigncompany.243. Exemption in respect of transfer duty.

Sub-Part: B Prospectuses of foreign companies244. Provisionswithrespecttoprospectusofforeigncompany.245. Contents of prospectus.246. Provisionsastoexpert’sconsentandallotment.

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CHAPTER IV

Private Business corPoration and other Business entities

PART I

Private Business corPorations

Sub-Part A: Incorporation of private business corporations and matters incidental thereto

247. Formation.

248. Incorporation statement, signing thereof and registration of private businesscorporation.

249. Registration of amended incorporation statement.

250. Conversionofprivatebusinesscorporationintocompany.

251. Conversionofcompanyintoprivatebusinesscorporation.

Sub-Part B: Members

252. Numberofmembers;commencementandterminationofmembership.

253.Requirementsformembership.

254. Members’ contributions.

255. Cessation of membership by order of court.

Sub-Part C: Members’ interests

256. Nature of member’s interest.

257. Certificateofmember’sinterest.

258. Acquisitionofmember’sinterestbynewmember.

259. Disposalofinterestofinsolventmember.

260. Disposal of interest of deceased member.

261. Other disposals of members’ interests.

262. Maintenance of total members’ interests.

263. Acquisitionbyprivatebusinesscorporationofmembers’interests.

264. Financialassistancebyprivatebusinesscorporationforacquisitionofmembers’interests.

Sub-Part D: Management and administration265. Powerofmemberstobindprivatebusinesscorporation.266. Bylaws.267. Variable rules for management.268. Meetings of members.269. Protection against unfair prejudice.270. Restriction on payments to members.

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Sub-Part E: Accounting

271. Financial records.

272. Financial year.

273. Annualfinancialstatements.

274. Examinationoffinancialstatementsandreportthereon.

275. Dutiesofaccountingofficer.

276. Accountingofficer’srightofaccesstorecords,etc.,andtoconvenemeetings.

277. Terminationofaccountingofficer’smandate.

PART IIother Business entities

278. Voluntaryregistrationofpartnershipagreements,etc.

CHAPTER V

electronic reGistry

279. Interpretation in Chapter V.280. Establishment of electronic registry.281. Useofelectronicdatagenerallyasevidence.282. User agreements.283. Registration of registered users and suspension or cancellation of registration.284. Digital signatures.285. Production and retention of documents.286. Sending and receipt of electronic communications.287. Obligations,indemnitiesandpresumptionswithrespecttodigitalsignatures.288. Alternativestoelectroniccommunicationincertaincases.289. Use of electronic registry otherwise than for business entity registration.290. Unlawful uses of computer systems.291. Restrictions on disclosure of information.

CHAPTER VI

Business entity incorPoration aGents and Business entity service Providers, shell and shelf comPanies and comPany status verification exercises

292. Businessentityincorporationagentsandbusinessentityserviceproviders.293. Shell companies and shelf companies.

CHAPTER VII

General

PART I

civil Penalty orders

294. PowerofRegistrartoissuecivilpenaltyordersandcategoriesthereof.295. Serviceandenforcementofcivilpenaltiesanddestinationofproceedsthereof.


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296. Additionaldueprocessrequirementsbeforeserviceofcertaincivilpenaltyorders.297. Evidentiaryprovisionsinconnectionwithcivilpenaltyorders.

PART II

further General Provisions

298. Enforcementofdutytomakereturns.

299. Co-operation with foreign company registries.

300. MinistermaygivepolicydirectionstoRegistrar.301. Regulations.302. Alterationoffees,tables,formsandcertainprovisionsofthisAct.303. Repeals,re-registrationofcompaniesandPBCs,generaltransitionalprovisions

andsavings.304. TransitionalProvisionsinrelationtoparvalueofshares,treasuryshares,capital

accountsandsharecertificates. FIRST SCHEDULE: Form of Memorandum of Association of a Company. SECOND SCHEDULE: Form of Statement in Lieu of Prospectus to be

Delivered toRegistrar by PrivateCompany onCeasing to be PrivateCompany and Reports to be Set Out Therein.

THIRD SCHEDULE:FormofStatementinLieuofProspectustobeDeliveredto Registrar by a Company Which Does Not Issue Prospectus or Which DoesNotGotoAllotmentonaProspectusIssued,andReportstobeSetOut Therein.

FOURTH SCHEDULE: Form of Annual Return of Company. FIFTH SCHEDULE: Fees. SIXTH SCHEDULE:ModelArticlesandBy-laws. SEVENTH SCHEDULE: User Agreement. EIGHTH SCHEDULE: MatterstobeSpecifiedinProspectusandReportsto

be Set Out Therein. NINTH SCHEDULE: Penalties for Late Submissions of Documents or Notices. TENTH SCHEDULE: FormforRe-registrationofCompaniesandPBCs.

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ACTToprovidefortheconstitution,incorporation,registration,managementand

internal administration of companies and winding up of companies and privatebusinesscorporations;toenablethevoluntaryregistrationofotherbusinessentities;toensuretheremovalofdefunctcompaniesandprivatebusinesscorporationsbyre-registeringallexistingcompaniesandprivatebusinesscorporations;torepealtheCompaniesAct[Chapter 24:03]andthePrivateBusinessCorporationsAct[Chapter 24:11];andtoprovideformattersconnectedtherewithorincidentalthereto.

ENACTED by the Parliament and the President of Zimbabwe

CHAPTER I

Preliminary, administration and common Provisions

PART I

Preliminary

1 Short title and date of commencement ThisActmaybecitedastheCompaniesandOtherBusinessEntities Act[Chapter 24:31],andshallcommenceontheninetiethdayafterthedateofitspromulgation.

2 Interpretation (1)InthisAct— “accountingofficer”means a person chosen by themembers of a private

businesscorporationtodothetasksspecifiedinChapterIVPartI;

ZIMBABWE

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This Act was published in a Government Gazette Extraordinary dated 15th November 2019 [see General Notice 2073/2019]. Date of commencement therefore 13th February 2020.

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“accounts”includesapubliccompany’sgroupaccounts,whetherpreparedintheformoffinancialstatementsornot;

“articles” means a company’s articles of association registered in accordance withsection81(“Articlesofassociationandalterationthereof”);

“associate”or“associated”,forthepurposesofsection43(“Powerofinspectorsto investigaterelatedregisteredorunregisteredbusinessentities”),44(“Productionofrecordsandevidenceoninvestigation”),56(“Transactionsinvolvingconflictofinterest”),57(“Dutytodiscloseconflictofinterest”)or73(“Prohibitionofconcealmentofbeneficialownership”),has themeaninggiventoitbysection3(“Whenpersonsdeemedtobeassociatesandwhenpersonsdeemedtocontrolcompanies”);

“beneficial owner” in relation to a companymeans a natural personwhoultimatelyownsorcontrolstherightstoorbenefitsfrompropertyorapersonwhoexercisesultimateeffectivecontroloveralegalperson,and,morespecifically,referstoanaturalpersonwho—

(a) directly or indirectly holds more than twenty per centum of the company’sshares;or

(b) directly or indirectly holds more than twenty per centum of the company’svotingrights;or

(c) directlyorindirectlyholdstherighttoappointorremoveamajorityofthecompany’sdirectors;or

(d) otherwiseexercisesorhastherighttoexercisesignificantinfluenceorcontrol;

“businessentity”meansacompany,aprivatebusinesscorporation,asyndicate,apartnershiporanyotherassociationofpersons,whethercorporateorunincorporated,whichhasabusinesscharacter;

“businessentityincorporationagent”and“businessentityserviceprovider”havethemeaningsgiventothosetermsinsection292(“Businessentityincorporationagentsandbusinessentityserviceproviders”)(1);

“by-laws”means theby-lawsof a privatebusiness corporation adoptedoralteredintermsofsection266(“By-laws”);

“certified”,inrelationtoacopyortranslationofanydocument,meanscertifiedintheprescribedmannertobeatruecopyoracorrecttranslation;

“ChiefRegistrar”meanstheChiefRegistrarofCompaniesandOtherBusinessEntities appointed in termsof section 6 (“Office for theRegistrationofCompanies andOtherBusinessEntities;Registrar, registries andinspectorate”)(3)(a);

“civilpenaltyorder”meansanorderissuedintermsofPartI(“CivilPenaltyOrders”)ofChapterVII(“General”);

“civilpenaltyprovision”meansanyprovisionof thisActfor thebreachofwhichadefaulterisliabletoacivilpenalty;

“CompaniesOffice” or “Office”means theOffice for theRegistration ofCompaniesandOtherBusinessEntitiesestablishedbysection6(“OfficefortheRegistrationofCompaniesandOtherBusinessEntities;Registrar,registriesandinspectorate”);


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“company”means— (a) acompanyincorporatedunderthisActorarepealedlaw;or (b) aforeigncompany,totheextentthattheprovisionsofthisActapply

tosuchcompanies; “company limited by guarantee” means a company described in section 76

(“Modeofformingacompany”)(b); “companylimitedbyshares”meansacompanydescribedinsection76(a); “companysecretary”or“secretary”includesanyofficialofacompany,whatever

hisorhertitle,whoperformsthedutiesnormallyperformedbyasecretaryofacompany;

“constitutivedocuments”,inrelationto— (a) acompanyotherthanaforeigncompany,meansitsmemorandum

andarticles; (b) aforeigncompany,meansitscharter,statutes,memorandum,articles

orotherinstrumentthatconstitutesitordefinesitsscope; (c) aprivatebusinesscorporation,meansitsincorporationstatement

andby-laws; (d) a business entity other than a company or a private business

corporation,meanstheconstitutionoragreementthatconstitutesitordefinesitsscope;

“controllingmember”,inrelationtoaprivatebusinesscorporation— (a) meansthememberhavingapercentageinterestthatenableshimor

hertocontrolthecorporation;and (b) whenused in theplural,meansany twoormorememberswho,

between them,haveacombinedpercentage interest thatenablesthemtocontrolthecorporation;

“co-operativecompany”hasthemeaninggivenitbysection87(“Definitionofco-operativecompanyandconsequencesofdefaultincomplyingwithconditionsforco-operativecompany”);

“court”,inrelationto— (a) anyoffenceagainstthisActmeanstheMagistrate’scourt(which

forthispurposeshallhavejurisdictioninrelationtothatoffenceevenifundertheMagistratesCourtAct[Chapter 7:10] the penalty forsuchoffenceexceedsitscriminaljurisdiction);

(b) therecoveryofanycivilpenaltymeansaMagistratescourt(whichfor thispurpose shall have jurisdiction in relation to thatmatterevenifundertheMagistratesCourtAct[Chapter 7:10] that matter exceedsitscivilmonetaryjurisdiction);

(c) sections162(“Powerofcourttorectifyregister”),233(‘Dissentingshareholders’appraisalrights”),255(“Cessationofmembershipbyorderofcourt”)and269(“Protectionagainstunfairprejudice”),themagistrates court having jurisdiction in the areawhere theregistered business entity concernedhas its registered office orphysicaladdress,asthecasemaybe;

(d) contextsotherthanthosementionedabove,meanswhichevercourthasjurisdictioninthematter;

“cumulativepenaltyclause”hasthemeaninggiventoitinsection294(“PowerofRegistrartoissuecivilpenaltyordersandcategoriesthereof”);


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“debenture”includesdebenturestockandbonds; “director” includes any person occupying the position of director or alternate

directorofacompany,whateverhisorhertitle; “distribution”,inrelationtoadistributionbyacompany,meansadirector

indirect— (a) transferbyacompanyofmoneyorotherpropertyofthecompany,

other than its own shares, to or for the benefit ofmembers orshareholders in their capacity as members or shareholders of that company or of another company within the same group of companies,whether—

(i) intheformofadividend;or (ii) asapaymentinlieuofacapitalisationshare,ascontemplated

insection137(“Capitalisationshares”);or (iii) inconsiderationfortheacquisition— A. by thecompanyofanyof its shares,ascontemplated

in section 128 (“Power of company to purchase ownshares”);or

B. byanycompanywithinthesamegroupofcompanies,ofanysharesofacompanywithinthatgroupofcompanies;or

(iv) otherwiseinrespectofanyofthesharesofthatcompanyorofanothercompanywithinthesamegroupofcompanies,subjectto section233 (“Dissentingshareholders’appraisal rights”)(17);

(b) incurrenceofadebtorotherobligationbyacompanyforthebenefitof one or more holders of any of the shares of that company or of anothercompanywithinthesamegroupofcompanies;or

(c) forgivenessorwaiverbyacompanyofadebtorotherobligationowed to the company by one or more holders of any of the shares of that company or of another company within the same group of companies,butdoesnot includeanysuchaction takenupon thefinalliquidationofthecompany;

“document” means any document or material on which information is recorded ormarkedandwhichiscapableofbeingreadorunderstoodbyaperson,orbyanelectronicsystemorotherdevice,andincludesaregister,index,minuteandfinancialrecord;

“effective date”means the date of commencement of thisAct specified insection1(“Shorttitleanddateofcommencement”);

“electronicrecord”hasthemeaninggiventoitinsection9(“Formofregistersandotherdocuments”);

“electronicregistry”hasthemeaninggiventoitinsection279(“InterpretationinChapterV”);

“emoluments”,meansalloranyoftheitemscomprehendedbytheexpression“emoluments”insection215(“Particularsinaccountsofdirectors’salariesandpensions”)(2);

“equitysharecapital”hasthemeaninggiventoitbysection185(“Meaningofholdingcompany,subsidiaryandwhollyowned”)(6);

“expert”means anypersonwhose professional or technical traininggivesauthoritytoastatementmadebyhimorher;


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“financialrecords”,inrelationto— (a) acompany,meantherecordsreferredtoinsection182(“Keeping

offinancialrecords”)(1)(a),(b)and(c),otherwiseknownasthe“booksofaccount”;

(b) privatebusinesscorporationmeantherecordsreferredtoinsection271(“Financialrecords”)(2);

“financialstatements”,inrelationto— (a) acompany,meananyofthefollowing— (i) thestatementofcomprehensiveincome(inclusiveofwhatis

commonlyknownasaprofitandlossaccountorincomeandexpenditureaccount);

(ii) thestatementoffinancialposition,otherwiseknownas thebalancesheet;

(iii) auditedorunauditedmonthly,quarterlyorannualfinancialaccounts;

(iv) financialinformationinacircular,prospectusorprovisionalannouncementsofresultsthatanactualorprospectivecreditororholderofthecompany’ssecuritiesortheOfficeorSecuritiesand Exchange Commission may reasonably be expected to rely on;

(v) anyotherstatementthatmaybeprescribedunderthisActorthePublicAccountantsandAuditorsAct[Chapter 27:12] in relationtocompaniesorprivatebusinesscorporations;

(b) inrelationtoaprivatebusinesscorporationmeananyofthefinancialstatementsreferredtoinsection273(“Annualfinancialstatements”);

“financialyear”,inrelationtoabusinessentity,meanstheperiodcoveredbyitsfinancialstatementslaidbeforeitsmembersingeneralmeeting,whetherthatperiodisayearornot;

“fixedpenaltyclause”hasthemeaninggiventoitinsection294(“PowerofRegistrartoissuecivilpenaltyordersandcategoriesthereof”);

“foreign company” means a company or other association of persons incorporated outside Zimbabwe which has established a place of business inZimbabwe;

“foreigncountry”meansastateorterritoryotherthanZimbabwe; “foreign language”meansany languageother thananofficiallyrecognised

language; “generally accepted accounting practices” means accounting practices and

procedures that are consistent with this Act and are recognised by the PublicAccountantsandAuditorsBoardestablishedbysection5(“Entitiesthatmayberegisteredandeffectofregistration”)ofthePublicAccountantsandAuditorsAct[Chapter 27:12];

“groupaccounts”hasthemeaninggiventoitbysection186(“Obligationtolaygroupaccountsbeforeholdingcompany”)(1);

“holding company” means a holding company as defined by section 185 (“Meaning of holding company, subsidiary andwholly ownedsubsidiary”);

“identitydocument”means—


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(a) adocumentissuedtoapersonintermsofsection7(1)or(2)oftheNationalRegistrationAct[Chapter 10:17]orapassportordriverslicenceissuedbytheGovernmentofZimbabwe;or

(b) a passport, identity document or drivers licence issued by thegovernmentofaforeigncountry;

“incorporation statement”means the incorporation statement of a privatebusinesscorporationregisteredintermsofsection248(“Incorporationstatement,signingthereofandregistrationofprivatebusinesscorporation”)or249(“Registrationofamendedincorporationstatement”);

“inspector”meansanofficeroftheCompaniesOfficeresponsibleforassistingtheRegistrartoconductinvestigationsintermsofthisActandensuringcompliancegenerallywiththisAct;

“interest”,inrelationtoamemberofaprivatebusinesscorporation,meansthemember’spercentageinterestintheprivatebusinesscorporationasstatedinitsincorporationstatement;

“internalrules”,inrelationto— (a) acompany,meansitsarticlesand,ifappropriate,anyrulesbinding

onthecompanybyvirtueofashareholder’sagreement; (b) aprivatebusinesscorporation,meansitsby-laws; “issuedgenerally”,inrelationtoaprospectus,meansissuedtopersonswho

arenotmembersordebentureholdersofthecompany; “level”,inrelationtoapenaltyimposedunderacivilpenaltyorder,means

alevelontheStandardScaleofFinesreferredtoinsection280oftheCriminalLawCode,asamendedorreplacedfromtimetotime;

“localsecuritiesexchange”meansastockexchangeregisteredintermsoftheSecuritiesandExchangeAct[Chapter 24:25];

“manager”inrelationtoacompanyorprivatebusinesscorporation,meansaperson(whateverhisorhertitleandwhetherornotheorsheisadirector)whoistheprincipalofficerandagentofthecompanyorcorporationwithauthority to represent and bind the company or corporation in transactions withotherparties;

“member”,inrelationto— (a) acompany,hasthemeaninggiventoitinsection20(“Effectof

registrationofconstitutivedocumentsandlimitationofliabilityofmembersofcompaniesandprivatebusinesscorporations”)(3)(a);

(b) aprivatebusinesscorporation,meansapersonwhohasaninterestinaprivatebusinesscorporation;

“memorandum” means a company’s memorandum of association registered intermsofsection77(“Memorandumofcompany”);

“minimumsubscription”hasthemeaninggiventoitbysection115(“Prohibitionofallotmentunlessminimumsubscriptionreceived”)(2);

“Minister”meanstheMinisterofJustice,LegalandParliamentaryAffairsoranyotherMinistertowhomthePresidentmay,fromtimetotime,assigntheadministrationofthisAct;

“nearrelative”ofapersonmeans(forthepurposeofsection3)— (a) aspouseofthatperson;or (b) aparentofthatperson,includingastep-fatherorstep-mother;or (c) achild(naturaloradopted)orstep-childofthatperson;or


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(d) abrother,half-brother,step-brother,sister,half-sisterorstep-sisterofthatperson;or

(e) theadopteroradoptersofthatperson;or (f) thespouseofarelativeofapersonreferredtoinparagraph(c),(d)

or(e); “officer”inrelationtoacompany,meansanofficerappointedbythecompany’s

boardofdirectorsasprovidedinsection221(“Officersofcompany”)andincludesadirector,managerorsecretary;

“officerwhoisindefault”,inrelationtoacivilpenaltyprovision,means— (a) anofficeroremployeeofacompany;or (b) amemberoremployeeofaprivatebusinesscorporation; whoknowinglyauthorisedorpermittedthedefault,refusal,omissionor

contraventionmentionedintheprovision; “officiallyrecognisedlanguage”meansanyoneofthelanguagesmentioned

insection7(1)oftheConstitution; “ordinary resolution”has themeaninggiven to itbysection175 (“Special

resolutions”)(5); “prescribed”meansprescribedbyregulationsmadeunderthisAct; “prescribed form” means any form set out in a Schedule to this Act or any form

prescribedunderthisAct; “printed” in relation towords,figuresorsymbols,meansembodied inany

readable,materialandvisibleform; “private business corporation”means a private business corporation

incorporatedunderthisAct; “private company”has themeaninggiven to it by section85 (“Definition

of private company and consequences of default in complyingwithconditionsforprivatecompany”);

“promoter”,inrelationtoaprospectus,meansanypersonwhoisapartytothepreparation of the prospectus but does not include a person who acts in a professional capacity for persons engaged in procuring the formation ofacompany;

“prospectus”meansaprospectus,notice,circularoradvertisement,inprintedorelectronicform,invitingthepublictosubscribefororpurchaseanysharesordebenturesofacompany;

“publiccompany”meansanycompany, includingaco-operativecompany,whichisnotaprivatecompanyoracompanylimitedbyguarantee;

“quoted”,inrelationtoashare,debentureorothersecurity,meansthatdealingsin the share, debentureor security arepermittedon a local securitiesexchangeoronasecuritiesexchangeinaforeigncountry,and“unquoted”shallbeconstruedaccordingly;

“register”withoutqualification,includesincorporate(inrelationtoadomesticcompanyor private business corporation)or register (in relation to aforeigncompany),asmaybeappropriatetothecontext;

“registeredbusinessentity”meansacompany,includingaforeigncompany,oraprivatebusinesscorporation,registeredorincorporatedintermsofthisAct;

“registered user” means a person who is registered as a user of the electronic registry in termsofsection283(“Registrationofregisteredusersandsuspensionorcancellationofregistration”);


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“Registrar”means— (a) theChiefRegistrarorotherregistrarappointedintermsofsection

6;or (b) inrelationtoanythingwhichanofficerhasbeenauthorisedtodo

onbehalfoftheRegistrarintermsofsection6(4),thatofficer; “repealed law”means theCompaniesAct [Chapter 24:03] or thePrivate

BusinessCorporationsAct[Chapter 24:11]; “self-actor” means any authorised user of the electronic registry other than a

legalpractitioner,charteredaccountant,charteredsecretary,orbusinessentity service provider referred to in section 292 (“Business entityincorporationagentsandbusinessentityserviceproviders”);

“serve”,inrelationtoanydocumentorrecord,hasthemeaninggiventoitinsection64(“Serviceofdocuments”);

“share”meansashareinthesharecapitalofacompanyandincludesstock,exceptwhere a distinction between stock and shares is expressed orimplied;

“shelfcompany”hasthemeaninggiventoitinsection293(“Shellcompaniesandshelfcompanies”)(1);

“shellcompany”hasthemeaninggiventoitinsection293(1); “special notice” has themeaninggiven to it by section 175 (“Resolutions

requiringspecialnotice”); “special resolution” means a resolution passed at a general meeting of a

companyinaccordancewithsection175(“Specialresolutions”)(1),(2)and(3);

“statementofcomprehensiveincome”meansastatementwhich,aswellasdetailingprofitsandlosses(orincomeandexpenditure,asthecasemaybe),reflectsanychangesinnetassetsduetotransferofequityholdings,changeofownership,andotherfactors.

“subsidiary”and“whollyownedsubsidiary”havethemeaningsgiventothembysection185(“Meaningofholdingcompany,subsidiaryandwhollyownedsubsidiary”);

“syndicate”meansanassociationofindividuals,companiesorotherbusinessentities, or other bodies corporate or unincorporated, formed for thepurpose of conducting and carrying out some particular business transaction;

“treasuryshare”hasthemeaninggiventothatphraseinsection95(“Legalnatureofcompanysharesandrequirementtohaveshareholders”)(5);

“uncertificated share”means a share the title towhich is evidenced andtransferredwithoutamaterialcertificate;

“unregisteredassociation”meansanyassociationofpersonswhatsoevernotregisteredunderanylawwhetherincorporatedorunincorporated;

“untrue statement” or “false statement” includes a statement that is misleading intheformandcontextinwhichitismade,subjecttosubsection(4)and(5).

(2)ReferencesinthisActto— (a) thecitationclauseofacivilpenaltyordershallbeconstruedasreferences

to the part of the order in which the Registrar names the defaulter and citestheprovisionoftheActinrespectofwhichthedefaultisallegedtohavebeenmade,togetherwith,ifnecessary,abriefstatementofthefactsconstitutingthedefault;


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(b) thepenaltyclauseofacivilpenaltyordershallbeconstruedasreferencestothepartoftheorderthatfixesthepenaltytobepaidbythedefaulter,and “fixed penalty clause” and “cumulative penalty clause” shall beconstruedaccordingly;

(c) the remediation clause of a civil penalty order shall be construed asreferences to the part of the order that stipulates the remedial action to betakenbythedefaulter.

(3)Whereacivilpenaltyprovisionstatesthatanypersonorentityisliabletoacivilpenaltyorder,theprovisionshallbeconstruedasmeaningthattheRegistrarmayserveacivilpenaltyorderonthatpersonorentity.

(4)ForthepurposesofthisAct,apersonistoberegardedbyorinrespectofacompanyasbeingamemberofthepublic,despitethatpersonbeingashareholderof a company or a purchaser of goods from the company.

(5)Anuntruestatement is regardedtohavebeen includedinaprospectus,written statement, or summarydirecting aperson to either aprospectusorwrittenstatement,ifitiscontainedinanyreportormemorandum— (a) thatappearsonthefaceoftheprospectus,writtenstatement,orsummary:

or (b) thatisincorporatedbyreferencewithin,orhasattachedtooraccompanies,

theprospectus,writtenstatementorsummary.

3 When persons deemed to be associates and when persons deemed to control companies

(1)This section applieswhere it is necessary for the purposes of section43 (“Power of inspectors to investigate related registered or unregistered businessentities”),44(“Productionofrecordsandevidenceoninvestigation”),71(“Prohibitionofconcealmentofbeneficialownership”)or56(“Transactionsinvolvingconflictsofinterest”),57 (“Duty todiscloseconflictof interest”)or58 (“Avoidanceandotherremediesforconflict-of-interesttransactions”),oranyregulationsthatapplythissectiontothedeterminationofanyprescribedmatter,todeterminewhetherornotapersonorentityisassociatedwithorrelatedtoanotherpersonorentity,orwhetherornotapersoncontrolsacompany,

(2)Where a person, other than an employee, acts in accordancewith thedirections,requests,suggestionsorwishesofanotherperson,whetherornotthepersonsareinabusinessrelationshipandwhetherornotthosedirections,requests,suggestionsorwishesarecommunicatedtothefirst-mentionedperson,bothpersonsshallbetreatedas associates of each other for the purposes of this Act.

(3)Withoutlimitingthegeneralityofsubsection(2),thefollowingshallbetreatedasaperson’sassociate—

(a) anearrelativeoftheperson,unlesstheRegistrarissatisfiedthatneitherpersonactsinaccordancewiththedirections,requests,suggestionsorwishesoftheother;

(b) apartneroftheperson,unlessacourtortheRegistrarissatisfiedthatneitherpersonactsinaccordancewiththedirections,requests,suggestionsorwishesoftheother;

(c) apartnershipinwhichthepersonisapartner,iftheperson,eitheraloneortogetherwithoneormoreassociates,controlsfiftyper centum or more oftherightstothepartnership’sincomeorcapital;


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(d) thetrusteeofatrustunderwhichtheperson,oranassociateoftheperson,benefitsormaybenefit;

(e) acompanywhichiscontrolledbytheperson,eitheraloneortogetherwithoneormoreassociates;

(f) wherethepersonisapartnership,apartnerinthepartnershipwho,eitheraloneortogetherwithoneormoreassociates,controlsfiftyper centum ormoreoftherightstothepartnership’sincomeorcapital;

(g) wherethepersonisthetrusteeofatrust,anyotherpersonwhobenefitsormaybenefitunderthetrust;

(h) wherethepersonisacompany— (i) apersonwho,eitheraloneortogetherwithoneormoreassociates,

controlsthecompany;or (ii) another companywhich is controlled by a person referred to

in subparagraph (i), either alone or togetherwith one ormoreassociates.

(4) For the purposes of this section, a person shall be deemed to controla company if the person, either alone or togetherwith one ormore associates ornominees— (a) controlsthemajorityofthevotingrightsattachingtoallclassesofshares

in the company,whether directly or throughone ormore interposedcompanies,partnershipsortrusts;or

(b) hasanydirectorindirectinfluencethat,ifexercised,resultsinhimorheror his or her associates or nominees factually controlling the company.

4 Non-application of Act to certain institutions (1)NothingcontainedinthisActshallapplytoanybankinginstitution,buildingsociety, insurer,micro-finance institution, co-operative society or other entity, theformation,registrationandmanagementwhereofaregovernedbyanyotherenactment,saveasmaybeotherwiseexpresslyprovidedinthisActorinsuchenactment.

(2)ThisActshallnotbeconstruedasapplyingtoatradeunionoremployers’organisation.

(3) In this section “employers organisation” and “trade union” have themeaningsgiventothemrespectivelybysection2oftheLabourAct[Chapter 28:01].

5 Registrable business entities (1)ThefollowingtypesofbusinessentitiesareregistrableunderthisAct— (a) apubliclimitedcompany; (b) aprivatelimitedcompany; (c) acompanylimitedbyguarantee; (d) aco-operativecompany; (e) aforeigncompany; (f) aprivatebusinesscorporation; (g) subjecttosection278(“Voluntaryregistrationofpartnershipagreements,

etc.”),partnerships,syndicates,jointventuresandcertainassociationsofpersons.

(2)Theeffectsofregisteringtheentitiesreferredtoinsubsection(1)shallbeas set out in this Act.


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PART II

administration

6 OfficefortheRegistrationofCompaniesandOtherBusinessEntities;Registrar, registries and inspectorate

(1)FortheregistrationofcompaniesandotherbusinessentitiesregistrableunderthisAct,thereisherebyestablishedtheOfficefortheRegistrationofCompaniesandOtherBusinessEntities(“theCompaniesOffice”),whichshallbeabodycorporatecapableofsuingandbeingsuedinitscorporatenameand,subjecttothisAct,ofdoinganything that bodies corporate may do by law.

(2)TheCompaniesOfficeshallbelocatedinHarareandBulawayoandotherlocations that the Minister may designate.

(3)Thereshallbe— (a) aChiefRegistrarofCompaniesandOtherBusinessEntities,whoshall

exercisegeneralsupervisionanddirectionofthe CompaniesOffice;and (b) suchnumbersofregistrars,assistantregistrarsandotherofficersasmay

benecessaryforthepurposesofthisAct,and (c) suchnumberofinspectorsasmaybenecessaryforthepurposesofthis

Act;

whoseofficesshallbepublicofficesandformpartoftheCivilService.

(4)TheChiefRegistrarofCompanies andOtherBusinessEntitiesmay inwritingauthoriseanassistantregistrar,inspectororotherofficerreferredtoinsubsection(3)(b)or(c)toexerciseanyofthefunctionsofaRegistrarunderthisAct.

(5)Subsection(4)shallnotbeconstruedaslimitingthepoweroftheChiefRegistrarofCompaniesandOtherBusinessEntitiestodelegatefunctionsunderanyother law.

(6)TheChief Registrar shall provide every inspectorwith a documentidentifyinghimorherasaninspector,andtheinspectorshallproduceitonrequestbyany interested person.

7 FundsofCompaniesOffice ThefundsoftheCompaniesOfficeshallconsistof— (a) suchfundsasmaybeappropriatedforthepurposeoftheCompanies

OfficebyParliament;and (b) suchportionoftheDeedsRetentionFundestablishedundersection18

ofthePublicFinanceManagementAct[Chapter 22:19](No.11of2009)(inclusivealsooftheproceedsoffeesandcivilpenaltiesleviedintermsofthisAct)whichmustbecreditedtotheofficeintermsoftheconstitutionofthatfund;and

(c) fundsthatmayaccruetotheOfficeinvirtueofsection53(“Undistributedpropertyofdissolvedordefunctcompanyorprivatebusinesscorporation:bona vacantiaorders”);and

(d) suchdonationsasareapprovedbytheMinister.

8 AnnualandotherreportsofCompaniesOffice (1)TheChiefRegistrarshall,onbehalfoftheCompaniesOffice,nolaterthansixtydaysaftertheendofeachfinancialyearsubmittotheMinisteranannualreportontheoperationsandactivitiesoftheCompaniesOfficeduringtheprecedingfinancialyear.


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(2)Inaddition,theChiefRegistrar,onbehalfoftheCompaniesOffice— (a) shall submit to theMinisteranyother report, andprovidehimorher

withanyotherinformation,thatheorshemayrequireinregardtotheoperationsandactivitiesoftheCompaniesOffice;and

(b) maysubmittotheCompaniesOfficeanyotherreportthatitconsidersdesirable.

(3)TheMinistershalltablebeforeParliamentallreportssubmittedtohimorherbytheChiefRegistrarundersubsections(1)and(2)withinninetydays.

9 Form of registers and other documents (1)Anyregister,index,minutesorfinancialrecordsrequiredbythisActtobekeptbyaregisteredbusinessentitymaybekepteitherbymakingentriesinwrittenand legible form,paginated, indexedandbound together (thereafter in this sectioncalleda“boundrecord”)orbyrecordingthemattersinquestioninanyotherwrittenorelectronicandeasilyretrievable,visible,readableandreferablemanner.

(2)Where any such register, index,minutes, financial statements or otherdocumentrequiredbythisActtobekeptbyaregisteredbusinessentityisnotkeptbymakingentriesinaboundrecord,butbysomeothermeans,adequateprecautionsshallbetakenforguardingagainstfalsificationandforfacilitatingtheirretrieval.

(3)Any such register, index,minutes, financial statements and documentrequiredbythisAct tobekeptbyaregisteredbusinessentityandeverydocumentrequiredbythisActorbyanentity’sconstitutivedocumentstobeissuedorcirculatedbyaregisteredbusinessentityshallbe in theEnglish languageor inanyofficiallyrecognised language:

ProvidedthatwheresucharecordisnotintheEnglishlanguageandisrequiredtobefurnishedtotheRegistrar,anauditororanyotherperson,thebusinessentityshallprovidetheRegistrar,auditororotherpersonwithacertifiedEnglishtranslation.

(4)IfitcomestothenoticeoftheRegistrarthatdefaultismadeincomplyingwith— (a) subsection(1)theRegistrarmayserveacategory4civilpenaltyorder

uponthedefaultingregisteredbusinessentity,thesuspensionofwhichisconditioneduponthedefaultingentity(nolaterthansevendaysfromthedateofserviceofthecivilpenaltyorder)bindingorembodyingallrelevantrecordstothesatisfactionoftheRegistrarthatwereorshouldhavebeenmadeinrelationtoaperiodofthreeyearsbeforetheissuanceoftheorder,oriftheentityhasbeenincorporatedorregisteredforlessthanthreeyears,fromthedateofitsincorporationorregistration;

(b) subsection(2)theRegistrarmayserveacategory2civilpenaltyorderuponthedefaultingregisteredbusinessentity,thesuspensionofwhichisconditioneduponthedefaultingentity(nolaterthansevendaysfromthedateofserviceofthecivilpenaltyorder)institutingadequateprecautionsto the satisfaction of theRegistrar, guarding against falsification orfacilitatingtheirretrieval.

(c) subsection(3)theRegistrarmayserveacategory4civilpenaltyorder,the suspension of which is conditioned upon the defaulting registered businessentity(nolaterthansevendaysfromthedateofserviceofthecivilpenaltyorder)furnishingtherequiredtranslation.

(5)Ifaregisteredbusinessentityisaregistereduseroftheelectronicregistry,itmay,subjecttosection282(“Useragreements”),keepthedocumentsreferredtoin


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thissectioninelectronicordigitalform,inwhicheventtheprovisionsofthissectionshall not apply to such company with respect to the transfer of shares.

10 Forms and tables and application of certain Schedules and licences (1) Subject to section 302 (“Alteration of fees, tables, forms and certainprovisionsofthisAct”),theformsandtablessetforthintheFirst(“Formofmemorandumofassociationofacompany”),Second(“FormofstatementinlieuofprospectustobedeliveredtoRegistrarbyprivatecompanyonceasingtobeprivatecompanyandreportstobesetouttherein”),Third(“Formofstatementinlieuofprospectustobedeliveredto Registrar by a company which does not issue a prospectus or which does not go to allotmentonaprospectusissuedandreportstobesetouttherein”)andFourth(“Formofannualreturnofcompany”)Schedulesorformsandtablesasneartheretoasthecircumstances admit shall be used in all matters to which those forms and tables refer.

(2)Subjecttosection302andtothediscretionbythisActconferredontheRegistrar,thereshallbepaidinrespectoftheseveralmattersorservicesmentionedintheFifthSchedule(“Fees”)theseveralfeesspecifiedtherein.

11 Registrar’spowertorefuseregistration IftheRegistrarissatisfiedthatanydocumentsubmittedtohimorher— (a) containsanymattercontrarytolaw;or (b) byreasonofanyomissionormisdescriptionhasnotbeendulycompleted;

or (c) doesnotcomplywiththerequirementsofthisAct;or (d) containsanyerror,alterationorerasure;

heorsheshallrefusetoregisterorreceivethedocumentandrequestthatthedocumentbe appropriately amended or completed and resubmitted or that a fresh document be submitted in its place.

12 Extensionoftimeforlodgingreturns,etc. WheneverbythisActatimeisprescribedforfilingwithordeliveringorsendingtotheRegistraranyreturn,accountorotherrecordorforgivingnoticetohimorherofanymatter,theRegistrarmay,onapplicationtohimorherbeforetheexpiryoftheprescribedtime,extendsuchtimeforsolongasmayseemtohimorhertobereasonable;andifanyprescribedtimeisextendedbytheRegistrarunderthissectiontheprovisionsofsection298 (“Enforcementofdutytomakereturns”) shall be read as applying to a default in respect of the time as so extended.

13 Proofofcertainfactsbyaffidavit (1)InanycivilproceedingsinthenameoftheRegistrar,orcriminalproceedingsunderthisActconcerningthefailureofapersontofilewithordelivertotheRegistraranyreturnorotherdocument,adocumentpurporting tobeanaffidavitmadebyapersonwhoallegesthereinthat— (a) heorsheisemployedintheCompaniesOffice;and (b) ifthesaidreturnorotherdocumenthadbeenfiledwithordeliveredto

theRegistrar,itwouldintheordinarycourseofeventshavecometothedeponent’sknowledgeandarecordthereof,availabletohimorher,wouldhavebeenkept;and

(c) nosuchreturnorotherdocumenthastothedeponent’sknowledgebeenfiledwithordeliveredtotheRegistrarandthatheorshehassatisfiedhimselforherselfthatnosuchrecordwaskept;


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shallonitsmereproductioninthoseproceedingsbyanyperson,butsubjecttosubsection(2),beprima facieproofthatsuchreturnorotherdocumenthasnotbeenfiledwithordeliveredtotheRegistrar. (2)Thecourtinwhichanysuchaffidavitisproducedinevidencemay,and,attherequestoftheaccusedmadenotlessthansevendaysbeforethetrial,shall,causethepersonwhomadeittobesummonedtogiveoralevidenceintheproceedingsinquestion. (3)Nothinginthissectioncontainedshallaffectanyotherruleoflawunderwhichanycertificateorotherdocumentisadmissibleinevidence,andthissectionshallbedeemedtobeadditionalto,andnotinsubstitutionfor,anysuchruleoflaw.

14 Inspection and copies of documents inCompaniesOffice andproductionofdocumentsinevidence

(1)Anypersonmayafterapplicationintheprescribedmannerandonpaymentoftheprescribedfees,inspectthedocumentskeptunderthisActbytheCompaniesOffice;andanypersonmayrequireacertificateoftheincorporationorregistrationofany registered business entity oracopyorextractofanyconstitutivedocumentorotherdocumentorpartofanyotherdocumenttobecertifiedbytheRegistrarorassistantregistraronpaymentoftheprescribedfeeforthecertificate,certifiedcopyorextract.

(2)AcopyoforextractfromanydocumentkeptunderthisActbytheCompaniesOffice,certifiedtobeatruecopyunderthehandoftheRegistrarorassistantregistrar,shallinalllegalproceedingsbeadmissibleinevidenceasofequalvaliditywiththeoriginaldocument.Certifiedcopiesorextractsmaybehandedintocourtbythepartywhodesirestoavailhimselforherselfofthem.

(3)ItshallnotbenecessaryinanylegalproceedingsfortheRegistrarhimselforherselforforanyofficerunderhimorhertoproduceanyoriginaldocumentkeptunderthisActbytheRegistrar,butitshallbedeemedsufficientifsuchdocumentisproduced by some person authorised by him or her to do so.

15 Additional copies of returns or documents (1)Where inorunder thisActanydocument is lodgedor transmitted, thepersonlodgingortransmittingthesameshall,asandwhenitisrequiredbyorunderthisAct,lodgeortransmitanadditionalcopyoradditionalcopiesofthedocument.

(2)TheMinistermayinregulationsprovideintherespectivecaseswhethersuchadditionalcopyorcopiesshallbeinduplicateoriginalform,orshallbeintheformofclearlylegiblecopyorcopiescertifiedinamannerprescribedinsuchregulationsor be in the form of an electronic record.

16 Replacement of lost documents (1)Whereadocumentrequiredtobefiledbyaregisteredbusinessentityhasbeenlost,defacedordestroyed,orwheretheRegistrarcannotlocatethefilecopyofadocument,theregisteredbusinessentitymayapplytotheRegistrarintheprescribedmannerforleavetofileacopyofthedocument,andtheRegistrar,onbeingsatisfied— (a) thattheoriginaldocumenthasbeenlost,defacedordestroyed;and (b) ofthedateofthefilingoftheoriginaldocument;and (c) thatthecopyofthedocumentproducedisacorrectcopy;

maycertifyonthatcopythatheorsheissosatisfiedanddirectthatthecopybefiledin the same manner as the original document.

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(2)WheretheRegistrarhaslostorcannotlocateadocumentthatwasfiledintheCompaniesOffice,nofeeshallbepayableforfilingacopyofitintermsofsubsection(1).

(3)Acopyfiledintermsofsubsection(1)shallhavethesameeffectastheoriginal document.

(4)WhereadocumentrequiredtobeissuedbytheRegistrarhasbeenlost,defacedordestroyed,theRegistrarshalluponapplicationintheprescribedmannerreplace the document.

(5)Thecompanysecretaryshallsubmitallthecontemplatedapplicationsinthissectiontogetherwithaffidavitsasprescribedintheregulations.

(6) Ifaduplicatecertificatehasbeen issued insubstitutionforacertificatewhichhasbeenlost,defacedordestroyed,theoriginalcertificateifstillinexistenceshallthereuponbecomevoidandinthecaseofadefacedcertificate,theapplicantforits replacement must return it to the Registrar.

(7)Ifacertificatewhichhasbecomevoidintermsofsubsection(6)comesintothepossessionorcustodyofanypersonwhoknowsthataduplicatehasbeenissuedinsubstitutiontherefor,heorshemustwithoutdelaydeliverortransmitsuchcertificateto the Registrar.

(8) If anypersonmakesa fraudulent application for the replacement for alost,defacedordestroyeddocumentorcertificateunderthissection,or ifapersoncontravenessubsection(7),heorsheshallbeguiltyofanoffenceandliabletoafinenotexceedinglevelsevenortoimprisonmentforaperiodnotexceedingoneyear,ortobothsuchfineandsuchimprisonment.

17 ExemptionfromliabilityforactsoromissionsofCompaniesOfficeand persons employed therein

NoactoromissionwhateveroftheCompaniesOfficeortheRegistrarorofanyofficer,clerk,inspectororotherpersonemployedintheCompaniesOfficeshallrendertheCompaniesOffice,theStateortheRegistraroranysuchofficer,clerk,inspectororpersonliableinrespectofanylossordamagesustainedbyanypersoninconsequenceof such act or omission unless the act or omission was in bad faith or was due to a want of reasonable care or diligence.

CHAPTER II

Provisions common to comPanies and Private Business corPorations

PART I

General

18 Registrationofconstitutivedocuments (1)The registration of amemorandum and articles of association or anincorporation statement may be done either electronically or manually in accordance with this section.

(2)Theelectronicregistrationofconstitutivedocumentsshallbedonebyaperson who is either a self-actor or a registered user of the electronic registry.

(3)Where the registration ismanual the constitutive documents shall bedeliveredtotheRegistrartogetherwitheitheraduplicateoriginaloraprintednotarialcopy:

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ProvidedthatinthecaseofacompanyorprivatebusinesscorporationtoberegisteredinBulawayooranyotherlocationthattheMinistermaydesignatethereshallbedeliveredinadditioneitherafurtherduplicateoriginalorafurtherprintednotarialcopy.

(4) In relation to a company, subject to due compliancewith section 199(“Restrictions on appointment or advertisement of director; share qualifications ofdirector”)(wheneverthatsectionisapplicable)anduponpaymentoftheprescribedfees,theRegistrarshall,ifthememorandumandthearticles,ifany,areinaccordancewiththisAct,registerthesame,andshallreturntothecompanyaduplicateoriginaloronenotarialcopyofthememorandumandofthearticles,ifany,withthedateoftheregistration endorsed thereon.

(5) In relation to a private business corporation, theRegistrar shall, uponpaymentoftheprescribedfee,registeranyincorporationstatementdeliveredtohimorher,ifitisinaccordancewiththisAct

(6)On registering thememorandum of association or the incorporationstatementasthecasemaybe,theRegistrarshall— (a) assign a registered number to the company or the private business

corporation;and (b) returnonecopyofthememorandumofassociationortheincorporation

statementtotheapplicant;and (c) issueacertificateofincorporation.

(7)The certificate of incorporation or a copy thereof issued in terms ofsubsection (6)(c)shallbeconclusiveevidence thatall the requirementsof thisActinrespectofregistrationandofmattersprecedentandincidentaltheretohavebeencompliedwithandthatthecompanyorprivatebusinesscorporationisdulyincorporatedunder this Act.

19 Incorporationofcompaniesandprivatebusinesscorporationsandcapacity and powers thereof

AcompanyoraprivatebusinesscorporationshallbeincorporatedfromthedateofissuebytheRegistrarofitscertificateofincorporationandthecompanyorprivatebusinesscorporationshallthereuponbecomeabodycorporate,withthecapacityandpowers of a natural person of full legal capacity in so far as a body corporate is capable ofhavingsuchcapacityandexercisingsuchpowers,untilitisstruckofftheregisterordissolvedintermsoftheInsolvencyAct[Chapter 6:07].

20 Effectof registrationof constitutivedocumentsand limitationofliabilityofmembersofcompaniesandprivatebusinesscorporations

(1)SubjecttothisAct,theconstitutivedocumentsofacompanyorprivatebusiness corporation shall,when registered, bind the companyor private businesscorporationandthemembersthereoftothesameextentasiftheyrespectivelyhadbeensignedbyeachmemberandcontainedundertakingsonthepartofeachmembertoobservealltheprovisionsoftheconstitutivedocuments.

(2)Individualnaturalpersonsoffullcapacityactingintheirownrightand,subject to section83 (“Membershipof company;personal liabilitywherebusinesscarriedonwithnomembers”)orsection253(“Requirementsformembership”),otherpersonsmaybemembersofacompanyorprivatebusinesscorporation.

(3)Membershipofacompanyorprivatebusinesscorporationiscommenced,evidencedandterminatedasfollows—

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(a) inthecaseofacompany— (i) thesubscriberstothememorandumofthecompanyshallbedeemed

to have agreed to becomemembers of the company and on itsregistrationshallbeenteredasmembersinitsregisterofmembers;

(ii) everyotherpersonwhoagreestobecomeamemberofacompanyand whose name is entered in its register of members shall be a member of the company and continue to be so until his or her name isremovedfromitforanyreason;

andineithercasemembershipisterminatedifthecompanyisdissolvedintermsoftheInsolvencyAct[Chapter 6:07];

(b) inthecaseofaprivatebusinesscorporation— (i) amember’smembership shall commence on the registration of

the incorporation statement or amended incorporation statement in whichhisorhernameandsignatureasamemberfirstappear;

(ii) unlesspreviouslyterminatedbyanorderofcourtmadeundersection255(“Cessationofmembershipbyorderofcourt”),amember’smembershipshallterminate—

A. on the registration of an amended incorporation statement in whichhisorhernameandsignatureasamemberfirstdonotappear;or

B. onthedissolutionoftheprivatebusinesscorporationintermsoftheInsolvencyAct[Chapter 6:07];.

(4) Subject to thisAct, themembers of a company or a private businesscorporationshallnot,solelybyreasonoftheirmembership,beliableforthedebtsorobligationsofthecompanyorprivatebusinesscorporation.

(5)Allmoneypayablebyanymember to thecompanyorprivatebusinesscorporationundertheconstitutivedocumentsthereofshallbeadebtduefromhimorhertothecompanyorprivatebusinesscorporation.

21 Availabilityandpublicityofconstitutivedocuments (1)Everycompanyandprivatebusinesscorporationshallsendtoeverymemberathisorher request,onpaymentofoneUnitedStatesdollars (or such reasonablegreateramountastheMinistermayprescribeforthepurposesofthissection),orsuchotheramountasthecompanyorprivatebusinesscorporationmayfix,acopyofitsconstitutivedocuments,orshallaffordtoeverymemberortohisorherdulyauthorisedagentreasonablefacilitiesformakingacopyathisorherownexpenseoftheconstitutivedocuments. (2)Everycompanyandprivatebusinesscorporationshallkeepeitheratitsregisteredofficeoraccountingofficer’sphysicaladdress, theoriginaloracertifiedcopyofitsconstitutivedocumentstogetherwithanyamendments. (3)Anypersonisentitledtoinspectanydocumentreferredtoinsubsection(2)atanyreasonabletimeduringnormalbusinesshoursand,onpaymentofthereasonablecoststhereof,toobtainacopyofanysuchdocument. (4) If it comes to the notice of theRegistrar that any companyor privatebusinesscorporationhasmadedefaultincomplyingwithsubsections(1),(2)or(3),theRegistrarmayserveacategory3civilpenaltyorderuponthedefaultingcompanyor corporation.

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22 Noconstructivenoticeofconstitutivedocumentsorotherpublicdocuments

Thefactthatacompany’smemorandumofassociationoraprivatebusinesscorporation’s incorporation statementor anyother constitutivedocumenthasbeenregisteredintermsofthisActorisavailableorrequiredtobeavailableforinspectionintermsofthisAct,shallnot,ofitself,beconstruedasgivinganypersonnoticeorknowledgeofitscontents.

23 Copiesofconstitutivedocumentstoembodyalterations (1)Whereanalterationismadeintheconstitutivedocumentsofacompanyoraprivatebusinesscorporation,everycopyoftheconstitutivedocumentsissuedafterthe date of the alteration must embody such alteration.

(2)IfitcomestothenoticeoftheRegistrarthatanysuchalterationhasbeenmade,andthatthecompanyorprivatebusinesscorporationhasatanytimeafterthedateofthealterationissuedanycopyofitsconstitutivedocumentswhichdoesnotembodythealteration,theRegistrarmayissueacategory3civilpenaltyorderuponthe defaulting company or corporation.

24 Presumptionofregularity;liabilitynotaffectedbyfraud (1)Anypersonhavingdealingswitharegisteredbusinessentityorwithsomeonederivingtitlefromaregisteredbusinessentityshallbeentitledtomakethefollowingassumptions,andthecompanyorprivatebusinesscorporationandanyonederivingtitlefromitshallbeestoppedfromdenyingtheirtruth— (a) thatthecompany’sorprivatebusinesscorporation’sinternalregulations

havebeendulycompliedwith; (b) thateverypersondescribedinthecompany’sregisterofdirectorsand

secretariesorasamemberinitsregisterofmembers,oreverypersondescribed as amember in the incorporation statement of the privatebusinesscorporation,orinanyreturndeliveredtotheRegistrarbythecompanyor theprivatebusinesscorporation in termsof section217(“Registerofdirectorsandsecretaries”)asadirector,managerorsecretaryofthecompanyormemberoftheprivatebusinesscorporation,hasbeenduly appointed and has authority to exercise the functions customarily exercisedbyadirector,managerorsecretaryofacompanyormemberoftheprivatebusinesscorporation,asthecasemaybe,carryingonbusinessofthekindcarriedonbythecompanyortheprivatebusinesscorporation;

(c) that everypersonwhom the company, acting through itsmembers ingeneral meeting or through its board of directors or its manager or secretary,representstobeanofficeroragentofthecompany,hasbeenduly appointed and has authority to exercise the functions customarily exercisedbyanofficeroragentofthekindconcerned;

(d) that thesecretaryof thecompany,andeveryotherofficeroragentofthe companyhaving authority to issue documents or certified copiesofdocumentsonbehalfof the company,has authority towarrant thegenuinenessofthedocumentsortheaccuracyofthecopiessoissued;

(e) thatadocumenthasbeensealedbythecompanyifitbearswhatpurportsto be the seal of the company attested by what purports to be the signature ofapersonwho,inaccordancewithparagraph(b),canbeassumedtobea director of the company:

Providedthat—

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(i) apersonshallnotbeentitledtomakesuchassumptionsifheorshehasactualknowledgetothecontraryorifheorsheoughtreasonablytoknowthecontrary;

(ii) apersonshallnotbeentitledtoassumethatanyoneormoreofthedirectorsofthecompanyhavebeenappointedtoactasacommitteeoftheboardofdirectorsorthatanofficeroragentof the company has the company’s authority merely because thecompany’sarticlesprovidethattheauthoritytoactinthemattermaybedelegated toacommitteeor toanofficeroragent.

(2)A companyor private business corporation shall be bound in termsofsubsection(1),notwithstandingthattheofficeroragentconcernedactedfraudulentlyor forged a document purporting to be sealed or signed on behalf of the company or corporation.

(3)Fortheavoidanceofdoubtitisdeclaredthatiftheregisteredbusinessentityhasaseal,andtheentity’sconstitutivedocumentsrequirethatanyexecutionofadocumentshouldbedoneunderitsseal,anypersonhavingdealingswiththeentityshallnotbeassumedtohavenoticeofthat fact.

25 Prohibition of undesirable name (1)TheRegistrarmay refuse to register a company or private businesscorporationwithanamewhich— (a) is identical to that underwhich another companyor private business

corporationisalreadyregisteredunderthisAct,orwhichissosimilartoanysuchnameastobelikelytodeceive;or

(b) islikelytomisleadthepublic;or (c) isblasphemousorindecentorlikelytocauseoffencetoanypersonor

classofpersons;or (d) suggests patronage of theGovernment or some other authority or

organisationunlesstheconsentthereofhasbeenobtained;or (e) isundesirableforanyotherreason.

(2)TheRegistrarmayuponapplicationandpaymentofsuchfeesasmaybeprescribedreserve,foraperiodnotexceedingonemonth,anameforacompanyoraprivatebusinesscorporationpendingitsregistrationorchangeofname.

(3)IftheRegistrarafterdueinquiryandconsideringanyevidencethatmaybeplacedbeforehimorher,considersthatacompanyorprivatebusinesscorporationisregistered,whetheroriginallyorbyreasonofachangeofname,byanamewhichisobjectionableforanyreasonmentionedinsubsection(1)(a),(b),(c),(d)or(e),heorsheshallserveuponthecompanyorprivatebusinesscorporationacategory2civilpenaltyorderorderingthecompanyorprivatebusinesscorporationinwritingtochangeitsname,andthecompanyorprivatebusinesscorporationshallthereupondosowithinaperiodofsixweeksfromthedateofserviceofthecivilpenaltyorderorsuchlongerperiodastheRegistrarmayseefittoallow:

ProvidedthattheRegistrarmaynotmakesuchanorderifaperiodofmorethantwelvemonthshaselapsedsincethedateoftheregistrationofthecompanyorprivatebusinesscorporationorthechangeofnameofthecompanyorprivatebusinesscorporation,asthecasemaybe.

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(4)Ifacompanyorprivatebusinesscorporationfailstocomplywithanordermadeintermsofsubsection(3),theRegistrarmayapplytotheHighCourtforanordertohavethenameofthecompanyorprivatebusinesscorporationchanged.

(5)TheHighCourt,onapplicationbyaninterestedperson,shallhavethesamepowersastheRegistrartomakeanorderintermsofsubsection(1),butshallnotbelimitedintheexerciseofitspowersbytheperiodoftwelvemonthsreferredtointheprovisotothatsubsection.

26 Changeofname (1)Acompany(byspecialresolutionfiledwiththeRegistrar)orprivatebusinesscorporationthatwishestochangeitsnameshallfirstobtainthewrittenapprovaloftheRegistrar.

(2) If theRegistrargrantswritten approval for a registeredbusiness entitytochangeitsname,thecompanyorprivatebusinesscorporationshallpublishintheGazetteandinadailynewspapercirculatinginthedistrictinwhichtheregisteredofficeofthecompanyorprivatebusinesscorporationissituatedanadvertisementstatingthechangeofname,andshallthenapplyforacertificateofchangeofname.

(3)Wherethenameofaregisteredbusinessentityischangedintermsofthissection,theRegistrarshallenterthenewnameintheregisterinplaceoftheformername.

(4)Upon theapplication inwritingofa registeredbusinessentity thathaschangeditsnameintermsofthissectionandonproductionofthecertificateofchangeofname,aRegistrarofDeedsorminingcommissioner,orotherofficerresponsiblefortheregistrationofdeedsorminingtitles,shallmakesuchalterationsinhisorherregistersandonanytitledeedsandotherdocumentsevidencingtitleasmaybenecessaryas a result of the changed name:

ProvidedthatnothinginthissubsectionshallexempttheregisteredbusinessentityfrompayinganyfeesprescribedundertheDeedsRegistriesAct[Chapter 20:05] ortheMinesandMineralsAct[Chapter 21:05] in respect of such alterations.

(5)Thechangeof thenameofa registeredbusinessentity shallnot affectanyrightorobligationoftheregisteredbusinessentity,orrenderdefectiveanylegalproceedingsbyoragainsttheentity,andanylegalproceedingsthatmighthavebeencontinued or commenced by or against it under its former name may be continued or commenced under its new name.

27 Statement of objects of registered business entity and effect thereof (1)No— (a) statementof theobjectsofa registeredbusinessentity,whether in its

constitutivedocumentsorelsewhere;or (b) agreementbythemembersofaregisteredbusinessentitytoenlargeor

restricttheobjectsoractivitiesoftheentity;

shallinvalidateanytransactioncarriedoutbytheentitywhichexceedsanysuchobjectsorextendsanysuchactivities,evenifanyotherpartytothetransactionwasawareofthe statement or agreement.

(2)Withoutderogationfromanyotherremediesthatmaybeavailable— (a) a courtmay, on applicationmadeprior to the event by amember or

debentureholderofa registeredbusinessentitywhosemembershaveagreed to limit its activities to specified objects, issue an interdict

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restraining the entity from entering into or completing any transaction thatexceedsitsobjects;

(b) where a registered business entity has concluded a transaction thatexceededitsobjectsandresultedinlosstotheentity,acourtmay,onapplicationmadebyamemberordebentureholderoftheentity,orderanyofficerormemberoftheentitywhoenteredintoortookpartinthetransaction to compensate the entity for the loss:

Providedthat,whereitappearsthattheofficerormemberagainstwhomtheclaimismadeactedhonestlyandreasonablyand,havingregardtoallthecircumstancesofthecase,itwouldbejustandfairtodoso,the court may decline to award compensation against him or her or may makeanawardforpartonlyofthecompensationormaymakesuchotherorderorawardasthecourtthinksfit.

28 Provisionsinconnectionwithuseofnamesbyregisteredbusinessentities

(1)Inthissection—

“businesspaper”meansany— (a) businessletter,noticeorotherofficialpublicationofaregistered

businessentity;or (b) billofexchange,promissorynote,chequeororderformoneyor

goods purporting to be signed by or on behalf of a registered business entity,includinganyendorsementmadeorpurportingtobemadebytheentityonanysuchbill,note,chequeororder;or

(c) delivery note, invoice, receipt or letter of credit of a registeredbusiness entity.

(2)Everyregisteredbusinessentity— (a) shallhaveitsnameengravedinlegiblecharactersonitsseal,ifany;

and (b) shallhaveitsnamementionedinlegiblecharactersinallitsbusiness

papers.

(3)Forthepurposesofsubsection(2),theabbreviations“Ltd”,“Pvt”,“Co-op”and“PBC”maybeusedforthewords“Limited”,“Private”,“Co-operative”and“privatebusinesscorporation”respectively,andtheabbreviation“Co”andthesymbol“&” may be used for the words “Company” and “and”.

(4)Anyofficerormemberofaregisteredbusinessentityoranypersononitsbehalfwho— (a) usesorpermitstheuseofaseal,purportingtobeasealoftheentity,on

whichitsnameisnotengravedasrequiredinsubsection(2)(a);or (b) issuesorpermitstheissueofanybusinesspaperoftheentity,orsignsor

endorses or permits to be signed or endorsed on behalf of the entity any billofexchange,promissorynote,chequeororderformoneyorgoodsonwhichtheentity’snameisnotmentionedasrequiredinsubsection(2)(b);

shallbeguiltyofanoffenceandliabletoafinenotexceedinglevelthreeandshallfurtherbepersonally liable to theholderof thebillofexchange,promissorynote,chequeororderformoneyorgoodsfortheamountthereof,unlessitisdulypaidbythe registered business entity concerned.

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(5)Ifdefaultismadeincomplyingwithsubsection(2)(a)or(b),anypersonacting on behalf of the registered business entity concerned who uses or permits the use of any seal or business paper so as to constitute such a default shall be personally liableforanydebtincurredbytheentityasaresultofsuchuse,unlessthedebtisdulydischarged by the entity.

(6)Anypersonwhotradesorcarriesonbusinessunderanameortitle— (a) ofwhich “Limited”, “Co-operative Company”, “Private Business

Corporation”oranycontractionorimitationofthosewords,isthelastword;and

(b) whichisnotregisteredintermsofthisActasthenameofthatperson;

shallbeguiltyofanoffenceandliabletoafinenotexceedingleveltwoforeverydayon which that name or title has been used.

(7)IfitcomestothenoticeoftheRegistrarthatanydefaultismadeincomplyingwithsubsection(5)or(6)then,independentlyofaprosecution,ifany,foranoffenceunderthatsubsection,theRegistrarmayserveacategory4civilpenaltyorderuponthedefaulter conditioned upon his or her demonstrating to the satisfaction of the Registrar withintheperiodspecifiedintheorderthatheorshehasceasedtotradeorcarryonbusinessunderanamethatcontravenessubsection(6),orthattheentityconcernedhasceasedusingorpermittingtheuseoranysealorbusinesspaperincontraventionofsubsection(2)(a)or(b),asthecasemaybe.

29 Lawful use of assumed names by registered business entities (1)Subjecttothissection,aregisteredbusinessentitymayassumeanameother than its registered name for use in conducting business in Zimbabwe.

(2)Beforeusinganassumedname in termsof subsection (1), a registeredbusinessentityshallfilewiththeRegistraranoticethatitwillbeconductingbusinessunderthename,whichnoticeshallstate— (a) theentity’struenameasstatedinitsconstitutivedocuments;and (b) theassumednameunderwhichitwillbeconductingbusiness;and (c) thattheentityintendstoconductbusinessinZimbabweunderthatassumed

name;

and theRegistrar shall keep the notice on public file, togetherwith the entity’sconstitutivedocuments.

(3) Section 25 (“Prohibition of undesirable name”) shall apply,with anynecessarychanges,inrelationtotheusebyaregisteredbusinessentityofanassumedname in terms of this section.

30 Publicationofdirectors’ormembers’names (1)Inthissection—

“businessletter”includesaquotationororderform,butdoesnotinclude— (a) an invoice, statement, delivery note, packing note or similar

document;or (b) aletterwrittenbyaprofessionalpersononbehalfofaregistered

business entityasaclient; “send or issue”, in relation to a business letter, includes send or issue

electronically.

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(2)Everyregisteredbusinessentityshall,inallbusinessletterswhichitsendsorissuestoanypersonandonorinwhichtheentity’snameappears,stateinlegiblecharactersthepresentforenames,ortheirinitials,andpresentsurnameof— (a) everydirector,inthecaseofacompany;and (b) everymember,inthecaseofaprivatebusinesscorporation:

Providedthat, in thecaseofaprivatebusinesscorporationwithmore thanthreemembers,itshallsufficeforitsbusinessletterstobearthenameofitscontrollingmembersor,iftheinterestsheldinthecorporationareequalornearlyequal,thenamesof at least two current members followed by the phrase “and others” or words to the same effect.

(3)Anypersonactingonbehalfofaregisteredbusinessentitywhosendsorissues or permits the sending or issuing of a business letter that does not comply with subsection(2)shallbepersonallyliableforanydebtincurredbytheentityasaresultoftheletter,unlessthedebtisdulydischargedbytheentity.

(4)Aprivatebusinesscorporationmay,incomplyingwiththissection,describeany or all of its members as directors:

Providedthatthefactthatsomebutnotallofthemembersaresodescribedshallnotofitselfbetakenasnoticetoanypersondealingwiththeprivatebusinesscorporation that a member not so described has no authority or restricted authority to actonbehalfoftheprivatebusinesscorporation.

31 Postaladdress,electronicmailaddressandregisteredoffice (1)EveryregisteredbusinessentityshallhaveinZimbabwe— (a) apostaladdress,thatistosayanaddresstowhichpostalarticlesmaybe

senttotheentity;and (b) aregisteredofficeataphysicaladdressatwhichlegalprocessmaybe

servedontheentity: Providedthattheregisteredofficeofaprivatebusinesscorporation

maybethephysicaladdressofitsaccountingofficer.

(2)Particularsofaregisteredbusinessentity’spostaladdressandregisteredofficeshallberecordedintheentity’sconstitutivedocumentsandamendedwhenevernecessary.

(3)Where a registered business entity transacts any of its business oradministrationelectronically,itshall— (a) record theparticularsof itselectronicmailaddress,website,portalor

otherinteractiveelectroniclinkinitsconstitutivedocumentsandamendthosedocumentswhenevertheparticularschange;and

(b) deliveranoticetotheRegistrarsettingouttheparticularsreferredtoinparagraph (a), and any changes in thoseparticulars,whichnotice theRegistrarshallfilewiththeentity’sconstitutivedocuments.

(4)TheRegistrarmay, on application beingmade in the prescribed form,authorisearegisteredbusinessentitytouseitselectronicmailaddress,website,portalorotherinteractiveelectroniclinkforeffectinganyfilingsorothertransactionswiththeCompaniesOfficethatmayberequiredunderthisAct,whetherornottheentityisa registered user of the electronic registry.

(5) If itcomes to thenoticeof theRegistrar thatdefaulthasbeenmade incomplyingwithsubsections(1),(2)or(3),heorshemayserveacategory3civilpenalty


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orderuponthedefaultingbusinessentity,inwhichorderthecumulativepartofthepenalty shall be suspended conditionally upon the defaulter satisfying the Registrar withinsevendaysofservicethatithasremediedthedefault.

32 Ratificationofcontracts A contract made in writing by a person professing to act as agent or trustee for acompanyorprivatebusinesscorporationnotyetformed,incorporatedorregisteredshallbecapableofbeingratifiedoradoptedbyorotherwisemadebindinguponandenforceableby the companyor private business corporation after it has becomearegisteredbusinessentity,if— (a) onregistration,theentity’sconstitutivedocumentscontainasoneofthe

entity’sobjectstheadoptionorratificationofortheacquisitionofrightsandobligationsinrespectofsuchcontract;and

(b) the contract or a certified copy thereof is delivered to theRegistrarsimultaneouslywiththedeliveryoftheentity’sconstitutivedocumentsintermsofsection18(“Registrationofconstitutivedocuments”).

33 Form of contracts (1)Contractsonbehalfofa registeredbusinessentitymaybemade in thefollowingmanner— (a) anycontractwhich,ifmadebetweenprivatepersons,wouldberequiredto

beinwritingandsignedbytheparties,maybemadeonbehalfoftheentityinwritingandsignedbyanypersonactingunderitsauthority,expressedorimplied,andmayinthesamemannerbevariedordischarged;

(b) anycontractwhich, ifmadebetweenprivatepersons,wouldbevalidthoughmadeverballyonly andnot reduced towriting,maybemadeverballyonbehalfoftheentitybyanypersonactingunderitsauthority,expressedorimplied,andmayinthesamemannerbevariedordischarged.

(2)Allcontractsmadeinaccordancewithsubsection(1)shallbeeffectualinlaw and shall bind the registered business entity and its successors and all other parties to the contracts.

34 Promissorynotesandbillsofexchange (1)Abillofexchangeorpromissorynoteshallbedeemedtohavebeenmade,acceptedorendorsedonbehalfofaregisteredbusinessentityifmade,acceptedorendorsedinthenameof,orbyoronbehalforonaccountof,theregisteredbusinessentity by any person acting under its authority.

(2)Alldocuments,otherthanthedocumentsmentionedinsection33(“Formofcontracts”)(1),shall,ifexecutedonbehalfofaregisteredbusinessentity,besignedasprescribedinsection35byanypersonactingunderitsauthority,expressedorimplied,unlessthearticlesotherwiseprovide.

35 Executionofdocumentsdomesticallyandinforeigncountries (1)ExceptasotherwiseprovidedinthisActorintheconstitutivedocumentsoftheentityconcerned,documentstobeexecutedbyaregisteredbusinessentityshallbevalidlyexecutedifsignedbyanypersonactingunderitsauthority,expressorimplied.

(2)Aregisteredbusinessentitymayinwritingauthoriseanyperson,eithergenerallyorinrespectofanyspecifiedmatters,toexecutedocumentsonitsbehalfinanyforeigncountry;andeverydocumentsignedbysuchagent,onbehalfoftheentity,shallbindtheentity,ifvalidinotherrespects:


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Providedthat— (i) if the entity has a seal, and the entity’s constitutive documents

requirethatanyexecutionofadocumentshouldbedoneunderitsseal,suchauthorisationshallbeunderitssealandsigned,inthecaseofacompany,byoneofitsdirectorsor,inthecaseofaprivatebusinesscorporation,byoneofitsmembers;

(ii) iftheentityhasnoseal,suchauthorisationshallbesigned— A. inthecaseofacompany,bytwoofitsdirectorsorbyone

directoranditssecretary; B. in thecaseof aprivatebusinesscorporation,by twoof its

members.

36 Officialsealforuseinforeigncountries (1)Aregisteredbusinessentitywhoseobjectsrequireorcomprisethetransactionofbusinessinaforeigncountrymay,ifauthorisedbyitsconstitutivedocuments,haveanofficialsealforuseinaforeigncountry,whichsealshallbeafacsimileofthesealreferredtoinsubsection(2),iftheentityhassuchaseal,withtheadditiononitsfaceof the name of the foreign country where it is to be used.

(2)Subjecttosubsection(4),wherearegisteredbusinessentityhasanofficialsealforuseinaforeigncountry,adocumenttowhichthesealhasbeenaffixedbyapersonauthorisedtheretobytheentityinwritingshallbindtheentity,ifvalidinotherrespects.

(3)Apersoninaforeigncountryaffixinganofficialseal toadocument intermsofsubsection(2)shallcertifyonthedocumentthedateonwhichandtheplaceatwhichthesealisaffixed.

(4)Unless the lawof a foreign country inquestion requires thedocumentconcernedtobeaffixedwithasealforthetransactioninquestiontobevalid,thefailuretoaffixsuchsealshallnotaffectthevalidityofanytransactiontowhichthedocumentrelates if the transactionisvalid inotherrespectsandwasexecutedbyanypersonauthorisedtheretoinwritingbytheentity,orthedocumentrelatingtothetransactionissigned— (a) bytwoofitsdirectorsorbyonedirectoranditssecretary,inthecaseof

acompany;or (b) bytwoofitsmembers,inthecaseofaprivatebusinesscorporation.

37 Authentication of documents Adocumentorproceedingrequiringauthenticationbyaregisteredbusinessentitymaybesignedbyadirector,secretary,memberorotherauthorisedofficeroftheentity,and need not be under its seal.

PART II

insPection and investiGation

38 Purposesofinspectionsandinvestigationsandpowersinconnectiontherewith

(1)InadditiontoensuringcompliancewiththisAct,thepurposeofinspectionandinvestigationofregisteredbusinessentitiesisto— (a) promotegoodcorporategovernance;and (b) inspireconfidenceininvestorsinsuchentitiesthattheirinvestmentsare

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(2)ForthepurposesofthisPart,theRegistrarandeveryinspectorshallhavethe samepowers, rights and privileges as are conferred upon a commissioner byCommissionsofInquiryAct[Chapter 10:07],otherthanthepowertoorderapersontobedetainedincustody,andsections9to13and15to19ofthatActshallapplywithnecessarychangesinrelationtotheinvestigationorinspectionbytheRegistrarandtoanypersonsummonedtogiveevidenceorgivingevidencebeforehimorher.

39 InvestigationbyRegistrar (1)WheretheRegistrarhasreasonablecausetobelievethatprovisionsofthisAct relating to the submission to him or her of any document are not being complied with,orwhereheorsheisoftheopinionthatanydocumentsubmittedtohimorherunder this Act does not disclose the true facts or a full and fair statement of the matters towhichitpurportstorelate,heorshemay,bywrittenorder,callontheregisteredbusiness entity concerned to produce all or any of the documents of the registered businessentityspecified in theorderand to furnish inwritingsuch informationorexplanationastheRegistrarmayspecifyinhisorherorder,andsuchdocumentsshallbe produced and such information or explanation shall be furnished within such time asmaybespecifiedintheorder.

(2)Onreceiptofanorderundersubsection(1)itshallbethedutyofallpersonswhoareorhavebeenofficersoftheregisteredbusinessentitytoproducesuchdocumentsor to furnish such information or explanation so far as lies within their power.

(3)Anypersonwhofailstocomplywithsubsection(2)shallbeindefaultandsubjecttoacategory2civilpenaltyorder:

Providedthattheperiodwithinwhichthedocumentsorinformationmustbeproduced or furnished before the defaulter becomes criminally liable in terms of section 294(“PowerofRegistrartoissuecivilpenaltyordersandcategoriesthereof”)(3)shallbesevendaysandthelevelofthedailycumulativecivilpenaltyshallbelevelsix.

40 Investigationonrequestofminoritystakeholders (1)Ontherequestofashareholderorshareholdersormemberormembersholdingat leastfiveper centumof theordinarysharesof thecompany,orfiveper centumoftheinterestsoftheprivatebusinesscorporation,theRegistrarmayassignoneormoreinspectorstoinvestigatetheaffairsoftheregisteredbusinessentityandto report thereon as the Registrar may direct.

(2)Any such request shall be dated and signed by all of the requestingshareholdersormembers,shallstatethenumberofsharesortheextentoftheintereststheyeachhold,andshallstatethepurposeforwhichtheinvestigationisrequested,andacopyoftherequestshallbedeliveredbytherequestingshareholdersormemberstothecompany’sboardofdirectorsortotheprivatebusinesscorporation’scontrollingmembers,asthecasemaybe.

(3)TheRegistrarmay,beforeassigninganinspector,requiretherequestingshareholdersormembers togive satisfactory security inanamountwhichmaybeprescribedtowardsthecostsoftheinvestigation.

41 Investigationtodetermineownershiporcontrol (1)TheRegistrarmay,withorwithoutarequestfrommembersoftheregisteredbusinessentityconcerned,assignoneormoreinspectorstoinvestigateandreportontheshareholdingofacompany,theinterestsofaprivatebusinesscorporationandothermatters,todeterminethepersonswhoareorhavebeenfinanciallyinterestedinthesuccessorfailureoftheentityorareabletocontrolormateriallyinfluencetheentity’spolicies.


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(2)Whereaninvestigationunderthissectionisconductedattherequestofanymemberofaregisteredbusinessentity,thatmembershallpaythereasonablecostsincurredbytheRegistrar inconductingitand,beforeassigninganinspectorundersubsection (1), theRegistrarmay require themember togive satisfactory security,not exceeding an amount thatmaybe prescribed, for payment of the costs of theinvestigation.

(3)Inaninvestigationunderthissectionaninspectormayrequireanypersonwhom he or she has reasonablecausetobelieve— (a) tobeortohavebeeninterestedinanyshares,debenturesorinterests;or (b) toactortohaveactedinrelationtoanyshares,debenturesorinterests

astheagentofsomeoneinterestedtherein;

togivetheinspectorsuchinformationasthatpersonhasorcanreasonablybeexpectedtoobtainconcerningpresentandpastinterestsinthoseshares,debenturesorinterests,and the names and addresses of the persons interested and of any persons who act or haveactedontheirbehalfinrelationtotheshares,debenturesorinterests.

(4)Forthepurposesofthissection,andwithoutlimitingthephrase,apersonshallbedeemedtohaveaninterestinashareifheorshehasarighttoacquireordisposeoftheshareoranyinterestthereinortovotewithrespectthereto,oriftheperson’sconsent is necessary for the exercise of any of the rights of other persons interested therein,orotherpersonsinterestedthereincanberequiredorareaccustomedtoexercisetheir rights in accordance with the person’s instructions.

42 Investigationofregisteredbusinessentity’saffairsinothercases (1)Withoutprejudicetohisorherpowersundersection39(“InvestigationbyRegistrar”),theRegistrar— (a) shallassignoneormoreinspectorstoinvestigatetheaffairsofaregistered

business entity and to report thereon in such manner as he or she directs if—

(i) inthecaseofascompany,thecompanybyspecialresolution;or (ii) theHighCourtbyorder; declaresthatitsaffairsoughttobeinvestigatedbytheRegistrar;and (b) maydo so, if it appears to theRegistrar that there are circumstances

suggestingareasonablesuspicionthat— (i) itsbusinessisbeingconductedwithintenttodefrauditscreditors

or the creditors of any other person or otherwise for a fraudulent orunlawfulpurposeorinamanneroppressiveofanypartofitsmembers or that it was formed for any fraudulent or unlawful purpose;or

(ii) persons concernedwith its formation or themanagement of itsaffairshaveinconnectiontherewithbeenguiltyoffraudorothermisconduct towards it or towards its members;or

(iii) itsmembershavenotbeengivenalltheinformationwithrespecttoits affairs which they might reasonably expect.

(2)WhenevertheRegistrarintendstoactintermsofsubsection`(1)(b)heorsheshallgiveadequatepriornoticetotheMinisterofhisorherintendedaction.


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43 Powerofinspectorstoinvestigaterelatedregisteredorunregisteredbusiness entities

(1)Inthissection— “associatedentity”meansanentity,whetherregisteredornot,whichcontrols

oriscontrolledbyaprimarybusinessentity; “primary business entity” means the registered business entity whose affairs

aninspectorhasbeenassignedtoinvestigate.

(2)Subjecttosubsections(3),(4)and(5),whereaninspectorwhohasbeenassignedtoinvestigatetheaffairsofaprimarybusinessentityconsidersthat,forthepurposesofthatinvestigation,itisnecessarytoinvestigatetheaffairsofanassociatedentity,theinspectormay,withtheapprovaloftheRegistrarandsubjecttosubsection(3),investigatetheaffairsoftheassociatedentityandreportontheminsofarastheinspectorthinkstheresultsofthatinvestigationarerelevanttotheaffairsoftheprimarybusiness entity.

(3)Beforeconductinganinvestigationintermsofsubsection(1)intotheaffairsof— (a) anassociatedentitywhichisaregisteredbusinessentity,theinspector

shallobtainthewrittenauthorityoftheRegistrar;or (b) anassociatedentitywhichisnotaregisteredbusinessentity,theinspector

shallobtainawarrantfrom— (i) ajusticeofthepeace(otherthanapoliceofficer)forthedistrict;

or (ii) amagistratehavingjurisdictioninthearea;

inwhichtheentityislocatedorcarriesonanyofitsactivities.

(4)Ajusticeofthepeaceormagistratemayissueawarrantforthepurposesofsubsection(3)(b)ifheorsheissatisfied,frominformationonoath,that— (a) theprimarybusinessentityislocatedorcarriesonanyofitsactivitiesin

hisorherdistrictorarea;and (b) theinspectorhaslawfulauthoritytoinvestigatetheaffairsoftheprimary

business entity and that the entity in respect of which the warrant is sought isanassociatedentityoftheprimarybusinessentity;and

(c) therearereasonablegroundsforbelievingthataninvestigationoftheaffairsoftheassociatedentitywilldiscloseinformationrelevanttotheinvestigationoftheprimarybusinessentity.

(5)Awarrantissuedforthepurposesofsubsection(3)(b)shallbeinwritingandstate— (a) theidentityandregisteredofficeoftheprimarybusinessentityandthe

purposeforwhichitisbeinginvestigated;and (b) theidentityandaddressoftheassociatedentity;and (c) theperiodforwhichthewarrantisrequiredtobeissued.

(6)Aninspectortowhomawarranthasbeenissuedintermsofthissectionshallhavethesamepowers— (a) toenterandsearchthepremisesoftheassociatedentityconcernedandto

seizeitspropertyasapoliceofficertowhomasearchwarranthasbeenissuedintermsofPartVIoftheCriminalProcedureandEvidenceAct[Chapter 9:07];and


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(b) toinvestigatetheaffairsoftheassociatedentityconcernedasiftheentitywas the primary business entity whose affairs the inspector had been assignedtoinvestigate.

44 Productionofrecordsandevidenceoninvestigation (1)Inthissection— “agent”, in relation to a registered business entity or an associated entity,

includes any person who is or at any time was engaged as the entity’s legalpractitioner,accountant,auditororbanker;

“officer”, in relation toa registeredbusiness entityor anassociatedentity,meansanypersonwhoisoratanytimewasanofficeroremployeeofthe entity.

(2) Subject to the laws relating to privileges, all officers and agents of aregisteredbusiness entityor associated entitywhose affairs are investigatedby aninspectorunderthisPartshall— (a) onrequest,producetotheinspectorallrecordsrelatingtotheentitywhich

areintheircustodyorpower;and (b) subjecttosubsection(3),answeranylawfulquestiontheinspectormay

puttohimorherregardingtheaffairsoftheentity;

andgenerallyshallgivetheinspectorallassistanceinconnectionwiththeinvestigationwhichtheyarereasonablyabletogive.

(3)Anofficeroragentmayrefusetoansweraquestionintermsofsubsection(2)iftheanswerwouldrenderhimorherliableto— (a) criminalproceedingsinrespectofanoffenceagainstthelawofZimbabwe;

or (b) proceedingsfortherecoveryofanypenaltyorforfeitureinfavourofthe

State in terms of any enactment in force in Zimbabwe:

Providedthatif,attherequestoftheRegistrar— (a) theProsecutor-Generalbywrittennoticetotheofficeroragentconcerned

grantshimorherimmunityfromprosecutionfortheoffence,criminalproceedingsshallnotthereafterbeinstitutedagainsttheofficeroragentfortheoffence;or

(b) theAttorney-Generalbywrittennoticetotheofficeroragentconcernedgrantshimorherexemptionfromthepenaltyorforfeitureconcerned,theofficeroragentshallnolongerbeliabletothepenaltyorforfeiture;

andtheofficeroragentshallthereuponanswerthequestion.

(4)Subjecttosubsection(3),ifanofficeroragentcontravenessubsection(2),heorsheshallbeindefaultandtheRegistrarmayserveuponhimorheracategory5civilpenaltyorder,suspendedonconditionthatheorsheremediesthedefaultassoonaspossibleandinanyeventwithintwenty-fourhoursoftheserviceoftheorder:

Providedthat— (i) theperiodwithinwhichanyrecordsorinformationshallbeproduced

orfurnishedundertheordershallbesevendays;and (ii) thelevelofthefixedpenaltyundertheordershallbelevelsix.

45 Registrar’sreport OnconcludinganinvestigationunderthisPart,aninspectorshallfurnishawrittenreportonittotheRegistrar,who—


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(a) shallsendacopyofthereportto— (i) theMinister;and (ii) everyentity(primaryorassociated)whoseaffairswereinvestigated;

and (iii) every shareholder ormemberwho requested the investigation

in terms of section 40 (“Investigation on request ofminorityshareholders”);and

(iv) theRegistrar of theHighCourt,where theCourt ordered theinvestigation in termsof section42 (“Investigationof registeredbusinessentity’saffairsinothercases”)(1)(a)(ii);

and (b) may, on request and on payment of the prescribed fee, provide a copy

of the report to any shareholder, member or creditor of an entity whose affairs were investigated, or to any other person whose interests appear to the Registrar on reasonable grounds to be affected by the report; and

(c) may cause the report to be published if it appears to the Registrar on reasonable grounds that such publication is in the public interest.

46 ProceedingsonRegistrar’sreport (1)If,fromthereportmadeundersection45(“Registrar’sreport”),itappearstotheRegistrarthat— (a) anypersonisliabletoprosecutionforanoffenceinrelationtoanentity

whoseaffairswereinvestigatedbytheinspector,theRegistrarshallreferthemattertotheProsecutor-General;

(b) anentitywhoseaffairswereinvestigatedbytheinspectorshouldbewoundup,theRegistrarmayapplytotheHighCourtforittobewoundup;

(c) anentitywhoseaffairswereinvestigatedbytheinspectorshouldbringproceedingsfortherecoveryofdamagesinrespectoffraudormisconductin connection with the entity’s promotion or formation or the conduct ofitsaffairs,orfortherecoveryofanypropertyoftheentitywhichhasbeenmisappliedorwrongfullyretained,theRegistrarmay,ifitappearsto the Registrar that such proceedings ought in the public interest to be broughtonbehalfoftheentity(unlessthemembersoftheentityhaveearlierinstitutedtheproceedingsinquestion)bringsuchproceedingsinany court in the name of and on behalf of the entity:

Provided that theRegistrar shall indemnify the entity againstcosts incurred in connection with such proceedings.

(2)Afterconsideringthereportmadeundersection45,theRegistrarmay,bywrittennoticetoanentitywhoseaffairswereinvestigatedbytheinspector,directthattheentityshallnotpaydividendson,orpermittheexerciseofanyrights,includingtherightoftransfer,attachedtoanyofitssharesorinterestsforaspecifiedperiodandsubjecttoanyspecifiedconditions.

(3)Anyofficerormemberofanentityonwhichanoticeintermsofsubsection(2)hasbeenservedwhoknowinglycontravenesthenoticeshallbeindefaultandtheRegistrarmayserveonhimorheracategory1civilpenaltyorder.

47 Expensesofinvestigationofaffairsofregisteredbusinessentity (1)TheexpensesofandincidentaltoaninvestigationbyaninspectorunderthisPartshallbedefrayedinthefirstinstancebytheRegistrar,butthefollowingpersonsshall,totheextentmentioned,beliabletorepaytheRegistrar—


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(a) anypersonwhoisconvictedonaprosecutioninstitutedasaresultoftheinvestigationorwhoisorderedtopaydamagesorrestoreanypropertyinproceedingsbroughtbyvirtueofsection46may,inthesameproceedings,beorderedtopaythesaidexpensestosuchextentasmaybespecifiedintheorder;

(b) anyentityinwhosenameproceedingsarebroughtasaforesaidshallbeliabletotheamountorvalueofanysumsofpropertyrecoverablebyitasaresultofthoseproceedings;

(c) unlessasaresultoftheinvestigationaprosecutionisinstituted— (i) anyentitydealtwithbythereport,wheretheinspectorwasassigned

otherwisethanoftheRegistrar’sownmotion,shallbeliable,exceptsofarastheRegistrarmayotherwisedirect;and

(ii) the applicants for the investigation,where the inspectorwasassignedundersection40(“Investigationonrequestofminoritystakeholders”),shallbeliabletosuchextent,ifany,astheRegistrarmaydirect;

andanyamountforwhichanentityisliablebyvirtueofparagraph(b)shallbeafirstchargeonthesumsorpropertymentionedinthatparagraph.

(2)The reportby theRegistrarofan investigation initiatedotherwise thanbyhisorherownmotionmay,ifheorshethinksfit,includearecommendationastothedirections,ifany,whichheorshethinksappropriate,inthelightofhisorherinvestigation,tobegivenundersubsection(1)(c).

(3)Forthepurposeofthissection,anycostsorexpensesincurredbytheRegistraronorinconnectionwithproceedingsbroughtbyvirtueofsection46(“ProceedingsonRegistrar’sreport”)(1)(c),shallbetreatedasexpensesoftheinvestigationgivingriseto the proceedings.

(4)AnyliabilitytorepaytheRegistrarimposedbysubsection(1)(a)and(b)shallbealiabilityalsotoindemnify— (a) allpersonsagainstliabilityundersubsection(1)(c),thatistosaytobe

liabletoreimburse— (i) theRegistrar(iftheRegistrarhasnotalreadyreceivedrepayment)

pursuanttosubsection(1)(a)or(b);and (ii) theapplicantsfortheinvestigationundersection40(iftheyhave

maderepaymenttotheRegistrarundersubsection(1)(c)); (b) theentityagainstliabilityundersubsection(1)(b),thatistosaytobe

liable to reimburse the entity for any repayment made by it to the Registrar byvirtueofthatprovision.

(5)Anypersonliabletomakereimbursementbyvirtueofsubsection(4)shallbe entitled to contribution from any other person with whom he or she is jointly so liableaccordingtotheamountoftheirrespectiveliabilities.

(6)TheexpensestobedefrayedbytheRegistrarunderthissectionshall,sofarasnotrecovered,bepaidoutofthefundsoftheCompaniesOffice.

48 Powertorequireinformationastoholdersofshares,debenturesorinterests

(1)WhereitappearstotheRegistrarthatthereisgoodreasontoinvestigate— (a) theownershipofanyshareinordebentureofacompany;or (b) whoholdsaninterestinaprivatebusinesscorporation,ortheextentof

thatinterest;


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theRegistrarmaybywrittennoticerequireanypersonwhomheorshehasreasonablecausetobelieve— (i) tobeortohavebeeninterestedinthatshare,debentureorinterest;

or (ii) toactortohaveactedinrelationtothatshare,debentureorinterest

astheagentofsomeoneelse;

togivehimorheranyinformationwhichheorshehasorcanreasonablybeexpectedtoobtainastotheshare,debentureorinterestandthenameandaddressofanypersonwho holds or has held it or who is or has been interested in it.

(2)Forthepurposesofsubsection(1),apersonshallbedeemedtobeinterestedinashare,debentureorinterestifheorshehasanyrighttoacquireordisposeofitoranyinterestinitortovoteinrespectofit,orifhisorherconsentisnecessaryforanyotherpersontoexerciseanyrightinit,orifotherpersonsinterestedthereincanberequiredorareaccustomedtoexercisetheirrightsinaccordancewithhisorherinstructions.

(3)Anypersonwho— (a) failstogiveanyinformationrequiredofhimorherundersubsection(1)

shallbeindefaultandliabletoacategory2civilpenaltyorder: Providedthattheperiodwithinwhichtheinformationshallbe

produced or furnished before the defaulter becomes criminally liable in termsofsection294(“PowerofRegistrartoissuecivilpenaltyordersandcategoriesthereof”)(3)shallbesevendaysandthelevelofthecumulativepenaltyshallbelevelsix;

(b) inresponsetoanoticeundersubsection(1),makesastatementwhichheorsheknowstobefalseinamaterialparticular,orrecklesslymakesanystatementwhichisfalseinamaterialparticular,shallbeguiltyofanoffenceandliabletoafinenotexceedinglevelfiveortoimprisonmentfor a periodnot exceeding sixmonths or to both suchfine and suchimprisonment.

49 Power to impose restrictions on shares, debentures or interests (1)Where,inconnectionwithaninvestigationorinquiryunderthisPart,itappearstotheRegistrarthatthereisunduedifficultyinascertainingrelevantfactsaboutanyshare,debentureorinterestandthatthedifficultyisduewhollyormainlytotheunwillingnessoftheregisteredbusinessentitythatisthesubjectoftheinvestigationorinquiryorofanypersonwithaninterestintheshare,debentureorinterestconcernedtoassisttheinvestigationasrequiredbythisPart,theRegistrarmay,bywrittenorder,directthatuntiltheorderisrevokedoramendedtheshare,debentureorinterestshallbe subject to the restrictions imposed by this section.

(2)Solongasanorderundersubsection(1)isinforceinrelationtoanyshare,debentureorinterest— (a) anytransferoftheshare,debentureorinterestor,inthecaseofanunissued

share,anyissueofitortransferoftherighttobeissuedwithit,shallbevoid;and

(b) novotingrightsshallbeexercisableinrespectoftheshare,debentureorinterest;and

(c) nofurthersharesordebenturesshallbeissuedinrightoftheshareordebentureorinpursuanceofanyoffermadetoitsholder;and


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(d) exceptinaliquidation,nopaymentshallbemadeofanysumsduefromthe registeredbusinessentityon thoseshares,debenturesor interests,whether in respect of capital or otherwise.

(3)TheRegistrarmayatanytime,bywrittenorder,amendorrevokeanorderundersubsection(1).

(4)Anypersonaggrievedbyanorderundersubsection(1),orbytheRegistrar’srefusaltoamendorrevokesuchanorder,mayapplytotheHighCourtforappropriatereliefandthecourtmaymakesuchorderinthematterasitconsidersappropriate.

(5)Anypersonwho,knowingthatashare,debentureorinterestissubjecttoanorderundersubsection(1)— (a) knowinglycontravenesorfailstocomplywiththeorder;or (b) assists anyother person to do anything that contravenes the order in

relationtotheshare,debentureorinterest;

shallbeguiltyofanoffenceandliabletoafinenotexceedingleveltenortoimprisonmentforaperiodnotexceedingoneyearortobothsuchfineandsuchimprisonment.

50 Savingforlegalpractitionersandbankers NothinginthisPartshallrequiredisclosuretotheRegistraroraninspector— (a) byalegalpractitionerofanyprivilegedcommunicationorinformation

madetoorheldbyhimorherinthatcapacity,exceptasrespectsthenameandaddressofhisorherclient;or

(b) exceptbyorderofacourt,byaregisteredbusinessentity’sbankerofany information as to the affairs of any of its customers other than the registered business entity concerned.

51 Reportfollowinginvestigationtobeevidence A copy of any report of any inspector assigned under this Part shall be admissible inanylegalproceedingsasevidence.

PART III

defunct Business Entities

52 Strikingoffofdefunctbusinessentitiesfromregisterandremedyforpersonsaggrievedbystrikingoff

(1)WheretheRegistrarhasreasonablegroundstobelievethataregisteredbusinessentityisnotcarryingonbusinessorisnotinoperation,heorshemaysendtheentityawrittennoticetothateffect,statingthatifananswershowingcausetothecontraryisnotreceivedwithinfourteendaysfromthedateofthenotice,anoticewillbepublished in the Gazettewithaviewtostrikingthenameoftheentityofftheregister.

(2)Anoticeundersubsection(1)shallbesenttotheregisteredofficeoftheregisteredbusinessentityconcernedor,ifithasnoregisteredoffice,toanyofitsofficerswhosenameandaddressareknowntotheRegistraror,ifthereisnosuchofficer,toeach of the persons who signed the entity’s memorandum or incorporation statement.

(3)UnlesstheRegistrarreceivesananswerwithinfourteendaysfromthedateofthenoticesentintermsofsubsection(1)totheeffectthattheregisteredbusinessentityiscarryingonbusinessorisinoperation,theRegistrarmaypublishintheGazette andsendtotheentity,anoticethatattheexpirationofonemonthfromthedateofthatnoticetheentity’snamewill,unlesscauseisshowntothecontrary,bestruckofftheregisterandtheentitywilltherebybedissolved.


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(4)Whenever theRegistrar receives notice in the prescribed form fromaregisteredbusinessentityoradirector,secretaryormemberthereofthattheentityisnotcarryingonbusinessorisnotinoperationtheRegistrarmayiftheentityinquestionhasnotrenderedareturnfortheprecedingyearandtheRegistrarisotherwisesatisfiedthattheentityisnotcarryingonbusinessorisnotinoperation,forthwithpublishinthe Gazetteanoticereferredtoinsubsection(3).

(5)If,ontheexpiryoftheperiodmentionedinanoticereferredtoinsubsection(3),nocausetothecontraryhasbeenshown,theRegistrarmaystrikethenameoftheregistered business entity concerned from the register and shall publish notice of the strikingoffintheGazette.

Providedthattheliability,ifany,oftheliquidatorandofeveryofficerandofeverymemberoftheentityshallcontinueandmaybeenforcedasiftheentityhadnotbeendissolved.

(6)IftheRegistrarreceivesfromaregisteredbusinessentityawrittenstatementintheformprescribed,signed— (a) inthecaseofacompany,byeverydirectoroftheentity;or (b) inthecaseofaprivatebusinesscorporation,byeverymember;

statingthattheentityhasceasedtocarryonbusinessandhasnoassetsorliabilities,theRegistrarmaystriketheentity’snamefromtheregisterandshallpublishnoticeoffthestrikingoffintheGazette.

(7)UponthepublicationofanoticeintheGazetteintermsofsubsection(5)or(6)totheeffectthatthenameofabusinessentityhasbeenstruckfromtheregister,theentityshall,subjecttosubsections(8)and(9),therebybedissolved:

Providedthat theliability, ifany,of theliquidatorandofeveryofficerandmember of the entity shall continue and may be enforced as if the entity had not been dissolved.

(8)Wherethenameofabusinessentityhasbeenstruckfromtheregisterinaccordancewiththissection,anycreditorormemberorformermemberoftheentitymayatanytimeafterthedateofpublicationofthenoticeofstrikingoffoftheentityundersubsection(5)applytothemagistratescourtwithinwhoseareaofjurisdictiontheentity had its principal place of business for an order that the entity’s name be restored totheregister,andifthecourtissatisfiedthat— (a) theentitywascarryingonbusinessorinoperationwhenitsnamewas

struckoff;or (b) itisotherwisejustthattheentity’snameshouldberestoredtotheregister;

thecourtmaygranttheordersoughtand,inadditionmay— (i) directthattheentity,oranyofficerormemberoftheentity,need

notfileorlodgeanyreturnthattheentity,officerormembermayhavebeenrequiredtofileorlodgeintermsofthisAct;and

(ii) givesuchdirectionsandordersasseemjustforplacingtheentityandallotherpersonsinthesameposition,asnearlyasmaybe,asif the entity’snamehadnotbeenstruckfromtheregister.

(9)Uponthemakingofanorderintermsofsubsection(8)— (a) thebusinessentityconcernedshallbedeemed,subjecttothetermsand

conditionsoftheorder,tohavecontinuedinexistenceasifitsnamehadnotbeenstruckfromtheregister;and


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(b) theRegistrar shall forthwith restore the nameof the business entityconcernedtotheregister,withanoteindicatingthatithasbeenrestoredin accordance with this section.

53 Undistributedpropertyofdissolvedordefunctcompanyorprivatebusiness corporation: bona vacantia orders

(1)Whereacompanyorprivatebusinesscorporationisdissolved,whetherasaresultofbeingwounduporasaresultofbeingstruckofftheregisterasdefunct,anyundistributedpropertyofthecompanyorcorporationshall,subjecttothissection,become bona vacantiaandshallvestintheState.

(2)Atanytimeafteracompanyorprivatebusinesscorporation(inthissectionreferred to as a “defunct entity”) is declared to be defunct in termsof section52(“Strikingoffofdefunctbusinessentitiesfromregisterandremedyforpersonsaggrievedbystrikingoff”)(6),theAttorney-Generalmay(unlessapplicationhasearlierbeenmade to restore a defunct entity to the register under section 52 and such application wassuccessful),onbehalfofandinthenameoftheChiefRegistrarapplyex parte to theHighCourtforanorder(hereinaftercalleda“bona vacantia order”)declaringanypropertyofthedefunctcompanyorprivatebusinesscorporationtobebona vacantia.

(3)Beforethemakingofanapplicationundersubsection(2),theChiefRegistrarshall publish a notice in the Gazette notifying any persons who may be interested in thecontemplatedapplicationthat— (a) itisintendedtomakesuchanapplicationinrelationtothenameddefunct

companyorprivatebusinesscorporationnotearlierthanfourteendaysfrom the date of publication of the notice in the Gazette; and

(b) anyinterestedpersonhasarighttoopposetheapplication;and (c) noticeof theRegistrar’s intention to strikeoff thedefunct entitywas

publishedonaspecifieddateandthatthedefunctentitywasstruckofftheRegisterbynoticepublishedsection52(5)or(6)onaspecifieddate;and

(d) specifiedproperty (a brief descriptionofwhich shall be given in thenotice)belongedorapparentlybelongedtothedefunctentityatthedatewhenitwasstruckofftheRegister;and

(e) anyinterestedpersonwhoisacreditorofthedefunctentityorhasanyotherinterestinthedefunctentityoritspropertymay,atanytimebeforethe application for a bona vacantia order ismade,restore thedefunctentitytotheRegisterintermsofsection52(8).

(4) If,within fourteendays from thepublicationof the notice in termsofsubsection(3),nointerestedpersonhasinstitutedtheapplicationrequiredtorestorethedefunctentitytotheregisterintermsofsection52(or,havinginstitutedsuchapplication,theapplicationfailed),theAttorney-Generalmayproceedwiththeapplicationforthebona vacantia order.

(5)Thereshallbesubmittedtogetherwiththeapplicationforthebona vacantia orderacopyofthenoticereferredtoinsubsection(3),togetherwithacopyofthenoticesreferredtoinsubsection(3)(c).

(6)Ifthecourtgrantstheapplicationforabona vacantia order,itshallhavethesame effect as a writ for the attachment and sale in execution of the property declared to be bona vacantia.

(7)Theproceedsfromthesaleinexecutionofpropertydeclaredtobebona vacantiashallbeappliedtomeetingthefollowingcostsinthefollowingsequence—


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(a) thesheriff’scostsofexecutingthebona vacantia order;and (b) thecostsincurredbytheAttorney-Generalinobtainingthebona vacantia

order;and (c) the costs incurredby theCompaniesOffice in publishing the notices

referredtoinsubsection(2)and(2)(c),togetherwiththeprovencostsincurred by theOffice in identifying, securing and safeguarding theproperty declared to be bona vacantia;

(8)Any amount remaining after application of the amounts referred to insubsection(7)shallformpartoftheDeedsOfficeFund.

PART IV

common Provisions relatinG to fiduciary duties, remedies and leGal ProceedinGs

Subpart A: Duties of office bearers of companies and private business corporations

54 Duty of care and business judgment rule (1)Everymanager of a private business corporation and everydirector orofficerofacompanyhasadutytoperformassuchingoodfaith,inthebestinterestsoftheregisteredbusinessentity,andwiththecare,skill,andattentionthatadiligentbusiness person would exercise in the same circumstances.

(2)Inperformingthatduty,themanager,officerordirectorasthecasemaybereferredtoinsubsection(1)mayrelyoninformation,opinions,reportsorstatements(includingfinancialstatements)of independentauditorsor legalpractitionersorofexperts or employees of the registered business entity whom the person reasonably believesare reliableandcompetent to issue such information,opinions, reportsorstatements.

(3)Subsection(2)appliesonlyifthepersonmakesproperinquirywheretheneedforinquiryisindicatedbythecircumstances,andhasnoknowledgethatsuchreliance is unwarranted.

(4)Apersonwhomakesabusinessjudgmentactingasstatedinsubsection(1),(2)and(3)fulfilsthedutyunderthissectionwithrespecttothatjudgmentifthatperson— (a) doesnothaveapersonalinterestasdefinedinsection56(“Transactions

involvingconflictofinterest”)inthesubjectofthejudgment;and (b) is fully informed on the subject to the extent appropriate under the

circumstances;and (c) honestlybelieveswhenthejudgmentismadethatitisinthebestinterests

of the company or corporation.

(5)Noprovision,whethercontainedinacompany’sarticlesoraprivatebusinesscorporation’sby-lawsorotherwise,shallrelieveadirectorormemberfromthedutytoactinaccordancewiththisPartorrelievehimorherfromanyliabilityincurredasa result of any breach of such duty.

55 Duty of loyalty (1)Forpurposesofthissectiona“controllingmember”isapersonreferredtointhedefinitionof“controllingmember”insection2orapersonreferredtoinsection3(4). (2) A manager or controlling member of a private business corporation and a director, officer or controlling member of a company has a duty to act with loyalty to


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that registeredbusinessentityand,inthecaseofacompany,towardsanysubsidiaryof that company.

(3)Theduty of loyalty referred to in subsection (2) includes but is not limited to a duty— (a) nottousepropertyoftheregisteredbusinessentityforhisorherpersonal

benefitorforthebenefitanotherpersonotherthantheentity;and (b) nottodiscloseconfidentialinformationoftheentityortouseconfidential

informationoftheentityforhisorherpersonalbenefitorforthebenefitanotherpersonotherthantheentity;and

(c) tocommunicate to theboardormembers (as thecasemaybe)at theearliest practicable opportunity any information that comes to his or her attention,unlesstheheorshe—

(i) reasonablybelievesthattheinformationis— A. immaterialtotheentity;or B. generally available to the public, or known to the other

managers,directors,officersorcontrollingmembers; or (ii) is bound not to disclose that information by a legal or ethical

obligationofconfidentiality; and (d) nottoabusetheperson’spositionintheregisteredbusinessentityforhis

orherpersonalbenefit,orforthebenefitanotherpersonotherthantheentity;and

(e) nottotakebusinessopportunitiesoftheregisteredbusinessentityforhisorherpersonalbenefit,orforthebenefitanotherpersonotherthantheentity;and

(f) nottocompeteinbusinesswiththeregisteredbusinessentity(includingcompetingindividuallyorasamanagerofaprivatebusinesscorporation,oradirectororofficerofacompanywhichcompetesinbusinesswiththeregisteredbusinessentityofwhichheorsheismanager,directororofficer);and

(g) nottoacceptabenefitfromathirdpartyfordoingornotdoinganythingasapersonreferredtoabove(butthisshallnotincludebenefitswhichare de minimisinvalueorcannotreasonablyberegardedaslikelytogiverisetoaconflictofinterestwiththeregisteredbusinessentityconcerned);and

(h) toneverknowinglycauseharmtotheentity;and (i) toserveonlytheregisteredbusinessentity’sinterestinalltransactions

involvingtheentityinwhichthepersonhasapersonalinterest.

Subpart B: Duty of loyalty – conflicts of interest

56 Transactionsinvolvingconflictofinterest (1)Inthissection— “personalfinancialinterest”,whenusedwithrespecttoanyperson— (a) means a directmaterial interest of that person, of a financial,

monetaryoreconomicnature,ortowhichamonetaryvaluemaybeattributed;but


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(b) doesnot includeany interestheldbyaperson in aunit trustorcollectiveinvestmentschemeintermsoftheCollectiveInvestmentSchemesAct[Chapter 24:19](No.25of1997),unlessthatpersonhas direct control over the investment decisions of that fundorinvestment.

(2)Thissectiondoesnotapply— (a) toadirectorofacompany— (i) inrespectofadecisionthatmaygenerallyaffect— A. allofthedirectorsofthecompanyintheircapacityasdirectors;

or B. a class of persons, despite the fact that the director is one

memberofthatclassofpersons,unlesstheonlymembersoftheclassarethedirectororassociatesofthedirector;

(ii) in respect of a proposal to remove that director from officeas contemplated in section 202 (“Removal and resignation ofdirectors”);

or (b) toacompanyoritsdirector,oraprivatebusinesscorporation— (i) ifoneperson— A. holdsallofthebeneficialinterestsofalloftheissuedsecurities

ofthecompanyandistheonlydirectorofthatcompany;or B. holds all the beneficial interests of the private business

corporationandis theonlymemberof theprivatebusinesscorporation.

(3)Ifapersonistheonlydirectorofacompany,butdoesnotholdallofthebeneficialinterestsofalloftheissuedsharesordebenturesofthecompany,thatpersonmaynot— (a) approveorenterintoanyagreementinwhichthepersonoranassociate

hasapersonalfinancialinterest;or (b) asadirector,determineanyothermatterinwhichthepersonoranassociate

hasapersonalfinancialinterest,unlesstheagreementordeterminationisapprovedbyanordinaryresolutionoftheshareholders after the director has disclosed the nature and extent of that interest to the shareholders. (4)At any time, a directormay disclose any personal financial interestin advance, by delivering to the board, or shareholders in the case of a companycontemplatedinsubsection(3),anoticeinwritingsettingoutthenatureandextentofthatinterest,tobeusedgenerallyforthepurposesofthissectionuntilchangedorwithdrawn by further written notice from that director. (5)Apersonreferredtoinsection55(“Dutyofloyalty”)isdeemedtohaveapersonalfinancialinterestinanactortransactionwiththeregisteredbusinessentityif– (a) thatpersonoranearrelativeorotherassociateofthatpersonisaparty

totheactortransactionorhasamaterialfinancialinterestintheactortransaction;or

(b) thatpersonhasafinancialorfamilymemberrelationshipwithapartytotheactortransaction,orwithapersonwhohasamaterialfinancialinterestintheactortransaction,thatcouldreasonablybeexpectedtoaffectthatperson’sjudgmentadverselytotheregisteredbusinessentity.

(6)Apersonwhoentersintoacontractortransactionwiththeregisteredbusinessentityinwhichthatpersonhasapersonalinterest,hasnotviolatedthedutyofloyaltystatedinsection55(“Dutyofloyalty”)ifthecontractortransactionisauthorisedinadvanceorratifiedafterthefactbyeither–


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(a) a majority of the votes of members of the registered business entity who do not have a personal interest in the act or transaction; or

(b) a majority of the board of directors who do not have such personal interest, in the case of a company; or

(c) allmembersinacasewheretherearenomemberswhodonothavesuchpersonalinterest;

Providedthatinallsuchcasesallmaterialfactsregardingthepersonal interesthavebeendisclosedorareknown to theauthorisingpersons,andtheconflictedpersondidnotparticipateintheirdecision.

(7)Anypersonwhocontravenessubsection(3)shallbeguiltyofanoffenceandbeliabletoafinenotexceedinglevelfourteenortoimprisonmentforaperiodnotexceeding two years,orboth.

(8)Ifitcomestothenotice of the Registrar that any default is made in complying with thissection, then independentlyofaprosecution, ifany, foranoffenceundersubsection(7),theRegistrarmayserveuponapersonreferredtoinsection55allegedtobeincontraventionofthissectionacategory1civilpenaltyorder.

57 Dutytodiscloseconflictofinterest (1) Ifapersonreferred to insection55(“Dutyof loyalty”) (butsubject tosection56(“Transactionsinvolvingconflictofinterest”)(2)(b)or(3)),hasapersonalfinancialinterestinrespectofamattertobeconsideredatameetingoftheboardofthe company or meeting of themembersoftheprivatebusinesscorporation,orknowsthatanassociatehasapersonalfinancialinterestinthematter,theperson— (a) must disclose the interest and its general nature before thematter is

consideredatthemeeting;and (b) must disclose to themeeting anymaterial information relating to the

matter,andknowntotheperson;and (c) maydiscloseanyobservationsorpertinentinsightsrelatingtothematter

ifrequestedtodosobytheotherpersons;and (d) ifpresentatthemeeting,mustleavethemeetingimmediatelyaftermaking

anydisclosurecontemplatedinparagraph(b)or(c);and (e) mustnottakepartintheconsiderationofthematter,excepttotheextent

contemplatedinparagraphs(b)and(c);and (f) whileabsentfromthemeetingintermsofthissubsection— (i) istoberegardedasbeingpresentatthemeetingforthepurposeof

determiningwhethersufficientdirectorsormembersarepresenttoconstitutethemeeting;and

(ii) isnottoberegardedasbeingpresentatthemeetingforthepurposeof determiningwhether a resolutionhas sufficient support tobeadopted;

and (g) mustnotexecuteanydocumentonbehalfoftheregisteredbusinessentity

inrelationtothematterunlessspecificallyrequestedordirectedtodosoby the board or meeting of members.

(2) If adirectorof a company acquires apersonalfinancial interest in anagreementorothermatterinwhichthecompanyhasamaterialinterest,orknowsthatanassociatehasacquiredapersonalfinancialinterestinthematter,aftertheagreementorothermatterhasbeenapprovedbythecompany,thedirectormustpromptlydisclosetotheboard,ortotheshareholdersinthecaseofacompanycontemplatedinsection56(3),thenatureandextentofthatinterest,andthematerialcircumstancesrelatingtothedirectororassociate’sacquisition of that interest.


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(3)Adecisionbytheboard,oratransactionoragreementapprovedbytheboard,orbyacompanyascontemplatedinsection56(3),isvaliddespiteanypersonalfinancialinterestofadirectororanassociateofthedirector,ifit— (a) wasapprovedinthemannercontemplatedinthissection;or (b) hasbeenratifiedbyanordinaryresolutionoftheshareholders. (4)A court, on application by any interested person,may declare valid atransactionoragreementthathadbeenapprovedbythemembersofaprivatebusinesscorporation,orboardorshareholdersofacompany,asthecasemaybe,despitethefailureofthepersonreferredtoinsection55tosatisfytherequirementsofsection56and this section.

(5)Any person referred to in section 55who fails to complywith thissectionshallbeguiltyofanoffenceandliabletoafinenotexceedinglevelfourteenor to imprisonment for aperiodnot exceeding twoyearsor toboth suchfine andimprisonment.

(6)IfitcomestothenoticeoftheRegistrarthatanydefaultismadeincomplyingwith thissection, then independentlyofaprosecution, ifany, foranoffenceundersubsection(5),theRegistrarmayserveuponapersonreferredtoinsection55allegedtobeincontraventionofthissectionacategory1civilpenaltyorder.

(7)NothinginthisPartshallbetakentoprejudicetheoperationofanyruleoflawrestrictinganypersonreferredtoinsection55fromhavinganyinterestincontractswith the registered business entity concerned.

58 Avoidanceandotherremediesforconflict-of-interesttransactions (1)Atransactionwhichiscontrarytosection56shallbevoidableattheoptionof the registered business entity concerned,butanysuchvoidanceshallbewithoutprejudice to rightsofa thirdpartywhichwereacquired ingood faithandwithoutknowledgeoforparticipationinthecontravention.

(2)Aregisteredbusinessentity concernedmayalsoassert,andthecompetentcourtshallhavepowertoorder,otherremediesincludingremediesofthekindreferredtoinsections59,60,61and62,andthepersonhavingtheconflictofinterestshallbeliable to account for and transfer to the registered business entity any gain which he or she has made from the act or transaction and to indemnify the registered business entity for any loss or damage suffered by it as a result of the act or transaction.

Subpart C: Other legal proceedings and remedies

59 Power of court to grant relief to defendants or potential defendants in certain cases

(1)Ifinanyproceedingfornegligence,default,breachofdutyorbreachoftrustagainst a person to whom this section applies it appears to the court that that person is ormaybeliableinrespectofthenegligence,default,breachofdutyorbreachoftrust,butthatheorshehasactedhonestlyandreasonablyandthat,havingregardtoallthecircumstancesofthecase,includingthoseconnectedwithhisorherappointment,heorsheoughtfairlytobeexcusedforthenegligence,default,breachofdutyorbreachoftrust,thecourtmayrelievehimorher,eitherwhollyorpartly,fromhisorherliability,onsuchtermsasthecourtmaythinkfit. (2)Whereanypersontowhomthissectionapplieshasreasontoapprehendthatanyclaimwillormightbemadeagainsthimorherinrespectofanynegligence,default,breachofdutyorbreachoftrust,heorshemayapplytothecourtforreliefandthecourtonanysuchapplicationshallhavethesamepowertorelievehimorherasunderthissectionitwouldhavehadifithadbeenacourtbeforewhichproceedingsagainstthatpersonfornegligence,default,breachofdutyorbreachoftrusthadbeenbrought.


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(3)Thepersonstowhomthissectionappliesare— (a) officers of a company (subject however to section 197 (“Liability of

directorsandprescribedofficers”)ormembersoftheprivatebusinesscorporation;

(b) directors,managersandotherofficersofaforeigncompany; (c) personsappointedbyacompanyorforeigncompanyasitsauditors.

60 Direct actions by members (1)Amemberofaprivatebusinesscorporationoracompanymaybringanactionincourt insuchperson’sownnameagainstanymanager,officerordirectorreferredtoinsection54or55toenforce,orrecoverdamagescausedtohimorhercausedbyviolationofadutyincumbentuponanysuchmanager,officerordirectorunder this Act or any other law including laws against fraud or misappropriation. (2)Anactionundersubsection(1)maybebroughtbyonepersonintheperson’sown name or by two or more persons in their names acting together.

61 Derivativeactionsbymembersonentity’sbehalf (1)Amemberorshareholderofacompanyorprivatebusinesscorporationmaybring an action in court in such person’s name and on the company’s behalf against any manager,officerordirectorreferredtoinsections54or55toenforce,ortorecoverfromthatmanager,officerordirectordamagescausedtothecompanybyviolationof,dutiesowedbythatmanager,officerordirectortothecompanyunderthisActoranyother law including laws against fraud or misappropriation. (2)Suchanactionmaybebroughtbyonepersonintheperson’sownnameand on the company’s or corporation’s behalf or by two or more persons in their names acting together on the company’s or corporation’s behalf.

(3)Anactionmaybebroughtunderthissectiononlyincasesinwhich: (a) damageorabreachofdutytothecompanyitselfisclaimed;and (b) theplaintiffwasamemberorshareholderatthetimeoftheactswhich

arecomplainedof,oracquiredthatstatusasaresultofatransferofthatperson’sinterestorsharesfromapersonwhohadthatstatusatthattime;and

(c) theplaintiffholdsinterestsorsharesrepresentingatleasttenper centum oftheprivatebusinesscorporationorcompany’svotingpower(whichinthecaseofaprivatecompanyorpubliccompanyshallmeantenper centumvotesoftheordinaryshares),andwheretwoormoreplaintiffsbring the action together the holdings of all of them shall be counted for thispurpose;and

(d) theplaintiffhaspreviouslyrequestedthemanagerorcontrollingmembersof theprivatebusinesscorporationorboardofcompanyinwritingtorectifytheactswhicharecomplainedof,andthatrequestwasrefusedornotrespondedtowithinthirtydays(butthecourtongoodcauseshowntoitmaydispensewiththisrequirement).

(4)Any complaint under this section shall include a copy of the requestreferredtoinsubsection(3)anddetailsofallothereffortstohavetheprivatebusinesscorporationorcompanyitselfbringthecomplaint,orshallstateindetailwhysucharequestwouldnotsucceed. (5)Acomplaintunderthissectionmaynotbediscontinuedorsettledbetweentheplaintiffandthedefendantwithoutthecourt’sapprovalgivenafterfulldisclosureof the details of the proposed discontinuance or settlement. (6)All damages received in a derivative case shall be the propertyof thecompanyorcorporationexcept that theplaintiffswhoprevailedshallbepaid theirreasonableexpenses,includinglegalfees,fromthemoneyspaidbythedefendants.


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(7)Theamountofsuchexpensesundersubsection(6)mustbeapprovedbythe court.

62 Courtremediesindeadlock,fraud,oppressionandothersituations;piercingthecorporateveil

(1)Inalegalactionbyamemberofaprivatebusinesscorporationoracompanythecourtmayorderoneormoreoftheremedieslistedinsubsections(2)and(3)ofthissectionifitisestablishedthat— (a) themanagersordirectors,orthemember,oftheentityaredeadlocked,

whetherbecauseofevendivisionintheirnumberoranotherreason,andirreparableinjurytotheentityislikelytobecausedtotheentity’sbusinessorthebusinesscannolongerbeconductedtothemembers’advantage,or

(b) themanagers, directors or any other persons in control of the entityhaveactedillegally,fraudulentlyoroppressivelytowardthepetitioningmember.

(2)Inanactionundersubsection(1)thecourtshallhavethepowertoorderoneormoreofthefollowingremediesorsimilarremedies— (a) dissolution or liquidation of the entity, but if the court finds that the

groundsstatedinsubsection(1)arecurable,itmayorderareasonabletimeperiodforcure;

(b) theperformance,varianceor settingasideofany transactionorotheractionoftheentityoritsmembers,managersordirectors;

(c) thecancellationoramendmentofaprovisionoftheentity’sconstitutivedocuments;

(d) theremovalofanymanager,directororofficer,ortheappointmentofanypersonasamanager,directororofficer;

(e) aninvestigationofthefinancialeffectsofanymatterindispute,whichmayincludeaforensicaudit;

(f) the appointment of one ormore inspectors to investigate the actscomplained of or of a custodian to manage the business of the company orcorporationforatermandunderconditionsdeterminedbythecourt;

(g) thesubmissionofthedisputetomediationorothernon-bindingalternativedisputeresolution;

(h) thepaymentofdividendsorotherdistributions; (i) theawardofdamagestoanyaggrievedparty; (j) the purchase by the company or corporation or anothermember or

shareholder of all of the interests or shares of the petitioning member or shareholderfortheirfairvalueasdeterminedbythecourt.

(3)Ifthecourtfindsthat— (a) thejuristicformoftheprivatebusinesscorporationorcompanyhasbeen

abusedbytheboard,oramanager,directororofficeroranyoneormoremembersofthecompanyorprivatebusinesscorporation,fortheirownorsomeotherperson’sadvantage;or

(b) anyactsdoneoromittedtobedonebyoronbehalfoftheprivatebusinesscorporation or company constitutes an unconscionable abuse of the juristic personoftheprivatebusinesscorporationorthecompany;

the court may declare the entity not to be a juristic person with respect to the said abuses,actsoromissionsandimputethoseabuses,actsoromissionstothepersonsresponsible for them in their personal capacities.


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63 Security for costs Whereacompanyorforeigncompanyoraprivatebusinesscorporationisplaintifforapplicantinanylegalproceedings,thecourtmayatanystage,onsufficientproofthatthereisreasontobelievethatthecompany,foreigncompanyorprivatebusinesscorporation will be unable to pay the costs of the defendant or respondent if successful inhisorherdefence,requiresufficientsecuritytobegivenforthosecostsandmaystayallproceedingstillthesecurityisgiven.

64 Serviceofdocuments (1)Withoutderogationfromsection40oftheInterpretationAct[Chapter 1:01] butsubjecttosubsection(2),anynotice,orderorotherdocumentwhichbythisActisrequiredorpermittedtobeserveduponordeliveredorsenttoabusinessorotherentitymaybeserved,deliveredorsent— (a) byleavingitat,orsendingitbyprepaidregisteredpostto— (i) theentity’sregisteredoffice,inthecaseofacompanyorprivate

businesscorporation;or (ii) anyplaceofbusinessestablishedbytheentityinZimbabwe,inthe

caseofaforeigncompany;or (iii) theentity’sheadofficeorprincipalplaceofbusinessinZimbabwe,

inthecaseofavoluntaryassociation; or (b) inthecaseofanelectronicnotice,orderordocument,bysendingitto— (i) the entity’s electronicmail address, website, portal or other

interactive electronic linkwhoseparticularswerenotified to theRegistrarintermsofsection31(“Postaladdresselectronicmailaddressandregisteredoffice”)(3)operatedorusedbytheentity;or

(ii) anelectronicmailaddress,website,portalorotherinteractiveelectroniclinkoperatedorusedbytheentity’slegalpractitionerinZimbabwe:

Providedthatineithercasetheelectroniccommunicationshallbe authenticated by the sender’s electronic signature.

(2)Where— (a) anyprovisionofthisActprescribesthemannerinwhichanotice,order

orotherdocumentistobeserved,deliveredorsent,thedocumentshallbeserved,deliveredorsentinthatmannerunlessitisimpossibletodoso,inwhicheventsubsection(1)shallapply;

(b) theHighCourthasdirectedthemannerinwhichanotice,orderorotherdocumentistobeserved,deliveredorsent,thedocumentshallbeserved,deliveredorsentinthatmanner.

65 Allegations ofvoidness, impropriety,etc.byregisteredbusinessentities

(1)Ifaregisteredbusinessentity— (a) entersintoanyagreementormakesanyresolutioninrespectofwhich

itisallegedthatsuchagreementorresolutionoranyprovisionofitisprohibited,voidorvoidableunderthisAct;or

(b) doesanythinginthepurportedexerciseofanypowerunderitsconstitutivedocuments,whichpowerorexerciseisallegedtobeprohibited,voidorvoidableunderthisAct;

suchagreement,resolution,provisionofsuchagreementorresolution,powerorexerciseofsuchpowershallnotbeconsideredtobeprohibited,voidorvoidableunderthisActunlessacourtdeclaresthesametobeprohibited,voidorvoidableasthecasemaybe,or


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theagreement,resolution,provision,powerorexerciseinquestionhasbeenadjudgedtobeprohibitedorvoidbytheissuanceofacivilpenaltyorderinrelationthereto. (2)AnypersonwhocontravenesanyprovisionofthisActisliabletoanyotherpersonforanylossordamagesufferedbythatpersonasaresultofthatcontravention. (3)Theprovisionsofthissectiondonotaffecttherighttoanyremedythatapersonmayotherwisehave.

Subpart D: Indemnification and insurance

66 Indemnificationandinsuranceofpersonsreferredtoinsections54,55 and 57

(1)Aregisteredbusinessentitymayindemnifyapersonreferredtoinsection54or55againstexpenses(includinglegalpractitioner’sfees)incurredbythepersoninaproceeding— (a) towhichthepersonwasapartybecauseheorshewasapersonreferred

tointhosesections,and (b) inwhichthepersonwaswhollysuccessfulinthedefenceoftheproceeding,

whetheronthemerits,onproceduralgrounds,orotherwise.

(2)Aregisteredbusinessentitymayindemnifyapersonreferredtoinsection54or55against— (a) liabilityincurredtoanypersonotherthantheentity(andotherthaninthe

rightoftheentityundersection60)inaproceedingtowhichthepersonwasapartybecausehewasapersonreferredtoinsection54or55;or

(b) expenses (including legalpractitioner’s fees) incurredby theperson indefendingorsettlinganyclaimintheproceedingrelatingtoanysuchliability;

if suchliabilitywasnotcriminalliability,wasnotliabilityforabreachofadutystatedinsections54,55or57,andwasnotliabilityforconductforwhichthepersonwasadjudgedliableonthebasisofreceivingafinancialbenefittowhichheorshewasnotentitled,whetherornotinvolvingactionintheperson’sofficialcapacity. (3)Aregisteredbusinessentitymaypurchaseinsurancetoprotectapersonreferredtoinsections54,55or57againstliabilityassertedagainstorincurredbythepersoninthecapacityreferredtointhissection,whetherornottheentitywouldhavepowertoindemnifythepersonagainstthesameliabilityundersubsections(1)or(2)of this section. (4)This section is additional to, and do not derogate from, section 74(“IndemnityandcivilandcriminalliabilityofofficersandauditorsofcompaniesandmembersofPBCs”).

PART Voffences and defaults common to ReGistered Business Entities

67 Penalties for false statements and oaths (1) If any person in any statement, return, report, certificate, statement offinancialpositionorotherdocumentrequiredbyorforthepurposeofanyprovisionsofthisActmakesastatementfalseinanymaterialparticular,knowingittobefalse,heorsheshallbeguiltyofanoffenceandliabletoafinenotexceedinglevelsevenortoimprisonmentforaperiodnotexceedingoneyear,ortobothsuchfineandsuchimprisonment. (2) If anyperson,onexaminationonoath authorisedunder thisAct, or inanyaffidavitordepositioninoraboutanymatterarisingunderthisAct,wilfullyandcorruptlygivesfalseevidenceheorsheshallbeguiltyofanoffenceandliabletothe


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afinenotexceedinglevelsevenortoimprisonmentforaperiodnotexceedingtwoyearsortobothsuchfineandsuchimprisonment. (3)Everyofficerorauditorofacompanyorforeigncompany,oraccountingofficerorcontrollingmemberofaprivatebusinesscorporationoranyotherpersonemployedgenerallyorengaged for somespecialworkor serviceby thecompany,foreigncompanyorprivatebusinesscorporationwhomakes,circulatesorpublishesorconcursinmaking,circulatingorpublishinganycertificate,writtenstatement,reportoraccountinrelationtoanypropertyoraffairofthecompany,foreigncompanyorprivatebusinesscorporationwhichisfalseinanymaterialparticular,shall,subjecttosubsection(4),beguiltyofanoffenceandliabletoafinenotexceedinglevelelevenortoimprisonmentforaperiodnotexceedingtwoyearsortobothsuchfineandsuchimprisonment. (4)Inanyprosecutionundersubsection(3)itshallbeadefenceifitisprovedthat the person charged had, after reasonable investigation, reasonable ground tobelieveanddidbelievethatthestatement,reportoraccountwastrueandthattherewasnoomissiontostateanymaterialfactnecessarytomakethestatementassetoutnot misleading.

68 Fraudulent,recklessorgrosslynegligentconductofbusiness (1)Acreditor,member,judicialmanagerorliquidatorofacompanyorprivatebusinesscorporationmay,inanactioninstitutedintheHighCourt,seekadeclarationintermsofsubsection(3).

(2)TheHighCourtmay, in the course of any ongoing criminal or civilproceedingsbeforeitinconnectionwithacompanyorprivatebusinesscorporation,onitsownmotionorontheapplicationoftheMasteroftheHighCourtorofanycreditor,member,judicialmanagerorliquidatorofthecompanyorprivatebusinesscorporation,makeadeclarationintermsofsubsection(3).

(3)Ifitappearstoacourtthatanybusinessofacompanyorprivatebusinesscorporationwasorisbeingcarriedon— (a) recklessly;or (b) withgrossnegligence;or (c) withintenttodefraudanypersonorforanyfraudulentpurpose;thecourtmaydeclarethat— (d) any of the past or present directors of the company or any other persons

whowereknowinglypartiestothecarryingonofthebusinessinsuchmanner or insuchcircumstances;or

(e) anypersonwhowasknowinglyapartytothecarryingonofbusinessofthe privatebusinesscorporationinsuchmannerorinsuchcircumstances;

(hereinafter calledan“impugnedperson”) shallbepersonally responsible,withoutlimitationofliability,foralloranyofthedebtsorotherliabilitiesofthecompanyorprivatebusinesscorporationasthecourtmaydirect,andthecourtmaygivesuchfurtherordersasitconsidersproperforthepurposeofgivingeffecttothedeclarationand enforcing theliability,includinganorderundersubsection(4). (4)Inparticularthecourtmay,subjecttothepriorrightsofothercreditorsoftheimpugnedperson,makehisorherdeclaredliabilityachargeonanydebtorobligationduefromthecompanyorprivatebusinesscorporationtotheimpugnedpersonoronany mortgage or charge or any interest in any mortgage or charge on any assets of the companyorprivatebusinesscorporationheldbyorvestedintheimpugnedpersonorinanycompany,privatebusinesscorporationorpersononhisorherbehalf,orinanypersonclaimingasassigneefromorthroughtheimpugnedperson,company,privatebusiness corporationorperson,andmayfromtimetotimemakesuchfurtherorderasmay be necessary for the purpose of enforcing any charge imposed under this subsection.


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Forthepurposesofthissubsection,theexpression“assignee”includesanypersontowhom,or inwhose favour, by thedirectionsof the impugnedperson, thedebt,obligation,mortgageorchargeorinterestthereinwascreated,issuedortransferredbutdoesnotincludeanassigneeforvaluableconsiderationgiveningoodfaithandwithout notice of any of the matters on the ground of which the declaration is made. (5)OntheproductiontotheRegistrarbyanymemberorcreditorofacompanyorprivatebusinesscorporationofproofsatisfactorytotheRegistrarthatadirectorofthecompanyorcontrollingmemberoftheprivatebusinesscorporationiscarryingonitsbusinessinthemannerorinthecircumstancesspecifiedinsubsection(3)(a)or(b),theRegistrarmay(unlessanactionisearlierinstitutedortakenundersubsection(1)or(2))serveuponthedirectororthecontrollingmemberacategory2civilpenaltyorderinwhichtheremediationclause(insteadofthecumulativepenalty)shallrequirethecontrollingmembertotaketheremedialactionspecifiedintheorderwithinaspecifiedperiod. (6)Anypersonwhoisknowinglyapartyto thecarryingonofbusiness inthemannerorinthecircumstancesspecifiedinsubsection(1)(c)shallbeguiltyofanoffenceandliabletoafinenotexceedinglevelsixortoimprisonmentforaperiodnotexceedingoneyearortobothsuchfineandsuchimprisonment. (7)IfitappearsinthecourseofaninvestigationunderPartIIofthisChapterthatanypastorpresentofficerormemberofacompanyorprivatebusinesscorporationhasbeenguiltyofanoffenceundersubsection(6)orotheroffenceforwhichheorsheiscriminallyresponsibleunderthisActortheCriminalLawCode,theRegistrarorinspector shall cause allthefactsknowntohimorherwhichappeartoconstitutetheoffence to be laid before the Prosecutor-General.

69 Fraudulent, reckless or wilful failure of financial accounting;falsificationofrecords

(1)Without derogating from section 68 (“Fraudulent, reckless or grosslynegligentconductofbusiness”),any— (a) directorofacompanywhofraudulently,recklesslyorwilfullyfailsto

take all reasonable steps to secure compliance by the companywiththerequirementsofsection182(“Keepingoffinancialrecords”),183(“Statement of financial position and statement of comprehensiveincomeandfinancial year of holding company and subsidiary”), 184(“Generalprovisionsastocontentsandformoffinancialstatements”),186(“Obligationtolaygroupaccountsbeforeholdingcompany”)or189(“Directorsreporttobeattachedtostatementoffinancialposition”),orhasby his or her own wilful act been the cause of any default by the company thereunder,heorsheshallinrespectofeachdefaultbeguiltyofanoffenceandliabletoafinenotexceedingleveltwelve,ortoimprisonmentforalldefaultsforaperiodnotexceedingtwelvemonthsortobothsuchfineand such imprisonment:

Providedthat— (i) itshallbeadefenceinanyproceedingsagainstadirectorunderthis

paragraphforthedirectortoprove,onabalanceofprobabilities,thatheorshehadreasonablegroundstobelieve,anddidbelieve,that a competent and reliable person was charged with the duty of seeingthattherequirementsofthissectionwerecompliedwithandwasinapositiontodischargethatduty;

(ii) if thecourtaccepts thedefenceprofferedunderparagraph (i), itmaydirecttheRegistrartoserveuponthedirectorthecivilpenaltyorderreferredtoinsection182(5),183(5),184(6)or189(3),asthecasemaybe;

(b) controllingmemberofaprivatebusinesscorporationwhofraudulently,recklesslyorwilfullyfailstotakeallreasonablestepstosecurecompliance


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by the private business corporationwith the requirements of section271(“Financialrecords”),273(“Annualfinancialstatements”)or274(“Examinationoffinancialstatementsandreportsthereon”),orhasbyhisorherownwilfulactbeenthecauseofdefaultbytheprivatebusinesscorporationincomplyingwithanyofthoserequirements,heorsheshall,inrespectofeachdefault,beguiltyofanoffenceandliabletoafinenotexceedinglevelsixortoimprisonmentforalldefaultsforaperiodnotexceedingsixmonths,ortobothsuchfineandsuchimprisonment:

Providedthat— (i) it shall be a defence for him or her to prove on a balance of

probabilitiesthatheorshebelievedonreasonablegroundsthatacompetent and reliable person was charged with the duty of seeing thattherequirementsofthissectionwerecompliedwithandthatsuch person was in a position to discharge that duty and that he or shehadnoreasontobelievethatsuchpersonhadinanywayfailedtodischargethatduty;

(ii) ifthecourtacceptsthedefenceprofferedunderparagraph(i),itmaydirecttheRegistrartoserveuponthememberthecivilpenaltyorderreferredtoinsection271(7),273(4)or274(4).

(2)Anypersonwhoconceals,destroys,mutilates,falsifiesormakesorisprivytothemakingofanyfalseentryinor,withintenttodefraudordeceive,makesorisprivy to themakingofanyerasure inanyregister, records, includinganyminutes,records,security,accountordocumentofanycompanyorforeigncompanyorprivatebusinesscorporationshall,unlessheorshesatisfiesthecourtineachcasethatheorshehadnointentiontodefraudordeceive,beguiltyofanoffenceandliabletoafinenotexceedinglevelelevenortoimprisonment for a period not exceeding two years or tobothsuchfineandsuchimprisonment.

70 Power to restrain fraudulent persons from managing companies or controllingPBCs

(1)Where— (a) apersonisconvictedbeforetheHighCourtofanyoffenceinconnection

withthepromotion,formationormanagementofacompanyorprivatebusinesscorporation;or

(b) inthecourseofthewindinguporjudicialmanagementofacompanyitappearsthataperson—

(i) hasbeenguiltyofanyoffenceforwhichheorsheisliable,whetherheorshehasbeenconvictedornot,undersection68;or

(ii) has otherwise been guilty,while an officer of the company oraccounting officer or controllingmember of a private businesscorporation,ofanyfraudinrelationtothecompanyorofanybreachofhisorherdutytothecompanyorprivatebusinesscorporation;

thecourtmayonapplicationmakeanorderthatthatpersonshallnot,withouttheleaveofthecourt,beadirectoroforinanyway,whetherdirectlyorindirectly,beconcernedortakepartinthemanagementofanycompany,foreigncompanyorprivatebusinesscorporationforsuchperiodasmaybespecifiedintheorder.

(2)Apersonintendingtoapplyforthemakingofanorderunderthissectionshallgivenotlessthantendays’noticeofhisorherintentiontothepersonagainstwhom the order is sought and on the hearing of the application the last-mentioned personmayappearandhimselforherselfgiveevidenceorcallwitnesses.


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(3)AnapplicationforthemakingofanorderunderthissectionmaybemadebytheMasterorbytheliquidatororjudicialmanagerofthecompanyorbyanypersonwhoisorhasbeenamemberorcreditorofthecompany;andonthehearingofanyapplication for an order under this section by the Master of the High Court or the liquidatororjudicialmanagerorofanyapplicationforleaveunderthissectionbyaperson against whom an order has been made on the application of the Master or the liquidatororjudicialmanager,theMasterorliquidatororjudicialmanager,asthecasemaybe,mayappearandcalltheattentionofthecourttoanymatterswhichseemtohimorhertoberelevantandshalldosoifsummonedbythecourtandmayhimselforherselfgiveevidenceandcallwitnesses.

(4)Anordermaybemadebyvirtueofsubsection(1)(b)(ii)notwithstandingthatthe person concerned may be criminally liable in respect of the matters on the ground ofwhichtheorderistobemadeandforthepurposesofthesaidsubparagraph(ii)theexpression“officer”shallincludeanypersoninaccordancewithwhosedirectionsorinstructionsthedirectorsofthecompanyhavebeenaccustomedtoact.

(5)Ifanypersoncontravenesanordermadeunderthissection,heorsheshall,beliabletoafinenotexceedingleveltenortoimprisonmentforaperiodnotexceedingtwoyearsortobothsuchfineandsuchimprisonment.

71 Unlawful personation and misrepresentation in relation to shares and interests

(1)Ifanypersonfalselyanddeceitfullypersonatesanyownerofanyshareorinterestinanycompanyorofanyinterestinaprivatebusinesscorporationandtherebyobtainsorendeavourstoobtainanysuchshareorinterestorreceivesorendeavourstoreceiveanymoneyduetoanysuchownerasiftheimpersonatorwerethetrueandlawfulowner,heorsheshallbeguiltyofanoffenceandliabletoafinenotexceedinglevel12ortoimprisonmentforaperiodnotexceedingfiveyearsortobothsuchfineandsuchimprisonment.

(3)Ifamemberof— (a) acompanymakesuseofacertificateofanyshare,debentureordebenture

stockdeliveredtohimorheroranotherpersonintermsofsection153(“Evidenceoftitletoshares”);or

(b) aprivatebusinesscorporationmakesuseofacertificateissuedtohimorheroranotherpersonintermsofsection257(“Certificateofmembersinterest”);

ata timewhenheorsheknowsitdoesnotreflect theexistenceor trueextentofhisorhercurrentinterestinthecompany,toobtainanybenefitsoradvantageforhimselforherselfortheprivatebusinesscorporation,heorsheshallbeguiltyofanoffenceandliabletoafinenotexceedinglevel14ortoimprisonmentforaperiodnotexceedingfiveyearsortobothsuchfineandsuchimprisonment.

72 Obligationstomaintainandfilebeneficialownershipinformation (1)Everycompanyshallmaintainanaccurateandup-to-dateregisterofthebeneficialownerorownersofthecompany,tobeknownastheregisterofbeneficialownerswhichregistershall— (a) bekept,withinZimbabwe,andatthesameofficeatwhichtheregister

ofmembersiskept;and (b) withrespecttoeachdirector,recordhisorherfirstnameandsurname,

anyformerfirstnameandsurname,anidentificationreferencenumberappearinginhisorheridentitydocument,hisorherfullresidentialor


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businessaddressandpostaladdressandhisorhernationality,aswellasthenatureandextentofhisorherbeneficialownershipinthecompany.

(2)EverycompanyshallfilewiththeRegistrar,inprescribedform,accurateandup-to-datebeneficialownershipinformationreferredtointhissectionandshallwithinsevendaysofanychangefileupdatesasandwhenthereisanymaterialchangeto the information. (3)Beneficial ownership informationheld andmaintained in termsof thissection,eitherbythecompanyorbytheRegistrar,shallbemadeavailableforinspectionby the Financial Intelligence Unit or by a law enforcement agency referred to in section 2oftheMoneyLaunderingandProceedsofCrimeAct[Chapter 9:24]. (4)Thecompanyshallappointaperson,residentinZimbabwe,whoshallberesponsibleforkeepingcustodyoftheregisterofbeneficialownersandwhoshallbeauthorisedtomaketheinformationavailabletotheFinancial Intelligence Unit or law enforcementauthorities,uponrequest.

(5)The names and sufficient contact details of the person referred to insubsection(4)shallberecordedintheformfiledbythecompanywiththeRegistrar in termsofsubsection(2).

(6)BeneficialownershipandothercompanyinformationheldbytheRegistrar,shallbepublicinformationandshallbeavailableforinspection,whetherelectronicallyorphysically— (a) bymembersofthepublic(subjecttosection73(10));and (b) by a financial institution or a designated non-financial business or

professionreferred to insection2andsection13, respectively,of theMoneyLaunderingandProceedsofCrimeAct[Chapter 9:24].

(7)TheRegistrar or the Financial Intelligence Unitmayeach,onitsownbehalforonbehalfofalawenforcementagency,seekbeneficialownershiporothercompanyinformationfromtheirforeigncounterparts,inrespectofanycompany,and,likewise,mayprovidebeneficialownershiporothercompanyinformationtotheirforeigncounterparts.

(8)TheRegistrar and the Financial Intelligence Unit and any competent authoritywhich, through them, requests beneficial ownership and other companyinformationfromothercountries,shallmonitorthequalityoftheassistancegivenbytheforeignauthoritiesandshallkeeprecordsofsuchrequestsandresponses.

(9)Thecompanyoritsadministrators,liquidatorsorotherpersonsinvolvedinthedissolutionofthecompany,shallmaintainbeneficialownershipinformationrecordsforaperiodofatleastfiveyearsafterthedateonwhichthecompanyisdissolvedorotherwise ceases to exist.

(10)Anypersonwhofailstocomplywiththerequirementsofsubsection(1),(2),(3),(4),(5)or(9)shallbeguiltyofanoffenceandbeliabletoafinenotexceedinglevel14ortoimprisonmentforaperiodnotexceedingfiveyearsortobothsuchfineand such imprisonment.

73 Prohibitionofconcealmentofbeneficialownership (1)Subject to subsection (2), no companyor private business corporationshall— (a) allotorissueanyofitssharesto,orregisteranyofitssharesinthename

of,orissueacertificateofmember’sinterestto(asthecasemaybe),anypersonotherthantheintendedbeneficialowner(thatistosay,thepersonwho,evenifitispurportedthattheownershipoftheshareorinterestbelongstosomeoneelse(inthissectionreferredtoasthe“nominee”),enjoysthedividendandotherbenefitoftheshareorinterest,whetherthatbenefitisapresentorafutureone,orisvestedorcontingent);or


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(b) transferanyofitssharesorinterestsinthenameofapersonotherthanthebeneficialowner.

(2)Subsection(1)shallnotaffecttheallotmentorissue,ortheregistrationofthetransfer,ofsharesorinterestsinacompanyorprivatebusinesscorporationinthenameof— (a) anomineeifheorsheisthenomineeofabeneficialownerwho(whether

aloneortogetherwithany“associate”asdefinedinsection3(“Whenpersons deemed to be associates and when persons deemed to control companies”))holdslessthantwentyper centum of the shares or interests inthecompanyorprivatebusinesscorporation;or

(b) amanagerortrusteeofacollectiveinvestmentschemeregisteredintermsoftheCollectiveInvestmentSchemesAct[Chapter 24:19];or

(c) anexecutorofadeceasedestate,atrusteeofaninsolventestateortheliquidatorofacompanyinliquidation;or

(d) acuratororguardianofapersonunderadisability;or (e) a holder of a licence issued in termsofPartVof theSecurities and

ExchangeAct[Chapter 24:25];or (f) a central securities depository established in termsofPart IXof the

SecuritiesandExchangeAct[Chapter 24:25];or (g) suchotherpersonsasmaybeprescribed.

(3)Withoutderogating fromsection235 (“Disclosureofpotential controlacquisition”),acompanyorprivatebusinesscorporationmay,andifsodirectedbytheRegistrarshall,requestanypersontowhomitisabouttoallot,issueortransferanyofitssharesorintereststofurnishitwithsuchinformationasthecompanyorprivatebusinesscorporationmayrequiretoenableittocomplywithsubsection(1),andifthepersonfailsorrefuseswithinareasonabletimetocomplywiththerequestthecompanyorprivatebusinesscorporationshallnotallot,issueortransferthesharesorinteresttohim or her.

(4)Ifacompanyorprivatebusinesscorporationhasreasontobelievethatanyofitssharesorinterestsareheldbyanominee,thecompanyorprivatebusinesscorporationmayrequesttheallegednomineetoprovideitwithsuchinformationaswill identify thebeneficialownerandadditionally,or alternatively, thecapacity inwhichtheallegednomineeholdsthesharesorinterests,andtheallegednomineeshallwithoutdelaycomplywiththerequest.

Inaddition,forsolongasashareholderofacompanyorholderofaninterestinaprivatebusinesscorporationfailsorrefusestocomplywitharequestintermsofthissubsection,heorsheshallnot,eitherpersonallyorbyproxy,castavoteattachedtotheshareorinterestnorreceiveadividendpayableontheshareorinterest.

(5)Whereashareorinterestinacompanyorprivatebusinesscorporationhasbeenallotted,issuedortransferredtoanominee,orregisteredinanominee’sname,incontraventionofsubsection(1),then— (a) nonomineeshall,eitherpersonallyorbyproxy,castavoteattachedto

theshareorinterestnorshallanypersonreceiveadividendpayableontheshareorinterest;and

(b) theRegistrarmay(unlessthecompanyhasearliertakentheactionreferredtoinsubsection(4))serveacategory2civilpenaltyorderupontheallegednominee,inwhich—

(i) theremediationclauseshallrequirethenomineetodivesthimselforherselfoftheshareorinterestwithinaspecifiedperiod;and


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(ii) it isdeclared that the failureor refusalof thenominee todivesthimselforherselfofashareorinterestwithinthespecifiedperiodwill result in every share or interest concerned becomingbona vacantiaandvestingintheState,whichmaythereafterdisposeofit.

(6)Thevalidityofanyresolutionadoptedbyacompanyorprivatebusinesscorporationshallnotbeaffectedbyavotecastincontraventionofsubsection(4)or(5)(a),iftheresolutionwasadoptedbytherequisitemajorityofvoteswhichwerevalidlycast.

(7)Adividend referred to in subsection (4)or (5)(b)(i) shall accrue to thecompanyorprivatebusinesscorporationconcerned.

(8)Before requiring an alleged nominee to divest himself or herself of ashareorinterestintermsofsubsection(5)(b)(i),theRegistrarshall,forthepurposesofsection296(“Additionaldueprocessrequirementsbeforeserviceofcertaincivilpenaltyorders”)(1),alsoinform— (a) thepersonfromwhomtheallegednomineeacquiredtheshareorinterest,

ifthatpersonisreadilyidentifiable;and (b) thecompanyorprivatebusinesscorporationconcerned;

ofhisorherreasonsforrequiringtheallegednomineetodoso,andshallgiveallthosepersonsanadequateopportunitytomakerepresentationsinthematter.

(9)Withreferencetosubsection(2)(a)thenomineeofabeneficialownershalldisclosethenameandrelevantparticularsofthebeneficialownertothecompanyorprivatebusinesscooperationtogetherwithawrittenrequestthatsuchbeneficialownerandparticularsnotappearon the faceof the sharesor in the sharecertificate in thecertificateofinterestorintheregisterofshareholdersorinterestholders.Whereuponsuchcompanyorprivatebusinesscorporationshallcomplywithsuchrequestbutkeepaseparateregistercontainingthenamesandrelevantparticularsofbeneficialownersinquestioninaccordancewithsection72.

(10)Thenameandrelevantparticularsof thebeneficialownersreferredtoinsubsection(9)shallnotbedisclosedexceptwiththeconsentofthenomineeorbyvirtueofanorderofacourtofcompetentjurisdiction.

(11)Anycompanyorprivatebusinesscooperationthatfailstokeeptheregisterofnamesandparticularsofabeneficialownerreferredtoinsubsection(9)shallbeliabletoacategory4civilpenaltyorderattheinstanceoftheRegistrar.

(12)Anagreementundersection299maygivestandingtoaforeigncompanyregistrytoapplytoadomesticcourtforanorderreferredtoinsubsection(10).

(13)Everycompanyorprivatebusinesscooperationshallnominateadirectororanofficerwhoshallberesponsibleformaintainingtheregistersforbeneficialowners,failuretocomplywithsuchshallrenderthecompanyorprivatebusinesscooperationconcernedliabletoacategory4civilpenalty.

74 IndemnityandcivilandcriminalliabilityofofficersandauditorsofcompaniesandmembersofPBCs

(1)Subjecttosubsections(1)and(2),andunlessotherwiseprovidedinthisActorinthearticlesofthecompanyorby-lawsoftheprivatebusinesscorporation,orinanycontractwithacompanyorprivatebusinesscorporationorotherwise,everydirector,managingdirector, agent, auditor, secretary andotherofficer for the timebeingofacompanyormemberforthetimebeingoftheprivatebusinesscorporation,


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shallbeentitledtoanindemnityfromthecompanyorprivatebusinesscorporationforpaymentsmadeandpersonalliabilitiesincurredbyhimorher— (a) intheordinaryandproperconductoftheaffairsofthecompanyorprivate

businesscorporation;and (b) in or about anything necessarily done for the preservation of the

undertakingorpropertyofthecompanyorprivatebusinesscorporation.

(2)Subjecttothissection,anyprovisions,whethercontainedinthearticlesofacompanyorby-lawsoftheprivatebusinesscorporation,orinanycontractwithacompanyorprivatebusinesscorporationorotherwise,forexemptinganyofficerofthe company or member of the corporation or any person employed by the company or corporationasauditorfrom,orindemnifyinghimorheragainst,anyliabilitywhichbylawwouldotherwiseattachtohimorherinrespectofanynegligence,default,breachof duty or breach of trust of which he or she may be guilty in relation to the company orprivatebusinesscorporationshallbevoid.

(3) Inparticular,noofficerofacompanyormemberofaprivatebusinesscorporationwhoispersonally liableforacivilpenaltyshallbe indemnifiedbythecompanyorcorporationagainstsuchliability,andanyprovisions,whethercontainedinthearticlesofacompanyorby-lawsoftheprivatebusinesscorporation,orinanycontractwithacompanyorcorporationorotherwise,forexemptingorindemnifyingsuchofficershallbevoid.

(4)Acompanyorprivatebusinesscorporation thatcontravenessubsection(2)or(3)andeveryofficer,auditorormemberwhoispartytothepaymentorreceiptofanyindemnityincontraventionofthosesubsectionsshallbeguiltyofanoffenceandliabletoafinenotexceedinglevelfourteenortoimprisonmentforaperiodnotexceedingtwoyearsortobothsuchfineandimprisonment,andthecourtimposingsuchfineorimprisonmentorbothmaysuspendthewholeoranypartofsuchfineorimprisonmentorbothconditionallyuponthecompanyorprivatebusinesscorporationrecovering,ortheofficer,auditorormemberindefaultreimbursingthecompanyorprivatebusinesscorporationfor,thefullvalueoftheindemnity.

(5)Despitesubsections(2)and(3)acompanyorprivatebusinesscorporationmayindemnifyanysuchofficerauditorormembersagainstanyliabilityincurredbyhimorherindefendinganyproceedings,whethercivilorcriminal,inwhichjudgmentisgiveninhisorherfavourorinwhichheorsheisacquittedorinconnectionwithanyapplicationundersection59(“Powerofcourttograntrelieftodefendantsorpotentialdefendantsincertaincases”)inwhichreliefisgrantedtohimorherbythecourt.

CHAPTER III

comPanies

PART I

introduction

Sub-Part A: Incorporation of companies and matters incidental thereto

75 Prohibitionofassociationorpartnershipexceedingtwentypersons (1)Nocompany,association,syndicateorpartnershipconsistingofmorethantwenty persons shall be formed in Zimbabwe for the purpose of carrying on any business thathasforitsobjecttheacquisitionofgainbythecompany,association,syndicateorpartnership,orbytheindividualmembersthereof,unlessitisregisteredasacompanyunderthisPartorasaprivatebusinesscorporationunderPartIofChapterIV,orisformed in pursuance of some other law:


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Providedthatanassociation,syndicateorpartnershipwhich— (a) consistssolelyofpersonswhoaremembersofadesignatedprofession

orcalling;and (b) isformedforthepurposesofpractisingorcarryingoninZimbabwethat

designatedprofessionorcalling;

may consist of more than twenty persons.

(2)Forthepurposesofthissection“designatedprofessionorcalling”means— (a) legalpractitionersregisteredundertheLegalPractitionersAct[Chapter

27:07] (b) publicaccountantsandauditorsregisteredunderthePublicAccountants

andAuditorsAct[Chapter 27:12]; (c) architectsregisteredundertheArchitectsAct[Chapter 27:01]; (d) quantitysurveyorsregisteredundertheQuantitySurveyorsAct[Chapter

27:13]; (e) medicalpractitionersregisteredundertheHealthProfessionsAct[Chapter

27:19]; (f) any other profession or callingwhich is controlled and regulated by

a council or other body established by or under any Act in force in Zimbabwe,andwhichisdeclaredbytheMinisterbynoticeintheGazette tobeadesignatedprofessionorcallingforthepurposesofthisproviso.

76 Mode of forming company Anyoneormorepersonsassociatedforanylawfulpurposemay,bysubscribingtheir names to a memorandum of association and otherwise complying with the requirements of thisAct in respect of registration, forman incorporated companywhether— (a) acompanyhavingtheliabilityofitsmemberslimitedbythememorandum

totheamount,ifany,unpaidonthesharesrespectivelyheldbythem,inthisActtermedacompanylimitedbyshares;or

(b) ifalicenceisgrantedintermsofsection82(“Powertodispensewith“Limited” in certain cases”), a companyhaving no share capital buthavingtheliabilityofitsmemberslimitedbythememorandumtosuchamountasthemembersmayrespectivelytherebyundertaketocontributetotheassetsofthecompanyintheeventofitsbeingwouldup,inthisAct termed a company limited by guarantee.

77 Memorandum of company (1)Inthecaseofacompanylimited— (a) byshares,thememorandumshallbeintheEnglishlanguage,orsubject

tosubsection(6).inanofficiallyrecognisedlanguageandmuststate— (i) thenameof thecompanywhichshall,unlessa licencehasbeen

grantedundersection82(“Powertodispensewith“Limited”incertaincases”),have“Limited”asthelastwordandshallalsohaveincludedtherein—

A. inthecaseofaprivatecompany,theterm“(Private)”asthepenultimateword;

B. inthecaseofaco-operativecompany,theword“Co-operative”ortheabbreviation“Co-op”;


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(ii) theobjectsofthecompany,ifthepromoterwishestospecifythem; (iii) thattheliabilityofthemembersislimited; (iv) the number of shareswithwhich the company proposes to be

registered; (b) byguarantee,thememorandumshallbeintheEnglishlanguageorany

otherprescribedlanguageandmuststate— (i) thenameofthecompany; (ii) theobjectsofthecompany; (iii) thattheliabilityofthemembersislimited; (iv) that eachmember undertakes to contribute to the assets of the

companyintheeventofitsbeingwoundupwhileheorsheisamember or within one year after he or she ceases to be a member for payment of the debts and liabilities of the company contracted beforeheorsheceasestobeamemberandofthecosts,chargesand expenses of the winding up and for the adjustment of the rights of the contributories among themselves such amount asmayberequired,notexceedingaspecifiedamount.

(2)Nosubscribertothememorandumofacompanylimitedbysharesmaytakelessthanoneshare.

(3)Eachsubscribertothememorandumofacompanylimitedbysharesmuststateinwordsoppositetohisorhernamethenumberofsharesheorshetakes:

Providedthatwherethesubscriberis— (a) acompany,association,syndicateorothercorporatebody,adirectorof

thecompanyortheauthorisedrepresentativeofanyothercorporatebody;or

(b) apartnership,oneofthepartners;or (c) aminor,theguardian;

as the casemaybe, shall indicate in theirhandwriting (orbyaffixing theirdigitalsignaturethereto)thenumberofsharestaken.

(4)Apubliccompanywhichconvertsitselfintoaprivatecompanyintermsofsection86(“Statementinlieuofprospectusonceasingtobeprivatecompany”)(3)shall,withinonemonthaftertheconversion,inserttheterm“(Private)”beforetheword “Limited “in the name.

(5)The insertion of the term “(Private)” in the name of the company incompliancewith subsection (4) shallnotbe regardedas a changeofname for thepurposeofsection26(“Changeofname”)(1).

(6)Ifthememorandumissubmittedinanofficiallyrecognisedlanguagesuchmemorandum must be accompanied by a translation of the same in English authenticated by a person who in the opinion of the Registrar is competent to translate such language into English.

78 Signing of memorandum Thememorandumshallbeprintedandshallbesignedanddated,inthepresenceofatleastoneattestingwitness,byeachsubscriberandoppositeeverysuchsignatureofasubscriberorawitnessthereshallbetypedhisorherfullname,occupation,andfull residential or business address:

Providedthatwherethesubscriberis—


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(a) acompany,association,syndicateorothercorporatebody,adirectorofthecompanyortheauthorisedrepresentativeofanyothercorporatebody;or

(b) apartnership,oneofthepartners;or (c) aminor,theguardian; (d) apersonwithadisabilityimpairinghisorherabilitytosign,hisorher

representative;

asthecasemaybe,shallsignthememorandum.

79 Alteration of memorandum (1)Acompanymaynot alter theconditionscontained in itsmemorandumexceptinthecasesandinthemodeandtotheextentforwhichexpressprovisionismade in this Act.

(2)Acompanymaybyspecialresolution— (a) subject to the InsolvencyAct, alter any condition contained in its

memorandumwhichcouldlawfullyhavebeencontainedinarticlesofassociation:

Provided that this paragraph shall not apply where thememorandumitselfprovidesfororprohibitsthealterationofalloranyofthesaidconditions,andshallnotauthoriseanyvariationorabrogationofthespecialrightsofanyclassofmembers;

(b) alteritsmemorandumwithrespecttotheobjectsofthecompany: Providedthat, if thenameofthecompanydescribesthemain

objects of that company and such objects are to be altered so that the nameof the companywouldno longerdescribe itsmainobjects, thememorandum shall not be so altered unless the name of the company is changedaccordinglyintermsofsection26(“Changeofname”).

(3)Notwithstanding subsection (2), if an application (hereafter called a“cancellationapplication”)ismadetothecourtinaccordancewiththissectionforanalterationintermsofsubsection(2)(a)or(b)tobecancelled,thealterationshallnothaveeffectexceptinsofarasitisconfirmedbythecourt.

(4)Acancellationapplicationmaybemade— (a) bytheholdersofnotlessintheaggregatethanfiveper centum in nominal

valueofthecompany’sissuedsharecapitaloranyclassthereof;or (b) byagroupofshareholdersreferredtoinsection80(“Groupvotingon

amendmentstomemorandum”):

Providedthatacancellationapplicationshallnotbemadebyanypersonwho,orgroupofshareholdersreferredtoinsection80that,hasconsentedtoorvotedinfavourofthealteration. (5)Acancellationapplicationshallbemadewithinonemonthafterthedateon which the resolution altering the condition contained in the memorandum or the company’sobjects,asthecasemaybe,waspassed,andmaybemadeonbehalfofthepersonsentitledtomaketheapplicationbysuchoneormoreoftheirnumberastheymay appoint in writing for the purpose.

(6)Onbeingseizedofacancellationapplicationthecourtmaymakeanorderconfirmingthealterationeitherwhollyorinpartandonsuchtermsandconditionsasitthinksfit,andmay,ifitthinksfit,adjourntheproceedingsinorderthatanarrangementmay be made to the satisfaction of the court for the purchase of the interests of dissentient


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members,andmaygivesuchdirectionsandmakesuchordersasitmaythinkexpedientfor facilitating or carrying into effect any such arrangement:

Providedthatnopartofthecapitalofthecompanyshallbeexpendedinanysuch purchase.

(7)Inthecaseofacompanywhichis,byvirtueofalicencefromtheMinister,exemptfromtheobligationtousetheword“Limited”aspartofitsname,aresolutionaltering the company’s objects shall require the samenotice to theMinister as tomembersofthecompany,andwheresuchacompanyaltersitsobjectstheMinister,unlessheorsheseesfittorevokethelicence,mayvarythelicencebymakingitsubjecttosuchconditionsandregulationsasheorshethinksfit,inplaceoforinadditiontotheconditionsandregulations,ifany,towhichthelicencewasformerlysubject.

(8)Whereacompanypassesaresolutionalteringitsobjects— (a) if no application ismadewith respect thereto under this section, it

shallwithinonemonthfromtheendoftheperiodformakingsuchanapplicationdelivertotheRegistraracopyofitsmemorandumasaltered;and

(b) ifsuchanapplicationismade,itshall— (i) forthwithgivenoticeofthatfacttotheRegistrar;and (ii) withinonemonthfromthedateofanyordercancellingorconfirming

the alteration, deliver to theRegistrar a certified copy of itsmemorandum as altered.

Providedthat thecourtmaybyorderatanytimeextendthetimeforthedeliveryofdocumentstotheRegistrarunderthisparagraphforsuchperiodasthecourtmaythinkproper.

(9)IfacompanymakesdefaultingivingnoticeordeliveringanydocumenttotheRegistrarasrequiredbysubsection(8),theRegistrarmayissueacategory3civilpenalty order upon the defaulting company.

(10)Thevalidityofanalterationofacompany’smemorandumwithrespecttotheobjectsofthecompanyshallnotbequestionedonthegroundthatitwasnotauthorisedby subsection (2) except inproceedings taken for thepurpose,whetherunderthissectionorotherwise,beforetheexpirationofonemonthafterthedateoftheresolutioninthatbehalf;andwhereanysuchproceedingsaretakenotherwisethanunderthissection,subsections(8)and(9)shallapplyinrelationtheretoasiftheyhadbeentakenunderthissectionandasifanorderdeclaringthealterationinvalidwerean order cancelling it and as if an order dismissing the proceedings were an order confirmingthealteration.

80 Groupvotingonamendmentstomemorandum Theholdersofanytypeorclassofsharesshallbeentitledtovoteasagrouponanamendmenttothememorandumofassociation(thatistosay,amajorityofthevotesofthegrouponthequestionwhethertoamendthememorandumshallbedeemedtobethetotalityofthevotesofthegroup)ifthememorandumofassociationsoprovidesorifthechangewould— (a) increaseordecreasethenumberofauthorisedsharesofsuchgroup; (b) changeanyoftherightsorpreferencesofthesharesofsuchgroup; (c) createarightoftheholdersofanyothersharestoexchangeorconvert

theirsharesintosharesofthetypeorclassheldbysuchgroup; (d) changethesharesheldbysuchgroupintoadifferentnumberofshares

orintosharesofanothertypeorclass;or


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(e) createanewtypeorclassofshareshavingrightsorpreferencessuperiororsubstantiallyequaltothoseofsuchgroup,orincreasetherightsandpreferencesofanytypeorclassofshareshavingrightsandpreferencessubstantiallyequaltoorsuperiortothoseofsuchgroup,orincreasetherightsandpreferencesofanytypeorclassofshareshavingrightsandpreferences subordinate to those of such group if such increase would thenmakethemsubstantiallyequalorsuperiortothoseofsuchgroup;or

(f) limitordenytheexistingpre-emptiverightsofthesharesofsuchgroup;or (g) cancelorotherwiseaffectaccumulateddividendsonthesharesofsuch

group;or (h) limitordenythevotingrightsofsuchgroup;or (i) otherwisechange the rightsorpreferencesof thesharesheldbysuch

groupsoastoaffectthemadversely.

81 Articles of association and alteration thereof (1)Articlesofassociationsignedbythesubscriberstothememorandumofacompany and prescribing its internal rules may be registered with such memorandum.

(2)ArticlesofassociationmayadoptalloranyoftheinternalrulescontainedinTableA(forpubliccompanies),B(privatecompanieslimitedbyshares)orC(privatecompanieslimitedbyguarantee)intheSixthSchedule(“ModelArticlesandBy-Laws”).

(3)Inthecaseof— (a) apubliccompany,ifarticlesofassociationarenotregisteredwiththe

memorandumofassociation,orifarticlesofassociationareregisteredinso far as the articles do not exclude or modify the internal rules contained inTableA,thoseinternalrulesshall,sofarasapplicable,betheinternalrules of the company in the same manner and to the same extent as if they werecontainedindulyregisteredarticles;

(b) aprivatecompany,ifarticlesofassociationarenotregisteredwiththememorandumofassociation,orifarticlesofassociationareregisteredinso far as the articles do not exclude or modify the internal rules contained inTableB,thoseinternalrulesshall,sofarasapplicable,betheinternalrules of the company in the same manner and to the same extent as if they werecontainedindulyregisteredarticles;

(c) acompanylimitedbyguarantee,ifarticlesofassociationarenotregisteredwith thememorandumof association, or if articles of association areregistered in so far as the articles do not exclude or modify the internal rulescontainedinTableC,thoseinternalrulesshall,sofarasapplicable,be the internal rules of the company in the same manner and to the same extentasiftheywerecontainedindulyregisteredarticles;

(4)Anyprovisioncontainedinacompany’sarticlesshallbevoidinsofarasitwouldhavetheeffecteither— (a) of excluding the right to demand a poll at a generalmeetingon any

questionotherthantheelectionofthechairpersonofthemeetingortheadjournmentofthemeeting;or

(b) ofmakingineffectiveademandforapollonanysuchquestionwhichismade—

(i) bynotlessthanfivemembershavingtherighttovoteatthemeeting;or

(ii) byamemberormembersrepresentingnotlessthanone-tenthofthetotalvotingrightsofallthemembershavingtherighttovoteatthemeeting;or


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(iii) byamemberormembersholdingsharesinthecompanyconferringarighttovoteatthemeeting,beingsharesonwhichanaggregatesumhasbeenpaidupequaltonotlessthanone-tenthofthetotalsum paid up on all the shares conferring that right.

(5)ThearticlesshallbeinEnglishoranyotherofficiallyrecognisedlanguageand shall be signed and dated by each subscriber to the memorandum in the presence ofatleastoneattestingwitnessandoppositeeverysuchsignatureofasubscriberorawitnessthereshallbewritteninlegiblecharactershisorherfullname,occupationand full residential or business address:

Providedthat,ifanyotherofficiallanguageisusedforthearticles,thearticlesshallbeaccompaniedbyatranslationofthesameinEnglish,authenticatedbyapersonwho in the opinion of the Registrar is competent to translate such language into English.

(6)Subjecttotheconditionscontainedinitsmemorandum,acompanymayby special resolution alter or add to its articles and any alteration or addition so made inthearticlesshallbeasvalidasiforiginallycontainedtherein,andbesubjectinlikemanner to alteration by special resolution.

82 Power to dispense with “Limited” in certain cases (1)WheretheMinister issatisfiedthatanassociationexistsforanylawfulpurpose, the pursuit ofwhich is calculated to be in the interests of the public, oranysectionofthepublic,andintendstoapplyitsprofits,ifany,orotherincomeinpromotingitsobjects,andtoprohibitthepaymentofanydividendtoitsmembers,andthatitisdesirablethatsuchassociationshouldbeincorporated,theMinistermay,iftheassociationsubmitstohimorheramemorandumcomplyingwithsection74(“Indemnityandcivilandcriminalliabilityofofficersandauditorsofcompaniesandmembersofprivatebusinesscorporations”),by licencesignedbyhimorher,directing that theassociation be registered as a company without the addition of the word “Limited” to itsname,andtheassociationmaythereuponberegisteredaccordingly.

(2)Theassociation,uponsuchregistration,shallenjoyalltheprivilegesofacompanyandbesubjecttoalltheobligationsthereof,exceptthoseofusingtheword“Limited”asanypartofitsnameandofcomplyingwithsections115(“Prohibitionofallotmentunlessminimumsubscriptionreceived”),116(“ProhibitionofallotmentincertaincasesunlessstatementinlieuofprospectusdeliveredtoRegistrar”),121(“Register and returnas to allotments”), 158 (“Restrictionsoncommencementofbusiness”),165(“Annualreturntobemadebycompany”),166(“Statutorymeetingandstatutoryreport”),170(“Righttoreceivecopyofstatementoffinancialpositionandauditor’sreport”)and199(“Restrictionsonappointmentoradvertisementofdirector;sharequalificationsofdirectors”)

(3)Subjecttosubsection(4),alicenceunderthissectionmayatanytimeberevokedbytheMinisteranduponrevocationtheRegistrarshallentertheword“Limited”attheendofthenameoftheassociationupontheregister,andtheassociationshallthereuponceasetoenjoytheexemptionsandprivilegesgrantedbythissection.

(4)BeforealicenceissorevokedtheMinistershallgivetotheassociationnoticeinwritingofhisorherintention,andshallafforditanopportunitytosubmitinwritingargumentsinoppositiontorevocation.

(5)AnyapplicationtothecourttoreviewtheMinister’sdecisionintermsofsubsection(3)mustbemadenolaterthanthirtydaysafterthecompanyinquestionreceivingnoticeoftheMinister’sdecisiontothateffect.

(6)WheneveritisprovedtothesatisfactionoftheMinisterthattheobjectsofacompanyarethosedefinedinsubsection(1)andobjectsincidentalorconducive


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thereto,andthatbyitsconstitutionthecompanyisrequiredtoapplyitsprofits,ifany,orotherincomeinpromotingitsobjectsandisprohibitedfrompayinganydividendtoitsmembers,theMinistermaybylicenceauthorisethecompanytochangeitsnamebyspecialresolutionbytheomissiontherefromoftheword“Limited”,andasfromthedateofthereceiptofthecertificateoftheRegistrarrecordingtheregistrationofsuch special resolution passed pursuant to such licence the company shall be deemed to be a company licensed under this section.

(7)Section26(“Changeofname”)shallapplytoachangeofnameunderthissection.

(8)A licence by theMinister under this sectionmay be granted on suchconditionsandsubjecttosuchregulationsasheorshemaythinkfit,andthoseconditionsand regulations shallbebindingupon theassociationorcompanyand shall, if theMinistersodirects,beinsertedinthememorandumandarticles,orinoneofthosedocuments.

(9)NoalterationofthememorandumorarticlesofassociationinrespectofwhichalicenceunderthissectionisinforceshalltakeeffectuntilsuchalterationisapprovedbytheMinister,andiftheMinisterapprovesthealterationheorshemayvarythelicencebymakingitsubjecttosuchconditionsandregulationsasheorshethinksfit,in lieuoforinadditiontotheconditionsandregulations,ifany,towhichthe licence was formerly subject.

Sub-Part B: Membership of company

83 Membershipofcompany;personalliabilitywherebusinesscarriedon with no members

(1)Section20(“Effectofregistrationofconstitutivedocumentsandlimitationofliabilityofmembersofcompaniesandprivatebusinesscorporations”)(3)(a)describeshowmembershipinacompanyiscommenced,evidencedandterminated.

(2)Ifacompanyhasnomembersandcarriesonbusinessformorethansixmonthswithoutmembers,anypersonwhoknowinglycausesittodososhallbeliable,jointlyandseverallywiththecompany,foralldebtsincurredbyitafterthesixmonthshaveelapsed.

84 Membership of holding company (1)Exceptasprovidedunderthissection— (a) abodycorporatecannotbeamemberofacompanythatisitsholding

company,and (b) anyallotmentortransferofsharesinacompanytoitssubsidiaryisvoid.

(2)Subjecttosubsection(3),subsection(1)shallapplyinrelationtoanomineeforabodycorporatewhichisasubsidiary,asifreferencesinsubsections(1)tosuchabody corporate included references to a nominee for it.

(3)Theprohibitioninsubsection(1)doesnotapplywherethesubsidiaryisconcernedonly— (a) aspersonalrepresentative;or (b) astrustee;

unless, in the latter case, theholding companyor a subsidiaryof it is beneficiallyinterested under the trust.

(4)Forthepurposeofascertainingwhethertheholdingcompanyorasubsidiaryissointerested,thereshallbedisregarded—


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(a) anyinterestheldonlybywayofsecurityforthepurposesofatransactionentered into by the holding company or subsidiary in the ordinary course ofabusinessthatincludesthelendingofmoney;

(b) anyinterestwithin— (i) subsection(5)(a)(intereststobedisregarded:residualinterestunder

pensionschemeoremployees’sharescheme);or (ii) subsection(5)(b)(intereststobedisregarded:employer’srightsof

recoveryunderpensionschemeoremployees’sharescheme); (c) anyrightsthatthecompanyorsubsidiaryhasinitscapacityastrustee,

includinginparticular— (i) anyrighttorecoveritsexpensesorberemuneratedoutofthetrust

property;and (ii) anyrighttobeindemnifiedoutofthetrustpropertyforanyliability

incurred by reason of any act or omission in the performance of its duties as trustee.

(5)Wheresharesinacompanyareheldontrustforthepurposesofapensionschemeoremployees’sharescheme,thereshallbedisregardedforthepurposesofsubsection(3)any— (a) residualinterestthathasnotvestedinpossession;or (b) chargeorlienon,orset-offagainst,anybenefitorotherrightorinterest

under the scheme for the purpose of enabling the employer or former employer of a member of the scheme to obtain the discharge of a monetary obligation due to him or her from the member.

(6)Insubsections(4)and(5)— “employee”shallbereadasifadirectorofacompanywereemployedbyit; “employees’sharescheme”meansan“approvedemployeeshareownership

schemeortrust”asdefinedinsection2oftheIncomeTaxAct[Chapter 23:06]oranemployeeshareownershipschemeortrustasdefinedintheIndigenisationandEconomicEmpowermentAct[Chapter 14:33](No.14of2007);

“pensionscheme”meansaschemefortheprovisionofbenefitsconsistingoforincludingrelevantbenefitsfororinrespectofemployeesorformeremployees;

“relevantbenefits”meansanypension,lumpsum,gratuityorotherlikebenefitgiven or to be given on retirement or on death or in anticipation ofretirementor,inconnectionwithpastservice,afterretirementordeath;

“residualinterest”meansarightofthecompanyorsubsidiary(“theresidualbeneficiary”)toreceiveanyofthetrustpropertyintheeventof—

(a) alltheliabilitiesarisingundertheschemehavingbeensatisfiedorprovidedfor;or

(b) theresidualbeneficiaryceasingtoparticipateinthescheme;or (c) the trust property at any time exceedingwhat is necessary for

satisfyingtheliabilitiesarisingorexpectedtoariseunderthescheme; “vestinpossession”,inrelationtoaresidualinterest,means— (a) in a casewithin paragraph (a) of the definition of “residual

interest”,theoccurrenceoftheeventmentionedthere(whetherornottheamountofthepropertyreceivablepursuanttotherightisascertained);


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(b) inacasewithinparagraph(b)or(c)ofthedefinitionof“residualinterest”,whentheresidualbeneficiarybecomesentitledtorequirethetrusteetotransfertohimorheranyofthepropertyreceivablepursuant to the right.

(7)Insubsection(6),inthedefinitionof“residualinterest”— (a) thereferencetoarightincludesarightdependentontheexerciseofa

discretionvestedbytheschemeinthetrusteeoranotherperson,and (b) thereferencetoliabilitiesarisingunderaschemeincludesliabilitiesthat

haveresulted,ormayresult,fromtheexerciseofanysuchdiscretion.

Sub-Part C: Private companies

85 Definition of private company and consequences of default incomplyingwithconditionsforprivatecompany

(1)InthisAct— “privatecompany”meansacompanyotherthanaco-operativecompany,which

byitsarticles— (a) restrictstherighttotransferitsshares;and (b) limitsthenumberofitsmemberstofifty,notincludingpersonswho

areintheemploymentofthecompanyandpersonswho,havingbeenformerlyintheemploymentofthecompany,werewhileinthatemploymentandhavecontinued,aftertheterminationofthatemployment,tobemembersofthecompany;and

(c) prohibitsanyinvitationtothepublictosubscribeforanysharesordebentures of the company.

(2)Wheretwoormorepersonsholdoneormoresharesinacompanyjointlytheyshall,forthepurposesofthissection,betreatedasasinglemember.

(3)WiththesanctionofaspecialresolutionandsubjecttoconfirmationbytheHighCourt,apubliccompanymayconvertitselfintoaprivatecompany.

(4)Ifacompanyregisteredasaprivatecompany— (a) knowinglypermitsitsmembershiptoexceedfiftymembers(otherthan

members who are its employees or former employees as contemplated inparagraph(b)ofthedefinitionofthe“privatecompany”)itshallbeguiltyofanoffenceandliabletoafinenotexceedingleveltwoforeverydayduringwhichitisincontraventionofthisparagraph;or

(b) invitesmembersofthepublictosubscribeforitssharesordebentures,the provisions of sections 108 (“Civil liability formisstatements inprospectus”)and111(“Documentcontainingofferofsharesordebenturesforsaletobedeemedtobeprospectus”)to114(“Restrictionsonofferingshares forsubscriptionorsale”)shallapply to itas if itwasapubliccompany,withoutaffectingtheliabilityof theprivatecompanyundersubsection(5).

(5)IfitcomestothenoticeoftheRegistrarthatacompanyisindefaultofsubsection(4)(a)or(b)orhasnotcompliedwiththerestrictionreferredtoinparagraph(a)ofthedefinitionof“privatecompany”insubsection(1)then,independentlyofaprosecution,ifany,foranoffenceundersubsection(4)(a)or(b),theRegistrarmayserveacategory1civilpenaltyorderuponthedefaultingcompany.


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86 Statementinlieuofprospectusonceasingtobeprivatecompany (1)Ifacompany,beingaprivatecompany,altersitsarticlesinsuchmannerthat theyno longer include theprovisionswhich, under section85 (“Definitionofprivatecompanyandconsequencesofdefaultincomplyingwithconditionsforprivatecompany”),arerequiredtobeincludedinthearticlesofacompanyinordertoconstituteitaprivatecompany,thecompanyshall,asonthedateofthealteration,ceasetobeaprivatecompanyandshall,withinaperiodofonemonthafterthesaiddate,removetheterm“(Private)”fromitsnameanddelivertotheRegistrarforregistrationastatementin lieu of prospectus in the form and containing the particulars set out in Part I of the SecondScheduleand,inthecasesmentionedinPartIIofthatSchedule,settingoutthereportsspecifiedtherein,andthesaidPartsIandIIshallhaveeffectsubjecttotheprovisionscontainedinPartIIIofthatSchedule:

Provided that a statement in lieu of prospectus need not be delivered ifwithin the said period a prospectus relating to the company which complies with the EighthScheduleisissuedandislodgedwiththeRegistrarasrequiredbysection106(“Registrationofprospectus”).

(2)Everystatementinlieuofprospectusdeliveredundersubsection(1)shall,wherethepersonsmakinganysuchreportasaforesaidhavemadethereinorhave,withoutgivingthereasons,indicatedthereinanysuchadjustmentsasarementionedinparagraph5inPartIIIofthesaidSchedule,haveendorsedthereonorattachedtheretoawrittenstatementsignedby thosepersonssettingout theadjustmentsandgivingreasons therefor.

(3) If acompany is indefaultof subsection (1), theRegistrarmayserveacategory1civilpenaltyorderuponthedefaultingcompany.

(4)Section115(“ProhibitionofallotmentincertaincasesunlessstatementinlieuofprospectusdeliveredtoRegistrar”)(5)and(6) shallapply,withsuchchangesasmaybenecessary,toeverystatementinlieuofprospectuslodgedunderthissectionas they apply to a statement in lieu of prospectus lodged under that section.

(5)The removal of the term “(Private)” from the name of a company incompliancewith subsection (1) shall not be regarded as a changeofname for thepurposesofsection26(“Changeofname”)(1).

Sub-Part D: Co-operative companies

87 Definitionofco-operativecompanyandconsequencesofdefaultincomplyingwithconditionsforco-operativecompany

(1)A co-operative company is a company, other than a private company,which— (a) initsmemorandumstatesthatitsmainobjectisoneorotherorbothof

the following— (i) theprovisionforitsmembersofaservicefacilitatingtheproduction

or marketingofagriculturalproduceorlivestock; (ii) thesaleofgoodstoitsmembers; and (b) byitsarticles— (i) restrictstherighttotransferitsshares;and (ii) providesthatitsordinarysharesshallbeofoneclassonly;and


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(iii) subjecttosection89(“Votingrightsofmembersoftheco-operativecompany”),fixesalimittothenumberofshareswhichmaybeheldbyanyonemember;and

(iv) regulatesthevotingrightsofitsmembersinaccordancewithsection89;and

(v) limitsthedividendwhichmaybepaidonitssharestoaratenotexceeding ten per centum per annumontheamountspaidupthereon;and

(vi) provides for thedistributionofapartor thewholeof itsprofitsamongst its members on the basis of certain or all of their business transactions with the company.

(2)Withthesanctionofaspecialresolutionandsubjecttoconfirmationbythecourt,apubliccompany,whichisnotaco-operativecompany,mayconvertitselfintoaco-operativecompany.

(3)Forthepurposesofsubsection(1)(a)— “member”,inrelationtoaco-operativecompany,includesanypersonwho

isamemberofaco-operativecompanywhichisamemberofthefirst-mentionedco-operativecompany.

(4)Wherethememorandumandarticlesofacompanyincludetheprovisionswhichundersubsection(1) arerequiredtobeincludedinthememorandumandarticlesofacompanyinordertoconstituteitaco-operativecompanybutdefaultismadeincomplyingwithanyofthoseprovisionsthecompanyshallceasetobeentitledtotheprivilegesandexemptionsconferredonco-operativecompaniesbythisActandtheprovisionsthereofshallinallrespectsapplytothecompanyasifitwerenotaco-operativecompany.

(5)IfitcomestothenoticeoftheRegistrarthatacompanyisindefaultofsubsection (4), theRegistrarmay serve a category 1 civil penalty order upon thedefaulting company:

ProvidedthattheRegistrar,onbeingsatisfiedthatthefailuretocomplywiththeconditionswasaccidentalorduetoinadvertenceortosomeothersufficientcause,maywaivethecivilpenaltyandrelievethecompanyfromtheconsequencesreferredtoinsubsection(4). (6) If no civil penalty order has been served in relation to the foregoingdefault,or,havingbeenserved,itisappealedintermsofsection296(“Additional due processrequirementsbeforeserviceofcertaincivilpenaltyorders”)(3), thecourt,onbeingsatisfiedthatthefailuretocomplywiththeconditionswasaccidentalorduetoinadvertenceortosomeothersufficientcause,orthatonothergroundsitisjustandequitabletograntrelief,may,ontheapplicationofthecompanyoranyotherpersoninterestedandonsuchtermsandconditionsasseemtothecourtjustandexpedient,orderthatthecompanyberelievedfromsuchconsequencesasaforesaid.

88 Co-operativecompanytomaintainreservefund (1)Everyco-operativecompanyshallmaintainareservefundwhichmaybeusedforanypurposeforwhichthesharecapitaloftheco-operativecompanymaybeusedbutwhichshallnotbeavailablefordistributiontomembersexceptintheeventofthewinding-upoftheco-operativecompany.

(2)Thearticlesof theco-operativecompanyshallprovide for thecreationandoperationofitsreservefundandforthemethodofdeterminingtheamounttobeappropriatedtheretofromtheannualsurplusoftheco-operativecompany.


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89 Votingrightsofmembersofco-operativecompany (1)Subjecttosubsection(2),everymemberofaco-operativecompanyshallhaveatleastonevoteinrespectoftheconductoftheaffairsoftheco-operativecompanybut,saveinthecasewherethemembershipoftheco-operativecompanyislessthanonehundredmembersorisrestrictedsolelytootherco-operativecompanies,nomembermay exercise more than one per centumofthetotalvotesinrespectoftheconductoftheaffairsoftheco-operativecompanywhichareaccordedtoallthemembersthereof:

Providedthat— (i) thearticlesofaco-operativecompanymayprovidethatvotesshallbe

accorded to the members thereof in relation to their shareholding in theco-operativecompanyortheirtransactionswiththeco-operativecompanyduringaspecifiedperiodortobothsuchfactorsbutinnocaseshallamemberbeentitledtobeaccordedmorethansixvotesinrespectofeithersuchfactorortwelvevotesinrespectofboth;

(ii) ifaco-operativecompanyformsasubsidiaryco-operativecompanyoracquiresanotherco-operativecompanyasitssubsidiary,thefirst-mentionedco-operativecompany shallbeentitled toexercise inrespect of the conduct of the affairs of the subsidiary such number or percentageof the total votes accorded to allmembers of thesubsidiary which does not exceed such number or percentage as maybeprescribed;

(iii) inthecaseofaco-operativecompany,wherethemembershipisless than one hundred members and is not restricted solely to other co-operativecompanies,nomemberthereofshallhavemorethanonevoteintheconductoftheaffairsoftheco-operativecompanyunlessprovisionhasbeenmadeinthearticlesoftheco-operativecompanyasenvisagedbyproviso(i).

(2)Theholderofapreferenceshareinaco-operativecompanyshallhavenovoteinrespectoftheconductoftheaffairsoftheco-operativecompany:

Providedthatthearticlesoftheco-operativecompanymayprovidethatsuchaholdermayhaveavote,subjecttosubsection(1),inrespectofmattersaffectingtherights of any such holder of any such preference shares or the dissolution of the co-operativecompany.

90 Applicationofsurplusassetsonliquidationofco-operativecompany Ifinanywindingupofaco-operativecompanyaftertheapplicationoftheassetsthereofintermsofPartXV(“CostsofliquidationandapplicationofFreeResidue”)oftheInsolvencyAct[Chapter 6:07],thereremainsanysurplusofassetstheliquidatorshalldistributesuchsurplus,includingthecapitalreserveandanyotherreservesoftheco-operativecompany,inthefollowingorder— (a) amongsttheholdersofthepreferencesharesoftheco-operativecompany

whicharepreferentastocapital,ifany,inrepaymentoftheamountspaidupbythemonsuchpreferenceshares;

(b) amongsttheholdersofsharesoftheco-operativecompany,notreferredtoinparagraph(a),inrepaymentoftheamountspaidupbythemonsuchshares;

(c) ifthearticlesoftheco-operativecompanysoprovide,inpaymenttotheholdersofthepreferencesharesoftheco-operativecompany,ifany,ofadividend,whichshallnotinanycaseexceedarateoften per centum per annumontheamountspaidupthereon,foranyperiodforwhichnodisposalofprofitswasmade;


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(d) ifthearticlesoftheco-operativecompanysoprovide,inpaymenttotheholdersoftheordinarysharesoftheco-operativecompanyofadividend,which shall not in any case exceed a rate of ten per centum per annum ontheamountspaidupthereon,foranyperiodforwhichnodisposalofprofitswasmade;

(e) anyremainingsurplusshallbepaidtoexistingmembersinproportiontothenumberofordinarysharesintheco-operativecompanyheldbyeach of them multiplied by the number of completed months which has elapsedsince—

(i) thedateoftheissueofsuchshares;or (ii) thedateofregistrationofsuchsharesinthenameofthepresent

holders; whicheverofsuchcasesmaybeprovidedforinrelationtoanyparticular

circumstancesinthearticlesoftheco-operative: Providedthat,wheretherearedifferentamountspaiduponthe

sharesinquestion,theproportionpayableshallbeadjustedaccordingly.

91 Special method for reduction of share capital Notwithstanding,butwithoutderogationfrom,thisActashareinaco-operativecompany may be cancelled and the amount paid up thereon refunded in such circumstances relating to the termination of membership or otherwise as are authorised in its articles:

Providedthatnosuchcancellationofashareorrefundoftheamountpaidupthereonshall— (a) affecttheliabilityofacontributoryoninsolvency,thatistosay,every

personliabletocontributetotheassetsofacompanyintheeventofitsbeingwoundup(and,forthepurposesofallproceedingsfordeterminingandallproceedingspriortothefinaldeterminationofthepersonswhoare to be deemed contributories, includes anyperson alleged to be acontributory);

(b) bemadeunlessthereisappropriatedfromthefreereserves,surplusorprofitoftheco-operativecompanyandaddedtoitscapitalreserveanamountequaltothenominalvalueofsuchcancelledshare.

92 Disposalofproduceofmemberstoorthroughco-operativecompany (1)Aco-operativecompanywhichhasasoneofitsobjectsthedisposalofanyproduceorlivestockofitsmembersmayprovideinitsarticlesormayotherwisecontractwithitsmembers— (a) thatnomembershalldisposeofanysuchproduceorlivestockorany

partofsuchproduceorlivestockbysaleorbarterotherthanbysaletoorthroughtheco-operativecompany;

(b) thatanymemberwhocontravenesanysucharticlesorcommitsabreachofanysuchcontractshallpaytotheco-operativecompanyasliquidateddamagesasumascertainedorassessedinsuchmannerasisprovidedinthe articles or contract.

(2)Wheneveranyproduceorlivestockoranypartthereofisdeliveredtoaco-operativecompanybyamemberthereofinaccordancewithitsarticlesoracontractreferredtoinsubsection(1)forthepurposeofdisposaltoorthroughtheco-operativecompanyoritsagents,whetherstatutorybodiesorotherwise,nocreditorofthememberdeliveringthesamemayattachorchargesuchproduceorlivestockorpartthereofortheproceedsofthesalethereofthatremainunderthecontroloftheco-operativecompany.


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93 Shares or interest of members: charge and set-off, and immunity fromattachmentorsaleinexecution

(1)Aco-operativecompanyshallhaveachargeupontheshares,interestinthecapitalanddepositsofamember,pastmemberordeceasedmemberanduponanydividend,bonusorprofitspayabletoamember,pastmemberorestateofadeceasedmemberinrespectofanydebtduetotheco-operativecompanyfromsuchmember,pastmemberorestateandmayset-offanysumcreditedorpayabletoamember,pastmember or estate of a deceased member in or towards payment of any such debt.

(2)Subjecttosubsection(1),theshareorinterestofamemberinthecapitalofaco-operativecompanyshallnotbeliabletoattachmentorsaleunderanorderofany court in respect of any debt or liability incurred by such member:

Providedthatnothingcontainedinthissubsectionshallprohibitthecancellationof the share or the transfer or sale of the share or interest of a member in accordance withthearticlesofsuchco-operativecompany.

94 Companyceasingtobeco-operativecompany (1) If a companybeingaco-operativecompanyalters itsmemorandumorarticles in such amanner that theyno longer include the provisionswhich, under section 85 (“Definition of co-operative company and consequences of default incomplyingwithconditionsforco-operativecompany”)arerequired tobe includedinthememorandumandarticlesofacompanyinordertoconstituteitaco-operativecompany,theco-operativecompanyshallasonthedateofthealterationceasetobeaco-operativecompanyandshallwithinaperiodofonemonthafterthesaiddateremovetheterm“Co-operative”oranycontractionorimitationthereoffromitsname.

(2)Theremovaloftheterm“Co-operative”oranycontractionorimitationthereoffromthenameofacompanyintermsofsubsection(1)shallnotberegardedasachangeofnameforthepurposesofsection26(“Changeofname”)(1).

(3)IfitcomestothenoticeoftheRegistrarthatacompanyisindefaultofsubsection (1), theRegistrarmay serve a category 1 civil penalty order upon thedefaulting company.

PART II

share caPital and deBentures

Sub-Part A: General nature of share capital of companies

95 Legalnatureofsharesandrequirementtohaveshareholders (1)AshareissuedbyacompanyismovablepropertyandtransferableinanymannerprovidedforbythearticlesofthecompanyorrecognisedbythisActoranyother law.

(2)Subject tosection304(“Transitionalprovisionsinrelationtoparvalueshares,treasuryshares,capitalaccountsandsharecertificates”),asharedoesnothaveanominalorparvalue.

(3)Acompanymaynotissuesharestoitselfasprovidedinsection128(“Powerofcompanytopurchaseownshares”).

(4)Anauthorisedshareofacompanyhasnorightsassociatedwithituntilithas been issued.

(5)Sharesofacompanythathavebeenissuedandsubsequently—


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(a) acquiredbythatcompany,ascontemplatedinsection129(“Authorityrequiredbycompanytopurchaseitsownshares”);or

(b) surrenderedtothatcompanyintheexerciseofappraisalrightsintermsofsection233(“Dissentingshareholders’appraisalrights”);

havethesamestatusastreasuryshares,thatistosay,sharesthathavebeenauthorisedbut not issued.

(6)DespitetherepealoftheCompaniesAct[Chapter 24:03],ashareissuedbyapre-existingcompany,andheldbyashareholderimmediatelybeforetheeffectivedate, continues to have all of the rights associatedwith it immediately before theeffectivedate,irrespectiveofwhetherthoserightsexistedintermsofthecompany’smemorandumorarticles,orintermsofthatAct,subjectonlyto— (a) amendmentstothatcompany’smemorandumorarticlesaftertheeffective

date;and (b) theoperationofsubsection(5);and (c) theregulationscontemplatedinsection303(“Repeals,re-registrationof

companiesandPBCs,generaltransitionalprovisionsandsavings”)((30).

96 Authorisation for shares (1)Acompany’smemorandum— (a) mustsetouttheclassesofshares,andthenumberofsharesofeachclass,

thatthecompanyisauthorisedtoissue;and (b) mustsetout,withrespecttoeachclassofshares— (i) adistinguishingdesignationforthatclass;and (ii) thepreferences,rights,limitationsandothertermsassociatedwith

thatclass,subjecttoparagraph(d); and (c) mayauthoriseastatednumberofunclassifiedshares,whicharesubject

toclassificationbytheboardofdirectorsinaccordancewithsubsection(3)(c);and

(d) maysetoutaclassofshares— (i) withoutspecifyingtheassociatedpreferences,rights,limitationsor

othertermsofthatclass;or (ii) forwhich the board of directorsmust determine the associated

preferences,rights,limitationsorotherterms;or (iii) whichmustnotbeissueduntiltheboarddirectorshasdetermined

the associated preferences, rights, limitations or other terms, ascontemplatedinsubparagraph(ii).

(2)Theauthorisationandclassificationofshares,thenumbersofauthorisedsharesofeachclass,andthepreferences,rights,limitationsandothertermsassociatedwitheachclassofshares,assetoutinacompany’smemorandum,maybechangedonlyby— (a) an amendment of thememorandum by special resolution of the

shareholders;or (b) theboarddirectors,inthemannercontemplatedinsubsection(3),except

totheextentthatthememorandumprovidesotherwise.

(3)Excepttotheextentthatacompany’smemorandumprovidesotherwise,thecompany’sboardmay—


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(a) increaseordecreasethenumberofauthorisedsharesofanyclassofshareson a pro rata basis to the shareholders of one or more classes of those shares,bytheuseofanyoneormoreofthefollowingexpedients—

(i) consolidateanddividealloranypartofitssharecapitalintosharesoflargeramountthanitsexistingshares;

(ii) convertalloranyofitspaid-upsharesintostockandreconvertsuchstockintopaid-upsharesofanydenomination;

(iii) subdivide its shares, or any of them, into shares of smalleramountthanisfixedbythememorandum,so,however,thatinthesubdivisiontheproportionbetweentheamountpaidandtheamount,ifany,unpaidoneachreducedshareshallbethesameasitwasinthecaseofthesharefromwhichthereducedshareisderived;

(iv) cancelshareswhichatthetimeofthepassingoftheresolutioninthatbehalfhavenotbeentakenoragreedtobetakenbyanypersonand diminish the amount of its share capital by the amount of the sharessocancelled;

or (b) reclassifyanyclassifiedsharesthathavebeenauthorisedbutnotissued;

or (c) classifyanyunclassifiedsharesthathavebeenauthorisedascontemplated

insubsection(1)(c),butarenotissued;or (d) determinethepreferences,rights,limitationsorothertermsofsharesin

aclasscontemplatedinsubsection(1)(d).

(4) If the boardof directors acts pursuant to its authority contemplated insubsection (3), thecompanymustfileanoticeofamendmentof itsmemorandum,setting out the changes effected by the board of directors.

97 Preferences, rights, limitations and other share terms (1)Allof thesharesofanyparticularclassauthorisedbyacompanyhavepreferences, rights, limitations andother terms that are identical to those of othersharesofthesameclass,excepttotheextentthatthecompany’smemorandumprovidesotherwise.

(2)Eachissuedshareofacompany,regardlessofitsclass,hasassociatedwithitonegeneralvotingright,excepttotheextentprovidedotherwiseby— (a) thisAct;or (b) thepreferences,rights,limitationsandothertermsdeterminedbyorin

terms of the company’s memorandum in accordance with section 96 (“Authorisationforshares”).

(3)Despiteanythingtothecontraryinacompany’smemorandum— (a) everyshareissuedbythatcompanyhasassociatedwithitanirrevocable

rightoftheshareholdertovoteonanyproposaltoamendthepreferences,rights,limitationsandothertermsassociatedwiththatshare;and

(b) acompanymustalwayshaveordinarysharesandinadditiontoanyclassofshareasmaybeprescribedinthecompany’sconstitutivedocuments.

(4)Ifacompany’smemorandumhasestablishedmorethanoneclassofsharesthememorandum,insettingoutthepreferences,rights,limitationsandothertermsofthoseclassesofshares,mustprovidethat—


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(a) for each particularmatter thatmay be submitted for a decision toshareholdersofthecompany,atleastoneclassofthecompany’sshareshasvotingrightsthatmaybeexercisedonthatmatter;and

(b) theholdersofatleastoneclassofthecompany’sshares,irrespectiveofwhetheritisthesameasanyclasscontemplatedinparagraph(a),areentitledtoreceivethenetassetsofthecompanyuponitsliquidation.

(5)SubjecttothisActoranyotherenactmentacompany’smemorandummayestablish,foranyparticularclassofshares,preferences,rights, limitationsorothertermsthat— (a) bestowspecial,conditionalorlimitedvotingrights;or (b) provide for shares of that class to be redeemable, subject to the

requirementsofsection129(“Authorityrequiredbycompanytopurchaseitsownshares”),orconvertible,asspecifiedinthememorandum—

(i) attheoptionofthecompany,theshareholder,oranotherpersonatanytime,orupontheoccurrenceofanyspecifiedcontingency;or

(ii) forcash,indebtedness,securitiesorotherproperty;or (iii) atpricesandinamountsspecified,orfixedinaccordancewitha

formuladeterminedbytheboard;or (iv) subjecttoanyothertermssetoutinthecompany’smemorandum; or (c) entitle the shareholders to distributions calculated in anymanner,

includingdividendsthatmaybecumulative,non-cumulative,orpartiallycumulative;or

(d) provideforsharesofthatclasstohavepreferenceoveranyotherclassofshareswithrespecttodistributions,orrightsuponthefinalliquidationofthe company.

(6)Thememorandumof a companymay provide for preferences, rights,limitationsorothertermsofanyclassofsharesofthatcompanytovaryinresponsetoanyobjectivelyascertainableexternalfactorfacts.

(7)Forthepurposeofsubsection(6)— (a) “externalfactorfacts’’includestheoccurrenceofanyevent,avariation

inanyfact,benchmarkorotherpointofreference,adeterminationoractionbythecompany,itsboard,oranyotherperson,anagreementtowhichthecompanyisaparty,oranyotherdocument;and

(b) themannerinwhichafactaffectsthepreferences,rights,limitationsorother terms of shares must be expressly determined by or in terms of the company’smemorandum,inaccordancewithsection96(“Authorisationforshares”).

(8)If thememorandumofacompanyhasbeenamendedtomateriallyandadverselyalterthepreferences,rights,limitationsorothertermsofaclassofshares,anyholderofthosesharesisentitledtoseekreliefintermsofsection233(“Dissentingshareholdersandappraisalrights”)ifthatshareholder— (a) notifiedthecompanyinadvanceoftheintentiontoopposetheresolution

toamendthememorandum;and (b) waspresentatthemeeting,andvotedagainstthatresolution.


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98 Issuing shares (1)Theboardof directorsmay resolve to issue shares of the company atany time,butonlywithin the classes, and to the extent, that the shareshavebeenauthorisedbyorintermsofthecompany’smemorandum,inaccordancewithsection96(“Authorisationofshares”).

(2)Ifacompanyissuesshares— (a) thathavenotbeenauthorisedinaccordancewithsection96;or (b) inexcessofthenumberofauthorisedsharesofanyparticularclass;

theissuanceofthosesharesmayberetroactivelyauthorisedinaccordancewithsection96.

(3) If a resolution seeking to retroactively authorise an issue of shares, ascontemplatedinsubsection(2),isnotadoptedwhenitisputtoavote— (a) theshareissueisanullitytotheextentthatitexceedsanyauthorisation;

and (b) thecompanymustreturntoanypersonthefairvalueoftheconsideration

receivedbythecompanyinrespectofthatshareissuetotheextentthatitisnullified,togetherwithinterestinaccordancewiththePrescribedRateofInterestAct[Chapter 8:10],fromthedateonwhichtheconsiderationfortheshareswasreceivedbythecompany,untilthedateonwhichthecompanycomplieswiththisparagraph;and

(c) anycertificateevidencingasharesoissuedandnullified,andanyentryintheshareholders’registerinrespectofsuchanissue,isvoid;and

(d) adirectorofthecompanyisliabletotheextentsetoutinsection197(“Liabilityofdirectorsandprescribedofficers”)(3)(e)(i)ifthedirector—

(i) waspresentatameetingwhentheboardapprovedtheissueofanyunauthorisedshares,orparticipatedinthemakingofsuchadecisionintermsofsection196(“Directorsactingotherthanatmeeting”);and

(ii) failedtovoteagainsttheissueofthoseshares,despiteknowingthatthe shares had not been authorised in accordance with section 96.

99 Subscriptionforadditionalsharesinprivatecompanies (1)Thissection— (a) doesnotapplytoapubliccompanyorState-ownedcompany,exceptto

theextentthatthecompany’smemorandumprovidesotherwise;and (b) appliestoaprivatecompanywithrespecttoanyissueofitsshares,other

than— (i) sharesissued— A. intermsofoptionsorconversionrights;or B. ascontemplatedinsection100(“Considerationforshares”)

(5)to(7);or (ii) capitalisation shares issued as contemplated in section 137

(“Capitalisationshares”).

(2)Ifaprivatecompanyproposestoissueanyshares,otherthanascontemplatedinsubsection(1)(b),eachshareholderofthatprivatecompanyhasaright,beforeanyotherpersonwhoisnotashareholderofthatcompany,tobeofferedand,withinareasonabletimetosubscribefor,apercentageofthesharestobeissuedequaltothevotingpowerofthatshareholder’sgeneralvotingrightsimmediatelybeforetheofferwas made.


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(3)Aprivate company’smemorandummay limit, negate, restrict or placeconditionsupontherightsetoutinsubsection(2),withrespecttoanyorallclassesofshares of that company.

(4)Except to the extent that a private company’smemorandumprovidesotherwise— (a) inexercisingarightintermsofsubsection(2),ashareholdermaysubscribe

fewer shares than the shareholder would be entitled to subscribe under thatsubsection;and

(b) shares not subscribed by a shareholderwithin the reasonable timecontemplatedinsubsection(2),maybeofferedtootherpersonstotheextent permitted by the memorandum.

100 Considerationforshares (1)Theboardofdirectorsmayissueauthorisedsharesonly— (a) foradequateconsiderationtothecompany,asdeterminedbytheboard

ofdirectors;or (b) intermsofconversionrightsassociatedwithpreviouslyissuedsharesor

debenturesofthecompany;or (c) asacapitalisationshareascontemplatedinsection137(“Capitalisation

shares”).

(2)Beforeacompanyissuesanyparticularshares,theboardmustdeterminetheconsiderationforwhich,andthetermsonwhich,thoseshareswillbeissued.

(3)Theconsiderationreferredtoinsubsection(2)maybeinmoney,inothertangibleorintangibleproperty,otherrightshavingmonetaryvalue,abindingobligationtopaymoney,orservicespreviouslyperformed:

Providedthatthevalueofanynon-monetaryconsiderationshallbeverifiedbytheopinionofanindependentexpert,whichopinionhasbeenmadeavailabletoallexisting members before any shares are issued for such non-monetary consideration andshall,inaddition,beapprovedbyallsuchexistingmembers.

(4)Adeterminationbytheboardofdirectorsintermsofsubsection(2)astotheadequacyofconsiderationforanysharesmaynotbechallengedonanybasisotherthanintermsofsection195(“Directorsandtheirfunctionsandresponsibilities”).

(5) Subject to subsections (6) to (8),when a company has received theconsiderationapprovedbyitsboardofdirectorsfortheissuanceofanyshares— (a) thosesharesarefullypaid;and (b) thecompanymustissuethosesharesandcausethenameoftheholder

to be entered on the company’s shareholders’ register in accordance withsection159(“Registerandindexofmembersanduseofregisteraspresumptiveproofofmembership”).

(6)Iftheconsiderationforanysharesthatareissuedortobeissuedisintheform of an instrument that is not negotiable by the company at the time the shares are tobeissued,orisintheformofanagreementforfutureservices,futurebenefitsorfuturepaymentbythesubscribingparty— (a) theconsiderationforthosesharesisregardedashavingbeenreceivedby

thecompanyatanytimeonlytotheextent— (i) thattheinstrumentisnegotiablebythecompany;or

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(ii) thatthesubscribingpartytotheagreementhasfulfilleditsobligationsintermsoftheagreement;

and (b) uponreceivingtheinstrumentorenteringintotheagreement,thecompany

must— (i) issuethesharesimmediately;and (ii) causetheissuedsharestobetransferredtoathirdparty,tobeheld

in trust and later transferred to the subscribing party in accordance with a trust agreement.

(7)Excepttotheextentthatatrustagreementcontemplatedinsubsection(6)(b)providesotherwise— (a) voting rights, andappraisal rights setout in section233 (“Dissenting

shareholders appraisal rights”), associatedwith shares that havebeenissuedbutareheldintrustmaynotbeexercised;and

(b) anyrightsoffirstrefusalassociatedwithsharesthathavebeenissuedbutare held in trust may be exercised only to the extent that the instrument has becomenegotiablebythecompanyorthesubscribingpartyhasfulfilleditsobligationsundertheagreement;and

(c) anydistributionwithrespecttosharesthathavebeenissuedbutareheldintrust—

(i) mustbepaidorcreditedbythecompanytothesubscribingpartyto the extent that the instrument has become negotiable by the companyorthesubscribingpartyhasfulfilleditsobligationsundertheagreement;and

(ii) maybecreditedagainst the remainingvalueat that timeof anyservicesstilltobeperformedbythesubscribingparty,anyfuturepaymentremainingdue,orthebenefitsstilltobereceivedbythecompany;

and (d) sharesthathavebeenissuedbutareheldintrust— (i) maynot be transferredbyor at the directionof the subscribing

party unless the company has expressly consented to the transfer inadvance;and

(ii) maybe transferred to thesubscribingpartyonaquarterlybasis,to the extent that the instrument has become negotiable by the companyorthesubscribingpartyhasfulfilleditsobligationsundertheagreement;and

(iii) mustbetransferredtothesubscribingpartywhentheinstrumenthasbecomenegotiablebythecompany,oruponsatisfactionofallofthesubscribingparty’sobligationsintermsoftheagreement;and

(iv) to the extent that the instrument is dishonoured after becomingnegotiable, or that the subscribing party has failed to fulfil itsobligationsundertheagreement,mustbereturnedtothecompanyandcancelled,ondemandbythecompany.

(8)Acompanymaynotmakeademandcontemplatedinsubsection(7)(d)(iv)unless— (a) anegotiableinstrumentisdishonouredafterbecomingnegotiablebythe

company;or (b) inthecaseofanagreement,thesubscribingpartyhasfailedtofulfilany

obligationintermsoftheagreementforaperiodofatleastforty(40)businessdaysafterthedateonwhichtheobligationwasduetobefulfilled.


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101 Options for subscription for shares or debentures (1)Acompanymayissueoptionsfortheallotmentorsubscriptionofauthorisedsharesordebenturesofthecompanyifsoauthorisedbyitsarticles,butsuchissuancemust comply with this section.

(2)Theboardofacompanymustdeterminetheconsiderationorotherbenefitforwhich,andthetermsuponwhich— (a) anyoptionsareissued;and (b) therelatedsharesordebenturesaretobeissued.

(3)Adecisionbytheboardthatthecompanymayissue— (a) any options, constitutes also the decision of the board to issue any

authorizedsharesordebenturesforwhichtheoptionsmaybeexercised;or

(b) anysharesordebenturesconvertibleintosharesofanyclass,constitutesalsothedecisionoftheboardtoissuetheauthorizedsharesintowhichthefirstmentionedsharesordebenturesmaybeconverted.

(4)Adirector of a company is liable to the extent set out in section 197(“Liabilityofdirectorsandprescribedofficers”)(3)(e)(iii)ifthedirector— (a) waspresentatameetingwhentheboardapprovedthegrantingofan

optionorarightascontemplatedinthissection,orparticipatedinthemakingofsuchadecisionintermsofsection196(“Directorsactingotherthanatmeeting”);and

(b) failedtovoteagainstthegrantingoftheoptionorright,despiteknowingthatanyshares—

(i) forwhichtheoptionscouldbeexercised;or (ii) intowhichanysecuritiescouldbeconverted, hadnotbeenauthorisedintermsofsection96(“Authorisationforshares”).

102 Solvencyandliquiditytest (1)ForanypurposeofthisAct,acompanysatisfiesthesolvencyandliquiditytestataparticulartimeif,consideringallreasonablyforeseeablefinancialcircumstancesofthecompanyatthattime— (a) theassetsofthecompanyor,ifthecompanyisamemberofagroupof

companies,theaggregateassetsofthecompany,asfairlyvalued,equalorexceedtheliabilitiesofthecompanyor,ifthecompanyisamemberofagroupofcompanies,theaggregateliabilitiesofthecompany,asfairlyvalued;and

(b) itappearsthatthecompanywillbeabletopayitsdebtsastheybecomedueintheordinarycourseofbusinessforaperiodof—

(i) twelve(12)monthsafterthedateonwhichthetestisapplied;or (ii) inthecaseofadistributioncontemplatedinparagraph(a)ofthe

definitionof ‘distribution’ in section2 (“Interpretation”), twelve(12)monthsfollowingthatdistribution.

(2)Forthepurposescontemplatedinsubsection(1)— (a) anyfinancialinformationtobeconsideredconcerningthecompanymust

bebasedon— (i) financial records that satisfy the requirements of section 182

(“Keepingoffinancialrecords”)and

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(ii) financial statements that satisfy the requirements of section 184(“Generalprovisionsastocontentsandformoffinancialstatements”);

and (b) subjecttoparagraph(c),theboardofdirectorsoranyotherpersonapplying

thesolvencyandliquiditytesttoacompany— (i) mustconsiderafairvaluationofthecompany’sassetsandliabilities,

including any reasonably foreseeable contingent assets and liabilities,irrespectiveofwhetherornotarisingasaresultoftheproposeddistribution,orotherwise;and

(ii) may consider any other valuation of the company’s assets andliabilitiesthatisreasonableinthecircumstances;

and (c) unlessthememorandumofthecompanyprovidesotherwise,aperson

applying the test in respect of a distribution contemplated in paragraph (a) of thedefinitionof ‘distribution’ in section2 (“Interpretation”) isnot to regardasaliabilityanyamountthatwouldberequired(if thecompanyweretobeliquidatedatthetimeofthedistribution)tosatisfythepreferentialrightsuponliquidationofshareholderswhosepreferentialrights upon liquidation are superior to the preferential rights uponliquidationofthosereceivingthedistribution.

Sub-Part B: Prospectus

103 Dating of prospectus A prospectus issued by or on behalf of a company or in relation to an intended companyshallbedatedandthatdateshall,unlessthecontraryisproved,betakenasthe date of publication of the prospectus.

104 Matters to be stated and reports to be set out in prospectus (1)Everyprospectusissuedbyoronbehalfofacompanyoronbehalfofanyperson who is or has been engaged or interested in the formation of the company shall beintheEnglishlanguageoranyotherofficiallyrecognisedlanguage(subjecttotherequirementofanauthenticatedtranslationinEnglishasprovidedinsection9(“Formofregistersandotherdocuments”)(3))andmuststatethemattersspecifiedinPartsIandIIoftheEighthSchedule(“Matterstobespecifiedinprospectusandreportstobesetouttherein”)andsetout— (a) thereportsspecifiedinPartIIofthatSchedule,andthesaidPartsIand

IIshallhaveeffectsubjecttotheprovisionscontainedinPartIIIofthatSchedule;

(b) thereportofanyexpertwhoismentionedintheprospectusoranabstractfromsuchreportcertifiedbytheexpertastrulyconveyingthesubstanceof his or her report and of his or her opinions and conclusions.

(2)Aconditionrequiringorbindinganapplicantforsharesinordebenturesofacompanytowaivecompliancewithanyrequirementofthissection,orpurportingtoaffecthimorherwithnoticeofanycontract,documentormatternotspecificallyreferredtointheprospectus,shallbevoid. (3)Itshallnotbelawfultoissue,distributeordeliverorcausetobeissued,distributedordeliveredanyformofapplicationforsharesinordebenturesofacompanyunless the form is issued with and attached to a prospectus which complies with the requirementsofthissection: Providedthatthissubsectionshallnotapplyifit isshownthattheformofapplicationwasissuedeither— (a) in connectionwith abona fide invitation to aperson to enter into an

underwritingagreementwithrespecttothesharesordebentures;or

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(b) inrelationtosharesordebentureswhichwerenotofferedtothepublic.

(4)IfitcomestothenoticeoftheRegistrarthatanypersonisindefaultofsubsection(3),theRegistrarmayserveuponhimorheracategory1civilpenaltyorder.

(5) In the event of non-compliancewith or contravention of any of therequirementsofthissection,adirectororotherpersonresponsiblefortheprospectusshallnotincuranyliabilitybyreasonofthenon-complianceorcontraventionif— (a) asregardsanymatternotdisclosed,heorsheprovesthatheorshewas

notcognisantthereof;or (b) heorsheprovesthatthenon-complianceorcontraventionarosefroman

honestmistakeoffactonhisorherpart;or (c) thenon-complianceorcontraventionwasinrespectofmatterswhichin

the opinion of the court dealing with the case were immaterial or was otherwisesuchasought,intheopinionofthatcourt,havingregardtoallthecircumstancesofthecase,reasonablytobeexcused:

Providedthat,intheeventoffailuretoincludeinaprospectusastatementwithrespecttothemattersspecifiedinparagraph15oftheEighthSchedule,nodirectororotherpersonshallincuranyliabilityinrespectofthefailureunlessitbeprovedthatheorshehadknowledgeofthe matters not disclosed.

(6)Anypersonwhobecomesadirectorofacompanyaftertheissueofanyprospectusbyoronbehalfofthatcompanyandpriortothefirstgeneralmeetingofthecompany at which directors are elected or appointed shall be deemed to be a person responsiblefortheprospectusandtohaveincurredliabilityinthesamemannerasadirector or a proposed director who has signed the prospectus or on whose behalf the prospectus was signed by an agent.

(7)Thissectionshallnotapplyto— (a) theissuetoexistingmembersordebentureholdersofacompanyofa

prospectus or form of application relating to shares in or debentures of thecompany,whetheranapplicantforsharesordebentureswillorwillnothavetherighttorenounceinfavourofotherpersons;or

(b) the issueof a prospectus or formof application relating to shares ordebentures which are or are to be in all respects uniform with shares or debenturespreviouslyissuedandforthetimebeingdealtinorquotedona securities exchange registered under the Securities and Exchange Act [Chapter 24:25]oronastockexchangeofgoodreputeoutsideZimbabwe;

but,subjectasaforesaid,thissectionshallapplytoaprospectusoraformofapplicationwhetherissuedonorwithreferencetotheformationofacompanyorsubsequently.

(8)Nothinginthissectionshalllimitordiminishanyliabilitywhichanypersonmay incur under the common law or this Act apart from this section.

(9)Everynewspaperorotheradvertisementwhatsoeverofferingorcallingattention to an offer or intended offer of shares in or debentures of a company to the public for subscription or purchase shall be deemed to be a prospectus issued by the personresponsibleforpublishingordisseminatingtheadvertisement(andallenactmentsand rules of law as to the contents of prospectuses and as to liability in respect of statements in and omissions from prospectuses or otherwise relating to prospectuses shallapplyandhaveeffectaccordingly),unlessitcontainsastatementastotheplacesat and times during which copies of the prospectuses may be obtained and no more thanthefollowing—


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(a) thenumberanddescriptionofthesharesordebenturesconcerned; (b) thenameanddateofregistrationofthecompany; (c) thegeneralnatureofthemainbusinessorproposedmainbusinessofthe

company; (d) thenamesofthedirectorsorproposeddirectors.

(10)Nostatementthatortotheeffectthattheadvertisementisnotaprospectusshallavailtopreventtheoperationofthissubsection.

105 Expert’sconsenttoissueofprospectuscontainingstatementbyhimor her

(1)Aprospectusinvitingpersonstosubscribeforsharesinordebenturesofa company and including a statement purporting to be made by an expert shall not be issuedunless— (a) heorshehasgivenandhasnot,beforedeliveryofacopyoftheprospectus

forregistration,withdrawnhisorherwrittenconsenttotheissuethereofwiththestatementincludedintheformandcontextinwhichitisincluded;and

(b) astatementthatheorshehasgivenandhasnotwithdrawnhisorherconsent as aforesaid appears in the prospectus.

(2)Ifanyprospectusisissuedincontraventionofsubsection(1),thecompanyandeverypersonwhoisknowinglyapartytotheissuethereofshallbeguiltyofanoffenceandliable,inthecaseofthecompany,toafinenotexceedinglevel14and,inthecaseofanysuchperson,toafinenotexceedinglevel14ortoimprisonmentforaperiodnotexceedingtwoyearsortobothsuchfineandsuchimprisonment.

(3)Inaddition,theRegistrarmayserveuponacompanyincontraventionofsubsection(1),acategory1civilpenaltyorder.

106 Registration of prospectus (1)Noprospectusshallbeissuedbyoronbehalfofacompanyorinrelationtoanintendedcompanyunless,onorbeforethedateofitspublication,acopythereofhasbeenfiledwithandregisteredbytheRegistrar.Suchcopyshallbesignedbyeverypersonwhoisnamedthereinasadirectororproposeddirectorofthecompany,orbyhisorheragentauthorised inwriting,andshallhaveendorsed thereonorattachedthereto— (a) any consent to the issue of the prospectus required by section 105

(“Expert’sconsenttoissueofprospectuscontainingstatementbyhimorher”)fromanypersonasanexpert;and

(b) inthecaseofaprospectusissuedgenerally,also— (i) acopyofanycontractrequiredbyparagraph14oftheEighthSchedule

tobestatedintheprospectusor,inthecaseofacontractnotreducedtowriting,amemorandumgivingfullparticularsthereof;and

(ii) where thepersonsmakingany report requiredbyPart IIof thatSchedulehavemadetherein,orhave,withoutgivingthereasons,indicated therein any such adjustments as are mentioned in paragraph 26ofthatSchedule,awrittenstatementsignedbythosepersonssettingouttheadjustmentsandgivingthereasonstherefor;

the references of paragraph (b)(i) to the copyof a contract requiredtherebytobeendorsedonorattachedtoacopyoftheprospectusshall,inthecaseofacontractwhollyorpartlyinaforeignlanguage,betaken

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asreferencestoacopyofacertifiedtranslationofthecontractoracopyembodyingacertifiedtranslationofthepartsinaforeignlanguage,asthe case may be.

(2)Everyprospectusshall,onthefaceofit— (a) specifythedateofitsregistrationundersubsection(1);and (b) specifyorrefertostatementsincludedintheprospectuswhichspecify

anydocumentsrequiredbythissectiontobeendorsedonorattachedtothecopysodelivered.

(3)TheRegistrarshallnotregisteraprospectusunlessitisdatedandthecopythereofsignedinmannerrequiredbythissectionandunlessithasendorsedthereonorattachedtheretothedocuments,ifany,specifiedasaforesaid.

(4) If a prospectus states that thewhole or portionof the share capital ordebentures offered for subscription has been underwritten the prospectus shall not be registereduntilthereislodgedwiththeRegistrarthedocumentsrequiredbysection110(“UnderwritingcontractandaffidavittobedeliveredtoRegistrar”).

(5)TheRegistrarshallnotregisteranyprospectuswhichnamesanypersonastheauditor,legalpractitioner,bankerorbrokerofthecompanyorproposedcompanyunless it is accompanied by the consent in writing of the person so named to act in the capacitystated,butsuchpersonshallnotbedeemedtherebytohaveauthorisedtheissue of the prospectus.

(6)Noprospectusshallbeissuedmorethanthreemonthsafterthedateofitsregistration by the Registrar and if a prospectus is so issued it shall be deemed to be a prospectus a copy of which has not been registered.

107 Non-registrationof prospectus; unapproved alteration of termsmentioned in prospectus or in statement in lieu of prospectus

(1)IfitcomestothenoticeoftheRegistrarthataprospectusisissued— (a) withoutacopythereofbeingfiledwithandregisteredbytheRegistrar

undersection106(“Registrationofprospectus”);or (b) without the copy sofiled and registered having endorsed thereonor

attachedtheretotherequireddocumentsasrequiredbysection106;

theRegistrarmay serve upon the defaulting company and every personwho isknowinglyaparty to the issueof theprospectus incontraventionof this sectionacategory3civilpenaltyorder.

(2)Acompanynotbeingaprivatecompanyshallnotpreviouslytothestatutorymeetingvaryinanymaterialrespectthetermsofacontractreferredtointheprospectus,orstatementinlieuofprospectus,exceptsubjecttotheapprovalofthestatutorymeeting.

(3) If itcomes to thenoticeof theRegistrar thatdefaulthasbeenmade incomplyingwithsubsection(2),theRegistrarmayserveuponthedefaultingcompanyacategory1civilpenaltyorder.

108 Civilliabilityformisstatementsinprospectus (1)Subject to thissection,whereaprospectus invitespersons tosubscribeforsharesinordebenturesofacompany,thefollowingpersonsshallbeliabletopaycompensation to all persons who subscribe for any shares or debentures on the faith of theprospectusforthelossordamagetheymayhavesustainedbyreasonofanyuntruestatementincludedtherein,thatistosay—

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(a) everypersonwhoisadirectorofthecompanyatthetimeoftheissueoftheprospectus;and

(b) everypersonwhohasinwritingauthorisedhimselforherselftobenamedandisnamedintheprospectusasadirectororashavingagreedtobecomeadirector,eitherimmediatelyorafteranintervaloftime;and

(c) everypersonbeingapromoterofthecompany;and (d) everypersonwhohasauthorisedtheissueoftheprospectus:

Providedthat— (i) where,undersection105(“Expert’sconsenttoissueofprospectus

containingstatementbyhimorher”), theconsentofaperson isrequiredtotheissueofaprospectusandheorshehasgiventhatconsent,heorsheshallnotbyreasonofhisorherhavinggivenit be liable under this subsection as a person who has authorised the issue of the prospectus except in respect of an untrue statement purportingtobemadebyhimorherasanexpert;

(ii) nopersonwhoseordinarybusinessorpartofwhoseordinarybusinessitistodosecretarialoradministrativework,shallbeliableunderthissubsection as a person who has authorised the issue of the prospectus by reason only that he or she is employed by the company to perform onitsbehalfthesecretarialandadministrativeworkoftheissueofshares or debentures to which the prospectus relates and is named in the prospectus as secretary or manager for the issue.

(2)Nopersonshallbeliableundersubsection(1)ifheorsheproves— (a) that,havingconsentedtobecomeadirectorofthecompany,heorshe

withdrew his or her consent in writing before the issue of the prospectus andthatitwasissuedwithouthisorherauthorityorconsent;or

(b) thattheprospectuswasissuedwithouthisorherknowledgeorconsentandthat,onbecomingawareofitsissue,heorsheforthwithgavereasonablepublicnoticethatitwasissuedwithouthisorherknowledgeorconsent;or

(c) that,aftertheissueoftheprospectusandbeforeallotmentthereunder,heorshe,onbecomingawareoftheuntruestatement,madeanimmediatewrittenwithdrawal of his or her consent thereto andgave reasonablepublicnoticeofsuchwithdrawalandofthereasontherefor;or

(d) that— (i) asregardseveryuntruestatement,notpurportingtobemadeonthe

authorityofanexpertorofapublicofficialdocumentorstatement,heorshehadreasonablegroundstobelieveanddiduptothetimeoftheallotmentofthesharesordebentures,asthecasemaybe,believethatthestatementwastrue;and

(ii) asregardseveryuntruestatementpurportingtobeastatementbyan expert or contained in what purports to be a copy of or extract froma reportorvaluationof an expert, it fairly represented thestatement,orwasacorrectandfaircopyoforextractfromthereportorvaluation,andheorshehadreasonablegroundstobelieveanddiduptothetimeoftheissueoftheprospectusbelievethatthepersonmakingthestatementwascompetenttomakeitandhadgiventheconsentrequiredbysection104(“Matterstobestatedandreportstobesetoutinprospectus”)totheissueoftheprospectusandhadnotwithdrawnthatconsentbeforedeliveryofacopyoftheprospectusforregistrationor,tothedefendant’sknowledge,beforeallotmentthereunder;and

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(iii) asregardseveryuntruestatementpurportingtobeastatementmadebyanofficialpersonorcontainedinwhatpurports tobeacopyoforextractfromapublicofficialdocument,itwasacorrectandfair representation of the statement or copy of or extract from the document:

Providedthatthissubsectionshallnotapplyinthecaseofapersonliable,byreasonofhisorherhavinggivenaconsentrequiredofhimorherbysection105,asaperson who has authorised the issue of the prospectus in respect of an untrue statement purporting to be made by him or her as an expert.

(3)Apersonwhoapartfromthissubsectionwouldundersubsection(1)beliable,byreasonofhisorherhavinggiventheconsentrequiredofhimorherbysection105,asapersonwhohasauthorisedtheissueofaprospectusinrespectofanuntruestatement purporting to be made by him or her as an expert shall not be so liable if he orsheproves— (a) that,havinggivenhisorherconsentundersection105 to the issue of the

prospectus,heorshewithdrewitinwritingbeforedeliveryofacopyoftheprospectusforregistration;or

(b) that,afterdeliveryofacopyoftheprospectusforregistrationandbeforeallotmentthereunder,heorshe,onbecomingawareoftheuntruestatement,madean immediatewrittenwithdrawalofhisorher consent andgavereasonablepublicnoticeofsuchwithdrawalandofthereasontherefor;or

(c) thatheorshewascompetenttomakethestatementandthatheorshehadreasonablegroundtobelieveanddiduptothetimeoftheallotmentofthesharesordebentures,asthecasemaybe,believethatthestatementwastrue.

(4)Where— (a) theprospectuscontainsthenameofapersonasadirectorofthecompany,

orashavingagreedtobecomeadirectorthereof,andheorshehasnotconsented in writing to become a director or has in writing withdrawn his or her consent before the issue of the prospectus and has not authorised orconsentedtotheissuethereof;or

(b) theconsentofapersonisrequiredundersection105totheissueoftheprospectusandheorsheeitherhasnotgiventhatconsentorhaswithdrawnitbeforetheissueoftheprospectus;

thedirectorsof thecompany,exceptanywithoutwhoseknowledgeorconsent theprospectuswasissued,andanyotherpersonwhoauthorisedtheissuethereofshallbeliable,jointlyandseverally,toindemnifythepersonnamedasaforesaidorwhoseconsentwasrequiredasaforesaid,asthecasemaybe,againstalldamages,costsandexpensestowhichheorshemaybemadeliablebyreasonofhisorhernamehavingbeen inserted in the prospectus or of the inclusion therein of a statement purporting to be madebyhimorherasanexpert,asthecasemaybe,orindefendinghimselforherselfagainst any action or legal proceeding brought against him or her in respect thereof:

Providedthatapersonshallnotbedeemedforthepurposesofthissubsectiontohaveauthorisedtheissueofaprospectusbyreasononlyofhisorherhavinggiventhe consent requiredby section107 (“Non-registrationof prospectus; unapprovedalterationoftermsmentionedinprospectusorinstatementinlieuofprospectus”) to the inclusion therein of a statement purporting to be made by him or her as an expert.

109 Criminalliabilityformisstatementsinprospectus (1)Where a prospectus includes any untrue statement, any personwhoauthorisedtheissueoftheprospectusshallbeguiltyofanoffenceandliabletoafine

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notexceedinglevelfourteenortoimprisonmentforaperiodnotexceedingfiveyearsor tobothsuchfineandsuch imprisonmentunlessheorsheproveseither that thestatementwasimmaterialorthatheorshehadreasonablegroundstobelieveanddid,uptothetimeoftheissueoftheprospectus,believethatthestatementwastrue.

(2)Apersonshallnotbedeemedforthepurposesofsubsection(1)tohaveauthorisedtheissueofaprospectusbyreasononlyofhisorherhavinggiventheconsentrequiredbysection105(“Expertconsenttoissueofprospectuscontainingstatementbyhimorher”)totheinclusionthereinofastatementpurportingtobemadebyhimor her as an expert.

110 UnderwritingcontractandaffidavittobedeliveredtoRegistrar (1)Ifthewholeorportionofthesharecapitalordebenturesofacompanybeingofferedforsubscriptionhasbeenorisbeingunderwritten,thecompanyshalldelivertotheRegistrar,notlaterthanthedateoftheproposedofferofsharesordebentures,acopyoftheunderwritingcontractandanaffidavitswornbythepersonnamedasunderwriteror,ifsuchunderwriterbeacompany,bytwodirectorsofsuchcompany,statingthattothebestofthedeponent’sknowledgeandbelieftheunderwriterisandwillbeinapositiontocarryouthisorherobligationsevenifnosharesordebentures,asthecasemaybe,areappliedfor.

(2)Theunderwritershallfurnishthecompanywithinsevendaysofawrittenrequestbythecompanywiththeaffidavitrequiredbysubsection(1).

(3)Iftheunderwriterfailstocomplywithsubsection(2),heorsheshallbeindefaultandliabletoacategory3civilpenaltyorder.

(4)Intheeventofanyunderwriter,ifsuchanaffidavitissworn,beingunable,whenduly calledupon, to carryout his or her obligationsunder theunderwritingcontract,theaffidavitshallbedeemedtohavebeenswornwithoutreasonablegroundfor belief that the person named as underwriter was or would be in a position to carry out hisobligationsunderthatcontract;andthepersonswearingsuchaffidavit,unlessheorsheprovesthatheorshedidsobelieveandhadreasonablegroundforthebelief,shallbeguiltyofanoffenceandliabletoafinenotexceedinglevelsevenortoimprisonmentforaperiodnotexceedingoneyearortobothsuchfineandsuchimprisonment.

111 Document containing offer of shares or debentures for sale to be deemed to be prospectus

(1)Whereacompanyallotsoragreestoallotanysharesinordebenturesofthecompanywithaviewtoalloranyofthosesharesordebenturesbeingofferedforsaletothepublic,anydocumentbywhichtheofferforsaletothepublicismadeshallforallpurposesbedeemedtobeaprospectusissuedbythecompany,andthisActshallapplyandhaveeffectaccordingly,asifthesharesordebentureshadbeenofferedtothepublic for subscription and as if persons accepting the offer in respect of any shares or debenturesweresubscribersforthosesharesordebentures,butwithoutprejudicetotheliability,ifany,ofthepersonsbywhomtheofferismade,inrespectofmisstatementscontained in the document or otherwise in respect thereof.

(2) In thisAct, it shall, unless the contrary is proved, be evidence that anallotmentof,oranagreementtoallotsharesordebentureswasmadewithaviewtothesharesordebenturesbeingofferedforsaletothepublicifitisshown— (a) thatanofferofthesharesordebenturesorofanyofthemforsaletothe

public was made within six months after the allotment or agreement to allot;or

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(b) thatatthedatewhentheofferwasmadethewholeconsiderationtobereceivedbythecompanyinrespectofthesharesordebentureshadnotbeensoreceived.

(3)Section104(“Matterstobestatedandreportstobesetoutinprospectus”)asappliedbythissectionshallhaveeffectasifitrequiredaprospectustostate,inadditiontothemattersrequiredbythatsectiontobestatedinaprospectus— (a) thenetamountof theconsiderationreceivedor tobereceivedby the

companyinrespectofthesharesordebenturestowhichtheofferrelates;and

(b) theplaceandtimeatwhichthecontractunderwhichthesaidsharesordebentureshavebeenoraretobeallottedmaybeinspected;

andsection106(“Registrationofprospectus”)asappliedbythissectionshallhaveeffectasthoughthepersonsmakingtheofferwerepersonsnamedinaprospectusasdirectors of a company.

(4)Whereanoffertowhichthissectionrelatesismadebyacompanyorapartnershipitshallbesufficientifthedocumentaforesaidissignedonbehalfofthecompany or partnership by two directors of the company or not less than half of the partners,asthecasemaybe,andanysuchdirectororpartnermaysignbyhisorheragent authorised in writing.

112 Interpretationofprovisionsrelatingtoprospectus InthisAct— (a) astatementincludedinaprospectusshallbedeemedtobeuntrueifitis

misleadingintheformandcontextinwhichitisincluded; (b) astatementshallbedeemedtobeincludedinaprospectusifitiscontained

therein or in any report or memorandum appearing on the face thereof or byreferenceincorporatedthereinorissuedtherewith;

(c) ifanymatterwhichought,undersections104(“Matterstobestatedandreportstobesetoutinprospectus”),106(“Registrationofprospectus”)andtheEighthSchedule(“Matterstobespecifiedinprospectusandreportstobesetouttherein”)orundersection111(“Documentcontainingofferofsharesordebenturesforsaletobedeemedtobeprospectus”)(3),tobe inserted in a prospectus is omitted therefrom and if such omission is calculatedtomisleadthentheprospectusshallbedeemed,inrespectofsuchomission,tobeaprospectusinwhichanuntruestatementisincluded.

113 Constructionofreferencestoofferingsharesordebenturestopublic (1)AnyreferenceinthisActtoofferingsharesordebenturestothepublicshall,subjecttoanyprovisiontothecontrarycontainedtherein,beconstruedasincludingareferencetoofferingthemtoanysectionofthepublic,whetherselectedasmembersor debenture holders of the company concerned or as clients of the person issuing theprospectusorinanyothermanner,andreferencesinthisActorinacompany’sarticlestoinvitationstothepublictosubscribeforsharesordebenturesshall,subjectasaforesaid,besimilarlyconstrued.

(2)Subsection(1)shallnotbetakenasrequiringanyofferorinvitationtobetreatedasmadetothepublicifitcanproperlyberegarded,inallthecircumstances,asnotbeingcalculated to result, directlyor indirectly, in the sharesordebenturesbecomingavailableforsubscriptionorpurchasebypersonsotherthanthosereceivingtheofferorinvitation,orotherwiseasbeingadomesticconcernofthepersonsmakingandreceivingit,andinparticular—


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(a) aprovisioninacompany’sarticlesprohibitinginvitationstothepublictosubscribeforsharesordebenturesshallnotbetakenasprohibitingthemakingtomembersordebentureholdersofaninvitationwhichcanproperlyberegardedasaforesaid;and

(b) provisionsofthisActrelatingtoprivatecompaniesshallbeconstruedaccordingly.

114 Restrictions on offering shares for subscription or sale (1)Itshallnotbelawfulforanypersontoengageinthedoor-to-doorsolicitationofmembersofthepublicattheirhomesorinoffices,shopsorbusinesspremises,tosubscribeforsharesordebentures(however,thesolicitationattheofficeorbusinesspremises of any person whose ordinary business or part of whose ordinary business it istodealinsharesordebentures,whetherasprincipaloragent,ispermitted)

(2)Noperson shall eitherverballyor inwriting, includinganynewspaperadvertisement— (a) makeanofferofsharesforsaletothepublicoranymemberofthepublic;

or (b) inviteoffersfromthepublicoranymemberofthepublictopurchaseany

shares;

andnopersonshall issue,distributeorpublishanymaterialwhich in its formandcontextiscalculatedtobeunderstoodasanofferorinvitationasaforesaidunlesstheoffer,invitationormaterialisaccompaniedeitherbyaprospectuscomplyingwiththisActorbyawrittenstatementcontainingtheparticularsrequiredbythissectiontobeincluded therein.

(3)The said statement shall bedatedand signedby thepersonorpersonsmakingtheofferorinvitationorissuing,distributingorpublishingthesaidmaterialand,ifsuchpersonisacompany,byeverydirectorthereof:

Providedthatthissubsectionshallnotapply— (a) ifthesharestowhichtheofferorinvitationormaterialrelatesareshares

whicharequotedon,orinrespectofwhichpermissiontodealhasbeengrantedby, a securities exchange registered under theSecurities andExchangeAct[Chapter 24:25]orastockexchangeofgoodreputeoutsideZimbabwe,andthepersonmakingtheofferorinvitationorpublishingthematerialsostatesinwritingspecifyingthestockexchange;or

(b) ifthesharesinquestionareshareswhichacompanyhasallottedoragreedtoallotwithaviewtotheirbeingofferedforsaletothepublic;or

(c) iftheofferorinvitationismadeorthematerialispublishedonlytopersonswhose ordinary business or part of whose ordinary business it is to deal insharesordebentureswhetherasprincipalsoragents;or

(d) toanofferforsaletothepublicoforaninvitationtothepublictotenderfor unquoted sharesmade in the courseofwindingup a company inliquidationorinadeceased,insolventorassignedestateorinanestateheld under curatorship or in execution of a judgment of any competent court;or

(e) toanofferorinvitationmadeinrespectofunquotedsharesbyapersonwhoisatthetimeoftheofferorinvitationthebona fideregisteredbeneficialowner of them.

(4)Thesaidstatementshallcontainparticularswithrespecttothefollowingmatters—


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(a) whetherthepersonmakingtheofferisactingasprincipaloragent,andif as agent the name of his or her principal and an address in Zimbabwe wherethatprincipalcanbeservedwithprocessandthenatureandextentof theremunerationreceivedorreceivablebytheagentforhisorherservices;

(b) thedateonwhichandthecountryinwhichthecompanywasincorporatedandtheaddressofitsregisteredorprincipalofficeinZimbabweor,ifnone,theaddressofitsprincipalofficeoutsideZimbabwe;

(c) the authorised share capital of the company and the amount thereofwhichhasbeenissued,theclassesintowhichitisdividedandtherightsofeachclassofmembersinrespectofcapital,dividendsandvotingandthe number and amount of shares issued for cash and the number and amount thereof issued for a considerationother than cash, giving thedates on which and the prices at which or the consideration for which suchshareswereissued;

(d) thedividends,ifany,paidbythecompanyoneachclassofsharesduringeachofthefivefinancialyearsimmediatelyprecedingtheofferorsuchlesserperiodasthecompanymayhaveoperatedand,withrespecttotheratesofsuchdividends,particularsofeachsuchclassofsharesonwhichsuchdividendshavebeenpaid,andifnodividendhasbeenpaidinrespectofsharesofanyparticularclassduringanyofthoseyears,astatementtothateffect;

(e) thetotalamountofanydebenturesissuedbythecompanyandoutstandingat thedateof thestatement, togetherwith the rateof interestpayablethereon;

(f) thenamesandaddressesofthedirectorsofthecompany; (g) whetherornotthesharesofferedarefullypaidupand,ifnot,towhat

extenttheyarepaidup; (h) whetherornotthesharesarequotedon,orpermissiontodealthereinhas

beengrantedby,asecuritiesexchangeregisteredundertheSecuritiesandExchangeAct[Chapter 24:25]oranystockexchangeoutsideZimbabwe,and,ifso,which,and,ifnot,astatementthattheyarenotsoquotedorthatnosuchpermissionhasbeengranted;

(i) iftheofferrelatestounits,particularsofthenamesandaddressesofthepersonsinwhomthesharesrepresentedbytheunitsarevested,thedateofandthepartiestoanydocumentdefiningthetermsonwhichthoseshares are held and an address in Zimbabwe where that document or a copythereofcanbeinspected;

(j) particularsofthedatesonwhichandthepricesatwhichthesharesofferedwere—

(i) originallyissuedbythecompany;and (ii) acquiredbythepersonmakingtheoffer,orbyhisorherprincipal,

givingthereasonsforanydifferencebetweensuchpricesandtheprices at which the shares are being offered.

In this subsection the expression “company” means the company by which shares to which a statement relates were or are to be issued.

(5)Ifanypersoncontravenesthissectionheorsheshallbeguiltyofanoffenceandliabletoafinenotexceedingleveltenortoimprisonmentforaperiodnotexceedingtwoyearsortobothsuchfineandsuchimprisonment.


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(6)Ifapersonconvictedofanoffenceunderthissectionisacompany,whetheracompanywithinthemeaningofthisActornot,everydirectorofthecompanyshallbeguiltyofthelikeoffenceandsubjecttothelikepenaltiesunlessheorsheprovesthattheactconstitutingtheoffencetookplacewithouthisorherknowledgeorconsent.

(7)Inthissection,unlessthecontextotherwiserequires,theexpression“offer”includesaninvitationtomakeanoffer,theexpression“shares”meansthesharesofacompany,whetheracompanywithinthemeaningofthisActornot,andincludesdebenturesandunits,andtheexpression“unit”meansanyrightorinterest,bywhatevernamecalled,inashare,andforthepurposesofthissectionapersonshallnot,inrelationtoacompany,beregardedasnotbeingamemberofthepublicbyreasononlythatheor she is a holder of shares in the company or a purchaser of goods from the company.

(8) Ifanyperson isconvictedofhavingmadeanoffer incontraventionofthissectionthecourtbeforewhichheorsheisconvictedmayorderthatanycontractmadeasaresultoftheoffershallbevoidand,whereitmakesanysuchorder,maygivesuchconsequentialdirectionsasitthinksproperfortherepaymentofanymoneyor the retransfer of any shares.

Sub-Part C: Allotment

115 Prohibitionofallotmentunlessminimumsubscriptionreceived (1)Noallotmentshallbemadeofanysharecapitalofacompanyofferedtothe public for subscription unless the amount stated in the prospectus as the minimum amountwhich,intheopinionofthedirectors,mustberaisedbytheissueofsharecapitalinordertoprovidefor themattersspecifiedinparagraph4of theEighthSchedule(“Matters tobespecifiedinprospectusandreports tobesetout therein”)hasbeensubscribed,andthesumpayableonapplicationfortheamountsostatedhasbeenpaidtoandreceivedbythecompany.Forthepurposesofthissubsectionanamountstatedinanychequeorundertakingtopaythroughabankorotherintermediaryreceivedbythecompanyinpaymentshallbedeemednottohavebeenpaidtoandreceivedbythecompany— (a) untiltheamountofanysuchchequeorundertakinghasbeencreditedto

theaccountofthecompanywithitsbankers; (b) ifthecompanyhasatanytimedeliveredtothepayerandhasnotbeen

repaidtheamountorvalueofanymoney,bill,promissorynote,chequeorundertakingtopaythroughabankorotherintermediaryorothervaluableconsideration otherwise than in discharge of a debt bona fide due by the companytosuchpayer,thentotheextentoftheamountorvalueofsuchmoney,bill,promissorynote,anychequeorundertakingtopaythroughabankorotherintermediaryorothervaluableconsideration.

(2)Theamountsostatedintheprospectusshallbereckonedexclusivelyofanyamount payable otherwise than in cash and is in this Act referred to as “the minimum subscription”.

(3)Theamountpayableonapplicationoneachshare shallbe the same inrespect of all shares of the same class in any one issue and shall not be less than ten per centum of the nominal amount of the share.

(4)Theamountpaidonapplicationshallbe setapartby thedirectors inaseparatebankaccountandshallnotbeavailableforthepurposesofthecompanyorfor the satisfaction of its debts until the minimum subscription has been made up.

(5)Iftheconditionsaforesaidhavenotbeencompliedwithontheexpirationofsixtydaysafterthefirstissueoftheprospectus,allmoneyreceivedfromapplicants


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forsharesshallforthwithberepaidtothemwithoutinterestand,ifanysuchmoneyisnotsorepaidwithinseventydaysaftertheissueoftheprospectusthedirectorsofthecompanyshallbeindefaultandliabletoacategory3civilpenalty.

(6)Any condition requiring or binding any applicant for shares towaivecompliancewithanyrequirementsofthissectionshallbevoid.

116 Prohibition of allotment in certain cases unless statement in lieu of prospectusdeliveredtoRegistrar

(1)Thissectionshallnotapplytoaprivatecompany.

(2)Acompanywhichdoesnotissueaprospectusonorwithreferencetoitsformation,orwhichhasissuedsuchaprospectusbuthasnotproceededtoallotanyof thesharesofferedto thepublicforsubscription,shallnotallotanyof itssharesordebenturesunlessatleastthreedaysbeforethefirstallotmentofeithersharesordebenturestherehasbeendeliveredtotheRegistrarforregistrationastatementinlieuofprospectussignedbyeverypersonwhoisnamedthereinasadirectororaproposeddirectorofthecompanyorbyhisorheragentauthorisedinwriting,intheformandcontainingtheparticularssetoutinPartIoftheThirdSchedule(“Formofstatementinlieuofprospectustobedeliveredtoregistrarbyacompanywhichdoesnotissueprospectus or which does not go to allotment on a prospectus issued and reports to be setouttherein”)and,inthecasesmentionedinPartIIofthatSchedule,settingoutthereportsspecifiedtherein,andthesaidPartsIandIIshallhaveeffectsubjecttoPartIIIof that Schedule.

(3)Everystatementinlieuofprospectusdeliveredundersubsection(2)shall,wherethepersonsmakinganysuchreportasaforesaidhavemadethereinorhave,withoutgivingthereasons,indicatedthereinanysuchadjustmentsasarementionedinparagraph5oftheThirdSchedule,haveendorsedthereonorattachedtheretoawrittenstatementsignedbythosepersonssettingouttheadjustmentsandgivingthereasonstherefor.

(4)Ifacompanycontravenessubsection(2)or(3) thecompanyandeverydirector of the companywho knowingly andwilfully authorises or permits thecontraventionshallbeindefaultandliableacategory3civilpenaltyorder.

(5)WhereastatementinlieuofprospectusdeliveredtotheRegistrarundersubsection(2)includesanyuntruestatement,anypersonwhoauthorisedthedeliveryof the statement in lieu of prospectus for registration shall be guilty of an offence and liabletoafinenotexceedingleveltwelveortoimprisonmentforaperiodnotexceedingfiveyearsortobothsuchfineandsuchimprisonment,unlessheorsheproveseitherthat the untrue statement was immaterial or that he or she had reasonable grounds to believeanddiduptothetimeofthedeliveryforregistrationofthestatementinlieuofprospectusbelievethattheuntruestatementwastrue.

(6)Forthepurposesofthissection— (a) astatementincludedinastatementinlieuofprospectusshallbedeemed

to be untrue if it is misleading in the form and context in which it is included;and

(b) a statement shall be deemed to be included in a statement in lieu ofprospectus if it is contained therein or in any report or memorandum appearingonthefacethereoforbyreferenceincorporatedtherein;and

(c) ifanymatterwhichought,undertheprovisionsoftheThirdSchedule,to be inserted in a statement in lieu of prospectus is omitted therefrom and if such omission is calculated to mislead then the statement in lieu of prospectusshallbedeemed,inrespectofsuchomission,tobeastatementin lieu of prospectus in which an untrue statement is included.


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117 Effectofirregularallotment (1)An allotmentmade by a company in contravention of section 115(“Prohibitionofallotmentunlessminimumsubscriptionreceived”)or116(“Prohibitionof allotment in certain cases unless statement in lieu of prospectus delivered toRegistrar”)shallbevoidableattheinstanceofapersonwhomakesapplicationtoacourtwithinonemonthaftertheholdingofthestatutorymeetingandnotlater;orinanycase,wherethecompanyisnotrequiredtoholdastatutorymeeting,orwheretheallotmentismadeaftertheholdingofthestatutorymeeting,withinonemonthafterthedateoftheallotment,andnotlater,andshallbesovoidablenotwithstandingthatthe company is in course of being wound up.

(2)Ifanydirectorofacompanyknowinglycontravenes,orpermitsorauthorisesthecontraventionofsection115or116heorsheshallbeliabletocompensatethecompanyandtheallottee,respectively,foranyloss,damagesorcostswhichthecompanyortheallotteemayhavesustainedorincurredthereby:

Providedthatproceedingstorecoveranysuchloss,damagesorcostsshallnotbe commenced after the expiration of two years from the date of the allotment.

118 Allotmentvoidableifapplicationformnotattachedtoprospectus Whereanapplicationformisrequiredbysection104(“Matterstobestatedandreportstobesetoutinprospectus”)tobeattachedtoaprospectus,everyallotmentof shares or debentures made otherwise than in pursuance of an application form whichwasattachedtoaprospectusasrequiredbysection104(3)shallbevoidableattheinstanceoftheallotteewhomakesapplicationtoacourtwithinonemonthafterallotment,unlessitisshownthattheallotteeatthetimeofhisorherapplicationwasin fact possessed of a copy of the prospectus or was aware of its contents.

119 Application for and allotment of shares (1)Noallotmentshallbemadeofanysharesinordebenturesofacompanyinpursuanceofaprospectusissuedgenerallyandnoproceedingsshallbetakenonapplicationsmadeinpursuanceofaprospectussoissued,untilthebeginningofthethirddayafterthatonwhichtheprospectusisfirstsoissuedorsuchlatertime,ifany,asmaybespecifiedintheprospectus.

The beginning of the said third day or such later time as aforesaid is in this Act referred to as “the time of the opening of the subscription lists”.

(2)Insubsection(1)thereferencetothedayonwhichtheprospectusisfirstissuedgenerallyshallbeconstruedasreferringtothedayonwhichitisfirstissuedasanewspaperadvertisement:

Providedthat,ifitisnotsoissuedasanewspaperadvertisementbeforethethirddayafterthatonwhichitisfirstsoissuedinanyothermanner,thesaidreferenceshallbeconstruedasreferringtothedayonwhichitisfirstsoissuedinanymanner.

(3)Thevalidityofanallotmentshallnotbeaffectedbyanycontraventionoftheforegoingprovisionsofthissectionbut,intheeventofanysuchcontravention,thecompanyandeveryofficerofthecompanywhoisknowinglyapartytothedefaultshallbeindefaultandliabletoacategory1civilpenaltyorder.

(4)Intheapplicationofthissectiontoaprospectusofferingsharesordebenturesforsale,theforegoingsubsectionsshallhaveeffectwiththesubstitutionofreferencestosaleforreferencestoallotment,andwiththesubstitutionforthereferencetothecompanyandeveryofficerofthecompanywhoisknowinglyapartytothedefaultofareferencetoanypersonbyorthroughwhomtheofferismadeandwhoknowinglyandwilfullyauthorisesorpermitsthecontravention.


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(5)Anapplicationforsharesinordebenturesofacompanywhichismadeinpursuanceofaprospectus issuedgenerallyshallnotberevocableuntilafter theexpirationofthethirddayafterthetimeoftheopeningofthesubscriptionlists,orthegivingbeforetheexpirationofthesaidthirdday,bysomepersonresponsibleundersection 108 (“Civil liability formisstatements in prospectus”) for the prospectus,ofapublicnoticehaving theeffectunder that sectionofexcludingor limiting theresponsibilityofthepersongivingit.

(6)Inreckoningforthepurposesofthissectionandofsection120(“Allotmentofsharesanddebenturestobedealtinonstockexchange”)thethirddayafteranotherday,anyinterveningdaywhichisaSaturdayorSundayorwhichisapublicholidayinZimbabweshallbedisregardedandifthethirdday,assoreckoned,isitselfaSaturdayorSundayorapublicholidaythereshallforthesaidpurposesbesubstitutedthefirstday thereafter which is none of them.

120 Allotmentofsharesanddebenturestobedealtinonstockexchange (1)Whereaprospectus,whetherissuedgenerallyornot,statesthatapplicationhas been or will be made for permission for the shares or debentures offered thereby tobedealtinonanylocalstockexchange,anyallotmentmadeonanapplicationinpursuanceoftheprospectusshall,whenevermade,bevoidifthepermissionhasnotbeenappliedforbeforethethirddayafterthefirstissueoftheprospectusorifthepermission has been refused before the expiration of twenty-one days from the date of the closing of the subscription lists or such longer period not exceeding forty-two days asmay,withinthesaidtwenty-onedays,benotifiedtotheapplicantforpermissionbyoronbehalfofthestockexchange.

(2)Wherethepermissionhasnotbeenappliedforasaforesaid,orhasbeenrefusedasaforesaid, thecompanyshall forthwith repaywithout interestallmoneyreceivedfromapplicantsinpursuanceoftheprospectus,and,ifanysuchmoneyisnotrepaidwithineightdaysafterthecompanybecomesliabletorepayit,thedirectorsofthecompanyshallbejointlyandseverallyliabletorepaythatmoneywithinterestattherateprescribedinthePrescribedRateofInterestAct[Chapter 8:10] from the expiration of the eighth day:

Providedthatadirectorshallnotbeliableifheorsheprovesthatthedefaultin the repayment of the money was not due to any misconduct or negligence on his or her part.

(3)Allmoneyreceivedasaforesaidshallbekeptinaseparatebankaccountandshallnotbeavailableforthepurposesofthecompanyorforthesatisfactionofitsdebtssolongasthecompanymaybecomeliabletorepayitundersubsection(2)and,ifdefaultismadeincomplyingwiththissubsection,thecompanyandeveryofficerofthecompanywhoisindefaultshallbeguiltyofanoffenceand— (a) inthecaseofacompany,liabletoafinenotexceedinglevelten;or (b) in thecaseofanofficer, liable toafinenotexceeding level tenor to

imprisonmentforaperiodnotexceedingtwoyearsortobothsuchfineand such imprisonment.

(4)Anyconditionsrequiringorbindinganyapplicantforsharesordebenturestowaivecompliancewithanyrequirementofthissectionshallbevoid.

(5)For thepurposesof this section,permission shallnotbedeemed toberefusedifitisintimatedthattheapplicationforit,thoughnotatpresentgranted,willbegivenfurtherconsideration.

(6)Thissectionshallhaveeffect—


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(a) inrelationtoanysharesordebenturesagreedtobetakenbyapersonunderwriting an offer thereof by a prospectus as if he or she had applied thereforinpursuanceoftheprospectus;and

(b) in relation toaprospectusoffering shares for salewith the followingmodifications,thatistosay—

(i) referencestosaleshallbesubstitutedforreferencestoallotment;and

(ii) thepersonsbywhomtheofferismade,andnotthecompany,shallbeliableundersubsection(2)torepaymoneyreceivedfromapplicants,and references to the company’s liability under that subsection shall beconstruedaccordingly;and

(iii) for the reference in subsection (3) to the company and everyofficerofthecompanywhoisindefaultthereshallbesubstitutedareference to any person by or through whom the offer is made and whoknowinglyandwilfullyauthorisesorpermitsthedefault.

121 Register and return as to allotments (1)Everycompanyshallkeeparegisterofallotmentsatitsregisteredoffice.

(2)Acompany,wheneveritmakesanyallotmentofitsshares,shall,withinonemonththereafter,lodgewiththeRegistrar— (a) areturnoftheallotments,statingthenumberandnominalamountofthe

sharescomprisedintheallotment,thenamesandaddressesoftheallotteesandtheamount,ifany,paidordueandpayableoneachshare;and

(b) inthecaseofsharesallottedasfullyorpartlypaidupotherwisethanincash,acontractinwritingandsignedbythepartiesthereto,constitutingthetitleoftheallotteetotheallotment,togetherwithanycontractofsaleorforservicesorotherconsiderationinrespectofwhichthatallotmentwasmade,andareturnstatingthenumberandnominalamountofsharessoallotted,theextenttowhichtheyaretobetreatedaspaidupandtheconsiderationforwhichtheyhavebeenallotted:

Providedthatitshallnotbenecessaryforareturnreferredtoinparagraph(a)to state the names and addresses of the allottees in the case of an allotment of a class which has been prescribed as being one in relation to which the names and addresses of the allottees shall not be stated in the return.

(3)Whereacontractsuchasisreferredtoinsubsection(2)(b)hasnotbeenreducedtowriting,thecompanyshall,withinonemonthaftertheallotmentofitsshares,lodge with the Registrar such particulars of the contract as may be prescribed.

(4)Ifdefaultismadeincomplyingwiththerequirementsofthissectionthecompanyandeveryofficerofthecompanywhoisknowinglyapartytothedefaultshallbeliabletoacategory3civilpenaltyorder:

ProvidedthatincaseofdefaultinlodgingwiththeRegistrarwithinonemonthaftertheallotmentanydocumentrequiredtobelodgedbythissection,thecompany,oranypersonliableforthedefault,mayrequesttheRegistrartoextendthetimeforthelodgingofthedocumentsforaspecifiedperiod,andiftheRegistrarissatisfiedthattheomissiontolodgethedocumentwasaccidentalorduetoinadvertence,theRegistrarmaygranttherequestandwaivethecivilpenalty.


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Sub-Part D: Commissions and discounts

122 Power to pay certain commissions and prohibition of payment of all other commissions, discounts

(1)Itshallbe lawfulforacompanytopayacommission toanypersoninconsiderationofhisorhersubscribingoragreeingtosubscribe,whetherabsolutelyorconditionally,foranysharesinthecompany,orprocuringoragreeingtoprocuresubscriptions,whetherabsoluteorconditional,foranysharesinthecompanyif— (a) thepaymentofthecommissionisauthorisedbythearticles;and (b) thecommissionpaidoragreedtobepaiddoesnotexceedfiveper centum

of the price at which the shares are issued or the amount or rate authorised bythearticles,whicheveristheless;and

(c) theamountorrateper centum of the commission paid or agreed to be paidis—

(i) inthecaseofsharesofferedtothepublicforsubscription,disclosedintheprospectus;or

(ii) in the case of shares not offered to the public for subscription,disclosed in the statement in lieu of prospectus or in a statement intheprescribedformsignedinlikemannerasastatementinlieuofprospectusanddelivered,beforepaymentof thecommission,totheRegistrarforregistration,andwhereacircularornotice,notbeingaprospectus,invitingsubscriptionforthesharesisissued,alsodisclosedinthatcircularornotice;

and (d) thenumberofshareswhichpersonshaveagreedforacommissionto

subscribe absolutely is disclosed in the manner aforesaid.

(2)Saveasaforesaid,nocompanyshallapplyanyofitssharesorcapitalmoney,eitherdirectlyorindirectly,inpaymentofanycommission,discountorallowancetoanypersoninconsiderationofhisorhersubscribingoragreeingtosubscribe,whetherabsolutelyorconditionally,foranysharesinthecompany,orprocuringoragreeingtoprocuresubscriptions,whetherabsoluteorconditional,foranysharesinthecompany,whether the shares or money be so applied by being added to the purchase money of any propertyacquiredbythecompanyortothecontractpriceofanyworktobeexecutedforthecompany,orthemoneybepaidoutofthenominalpurchasemoneyorcontractprice,orotherwise.

(3)Nothinginthissectionshallaffectthepowerofanycompanytopaysuchbrokerageasithasheretoforebeenlawfulforacompanytopay.

(4)Avendorto,promoteroforotherpersonwhoreceivespaymentinmoneyorsharesfromacompany,shallhaveandshallbedeemedalwaystohavehadpowertoapplyanypartofthemoneyorsharessoreceivedinpaymentofanycommission,thepaymentofwhich,ifmadedirectlybythecompany,wouldhavebeenlegalunderthis section.

(5)IfdefaultismadeincomplyingwiththeprovisionsofthissectionrelatingtothedeliverytotheRegistrarofthestatementintheprescribedformthecompanyandeveryofficerofthecompanywhoisindefaultshallbeliabletoacategory1civilpenalty order.

123 Financial assistance by company for purchase of its own or its holdingcompany’sshares

(1)Itshallnotbelawfulforacompanytogive,whetherdirectlyorindirectly,andwhetherbymeansofaloan,guarantee,theprovisionofsecurityorotherwise,any


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financialassistanceforthepurposeoforinconnectionwithapurchaseorsubscriptionmadeortobemadebyanypersonoforforanysharesinthecompanyor,wherethecompanyisasubsidiarycompany,initsholdingcompanyunless— (a) suchassistanceisgiveninaccordancewithaspecialresolutionofthe

company;and (b) immediately after such assistance is given, on a fair valuation the

company’sassets,excludinganyassetresultingfromthegivingoftheassistance, exceed its liabilities and it is able topay itsdebts as theybecome due in ordinary course of its business.

(2)Ifacompanygivesfinancialassistanceincontraventionofsubsection(1)— (a) anytransactionrelatingtosuchassistanceandanytransferorallotment

of shares arising therefrom may be set aside by the court at the suit of thecompanyoritsliquidatororanymemberorcreditorofthecompanyorofanypartytothetransaction;and

(b) whetherornotthecourtmakesanorderintermsofparagraph(a),everyofficerofthecompanywhomadeortookpartinthedecisionthatthecompany should enter into the transaction may be ordered by the court at thesuitofthecompanyoritsliquidatororanymemberorcreditorofthecompanyorofanypartytothetransaction,tocompensatethecompanyand any other party to the transaction who entered into it in good faith foranylossresultingfromthecontraventionofsubsection(1):

Providedthatnocompensationforlossofanticipatedprofitsshallbe awarded to the company.

Sub-Part E: Issue of shares at premium or discount and redeemable preference shares

124 Application of share premiums (1)Ifacompanyissuessharesatapremium,whetherforcashorotherwise,asumequaltotheaggregateamountorvalueofthepremiumsonthosesharesshallbetransferredtoanaccountcalled“thesharepremiumaccount”andprovisionsofthisActrelatingtothereductionofacompany’ssharecapitalshallapply,exceptasprovidedinthissection,asifthesharepremiumaccountwerepartofitspaid-upsharecapital.

(2)Acompanymayapplyitssharepremiumaccount— (a) inpayingupunissuedsharestobeallottedtoitsmembers,directorsor

employees,ortoatrusteeforsuchpersons,asfullypaidbonusshares;or

(b) inwritingoff— (i) thecompany’spreliminaryexpenses;or (ii) theexpensesof,orthecommissionpaidordiscountallowedon,

anyissueofsharesordebenturesofthecompany; or (c) in providing for the premiumpayable, if any, on redemption of any

redeemable preference shares or of any debentures of the company.

125 Power to issue shares at a discount (1)Subjecttothissection,itshallbelawfulforacompanytoissueatadiscountshares in the company of a class already issued:

Providedthat—


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(a) theissueofthesharesatadiscountmustbeauthorisedbyspecialresolutionofthecompanyandmustbesanctionedbythecourt;

(b) thespecialresolutionmustspecifythemaximumrateofdiscountatwhichthesharesaretobeissued;

(c) notlessthanoneyearmust,atthedateoftheissue,haveelapsedsincethedateonwhichthecompanywasentitledtocommencebusiness;

(d) thesharestobeissuedatadiscountmustbeissuedwithinthirtydaysafter the date on which the issue is sanctioned by the court or within such extended time as the court may allow.

(2)Whereacompanyhaspassedaspecialresolutionauthorisingtheissueofsharesatadiscount,itmayapplytothecourtforanordersanctioningtheissue,andonanysuchapplicationthecourt,if,havingregardtoallthecircumstancesofthecase,itthinkspropersotodo,maymakeanordersanctioningtheissueonsuchtermsandconditionsasitthinksfit.

(3)Everyprospectusrelatingtotheissueofthesharesmustcontainparticularsof the discount allowed on the issue of the shares or of so much of that discount as has not been written off at the date of the issue of the prospectus.

(4)Ifdefaultismadeincomplyingwiththissectionthecompanyandeveryofficerofthecompanywhoisindefaultshallbeliabletoacategory1civilpenaltyorder.

126 Power to issue redeemable shares (1)Subjecttothissectionandsections 127(“Financingatredemption”),128(“Powerofcompanytopurchaseownshares”),133(“Capitalredemptionreserve”)and134(“Effectoffailurebycompanytoredeemorpurchaseshares”),acompanymay,ifauthorisedbyitsarticles,issueshareswhicharetoberedeemedorwhichareliable to be redeemed at the option of the company or the shareholder concerned.

(2)Noredeemablesharesshallbeissuedatatimewhentherearenoissuedshares of the company which are not redeemable.

(3)Redeemablesharesmaynotberedeemedunlesstheyarefullypaid,andthetermsofredemptionshallprovideforpaymentonredemption.

127 Financing at redemption (1) Subject to section 134 (“Effect of failure by company to redeemorpurchaseshares”)(2)and(4)— (a) redeemablesharesshallberedeemedonlyoutofprofitsofthecompany

whichwouldotherwisebeavailablefordividendoroutoftheproceedsofafreshissueofsharesmadeforthepurposesoftheredemption;and

(b) anypremiumpayableforredemptionshallbepaidoutofprofitsofthecompanywhichwouldotherwisebeavailablefordividend.

(2)Ifredeemedshareswereissuedatapremium,anypremiumpayableontheir redemption may be paid out of the proceeds of a fresh issue of shares made for thepurposesoftheredemption,uptoanamountequalto— (a) theaggregateofthepremiumsreceivedbythecompanyontheissueof

thesharesredeemed;or (b) thecurrentamountofthecompany’ssharepremiumaccount,including

any sum transferred to that account in respect of the premiums on the newshares;


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whicheveristhelesser,andinthateventtheamountofthecompany’ssharepremiumaccount shall be reduced by a sum corresponding, or by sums in the aggregatecorresponding,totheamountofanypaymentmadebyvirtueofthissubsectionoutofthe proceeds of the issue of the new shares.

(3)Subjecttothissectionandtosections128(“Powerofcompanytopurchaseown shares”), 133 (“Capital redemption reserve”) and 134 (“Effect of failure bycompanytoredeemorpurchaseshares”),redemptionofsharesmaybeeffectedonsuchtermsandinsuchmannerasmaybeprovidedbythecompany’sarticles.

(4) Shares redeemed under this section shall be treated as cancelled onredemption and the amount of the company’s share capital shall be diminished by the nominalvalueofthoseshares,buttheredemptionofsharesbyacompanyshallnotbetakenasreducingtheamountofthecompany’sauthorisedsharecapital.

(5)Withoutprejudicetosubsection(4),whereacompanyisabouttoredeemshares,itshallhavepowertoissuesharesuptothenominalvalueofthesharestoberedeemedasifthoseshareshadneverbeenissued,andaccordinglythesharecapitalofthecompanyshallnot,forthepurposesofanylawrelatingtostampduty,bedeemedto be increased by the issue of shares in pursuance of this subsection:

Providedthat,wherenewsharesareissuedbeforetheredemptionoftheoldshares,thenewsharesshallnot,sofarasrelatestostampduty,bedeemedtohavebeenissued in pursuance of this subsection unless the old shares are redeemed within one month after the issue of the new shares.

128 Power of company to purchase own shares (1)Subjecttothissectionandtosections129(“Authorityrequiredbycompanytopurchaseitsownshares”)to134(“Effectoffailurebycompanytoredeemorpurchaseshares”),acompanymay,ifauthorisedbyitsarticles,purchaseitsownshares,includingany redeemable shares.

(2)Sections126(“Powertoissueredeemableshares”)and127(“Financingatredemption”)shallapply,withthenecessarychanges,tothepurchasebyacompanyofitsownsharessavethatthetermsandmannerofpurchaseneednotbedeterminedbythearticlesasrequiredbysection127(3).

(3)Acompanyshallnotpurchaseitsownsharesifasaresultofthepurchasethere would no longer be any member holding shares other than redeemable shares.

129 Authorityrequiredbycompanytopurchaseitsownshares (1)Acompanyshallnotpurchaseitsownsharesunlessthepurchasehasbeenauthorisedinadvancebythecompanyinageneralmeeting.

(2)Anauthoritygrantedbythecompanyinageneralmeetingshallnotbevalidforthepurposesofsubsection(1)— (a) unlessitspecifies— (i) theprice,orthemaximumandminimumprices,atwhichtheshares

maybeacquired;and (ii) themaximumnumberof shareswhichmaybeacquiredand the

classthereof;and (iii) thedateonwhichtheauthoritywillexpire; (b) wherethesharesaretobepurchasedotherwisethanonasecuritiesexchange

registeredundertheSecuritiesandExchangeAct[Chapter 24:25],ifanypersonholding shares towhich the authority relateshasvoted for theresolution conferring the authority:


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Providedthatthisparagraphshallnotapplyinthecaseofaprivatecompany or in the case of a public company when a class of shares are all to be purchased or are to be purchased pro rata from all the shareholders who hold shares of the class concerned.

130 Cessionorrenunciationofrights (1)Whereacompanyhasobtainedrightstopurchasesharespursuanttoanauthorityobtainedintermsofsection129(“Authorityrequiredbycompanytopurchaseitsownshares”)— (a) suchrightsshallnotbecapableofbeingceded; (b) any agreement to renounce such rights shall not be valid unless the

renunciationhasbeenauthorisedinadvancebythecompanyinageneralmeeting.

(2)Anauthoritygrantedbythecompanyinageneralmeetingshallnotbevalidforthepurposesofsubsection(1)(b)— (a) unlessitspecifiesthesharesorthenumberofsharesconcerned;or (b) wherethepurchaseistobeeffectedotherwisethanonasecuritiesexchange

registeredundertheSecuritiesandExchangeAct[Chapter 24:25],ifanypersonholding shares towhich the authority relateshasvoted for theresolution conferring the authority:

Providedthatthisparagraphshallnotapplyinthecaseofaprivatecompany or in the case of a public company when a class of shares are all to be purchased or are to be purchased pro rata from all the shareholders who hold shares of the class concerned.

131 Payments for rights to purchase or for release thereof (1)Apaymentmadebyacompanyinconsiderationof— (a) acquiringanyrighttopurchaseitssharespursuanttoanauthoritygranted

intermsofsection129(“Authorityrequiredbycompanytopurchaseitsownshares”);or

(b) thereleaseofanyobligationtopurchasesharesinpursuanceofanauthoritygrantedintermsofsection129;

shallbemadeoutoftheprofitsthatwouldotherwisebeavailablefordividend.

(2)Iftherequirementsofsubsection(1)arenotcompliedwith,thepurchaseorreleaseconcerned,asthecasemaybe,shallbevoid.

132 Disclosure by company of purchase of own shares (1)Withintheperiodoftwenty-eightdaysnextfollowingthedateofdeliveryofanyofitsownsharespurchasedbyit,acompanyshalldelivertotheRegistrarareturnintheprescribedformshowing,withrespecttoeachclassofsharespurchased— (a) thenumberandnominalvalueoftheshares;and (b) thedateonwhichthesharesweredeliveredtothecompany;and (c) theaggregateamountpaidbythecompanyfortheshares;and (d) themaximumandminimumpricespaidinrespectofsharesofeachclass

purchased.

(2)ParticularsofsharesdeliveredtothecompanyondifferentdatesandunderdifferentauthoritiestopurchasemaybeincludedinasinglereturntotheRegistrarand,whenthisisdone,theamounttobestatedintermsofsubsection(1)(c)shallbetheaggregate amount paid by the company for all the shares to which the return relates.


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(3)Whereacompanyhaspurchaseditsownsharesitshallkeepacopyofthecontractofpurchaseor,ifthepurchaseisnotintermsofanywrittencontract,amemorandumofthetermsofthepurchaseatitsregisteredofficeforaperiodoftenyearsreckonedfromthedateofcompletionofthepurchaseofallthesharesconcernedor,asthecasemaybe,fromthedateofterminationofthecontract.

(4)Thecopyofthecontractormemorandum,asthecasemaybe,requiredtobekeptintermsofsubsection(3)shallbeavailableforinspection,atallreasonabletimes,freeofchargebyanyperson.

(5)Everyofficerofacompanywhoisindefaultincomplyingwith— (a) subsection(3)shallbeliabletoacategory1civilpenaltyorder; (b) subsection(4)shallbeliabletoacategory4civilpenaltyorder;

(6)Theobligationtokeepandtoallowinspectionofacopyofanycontractoramemorandumintermsofsubsections(3)and(4)shallapply,withnecessarychanges,toanyvariationofthecontract.

133 Capitalredemptionreserve (1)Wheresharesofacompanyareredeemedorpurchasedwhollyoutofthecompany’sprofits,theamountbywhichthecompany’sissuedsharecapitalisdiminishedinaccordancewithsection127(“Financingatredemption”)(4)oncancellationofthesharesconcernedshallbetransferredtoareserve,tobecalled“thecapitalredemptionreserve”.

(2)Ifsharesareredeemedorpurchasedbyacompanywhollyorpartlyoutofthe proceeds of a fresh issue and the aggregate amount of those proceeds is less than thenominalvalueofthesharesredeemedorpurchased,theamountofthedifferenceshallbetransferredtothecapitalredemptionreserve.

(3)TheprovisionsofthisActrelatingtothereductionofacompany’ssharecapitalshallapplytoanyreductionofthecapitalredemptionreserveasifthecapitalredemptionreservewerepaid-upsharecapitalofthecompany:

Provided that the reservemaybeappliedby thecompany inpayingup itsunissuedsharestobeallottedtoitsmembers,directorsoremployees,ortoatrusteeforsuchpersons,asfullypaidbonusshares.

134 Effectoffailurebycompanytoredeemorpurchaseshares (1)Whereacompanyhas— (a) issuedsharesontermsthattheyareorareliabletoberedeemed;or (b) agreedtopurchaseanyofitsownshares;

the company shall not be liable in damages in respect of any failure on its part to redeem orpurchaseanyoftheshares,andnoorderforspecificperformanceofthetermsofredemptionorpurchaseshallbemadebyanycourt,ifthecompanyshowsthatitisunabletomeetthecostsofredeemingorpurchasing,asthecasemaybe,thesharesinquestionoutofprofitsofthecompanythatwouldotherwisebeavailablefordividend.

(2)Subjecttosubsection(3),ifacompanyiswoundupandatthecommencementofthewindingupanysharesreferredtoinsubsection(1)havenotbeenredeemedorpurchasedbythecompany,thetermsofredemptionorpurchasemaybeenforcedagainstthecompany,andwhensharesareredeemedorpurchasedunderthissubsectiontheyshall be treated as cancelled.

(3)Subsection(2)shallnotapplyif—


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(a) the termsunderwhich the shareswere to be redeemedor purchasedprovidedfortheredemptionorpurchasetotakeplaceatadatelaterthanthatofthecommencementofthewindingup;or

(b) duringtheperiodcommencingwiththedateonwhichtheredemptionorpurchasewastohavetakenplaceandendingwiththecommencementofthewindingup,thecompanycouldnotatanytimehavelawfullypaidadividendtoshareholdersequalinvaluetothepriceatwhichthesharesweretohavebeenredeemedorpurchased.

(4)Thereshallbepaidinprioritytoanyamountwhichthecompanyisliableintermsofsubsection(2)topayinrespectofanyshares— (a) all other debts and liabilities of the company, other than any due to

membersintheircapacityassuch;and (b) ifothersharescarryrights,whetherastocapitalorastoincome,which

arepreferenttotherightsastocapitalattachingtothefirst-mentionedshares,anyamountdueinsatisfactionofthosepreferredrights;

and,thereafter,anysuchamountshallbepaidinprioritytoanyamountsduetomembersinsatisfactionoftheirrights,whetherastocapitalorincome,asmembers.

(5)Wherebyvirtue of the InsolvencyAct [Chapter 6:07], a creditor of acompany is entitled to the payment of any interest only after payment of all other debts ofthecompany,thecompany’sdebtsandliabilitiesshall,forthepurposeofsubsection(4),includetheliabilitytopaythatinterest.

Sub-Part F: Miscellaneous provisions as to share capital

135 Power of company to arrange for different amounts being paid on shares

Acompany,ifsoauthorisedbyitsarticles,maydoanyoneormoreofthefollowingthings— (a) make arrangements on the issue of shares for a difference between

membersintheamountsandtimesofpaymentofcallsontheirshares; (b) acceptfromanymemberwhoassentstheretothewholeorapartofthe

amountremainingunpaidonanysharesheldbyhimorher,althoughnopartofthatamounthasbeencalledup,and,ifthewholeamountunpaidonanysharesbepaid,issuethosesharesasfullypaidup;

(c) wherea largeramount ispaiduponsomeshares thanonothers,paydividendsinproportiontotheamountpaiduponeachshare.

136 Reserveliabilityofcompany A company may by special resolution determine that any portion of its share capitalwhichhasnotbeenalreadycalledupshallnotbecapableofbeingcalledup,exceptintheeventandforthepurposesofthecompanybeingwoundupor,inrespectofacompanyplacedunderjudicialmanagement,withthesanctionofthecourt,andthereupon that portion of its share capital shall not be capable of being called up except intheeventandforthepurposesaforesaid.

137 Capitalisationshares (1) Except to the extent that a company’s memorandum of incorporation providesotherwise— (a) theboardofthatcompany,byresolution,mayapprovetheissuingofany

authorisedsharesofthecompany,ascapitalisationshares,onapro rata basistotheshareholdersofoneormoreclassesofshares;and


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(b) sharesofoneclassmaybeissuedasacapitalisationshareinrespectofsharesofanotherclass;and

(c) subjecttosub-section(2),whenresolvingtoawardacapitalisationshare,theboardmayatthesametimeresolvetopermitanyshareholderentitledtoreceivesuchanawardtoelecttoreceivepaymentincash,atavaluedetermined by the board.

(2)Theboardofacompanymaynotresolvetoofferacashpaymentinlieuofawardingacapitalisationshare,ascontemplatedinsubsection(1)(c),unlesstheboard— (a) hasappliedthesolvencyandliquiditytest,asrequiredbysection138

(“Distributionsmustbeauthorisedbyboard”),ontheassumptionthateverysuchshareholderwouldelecttoreceivecash;and

(b) issatisfiedthatthecompanywouldsatisfythesolvencyandliquiditytestimmediately upon the completion of the distribution.

138 Distributions must be authorised by board (1)Acompanymustnotmakeanyproposeddistributionunless— (a) thedistribution— (i) ispursuanttoanexistinglegalobligationofthecompany,oracourt

order;or (ii) the board of the company, by resolution, has authorised the

distribution; and (b) it reasonably appears that the companywill satisfy the solvency and

liquiditytestimmediatelyaftercompletingtheproposeddistribution;and (c) theboardofthecompany,byresolution,hasacknowledgedthatithas

appliedthesolvencyandliquiditytest,assetoutinsection102(“Solvencyand liquidity test”), and reasonably concluded that the companywillsatisfythesolvencyandliquiditytestimmediatelyaftercompletingtheproposed distribution.

(2) When the board of a company has adopted a resolution contemplated in subsection(1)(c),therelevantdistributionmustbefullycarriedout,subjectonlytosubsection(3).

(3)Ifthedistributioncontemplatedinaparticularboardresolution,courtorder or existing legal obligation has not been completed within one hundred and twenty(120)businessdaysaftertheboardmadetheacknowledgementrequiredbysubsection(1)(c),orafterafreshacknowledgementbeingmadeintermsofthissubsection,asthecasemaybe— (a) theboardmustre-applythesolvencyandliquiditytestwithrespectto

theremainingdistributiontobemadepursuanttotheoriginalresolution,orderorobligation;and

(b) despiteanylaw,orderoragreementtothecontrary,thecompanymustnot proceed with or continue with any such distribution unless the board adoptsafurtherresolutionascontemplatedinsubsection(1)(c).

(4)Ifadistributiontakestheformoftheincurrenceofadebtorotherobligationbythecompany,ascontemplatedinparagraph(b)ofthedefinitionof‘distribution’setoutinsection2(“Interpretation”)(1),therequirementsofthissection— (a) applyatthetimethattheboardresolvesthatthecompanymayincurthat

debtorobligation;and


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(b) donotapplytoanysubsequentactionofthecompanyinsatisfactionofthatdebtorobligation,except to theextent that theresolution,or thetermsandconditionsofthedebtorobligation,provideotherwise.

(5) If, after applying the solvency and liquidity test as required bythis section, it appears to thecompany that the sectionprohibits its immediatecompliancewithacourtordercontemplatedinsubsection(1)(a)(i)— (a) thecompanymayapplytoacourtforanordervaryingtheoriginalorder;

and (b) thecourtmaymakeanorderthat— (i) isjustandequitable,havingregardtothefinancialcircumstances

ofthecompany;and (ii) ensuresthatthepersontowhomthecompanyisrequiredtomakea

payment in terms of the original order is paid at the earliest possible date compatiblewith the company satisfying its other financialobligations as they fall due and payable.

(6) A director of a company is liable to the extent set out in section 197 (“Liabilityofdirectorsandprescribedofficers”)(3)(e)(vi)ifthedirector— (a) was present at themeetingwhen the board approved a distribution

ascontemplated in thissection,orparticipated in themakingofsucha decision in termsof section 196 (“Directors acting other than at ameeting”);and

(b) failedtovoteagainstthedistribution,despiteknowingthatthedistributionwas contrary to this section.

139Existingshareholders’rightoffirstrefusaltonewshares (1)Shareholdersofacompanyshallhaveapre-emptiverighttoacquirenewly-issuedsharesasprovidedinthissection,forwhichpurpose— (a) “shares”doesnotincludeoptionstoacquiresharesornon-sharesecurities

convertibleintoshares; (b) therightshallbetoacquirethenewly-issuedsharespro rata in proportion

tothenumberofsharesalreadyheldbysuchexistingshareholders,atapricenolessfavourablethanthatofferedtootherpersons.

(2)Thecompanyshallgiveeachexistingshareholderadvancenoticeofanyproposedissuancestating,ataminimum,thenumberofsharestobeissued,theproposedpriceormethodofdeterminingthepriceofissuance,andthetimeperiodandprocedurefor exercisingthepre-emptiverights:

Provided that the timeperiodmust be a reasonable one and all rules andproceduresfortheexerciseofthepre-emptiverightsshallbeuniformforallshareholdershavingtheright.

(3)Unlessotherwise (andexcept to theextent)provided in thecompany’smemorandumofassociation,onlyholdersofordinarysharesshallhavepre-emptiverights,andthereshallbenopre-emptiverightstoacquireanyofthefollowing— (a) preferenceshares,exceptforpreferenceshareswhichareconvertibleinto

orcarryarighttosubscribefororacquireordinaryshares; (b) sharesissuedinaccordancewiththisActtodirectors,officersoremployees

ascompensationfortheirservices; (c) sharesissuedinaccordancewiththisActtosatisfyconversionoroption

rightscreatedtoprovidecompensationtodirectors,officersoremployeesfortheirservices.


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(4) Shares subject to pre-emptive rights that are not acquired by existingshareholders pursuant to such rights may be issued to any person for a period of three monthsafterhavingbeenofferedtoexistingshareholdersunderthissection,at thesamepriceasthepricesetfortheexerciseofpre-emptiverights.Anyofferatalowerpriceduringsuchthree-monthperiod,andanyofferaftersuchperiod,shallbesubjectto existing shareholders’ rights under this section.

(5)Thepre-emptiverightsprovidedforinthissectionmaybefurtherrestrictedor eliminated by a company’s memorandum of association.

140 NoticetoRegistrarofconsolidationofsharecapital,conversionofsharesintostock

(1)Ifthecompanyhas— (a) consolidatedanddivideditssharecapitalintosharesoflargeramount

thanitsexistingshares;or (b) convertedanysharesintostock;or (c) reconvertedstockintoshares;or (d) subdivideditssharesoranyofthem;or (e) redeemedanyredeemablepreferenceshares;or (f) cancelledanyshares,otherwisethaninconnectionwithareductionof

sharecapitalundersection96(“Authorisationforshares”)(3)(a);itshall,withinonemonthaftersodoing,givenoticethereoftotheRegistrarspecifying,asthecasemaybe,thesharesconsolidated,divided,converted,subdivided,redeemedorcancelledorthestockreconvertedandtheRegistrarshallregistersuchconsolidated,divided,converted,subdivided,redeemedorcancelledsharesorthestockreconvertedshares. (2)Ifdefaultismadeincomplyingwiththerequirementsofsubsection(1)thecompanyandeveryofficerofthecompanywhoisindefaultshallbeliabletoacategory3civilpenaltyorder.

141 Notice of increase of share capital (1)Whereacompany,whetheritsshareshaveorhavenotbeenconvertedintostock,hasincreaseditssharecapitalbeyondtheregisteredsharecapital,itshallgivetothe Registrar notice thereof within one month after the passing of the special resolution authorising such increase and the Registrar shall register the increase.

(2)Ifdefaultismadeincomplyingwiththerequirementsofsubsection(1)thecompanyandeveryofficerofthecompanywhoisindefaultshallbeliabletoacategory3civilpenaltyorder.

142 Payment of interest out of capital Where any shares of a company are issued for the purpose of raising money to defraytheexpensesoftheconstructionofworksorbuildingsortheprovisionofanyplantwhichcannotbemadeprofitablefora lengthyperiod, thecompanymaypayinterest on so much of that share capital as is for the time being paid up for the period andmaycharge thesumtocapitalaspartof thecostofconstructionof theworksorbuildingsor theprovisionofplant,as thecasemaybe,subject to thefollowingconditions— (a) nosuchpaymentshallbemadeunlessitisauthorisedbythearticlesor

byspecialresolution;and (b) whether authorised by the articles or by special resolution, no such

paymentshallbemadewithoutthepriorapprovaloftheMinister;and


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(c) beforeapprovinganysuchpaymenttheMinistermayattheexpenseofthecompanyappointapersontoinquireandreporttohimorherastothecircumstancesofthecaseandbeforemakingsuchappointmentmayrequirethecompanytogivesatisfactorysecurityforthepaymentofthecostsoftheinquiry;and

(d) thepaymentshallbemadeonlyforsuchperiodasmaybedeterminedby the Minister and such period shall in no case extend beyond the closeofthehalfyearnextafterthehalfyearduringwhichtheworksorbuildingshavebeencompletedortheplantprovided,asthecasemaybe;and

(e) therateofinterestshallinnocaseexceed6 per centum per annum or suchotherrateasmayforthetimebeingbeprescribed;and

(f) thepaymentoftheinterestshallnotoperateasareductionoftheamountpaid up on the shares in respect of which it is paid.

143 Variation of rights attaching to shares (1)If,inthecaseofacompanythesharesofwhicharedividedintodifferentclassesofshares,provisionismadebythememorandumorarticlesforauthorisingthevariationoftherightsattachedtoanyclassofsharesinthecompany,subjecttotheconsentofanyspecifiedproportionoftheholdersoftheissuedsharesofthatclassorthesanctionofaresolutionpassedataseparatemeetingoftheholdersofthoseshares,andinpursuanceofthesaidprovisiontherightsattachedtoanysuchclassofsharesareatanytimevaried,theprovisionsofsections232(“Dissentingshareholdersappraisalrights”)shallapplytoanyholderoftheissuedsharesofthatclass,beingpersonswhodidnotconsenttoorvoteinfavouroftheresolutionforthevariation,withnecessarychanges.

(2)The expression “variation” in this section includes abrogation and theexpression“varied”shallbeconstruedaccordingly.

Sub-Part G: Reduction of share capital

144 Special resolution for reduction of share capital (1)Subjecttoconfirmationbythecourt,acompanymay,ifsoauthorisedbyitsarticles,byspecialresolutionreduceitssharecapitalinanyway,andinparticular,withoutprejudicetothegeneralityoftheforegoingpower,may— (a) extinguishorreducetheliabilityonanyofitssharesinrespectofshare

capitalnotpaidup;or (b) eitherwithorwithoutextinguishingorreducingliabilityonanyofits

shares,cancelanypaid-upsharecapitalwhichislostorunrepresentedbyavailableassets;or

(c) eitherwithorwithoutextinguishingorreducingliabilityonanyofitsshares,payoffanypaid-upsharecapitalwhichisinexcessofthewantsofthecompany;

andmay,ifandsofarasisnecessary,amenditsmemorandumbyreducingtheamountof its share capital and of its shares accordingly.

(2)Aspecialresolutionundersubsection(1)isinthisSub-Part referred to as “a resolution for reducing share capital”.

145 Applicationtocourttoconfirmorder,objectionsbycreditors (1)Whereacompanyhaspassedaresolutionforreducingsharecapitalitmayapplytothecourtforanorderconfirmingthereduction.


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(2)Wheretheproposedreductionofsharecapitalinvolveseitherdiminutionof liability in respect of unpaid share capital or the payment to any member of any paid-up share capital, and in any other case if the court so directs, the followingprovisionsshallhaveeffect,subjectneverthelesstosubsection(3)— (a) everycreditorofthecompanywhoatthedatefixedbythecourtisentitled

toanydebtorclaimwhich,ifthatdatewerethecommencementofthewindingupofthecompany,wouldbeadmissibleinproofagainst thecompany,shallbeentitledtoobjecttothereduction;

(b) thecourtshallsettlealistofcreditorssoentitledtoobject,andforthatpurposeshallascertain,asfaraspossiblewithoutrequiringanapplicationfromanycreditor,thenamesofthosecreditorsandthenatureandamountoftheirdebtsorclaimsandmaypublishnoticesfixingadayordayswithinwhich creditors not entered on the list are to claim to be so entered or are tobeexcludedfromtherightofobjectingtothereduction;

(c) where a creditor entered on the list whose debt or claim is not discharged orhasnotbeendetermineddoesnotconsenttothereduction,thecourtmay, if it thinksfit, dispensewith the consent of that creditor on thecompanysecuringpaymentofhisorherdebtorclaimbyappropriating,asthecourtmaydirect,thefollowingamount—

(i) ifthecompanyadmitsthefullamountofthedebtorclaimor,thoughnotadmittingit,iswillingtoprovideforit,thenthefullamountofthedebtorclaim;

(ii) ifthecompanydoesnotadmitandisnotwillingtoprovideforthefull amount of the debt or claim or if the amount is contingent or not ascertained,thenanamountfixedbythecourtafterthelikeinquiryand adjudication as if the company were being wound up by the court.

(3)Whereaproposedreductionofsharecapitalinvolveseitherthediminutionof any liability in respect of unpaid share capital or the payment to any member of any paid-upsharecapital,thecourtmay,ifhavingregardtoanyspecialcircumstancesofthecaseitthinkspropersotodo,directthatsubsection(2)shallnotapplyasregardsany class or any classes of creditors.

146 Orderconfirmingreduction Thecourt,ifsatisfied,withrespecttoeverycreditorofthecompanywhounder section145(“Applicationtocourttoconfirmorder,objectionsbycreditors”)isentitledtoobjecttothereduction,thateitherhisorherconsenttothereductionhasbeenobtainedorhisorherdebtorclaimhasbeendischargedorhasdeterminedorhasbeensecured,maymakeanorderconfirmingthereductiononsuchtermsandconditionsasitthinksfit.

147 Registration of order and minute of reduction (1)TheRegistrar,onproductiontohimorherofanorderofthecourtconfirmingthereductionofthesharecapitalofacompany,andthedeliverytohimorherofacopyoftheorderandofaminuteapprovedbythecourt,showingwithrespecttothesharecapitalofthecompany,asamendedbytheorder,theamountofthesharecapital,thenumberofsharesintowhichitistobedividedandtheamountofeachshareandtheamount,ifany,atthedateoftheregistrationdeemedtobepaiduponeachshare,shallregister the order and minute.


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(2)Ontheregistrationoftheorderandminute,andnotbefore,theresolutionforreducingsharecapitalasconfirmedbytheordersoregisteredshalltakeeffect.

(3)Noticeoftheregistrationshallbepublishedinsuchmannerasthecourtmay direct.

(4)TheRegistrarshallcertifytheregistrationoftheorderandminute,andhisorhercertificateshallbeconclusiveevidencethatalltherequirementsofthisActwithrespecttoreductionofsharecapitalhavebeencompliedwithandthatthesharecapitalof the company is such as is stated in the minute.

(5)Theminutewhen registered shall be deemed to be substituted for the correspondingpartofthememorandumandshallbevalidandamendableasifithadbeen originally contained therein.

(6)Thesubstitutionofanysuchminuteasaforesaidforpartofthememorandumof the company shall be deemed to be an amendment of the memorandum within the meaningofsection23(“Copiesofconstitutivedocumentstoembodyalterations”).

148 Liability of members in respect of reduced shares (1)Inthecaseofareductionofsharecapital,amemberofthecompany,pastorpresent,shallnotbeliableinrespectofanysharetoanycallorcontributionexceedinginamountthedifference,ifany,betweentheamountoftheshareasfixedbytheminuteandtheamountpaid,orthereducedamount,ifany,whichistobedeemedtohavebeenpaid,ontheshare,asthecasemaybe:

Providedthat,ifanycreditor,entitledinrespectofanydebtorclaimtoobjecttothereductionofsharecapital,is,throughnodefaultonhisorherpart,ignorantoftheproceedingsforreductionandisinconsequencenotenteredonthelistofcreditorsandifatanytimewithintwelvemonthsafterthereductionthecompanyisunablewithinthemeaningofsection3oftheInsolvencyAct[Chapter 6:07] to pay the amount of hisorherdebtorclaimthen— (a) every personwhowas amember of the company at the date of the

registration of the order for reduction and minute shall be liable to contribute for the payment of that debt or claim an amount not exceeding the amount whichheorshewouldhavebeenliabletocontributeifthecompanyhadcommencedtobewounduponthedaybeforethesaiddate;and

(b) ifthecompanyiswoundup,thecourt,ontheapplicationofanysuchcreditorandproofofhisorherignoranceasaforesaid,may,ifitthinksfit,settleaccordinglyalistofpersonssoliabletocontributeandmakeandenforcecallsandordersonthecontributoriessettledonthelist,asifthey were ordinary contributories in a winding up.

(2)Nothinginsubsection(1)shallaffecttherightsofthecontributoriesamongthemselves.

149 Penalty for concealing name of creditor Ifanyofficerofthecompany— (a) wilfully conceals the name of any creditor entitled to object to the

reduction;or (b) wilfullymisrepresentsthenatureoramountofthedebtorclaimofany

creditor;or (c) aids,abetsorisprivytoanysuchconcealmentormisrepresentationas

aforesaid;


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heorsheshallbeguiltyofanoffenceandliabletoafinenotexceedinglevelsevenortoimprisonmentforaperiodnotexceedingoneyearortobothsuchfineandsuchimprisonment.

Sub-Part H: Transfer of shares and debentures, evidence of titles, etc.

150 Numbering of shares (1)Eachshareinacompanyshallbedistinguishedbyitsappropriatenumber:

Providedthatifatanytimealltheissuedsharesinacompany,oralltheissuedsharesthereinofaparticularclass,arefullypaidupandrankonanequalfootingforallpurposes,noneofthosesharesneedthereafterhaveadistinguishingnumbersolongasitremainsfullypaidupandranksonanequalfootingforallpurposeswithallsharesof the same class for the time being issued and fully paid up.

(2)Whereintermsoftheprovisotosubsection(1)sharesarenotdistinguishedbyappropriatenumbers,thecertificatesofsuchsharesshallbesodistinguished,andupontheregistrationoftransferofanysuchsharesthecertificaterelatingtheretoshall,inadditiontothedistinguishingnumber,bearonitsfacesuchanendorsement,intheformofareferencenumberorotherwise,aswillenabletheimmediatelyprecedingholderofthesharestobeidentified.

151 Transfer of title to shares and debentures (1)Notwithstandinganythinginthearticlesofacompany,itshallnotbelawfulfor the company to register a transfer of shares in or debentures of the company unless aproperinstrumentoftransferhasbeendeliveredtothecompany:

Providedthatnothinginthissectionshallprejudiceanypowerofthecompanyto register as member or debenture holder any person to whom the right to any shares in or debentures of the company has been transmitted by operation of law.

(2)Ontheapplicationofthetransferorofanyshareorinterestinacompany,the company shall enter in its register of members the name of the transferee in the same manner and subject to the same conditions as if the application for entry were made by the transferee and subject also to the law relating to stamp duty.

(3)Ifacompanyrefusestoregisteratransferofanysharesordebenturesthecompanyshall,withintwomonthsafterthedateonwhichthetransferwaslodgedwiththecompany,sendtothetransferorandthetransfereenoticeoftherefusal.

(4)Ifdefaultismadeincomplyingwiththerequirementsofsubsection(3)thecompanyandeveryofficerofthecompanywhoisindefaultshallbeliabletoacategory3civilpenalty.

(5)Atransferoftheshareorotherinterestofadeceasedmemberofacompanymadebyhisorherexecutorshall,althoughtheexecutorisnothimselforherselfamember,beasvalidasifheorshehadbeenamemberatthedateoftheexecutionofthe instrument of transfer subject always to the law relating to stamp duty.

152 Prohibition of bearer shares (1)Nocompanyshallissueanyshare(commonlyknownasa“bearershare”)inrespectofwhichitispurportedthattheholderatanytimeofthesharecertificatethereof has title to it without the need to register him or her as the owner of the share intheshareregister,andanysuchsharepurportedlysoissuedisvoid.

(2)Whereashareinacompanyorisheldorpurportedtobeheldbyapersonasabearershareincontraventionofsubsection(1),then—


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(a) nopersonpurportingtoholdabearershareshall,eitherpersonallyorbyproxy,castavoteattachedtothesharenorshallanypersonreceiveadividendpayableontheshare;and

(b) theRegistrarmayissueacategory1civilpenaltyorder upon the company purporting to issue any bearer share.

(3)Thevalidityofanyresolutionadoptedbyacompanyshallnotbeaffectedbyavotecastincontraventionofsubsection(2)(a),iftheresolutionwasadoptedbytherequisitemajorityofvoteswhichwerevalidlycast.

(4)Adividendreferredto insubsection(2)(a)shallaccrueto thecompanyconcerned.

153 Evidenceoftitletoshares (1)Subjecttosubsection(3)and(5),everycompanyshall,withintwomonthsaftertheallotmentofanyofitsshares,debenturesordebenturestock,andwithintwomonthsafterthedateonwhichatransferofanysuchshares,debenturesordebenturestockislodgedwiththecompany,completeandhavereadyfordeliverythecertificatesof all shares, the debentures and the certificates of all debenture stock allotted ortransferred,unlesstheconditionsofissueoftheshares,debenturesordebenturestockotherwiseprovide.

Forthepurposeofthissubsection,theexpression“transfer”meansatransferdulystampedandotherwisevalidanddoesnotincludesuchatransferasthecompanyis for any reason entitled to refuse to register and does not register.

(2)Acertificateevidencinganycertificatedshare,debentureordebenturestockofacompanymuststateonitsface— (a) thenameoftheissuingcompany;and (b) thenameofthepersontowhomtheshare,debentureordebenturestock

wasissued;and (c) the number and class of share, debenture or debenture stock and the

designationoftheseries,ifany,evidencedbythatcertificate;and (d) anyrestrictiononthetransferoftheshare,debentureordebenturestock

evidencedbythatcertificate.

(3)Acertificate,whetherornotunderthesealofthecompany,shallbesignedbyoneofitsdirectorsandcounter-signedbyanotherdirectororthesecretary,specifyinganysharesorstockheldbyanymemberinthatcompanyshallbeprima facieevidenceofthetitleofthemembertosuchsharesorstock.

(4)Thesignatureofadirectorandsecretaryforthepurposeofsubsection(3)maybeaffixedtothecertificatebyautographic,electronicormanualmeans.

(5)IfacompanyisaregistereduseroftheelectronicRegistry,itmayissueuncertificatedshares,subjecttotheconditionsoftheissuanceofsuchsharesinsection289(“Useofelectronicregistryotherwisethanforbusinessentityregistration”),inwhicheventtheprovisionsofthissectionshallnotapplytosuchcompanywithrespectto the transfer of shares.

(6)Anyholderofanyuncertificatedsharesmaydemandproofoftitletohisorhersharesintheformofamaterialcertificateendorsedinaccordancewithsubsection(5),andthecompanyconcernedshallissuesuchcertificatestotheshareholdernolaterthanfourteendaysaftersuchrequestisreceivedinwriting:


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Providedthatifthereisanyrestrictiononthetransferofsuchsharesbyvirtueofthesharesinquestionbeingwarehousedinpursuanceofanemployeeshareownershiptrustorschemeorforanyotherreason,suchcertificateshallbeclearlyendorsedtothateffect.

(7)Ifdefaultismadeincomplyingwiththerequirementsofsubsection(1),(2),(3)or(6)thecompanyandeveryofficerofthecompanywhoisindefaultshallbeliabletoacategory3civilpenaltyorder.

154 Creationandregistrationofdebentures;contractstosubscribefordebentures

(1)Acompany,ifsoauthorisedbyitsmemorandumorarticles,may,subjecttothissection,createandissuedebentures,andassecurityforthefulfilmentoftheobligation undertaken by the company thereundermay in themanner hereinafterdescribedbindsomuchofthemovableorimmovablepropertyofthecompanyasisdescribed therein.

(2)Ifsuchdebenturespurporttobindonlymovableproperty,orassetsthatmaybedetachedfromimmovableproperty,theymayberegisteredasasecurityinterestintermsoftheMovablePropertySecurityInterestAct[Chapter 14:35].

(3) If suchdebentures purport to bind immovableproperty, registration inrespect thereof may be effected in the Deeds Registry by means of a mortgage bond or bonds executed on behalf of the company.

(4)Acontractwithacompanytotakeupandpayforanydebenturesofthecompanymaybeenforcedbyanorderforspecificperformance.

155 Register of mortgages and debentures and register of debenture holders

(1)Everycompanyshallkeep— (a) aregisterofmortgages,registeredsecurityinterestsreferredtoinsection

154(“Creationandregistrationofdebentures;contractstosubscribefordebentures”)(2)anddebenturesandenterthereinwithinfourteendaysofthedateofanyhypothecationfullparticularsthereof,givingineachcasethedateofthehypothecation,ashortdescriptionofthepropertymortgaged,theamountofthedebtsecured,therateofinterestpayablethereon and the names and addresses of the mortgagees and debenture holders;

(b) aregisterofdebentureholdersshowingthenumberofdebenturesissued,andoutstanding,specifyingwhetherissuedtobearerornot,and,inthecase of those not issued to bearer, specifying further the names andaddresses of the holders thereof.

(2)Theregistersreferredtoinsubsection(1)shallbekeptattheregisteredofficeofthecompany:

Providedthatif— (a) theworkofmakingthemupisdoneatanotherofficeofthecompany,

theymaybekeptatthatotheroffice; (b) thecompanyarrangeswithsomeotherpersonforthemakingupofthe

registerstobeundertakenonbehalfofthecompanybythatotherperson,theymaybekeptattheofficeofthatotherpersonatwhichtheworkisdone;

so,however,thattheyshallnotbekeptataplaceoutsideZimbabwe.


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(3)Ifacompanykeepstheregistersreferredtoinsubsection(1)atanofficeotherthanitsregisteredoffice,thecompanyshallgivenoticeinwritingtotheRegistraroftheofficeatwhichtheregistersarekeptandofanychangeofthatofficeandanysuchnoticeshallbegivenwithinonemonthofthedateonwhichtheregistersarefirstkeptattheofficeorofthechangeofthatoffice,asthecasemaybe.

(4)Ifdefaultismadeincomplyingwithsubsection(1),(2)or(3)thecompanyandeveryofficerofthecompanywhoisindefaultshallliabletoacategory4civilpenalty.

(5)The register ofmortgages, registered security interests and debenturesshall be open at all reasonable times to the inspection of the Registrar or any person authorisedbyhimorheroranycreditorormemberofthecompanywithoutfee,andanyotherpersononpaymentofsuchfee,notexceedingtwentycentsperhourorpartofanhour,forsuchinspectionasthecompanymayfix.

(6)Theregisterofdebentureholdersshall,exceptwhenclosedduringsuchperiodorperiods,notexceedinginthewholesixtydaysinanyyear,asmaybespecifiedinthearticles,beopentotheinspectionofanycreditorormemberofthecompanybut subject to such reasonable restrictions as the company may in a general meeting impose so that at least two hours in each business day are appointed for inspection and thecompanyshallfurnishtoanycreditorormemberathisorherrequestextractsfromtheregisteronpaymentoffifteencentsforeveryonehundredwordsorfractionalpartthereofrequiredtobeextracted.

(7)Acopyof any trustdeed for securingany issueofdebentures shall betransmittedtoanyholderofsuchdebenturesathisorherrequestonpaymentofthesumofseventy-fivecentsorsuchlesssumasmaybefixedbythecompany.

(8)Ifanyinspection,copy,extractorotherfacilityprescribedbysubsection(5),(6)or(7)isrefusedornottransmittedtheRegistrarmayserveuponthecompanyandeveryofficerofthecompanywhoisindefaultacategory4civilpenaltyorderinwhichtheremediationclausemay,inadditiontoforbiddingfuturedefaults, direct that animmediateinspectionbegrantedoftheregisterconcernedorthatcopiesrequiredshall,subjecttopaymentoftheprescribedsum,bedeliveredtothepersonrequiringthem.

(9)Ifacompanyisaregistereduseroftheelectronicregistry,itmaycreateandissueanydebentureindematerialisedform,subjecttotheconditionsoftheissuanceandcreationofsuchdebenturesinsection289(“Useofelectronicregistryotherwisethanforbusinessentityregistration”),inwhicheventtheprovisionsofthissectionshallnot apply to such company with respect to the creation and issuance of debentures.

(10)Anyholderofadematerialiseddebenturemaydemandproofthatheorsheistheholderthereofintheformofamaterialdebenturecertificateandthecompanyconcernedshallissuesuchcertificatetothedebentureholdernolaterthanfourteendaysaftersuchrequestisreceivedinwriting.

(11)Ifdefaultismadeincomplyingwiththerequirementsofsubsection(10)thecompanyandeveryofficerofthecompanywhoisindefaultshallbeliabletoacategory3civilpenaltyorder.

156 Branchregistersofdebentureholders (1)Acompanyissuingdebenturesmay,ifsoauthorisedbyitsarticles,causetobekeptinanyforeigncountryabranchregisterofdebentureholders(inthisActcalled“abranchregisterofdebentureholders”).


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(2)ThecompanyshallgivetotheRegistrarnoticeofthesituationoftheofficewhereanybranchregisterofdebentureholdersiskeptandofanychangeinitssituation,andifitisdiscontinuedofitsdiscontinuance,andanysuchnoticeshallbegivenwithinonemonthoftheopeningoftheofficeorofthechangeordiscontinuance,asthecasemay be.

(3)Ifdefaultismadeincomplyingwiththerequirementsofsubsection(2)thecompanyandeveryofficerofthecompanywhoisindefaultshallbeliabletoacategory4civilpenalty.

(4)Abranchregisterofdebentureholdersshallbedeemedtobepartofthecompany’sregisterofdebentureholders(inthissectioncalled“theprincipalregister”).

(5)ItshallbekeptinthesamemannerinwhichtheprincipalregisterisbythisActrequiredtobekept.

(6)Thecompanyshall— (a) transmittotheofficeatwhichtheprincipalregisteriskeptacopyofevery

entry in its branch register of debenture holders as soon as may be after theentryismade;and

(b) causetobekeptattheplacewherethecompany’sprincipalregisteriskeptaduplicateofitsbranchregisterofdebentureholdersdulyenteredup from time to time.

(EverysuchduplicateshallforallthepurposesofthisActbedeemedtobepartoftheprincipalregister).

(7)Subjecttotheprovisionsofthissectionwithrespecttotheduplicateregister,the debentures registered in a branch register of debenture holders shall be distinguished fromthedebenturesregisteredintheprincipalregister,andnotransactionwithrespecttoanydebenturesregisteredinabranchregisterofdebentureholdersshall,duringthecontinuanceofthatregistration,beregisteredinanyotherregister.

(8)Acompanymaydiscontinuetokeepabranchregisterofdebentureholders,and thereupon all entries in that register shall be transferred to some other branch register of debenture holders or to the principal register.

(9)SubjecttothisActandanylawrelatingtostampduty,anycompanymay,byitsarticles,makesuchprovisionsasitmaythinkfitrespectingthekeepingofbranchregisters of debenture holders.

(10)Ifdefaultismadeincomplyingwithsubsection(6)thecompanyandeveryofficerofthecompanywhoisindefaultshallbeliabletoacategory4civilpenalty.

157 Power to re-issue redeemed debentures in certain cases (1)Whereacompanyhasredeemedanydebenturespreviouslyissued,then— (a) unlessanyprovisiontothecontrary,whetherexpressedor implied, is

containedinthearticlesorinanycontractenteredintobythecompany;or

(b) unlessthecompanyhas,bypassingaresolutiontothateffectorbysomeotheract,manifesteditsintentionthatthedebenturesshallbecancelledandnotre-issued;

thecompanyshallhave,andshallbedeemedalwaystohavehad,powertore-issuethedebentures,eitherbyre-issuingthesamedebenturesorbyissuingotherdebenturesin their place.


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(2)Onare-issueofredeemeddebenturesthepersonentitledtothedebenturesshall have, and shall be deemed always to have had, the samepriorities as if thedebentureshadneverbeenredeemed.

(3)Whereacompanyhasdepositedanyofitsdebenturestosecureadvancesfromtimetotimeoncurrentaccountorotherwise,thedebenturesshallnotbedeemedtohavebeenredeemedbyreasononlyoftheaccountofthecompanyhavingceasedto be in debit whilst the debentures remained so deposited.

(4)There-issueofadebentureortheissueofanotherdebentureinitsplaceunder thepowerby this sectiongiven to,ordeemed tohavebeenpossessedby,acompany,shallbetreatedastheissueofanewdebentureforthepurposesofstampduty,butitshallnotbesotreatedforthepurposesofanyprovisionlimitingtheamountor numbers of debentures to be issued:

Provided that any person lendingmoney on the security of a debenture re-issuedunderthissection,whichappearstobedulystamped,maygivethedebentureinevidenceinanyproceedingsforenforcinghisorhersecuritywithoutpaymentofthestampdutyoranypenaltyinrespectthereof,unlessheorshehadnoticeor,butforhisorhernegligence,mighthavediscovered,thatthedebenturewasnotdulystamped,butin any such case the company shall be liable to pay the proper stamp duty and penalty.

PART III

manaGement and administration of comPanies

Sub-Part A: Restrictions on commencement of business and register and index of members

158 Restrictions on commencement of business (1)Nothinginthissectionshallapplytoaprivatecompanyortoanexistingcompanyor to an association licensedunder section82 (“Power to dispensewith“Limited”incertaincases”).

(2)Ifacompanyhasissuedaprospectusinvitingthepublictosubscribeforitsshares,thecompanyshallnotcommenceanybusinessorexerciseanyborrowingpowersunless— (a) shares held subject to the payment of thewhole amount thereof in

cashhavebeenallottedtoatotalamountofnotlessthantheminimum subscription;and

(b) everydirectorofthecompanyhaspaidtothecompanyoneachofthesharestakenorcontractedtobetakenbyhimofherandforwhichheorsheisliabletopayincash,aproportionequaltotheproportionpayableonapplicationandallotmentonthesharesofferedforpublicsubscription;and

(c) therehasbeendeliveredtotheRegistrarforregistrationanaffidavitbythesecretary or one of the directors in the prescribed form that the aforesaid conditionshavebeencompliedwith;and

(d) theRegistrar has certified that the company is entitled to commencebusiness.

(3)Ifacompanyhasnotissuedaprospectusinvitingthepublictosubscribeforitsshares,thecompanyshallnotcommenceanybusinessorexerciseanyborrowingpowers,unless— (a) therehasbeendeliveredtotheRegistrarforregistrationastatementin

lieuofprospectus;and


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(b) everydirectorofthecompanyhaspaidtothecompanyoneachofthesharestakenorcontractedtobetakenbyhimorherandforwhichheorsheisliabletopayincash,aproportionequaltotheproportionpayableonapplicationandallotmentonthesharespayableincash;and

(c) therehasbeendeliveredtotheRegistrarforregistrationanaffidavitbythe secretary or one of the directors in the prescribed form that paragraph (b)hasbeencompliedwith;and

(d) theRegistrar has certified that the company is entitled to commencebusiness.

(4)TheRegistrarshall,onthedeliverytohimorheroftheaffidavitand,inthecaseofacompanywhichisrequiredbythissectiontodeliverastatementinlieuofprospectus,ofsuchstatement,certifythatthecompanyisentitledtocommencebusinessandthatcertificateshallbeconclusiveevidencethatthecompanyissoentitled.

(5)Anycontractmadebyacompanybeforethedateatwhichitisentitledtocommencebusinessshallbeprovisionalonlyandshallnotbebindingonthecompanyuntilthatdate,andonthatdateitshallbecomebinding.

(6)Nothinginthissectionshallpreventthesimultaneousofferforsubscriptionor allotment of any shares and debentures or the receipt of any money payable on application for debentures.

(7)Ifanycompanycommencesbusinessorexercisesborrowingpowersincontraventionofthissectioneverypersonwhoisresponsibleforthecontraventionshall,withoutprejudicetoanyotherliability,beliabletoacategory4civilpenalty.

159 Registerandindexofmembersanduseofregisteraspresumptiveproof of membership

(1)Everycompanyshallkeeparegisterofitsmembersandpunctuallyenterthereinthefollowingparticulars— (a) thenamesandaddressesofthemembers,astatementofthesharesheld

byeachmember,distinguishingeachsharebyitsnumbersolongasthesharehasanumber,andoftheamountpaidoragreedtobeconsideredaspaidonthesharesofeachmember;

(b) thedateatwhicheachpersonwasenteredintheregisterasamember; (c) thedateatwhichanypersonceasedtobeamember:

Providedthat,wherethecompanyhasconvertedanyofitssharesintostockandgivennoticeoftheconversiontotheRegistrar,theregistershallshowtheamountofstockheldbyeachmemberinsteadoftheamountofsharesandtheparticularsrelatingtosharesspecifiedinparagraph(a).

(2)Theregisterofmembersshallbekeptattheregisteredofficeofthecompany:

Providedthatif— (a) theworkofmakingitupisdoneatanotherofficeofthecompany,itmay

bekeptatthatotheroffice;or (b) thecompanyarrangeswithsomeotherpersonforthemakingupofthe

registertobeundertakenonbehalfofthecompanybythatotherperson,itmaybekeptattheofficeofthatotherperson;

so,however,thatitshallnotbekeptataplaceoutsideZimbabwe. (3)EverycompanyshallsendnoticeinwritingtotheRegistraroftheplacewhereitsregisterofmembersiskeptandofanychangeinthatplacewithinonemonthof the date of its incorporation or change of place:


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Providedthatacompanyshallnotberequiredtosendanynoticeintermsofthissubsectionwheretheregisteriskeptattheregisteredofficeofthecompany. (4)Everycompanyhavingmorethanfiftymembersshall,unlesstheregisterofmembersisinsuchaformastoconstituteinitselfanindex,keepanindexofthenamesofthemembersofthecompanyandshall,withinfourteendaysafterthedateonwhichanyalterationismadeintheregisterofmembers,makeanynecessaryalterationin the index.

(5)Theindexshallinrespectofeachmembercontainasufficientindicationto enable the account of that member in the register to be readily found.

(6)Theindexshallbeatall timeskeptat thesameplaceastheregisterofmembers. (7)Ifdefaultismadeincomplyingwiththissectionthecompanyandeveryofficerofthecompanywhoisindefaultshallbeliabletoacategory4penalty,andforthepurposesofthissectionanypersonwithwhomthecompanymakesanarrangementintermsofproviso(b)tosubsection(2)shallbedeemedtobeanofficerofthecompanyand liable accordingly. (8)IfacompanyisaregistereduseroftheelectronicRegistry,itmaykeepanelectronicregisterofitsmembers,subjecttotheconditionsofthekeepingofsucha register in section 289 (“Use of electronic registry otherwise than for businessentityregistration”),inwhicheventtheprovisionsofthissectionandofsections160(“Inspectionofregisterandindex”)and164(“Powertokeepbranchregisterinforeigncountries”),shallnotapplytosuchcompany.

(9)Theregisterofmembersshallbeprima facieevidenceofanymattersbythis Act directed or authorised to be inserted therein.

160 Inspectionofregisterandindex (1)ExceptwheretheregisterofmembersisclosedunderthisAct,theregisterandindexofthenamesofthemembersofacompanyshallduringbusinesshours(subjecttosuchreasonablerestrictionsasthecompanyingeneralmeetingmayimpose,sothatnotlessthantwohoursineachdaybeallowedforinspection),beopentotheinspectionofanymemberwithoutchargeandofanyotherpersononpaymentoftwenty-fivecentsperhourorpartofanhour,orsuchlesssumasthecompanymayfix,foreachinspection.

(2)Anymembermayrequireacopyoftheregister,orofanypartthereof,onpaymentoftwentycentsorsuchlesssumasthecompanymayfix,foreveryhundredwordsorfractionalpartthereofrequiredtobecopied.

Thecompanyshallcauseanycopysorequiredbyanymembertobesenttosuch member within a period of twenty-one days commencing on the day next after thedayonwhichtherequirementisreceivedbythecompany.

(3)Ifanyinspectionrequiredunderthissectionisrefusedorifanycopyrequiredunderthissectionisnotsentwithintheproperperiod,thecompanyandeveryofficerofthecompanywhoisindefaultshall,inthecaseofacontraventionofsubsection(1),beliabletoacategory4penalty,andinthecaseofacontraventionofsubsection(2)beliabletoacategory3penalty,andtheremediationclauseoftherelevantcivilpenaltyordermay,inadditiontoanyotherappropriateremedialaction, compel an immediate inspectionoftheregisterandindexordirectthatthecopiesrequiredshall,subjecttopaymentoftheappropriatesum,besenttopersonsrequiringthem.


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161 Power to close register (1)Acompanymaybyresolutionofitsdirectorsclosetheregisterofmembersatanytimeforaperiodnotexceedingthirtydays,so,however,thatthenumberofdayson which the register is closed shall not exceed sixty in any year.

(2)Everypersontowhominspectionoftheregisterofmembersisrefusedonthegroundthattheregisterisclosedundersubsection(1)shallbeentitledtorequireawrittencertificatefromthecompanystatingtheperiodduringwhichtheregisterissoclosed.

(3)Ifdefaultismadeincomplyingwiththerequestforacertificatereferredtoinsubsection(2)thecompanyandeveryofficerofthecompanywhoisindefaultshallbeliabletoacategory4civilpenalty.

162 Power of court to rectify register (1)If— (a) thenameofanypersonis,withoutsufficientcause,enteredinoromitted

fromtheregisterofmembersofacompany;or (b) defaultismadeorunnecessarydelaytakesplaceinenteringontheregister

thefactofanypersonhavingceasedtobeamember;thepersonaggrievedoranymemberofthecompanyorthecompanymayapplytothecourtforrectificationoftheregister.

(2)Whereanapplicationismadeunderthissection,thecourtmayeitherrefusetheapplicationormayorderrectificationoftheregisterandpaymentbythecompanyofanydamagessustainedbyanypartyaggrieved.

(3)Onanapplicationunderthissectionthecourtmaydecideanyquestionrelatingtothetitleofanypersonwhoisapartytotheapplicationtohavehisorhernameentered inoromitted from the register,whether thequestionarisesbetweenmembers or alleged members or between members or alleged members on the one hand andthecompanyontheotherhand,andgenerallymaydecideanyquestionnecessaryorexpedienttobedecidedforrectification of the register.

(4)Thecourt,whenmakinganorderforrectificationoftheregister,shallbyitsorderdirectnoticeoftherectificationtobegiventotheRegistrar.

163 Trusts in respect of shares (1)Acompany may in its discretion enter in its register the fact that any share isheldintrustbutwhereitexercisesitsdiscretiontoregisterthatfact,itmustverifythe legal status of any trust or of any trustee who is registered as a member.

(2)Thereshallbenoobligationonanycompanythatexercisesitsdiscretiontoregisterthefactthatanyshareisheldintrust,toseetothedueandpropercarryingoutofanytrust,whetherexpress,impliedorconstructive,inrespectofanyshare.

164 Powertokeepbranchregisterinforeigncountries (1)Acompanymay,ifsoauthorisedbyitsarticles,causetobekeptinanyforeigncountryaregister(inthisActcalleda“branchregister”)ofmembersresidentin that foreign country.

(2)ThecompanyshallgivetotheRegistrarnoticeofthesituationoftheofficewhereanybranchregisteriskeptandofanychangeinitssituation,andifitisdiscontinuedofthediscontinuance,andanysuchnoticeshallbegivenwithinonemonthoftheopening oftheofficeorofthechangeordiscontinuance,asthecasemaybe.


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(3)Ifdefaultismadeincomplyingwithsubsection(2)thecompanyandeveryofficerofthecompanywhoisindefaultshallbeliabletoacategory4penalty.

(4)Abranchregister,shallbedeemedtobeapartofthecompany’sregisterof members in this section called the principal register.

(5)AbranchregistershallbekeptinthesamemannerinwhichtheprincipalregisterisrequiredbythisActtobekept.

(6)Thecompanyshalltransmittoitsregisteredofficeacopyofeveryentryinitsbranchregisterassoonasmaybeaftertheentryismade;andshallcausetobekeptatitsregisteredoffice,dulyenteredupfromtimetotime,aduplicateofitsbranchregister,andtheduplicateshall,forallpurposesofthisAct,bedeemedtobepartofthe principal register.

(7)Thecompanymaydiscontinueanybranchregister,andthereuponallentriesinthatregistershallbetransferredtosomeotherbranchregisterkeptbythecompany,or to the principal register.

(8)SubjecttothisActandofanylawrelatingtostampduty,anycompanymay,byitsarticles,makesuchprovisionsasitmaythinkfitrespectingthekeepingofbranch registers.

(9)Ifdefaultismadeincomplyingwithsubsection(6)thecompanyandeveryofficerofthecompanywhoisindefaultshallbeliabletoacategory4civilpenalty.

Sub-Part B: Annual return and meetings and proceedings

165 Annual return to be made by company (1)Subject to subsection (2), every company shallmake andfilewith theRegistraranannualreturnconsistingofasummary,intheformcontainedintheFourthSchedule(“Formofannualreturnofcompany”)orasneartheretoascircumstancesadmit,specifyingthefollowingparticulars— (a) allsuchparticularswithrespect to thepersonswhoat thedateof the

return are the directors of the company and any person who at that date issecretaryofthecompanyasarebythisActrequiredtobecontainedwithrespecttodirectorsandthesecretary,respectively,intheregisterof directors and secretaries of a company and the name and address of everypersonappointedasanauditorofthecompany;

(b) thesituationoftheregisteredofficeofthecompany; (c) theplacewheretheregisterofmembersiskeptif,undertheprovisions

of thisAct, it isnotkeptat theregisteredofficeof thecompany(thisprovisiondoesnotapplyifthecompanyispermittedintermsofsection153(5)toissueuncertificatedshares);

(d) thenumberofthesharesofthecompanyanalysedbyclassofshareasatthedateofthereturn,andthenumberofsharesissuedandfullypaid-upasatthedateofreturn;

(2)Theannualreturnofacompanymustbesubmittedwithintwenty-one(21)daysoftheanniversarydateofitsincorporation,registrationorre-registration(intermsofsection303).

(3)Everyprivatecompanyshallsendwiththeannualreturnacertificatesignedbyadirectorandthesecretarystating— (a) thatthecompanyhasnotsincethedateofthelastreturnor,inthecaseof

afirstreturn,sincethedateoftheincorporationofthecompany,issued


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anyinvitationtothepublictosubscribeforanyshares,stockordebenturesofthecompany;and

(b) thenumberofmembersofthecompanyatthedateofthecertificate;and (c) ifthenumberexceedsfifty,thatsuchexcessconsistsonlyofpersonswho,

undersection85(“Definitionofprivatecompanyandconsequencesofdefaultincomplyingwithconditionsforprivatecompany”),aretobeexcludedinreckoningthenumberoffifty.

(4)EveryannualreturnfiledbyacompanywiththeRegistrarshallbecertifiedunder the hands of a director and the secretary of the company in the manner prescribed intheFourthScheduleandaduplicatecopysosignedshallbekeptattheregisteredofficeofthecompanyandshallbeopenforinspectionbyanypersonwhenevertheregister of members is open for inspection by such person.

(5)Inthecaseofacompanykeepingabranchregister,whereanannualreturnis made between the date when any entries are made in the branch register and the datewhencopiesofthoseentriesarereceivedattheregisteredofficeofthecompany,theparticularscontainedinthoseentriessofarasrelevanttoanannualreturnshallbeincludedinthenextorasubsequentannualreturnasmaybeappropriate,havingregard to the particulars included in that return with respect to the company’s register of members.

(6)TheRegistrarmay from time to time requireacompany to transmit tohim or her particulars of the transfer of any fully paid up share or shares and a list of thepersonsforthetimebeingmembersofthecompanyandofallpersonswhohaveceasedtobememberssincethedateofthelastreturnor,ifnoreturnhasbeenmade,since the date of the incorporation of the company.

(7)Ifthecompanymakesdefaultincomplyingwithanyoftherequirementsofthissectionthecompanyandeveryofficerofthecompanywhoisindefaultshallbeliabletoacategory3civilpenalty.

166 Statutory meeting and statutory report (1)Saveinthecaseofaprivatecompany,everycompanyshall,withinaperiodof not less than one month nor more than three months from the date at which it is entitledtocommencebusiness,holdageneralmeetingofitsmemberswhichshallbecalled “the statutory meeting”.

(2)Thedirectorsshall,atleastfourteendaysbeforethedayonwhichthemeetingisheld,forwardacertifiedreport,inthisActreferredtoas“thestatutoryreport”,toeverymemberofthecompany:

Providedthatifthestatutoryreportisforwardedlaterthanisrequiredbythissubsectionitshall,notwithstandingthatfact,bedeemedtohavebeendulyforwardedifitissoagreedbyallthemembersentitledtoattendandvoteatthemeeting.

(3)Thestatutoryreportshallbecertifiedbynotlessthantwodirectorsofthecompanyandshallstate— (a) thetotalnumberofsharesallotted,distinguishingsharesallottedasfully

orpartlypaiduporpaidupotherwisethanincash,andstatinginthecaseofsharespartlypaiduptheextenttowhichtheyaresopaidup,andineithercasetheconsiderationforwhichtheyhavebeenallotted;and

(b) thetotalamountofcashreceivedbythecompanyinrespectofallthesharesallotted,distinguishedasaforesaid;and

(c) anabstractof thereceiptsof thecompanyandof thepaymentsmadethereout,uptoadatewithinsevendaysofthedateofthereport,exhibiting


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underdistinctiveheadingsthereceiptsofthecompanyfromsharesanddebenturesandothersources,thepaymentsmadethereout,andparticularsconcerningthebalanceremaininginhand,andanaccountorestimateofthepreliminaryexpensesofthecompany;and

(d) thenames,addressesanddescriptionsofthedirectors,auditors,ifany,managers,ifany,andsecretaryofthecompany;and

(e) if themodification or proposedmodification of any contract is to besubmittedtothemeetingforitsinformationorapproval,fullparticularsthereof.

(4)Thestatutoryreportshall,sofarasitrelatestothesharesallottedbythecompanyandtothecashreceivedinrespectofsuchsharesandtothereceiptsandpaymentsofthecompany,becertifiedascorrectbytheauditors,ifany,ofthecompany.

(5)Thedirectorsshallcauseacopyofthestatutoryreport,certifiedasrequiredbythissection,tobefiledwiththeRegistrarwithinonemonthofthedateonwhichitissocertified.

(6)Thedirectorsshallcausealistshowingthenames,descriptionsandaddressesofthemembersofthecompanyandthenumberofsharesheldbythem,respectively,to be produced at the commencement of the meeting and to remain open and accessible to any member of the company during the continuance of the meeting.

(7)Themembersof thecompanypresentat themeetingshallbeat libertyto discuss any matter relating to the formation of the company or arising out of the statutoryreport,whetherpreviousnoticehasbeengivenornot,butnoresolutionofwhichnoticehasnotbeengiveninaccordancewiththearticlesmaybepassed.

(8)Themeetingmayadjournfromtimetotime,andatanyadjournedmeetinganyresolutionofwhichnoticehasbeengiveninaccordancewiththearticles,whetherbefore,atorsubsequentlytotheformermeeting,maybepassedandtheadjournedmeetingshallhavethesamepowerasanoriginalmeeting.

(9)Ifdefaultbyanydirectorismadeincomplyingwith— (a) subsection(1),(2)(unlessthisdefaultiscondonedintermsoftheproviso

thereto)or(5),heorsheshallbeliabletoacategory3civilpenalty; (b) subsection(6),heorsheshallbeliabletoacategory4civilpenalty; (c) subsection(7),heorsheshallbeliabletoacategory1civilpenalty.

167 Annual general meeting (1)Subjecttothissection,everycompanyshall,withintheperiodsspecifiedinsubsection(2),holdgeneralmeetingstobeknownanddescribedinthenoticescallingsuch meetings as annual general meetings of that company.

(2)Annualgeneralmeetingofacompanymustbeheldonceineveryperiodoftwelvemonths.

(3)TheannualgeneralmeetingofacompanyshalldealwithanddisposeofallmattersrequiredintermsofthisActtobedealtwithanddisposedofatanannualgeneralmeetingandmaydealwithanddisposeofsuchfurthermattersasareprovidedforinthearticlesofthecompanyand,subjecttothisAct,anymatterscapableofbeingdealt with by any general meeting of the company.

(4)Atanannualgeneralmeeting,onlymatterswithinthescopeofthenoticeandagendapreviouslysentmaybevotedonexceptinthecaseofessentialandurgentmatterswhicharoseafterthenoticewasgivenandcouldnothavebeenincludedinthe


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notice,butthisrestrictionshallnotpreventdiscussionofothermattersandshareholdersshall be free to raise any other matters.

(5)Theagendaforanannualgeneralmeetingshallinanyeventincludethefollowingitems— (a) electingthemembersoftheboardofdirectorswhoaretobeelectedat

thattime; (b) settingorapprovingthecompensationofdirectorsincludingemoluments,

salariesandpensionsreferredtoinsections207(“Shareholderapprovalofdirectors’emoluments”)and215(“Particularsinaccountsofdirectors’salariesandpensions”);

(c) reviewingthereportoftheboardwithrespecttoitsresponsibilitiesandactivitiesreferredtoinsections183(“Statementoffinancialpositionandstatementofcomprehensiveincomeandfinancialyearofholdingcompanyandsubsidiary”)and218(“Board’sroleandresponsibilities”)(5);

(d) inapubliccompany,thereportoftheauditcommitteepursuanttosection219(“Auditcommitteeofpubliccompany”);

(e) inapubliccompany,reviewingtheboard’s“complyorexplain”reportonthecompany’scorporategovernanceguidelinesandthecurrentNationalCodeonCorporateGovernancereferredtoinsection220(“Corporategovernanceguidelinesforpubliccompanies”);

(f) reviewingtheexternalauditor’sreport(ifanauditreportisrequiredunderthisActorisotherwiseprovided)andthisreportshallincludebutnotbelimitedto—

(i) astatementofwhethertheauditorhasobtainedtheinformationitdeemsnecessaryforperformingitsdutiessatisfactorily;and

(ii) whether the financial statements are in accordancewith thefinancialreportingstandardsprescribedbythePublicAuditorsandAccountingBoardunderthePublicAccountantsandAuditorsAct[Chapter 27:12],andanyotherappropriateaccountingrulesandstandards;and

(iii) whethertheboard’sreportisconsistentwiththosestandards;and (iv) whethertherehavebeenviolationsofthecompany’smemorandum

ofassociationorofthisActduringthefinancialyearwhichaffectthecompany’sactivitiesorfinancialposition;

(g) appointingthecompany’sexternalauditorandsettingitscompensationforthefollowingfinancialyearafterreviewofthereportandrecommendationoftheboard’sauditcommitteewithrespectthereto(exceptincaseswhereanexternalauditisnotrequired);and

(h) reviewing the board’s recommendations and actions authorising anydistributions or relating to issuance of bonds or other borrowing by the company.

(6)Amemberormembersofacompanyshallhavetherighttoplaceissuesonthe agenda of that meeting including the right to propose candidates for election at that meetingtothecompany’sboardofdirectors,asprovidedinsection174(“Circulationofmembersresolutions”).

(7)Acompanywhichhasfailedtoholdanannualgeneralmeetingwithintheperiodspecifiedintermsofsubsection(2)shallbeliabletoacategory4civilpenalty.


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168 Conveningofextraordinarygeneralmeetingonrequisition (1)Ontherequisitionofmembersofacompanyholdingat thedateof thedepositoftherequisitionnotlessthanfiveper centum of such of the paid-up capital of thecompanyasatthedateofthedepositcarriestherightofvotingatgeneralmeetingsofthecompanythedirectorsofthecompany,notwithstandinganythinginitsarticles,shall,withintwenty-onedaysofthedepositoftherequisition,issueanoticetomembersconveninganextraordinarygeneralmeetingofthecompanyforadatenotlessthanfourteen nor more than twenty-eight days from the date of the notice:

Providedthatifaspecialresolutionistobesubmittedtheperiodofthenoticeshall not be less than twenty-one days.

(2)Therequisitionshallstatetheobjectsofthemeetingandshallbesignedbytherequisitionistsanddepositedattheregisteredofficeofthecompany,andmayconsistofseveraldocumentsinlikeform,eachsignedbyoneormorerequisitionists.

(3)Ifthedirectorsdonotwithintwenty-onedaysfromthedateofthedepositoftherequisitionissueanoticeasrequiredbysubsection(1)therequisitionists,oranyofthemnumberingmorethanfiftyorrepresentingmorethanfiftyper centum of thetotalvotingrightsofallofthem,maythemselvesconveneameeting,statingtheobjectsthereof,ontwenty-onedays’notice,butnomeetingsoconvenedshallbeheldafter the expiration of three months from the said date.

(4)Anymeetingconvenedunderthissectionbytherequisitionists— (a) shallbeconvenedinthesamemanner,asnearlyaspossible,asthatin

whichmeetingsaretobeconvenedbydirectors; (b) atanextraordinarymeeting,onlybusinesswithinthescopeofthenotice

andagendapreviouslysentmaybevotedon.

(5)Anyreasonableexpenseincurredbytherequisitionistsbyreasonofthefailureofthedirectorsdulytoconveneameetingshallberepaidtotherequisitionistsbythecompany,andanysumsorepaidshallberetainedbythecompanyoutofanysums due or to become due from the company by way of fees or other remuneration in respectoftheirservicestosuchofthedirectorsaswereknowinglypartytothedefault.

(6)Any officer of the companywho is knowingly a party to a default inconveningameetingasrequiredbysubsection(1)shallbeliabletoacategory3civilpenalty.

169 Length of notice for calling meetings (1)Acompany’sannualgeneralmeetingmaybecalledbytwenty-onedays’noticeinwriting,andameetingofacompany,otherthananannualgeneralmeetingorameetingforthepassingofaspecialresolution,maybecalledbyfourteendays’noticeinwritingor,inthecaseofaprivatecompany,bysevendays’noticeinwriting;andanyprovisionofacompany’sarticlesshallbevoidsofarasitprovidesforthecallingofameetingofthecompany,otherthananadjournedmeeting,byshorternoticethanthatspecifiedinthissubsection.

(2)Ameetingofacompanyshall,notwithstandingthatitiscalledbyshorternoticethanthatspecifiedinsubsection(1)orinthecompany’sarticles,asthecasemaybe,bedeemedtohavebeendulycalledifitissoagreed— (a) inthecaseofameetingcalledastheannualgeneralmeeting,byallthe

membersentitledtoattendandvotethereat; (b) inthecaseofanyothermeeting,byamajorityinnumberofthemembers

havingarighttoattendandvoteatthemeeting,beingamajorityholding


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notlessthanninety-fiveper centuminnominalvalueofthesharesgivingarighttoattendandvoteatthemeeting.

(3) If it ismutually agreed inwritingbetween the officer of the companyresponsible for calling meetings of the membership of the company and any of the membersconcernedtoservenoticesofanysuchmeetingbyelectronicmail,then,ifsuchmeeting is called by such means and in accordance with the conditions agreed between theofficerandthemembers,suchnoticeshallbevalidforthepurposeofthissection.

170 Generalprovisionsastomeetingsandvotesandpowerofcourttoorder meeting

(1)Amajorityofthetotalnumberofvotesentitledtovoteonamattershallconstituteaquorumfordecisionofthemeetingonthatmatterunlessthecompany’smemorandumofassociationprovidesforagreaterorlesserquorumbutnotlessthanone-thirdofthevotesofthesharesentitledtosovote.

(2)Ameetingmaynotactormakedecisionsforthecompanyunlessaquorumis present.

(3)Ifaquorumspecifiedinsubsection(2)isnotpresentthemeetingshallbeadjourned.

(4)Ifameetingisadjournedbecauseofalackofquorumitmaybereconvenedwith the same proposed agenda for a date not later than twenty days from the date of adjournment:

Providedthatthequorumatsuchareconvenedmeetingshallbetwenty-fiveper centumofthevotesofsharesentitledtovoteonamatterwhichshallbedecided,unlessthememorandumrequiresagreaterquorum.

(5) If aquorum ispresent, theaffirmativevoteofamajorityof the sharespresentandentitledtovoteonthemattershallbethedecisionofthemeeting,unlessagreaternumberofvotesarerequiredbythisActorthecompany’smemorandum.

(6)ThevoteofaspecialresolutionisrequiredunderthisAct— (a) wheneversostatedinamemorandum;or (b) foradoptionofanamendmenttothememorandum;or (c) foradoptionofaplanandcontractformerger;or (d) forapprovalofamajortransaction;or (e) foradecisiontodissolve the company.

(7)The followingprovisionsshallhaveeffect inso faras thearticlesofacompanydonotmakeotherprovisioninthatbehalf— (a) noticeofthemeetingofacompanyshallbeservedoneverymemberof

thecompanyinthemannerinwhichnoticesarerequiredtobeservedbyTableAoftheSixthSchedule(“Model,articlesandby-laws”);

(b) twoormoremembersholdingnotlessthanone-tenthoftheissuedsharecapitalmaycallameeting,subjecttosection175(“Specialresolutions”);

(c) anymember elected by themembers present at ameetingmay bechairpersonthereof;

(d) everymembershallhaveonevoteinrespectofeachshareoreachtwentydollarsofstockheldbyhimorher.

(8)Ifforanyreasonitisimpracticabletocallameetingofacompanyinanymannerinwhichmeetingsofthatcompanymaybecalled,ortoconductthemeetingofthecompanyinmannerprescribedbythearticlesorthisAct,orifforanyotherreason


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thecourtseesfit,thecourtmay,eitherofitsownmotionorontheapplicationofanydirector of the company or of any member of the company who would be entitled to voteatthemeeting,orderameetingofthecompanytobecalled,heldandconductedinsuchmannerasthecourtthinksfit,andwhereanysuchorderismademaygivesuchancillaryorconsequentialdirectionsasitthinksexpedient,includingadirectionthat one member of the company present in person or by proxy shall be deemed to constitute a meeting.

(9)Anymeetingcalled,heldandconductedinaccordancewithanorderundersubsection(8)shallforallpurposesbedeemedtobeameetingofthecompanydulycalled,heldandconducted.

(10)Ifsoprovidedinthearticlesofacompanyorbyaresolutionthereof— (a) aprivatecompanymayholdavirtualasopposedtoaphysicalmeeting,

that is to say a meeting at which the members can hear and see each other by electronic means although they are not physically present at the meeting;

(b) apubliccompanymaypermittheparticipationofmemberswhoarenotphysicallypresentatthemeeting,butcanbeheardandseenbytheothermembers by electronic means.

171 Proxiesandvotingonpoll (1)Anymemberofacompanyentitledtoattendandvoteatameetingofthecompanyshallbeentitledtoappointoneormorepersons,whethermembersornot,toactinthealternativeashisorherproxytoattendandvoteinsteadofhimorher,andaproxyappointedtoattendandvoteinsteadofamembershallalsohavethesamerightasthemembertospeakatthemeeting.

(2)Theinstrumentappointingaproxytovoteatameetingofacompanyshallbe deemed also to confer authority to demand or join in demanding a poll.

(3)Ineverynoticecallingameetingofacompanyandonthefaceofeveryproxyformissuedatthecompany’sexpenseshallappear,withreasonableprominence,astatementthatamemberentitledtoattendandvoteisentitledtoappointoneormoreproxiestoactinthealternative,toattendandvoteandspeakinsteadofhimorher,andthataproxyneednotalsobeamember;andifdefaultismadeincomplyingwiththissubsectionasrespectsanymeetingeveryofficerofthecompanywhoauthorizes,knowinglypermitsorispartytothedefaultshallbeliabletoacategory1civilpenalty.

(4)Anyprovisioncontainedinacompany’sarticlesshallbevoidinsofarasitwouldhavetheeffectofrequiringtheinstrumentappointingaproxy,oranyotherdocumentnecessarytoshowthevalidityoforotherwiserelatingtotheappointmentofaproxy,tobereceivedbythecompanyoranyotherpersonmorethanforty-eighthoursbeforeameetinginorderthattheappointmentmaybeeffectivethereat.

(5)If,forthepurposeofanymeetingofacompany,invitationstoappointasproxyapersonoroneofanumberofpersonsspecifiedintheinvitationsareissuedatthe company’s expense to some only of the members entitled to be sent a notice of the meetingandtovotethereatbyproxy,everyofficerofthecompanywhoauthorizesorknowinglypermitsorisapartytotheissueasaforesaidshallbeliabletoacategory1civilpenalty:

Providedthatanofficershallnotbeliableunderthissubsectionbyreasononlyoftheissuetoamemberathisorherwrittenrequestofaformofappointmentnamingtheproxyorofalistofpersonswillingtoactasproxyiftheformorlistisavailableonrequestinwritingtoeverymemberentitledtovoteatthemeetingbyproxy.

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(6)Onapolltakenatameetingofacompany,amemberentitledtomorethanonevoteneednot,ifheorshevotes,useallhisorhervotesorcastallthevotesheorshe uses in the same way.

(7)Thissectionshallapplytomeetingsofanyclassofmembersofacompanyas it applies to general meetings of the company.

(8)Adirectororofficerofacompanymaynotactasaproxyforashareholder,andshallbeliabletoacategory1civilpenalty if he she purports to do so.

(9)Noproxyappointmentshallbevalidfor longer thansixmonthsunlessotherwiseprovidedintheproxyappointmentortheArticlesofAssociation.

(10)Anyvotecastbyapersonpurportingtovoteasaproxyinviolationofsubsection(8)or(9)shallbeinvalid.

172 Procedure for compulsory adjournment (1)If,atanymeetingofacompany,anymemberofthecompanywhoispresentand entitled tovoteatthatmeetingdemandsanadjournmentofthemeetinguponanygroundsstatedbyhimorher,thechairpersonshallputthedemandtothevoteofthemeeting,andifamajorityofthememberspresentpersonallyorbyproxyandentitledtovoteatthemeetingorifsuchmembersrepresentingeitherpersonallyorbyproxymorethanhalfofthesharecapitalofthecompanyrepresentedatthemeetingvoteinfavourofanadjournment,thechairpersonshalladjournthemeetingtoadaysevendaysafterthedateofthemeetingor,ifthatdayisapublicholiday,tothenextsucceedingday,otherthanapublicholiday.

(2)When ameeting has been adjourned as aforesaid the secretary of thecompanyshall,uponadatenotlaterthanfourdaysaftertheadjournment,publishinanewspapercirculatinginthedistrictwheretheregisteredofficeofthecompanyissituated,anoticestating— (a) thetimeandplacetowhichthemeetingwasadjourned;and (b) thematterbeforethemeetingatthetimewhenitwasadjourned;and (c) thegroundforadjournment.

Thissubsectionshallnotapplytoaprivatecompany.

(3)Anypersonactingaschairpersonofameetingofacompanywhofailstocomplywiththerequirementsofsubsection(1)andanysecretaryofacompanyotherthanaprivatecompanywhofailstocomplywiththerequirementsshallbeliabletoacategory1civilpenalty.

173 Representation of body corporates at meeting of company and of creditors

(1)AbodycorporatewhetheracompanywithinthemeaningofthisActornot,may— (a) ifitisamemberofanotherbodycorporate,beingacompanywithinthe

meaningofthisAct,byresolutionofitsdirectorsorothergoverningbodyauthorisesuchpersonasitthinksfittoactasitsrepresentativeatanymeetingofthecompanyoratanymeetingofanyclassofmembersofthecompany;

(b) if it is a creditor, including a holder of debentures, of another bodycorporate,beingacompanywithinthemeaningofthisActoranyotherlaw,authorise,byresolutionofitsdirectorsorothergoverningbody,suchpersonasitthinksfittoactasitsrepresentativeatanymeetingofanycreditors of the company held in pursuance of this Act or of any rules made thereunder,orinpursuanceoftheprovisionscontainedinanydebentureortrustdeed,asthecasemaybe.


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(2)Apersonauthorisedasaforesaidshallbeentitledtoexercisethesamepowerson behalf of the body corporate which he or she represents as that body corporate could exerciseifitwereanindividualmember,creditororholderofdebenturesofthatothercompany.

174 Circulationofmembers’resolutions (1)Subjecttothefollowingprovisions,itshallbethedutyofacompany,ontherequisitioninwritingofsuchnumberofmembersasishereinafterspecifiedand,unlessthecompanyotherwiseresolves,attheexpenseoftherequisitionists— (a) togivetomembersofthecompanyentitledtoreceivenoticeofthenext

annual general meeting notice of any resolution which may properly be movedandisintendedtobemovedatthatmeeting;

(b) tocirculatetomembersentitledtohavenoticeofanygeneralmeetingsentto them any statement of not more than one thousand words with respect to the matter referred to in any proposed resolution or the business to be dealt with at that meeting.

(2)Thenumberofmembersnecessaryforarequisitionundersubsection(1)shallbe— (a) anynumberofmembersrepresentingnotlessthanfiveper centum of the

totalvotingrightsofallthemembershavingatthedateoftherequisitionarighttovoteatthemeetingtowhichtherequisitionrelates;or

(b) notlessthanonehundredmembersholdingsharesinthecompanyonwhichtherehasbeenpaidupanaveragesum,permember,ofnotlessthan two hundred United States dollars.

(3)Noticeofanysuchresolutionshallbegiven,andanysuchstatementshallbecirculated,tomembersofthecompanyentitledtohavenoticeofthemeetingsenttothembyservingacopyoftheresolutionorstatementoneachsuchmemberinanymannerpermittedforserviceofnoticeofthemeetingandnoticeofanysuchresolutionshallbegiventoanyothermemberofthecompanybygivingnoticeofthegeneraleffectoftheresolutioninanymannerpermittedforgivinghimorhernoticeofmeetingsofthe company:

Providedthatthecopyshallbeserved,ornoticeoftheeffectoftheresolutionshallbegiven,asthecasemaybe,inthesamemannerand,sofaraspracticable,atthesametimeasnoticeofthemeetingand,whereitisnotpracticableforittobeservedorgivenatthattime,itshallbeservedorgivenassoonaspracticablethereafter.

(4)Acompanyshallnotbeboundunder thissection togivenoticeofanyresolutionortocirculateanystatementunless— (a) acopyoftherequisitionsignedbytherequisitionists,ortwoormore

copieswhichbetweenthemcontainthesignaturesofalltherequisitionists,isdepositedattheregisteredofficeofthecompany—

(i) inthecaseofarequisitionrequiringnoticeofaresolution,notlessthansixweeksbeforethemeeting;

(ii) inthecaseofanyotherrequisition,notlessthantwenty-onedaysbeforethemeeting;

and (b) there is deposited or tenderedwith the requisition a sum reasonably

sufficienttomeetthecompany’sexpensesingivingeffectthereto:

Providedthatif,afteracopyofarequisitionrequiringnoticeofaresolutionhasbeendepositedattheregisteredofficeofthecompany,anannualgeneralmeeting

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iscalledforadatesixweeksorlessafterthecopyhasbeendeposited,thecopythoughnotdepositedwithinthetimerequiredbythissubsectionshallbedeemedtohavebeenproperly deposited for the purposes thereof.

(5)Thecompanyshallalsonotbeboundunderthissectiontocirculateanyresolutionorstatementif,ontheapplicationeitherofthecompanyorofanyotherpersonwhoclaimstobeaggrieved,thecourtissatisfiedthattherightsconferredbythissectionarebeingabusedtosecureneedlesspublicityfordefamatorymatter;andthe court may order the company’s costs on an application under this section to be paid inwholeorinpartbytherequisitionists,notwithstandingthattheyarenotpartiestothe application.

(6)Notwithstandinganythinginthecompany’sarticles,thebusinesswhichmay be dealt with at an annual general meeting shall include any resolution of which noticeisgiveninaccordancewiththissection,andforthepurposesofthissubsectionnoticeshallbedeemedtohavebeensogivennotwithstandingtheaccidentalomission,ingivingit,ofoneormoremembers.

(7)Intheeventofanydefaultincomplyingwiththissectioneveryofficerofthecompanywhoauthorizes,orknowinglypermitsorispartyto,thedefaultshallbeliabletoacategory1civilpenalty.

175 Special resolutions (1)Aresolutionshallbeaspecial resolutionwhen ithasbeenpassedbyamajorityofnotlessthanseventy-fiveper centumofsuchmembersentitledtovoteasare present in person or by proxy at a general meeting of which not less than twenty-onedays’noticehasbeengiven,specifyingtheintentiontoproposetheresolutionasa special resolution and the terms of the resolution and at which members holding in theaggregatenotlessthantwenty-fiveper centumofthetotalvotesofthecompanyare present in person or by proxy.

(2)Ifthememberspresentatthemeetingholdlessthantwenty-fiveper centum ofthetotalvotesofallmembersentitledtovote,themeetingshallstandadjournedtothesamedayinthefollowingweekor,ifthatisapublicholiday,tothenextsucceedingday other than a public holiday. At the adjourned meeting the members present in person orbyproxymaydealwiththebusinessforwhichtheoriginalmeetingwasconvenedandaresolutionpassedbynotlessthanseventy-fiveper centum of such members shall bedeemedtobeaspecialresolution,notwithstandingthatlessthantwenty-fiveper centumofthetotalvotesofthecompanyarerepresentedatsuchadjournedmeeting.

(3)Ifitissoagreedbyamajorityinnumberofthemembershavingtherighttoattendandvoteatanysuchmeeting,beingamajoritytogetherholdingnotlessthanninety-fiveper centuminnominalvalueofthesharesgivingthatright,aresolutionmaybe proposed and passed as a special resolution at a meeting of which less than twenty-onedays’noticehasbeengiven,andsubsection(7)shallnotapplyforthepurposesofthis subsection.

(4)Allotherresolutionsatageneralmeetingshallbecalledordinaryresolutions.

(5)Atanymeetingatwhichaspecialresolutionissubmittedtobepassed,adeclarationof thechairperson that the resolution iscarriedshall,unlessapoll isdemanded,beconclusiveevidenceofthefactwithoutproofofthenumberorproportionofthevotesrecordedinfavouroforagainsttheresolution.

(6)Whenapollisdemandedregardshallbehadincomputingthemajorityonthepolltothenumberofvotescastforandagainsttheresolution.

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(7)Forthepurposesofthissection,noticeofameetingshallbedeemedtobedulygivenandthemeetingshallbedeemedtobedulyheldwhenthenoticeisgivenandmeetingheld in themannerprovidedby thearticlesbut subject always to theprovisionsofthisAct.

176 Written resolutions (1)Inthecaseofaprivatecompany,aresolutioninwritingsignedbyallthemembersforthetimebeingentitledtoattendandvoteonsuchresolutionatageneralmeeting,or,beingbodiescorporate,bytheirdulyauthorisedrepresentatives,shallbeasvalidandeffectiveforallpurposesasifthesamehadbeenpassedatageneralmeetingofthecompanydulyconvenedandheld,andifdescribedasaspecialresolutionshallbedeemedtobeaspecialresolution.Suchresolutionshallbedeemedtohavebeenpassedonthedateonwhichthesamewassignedbythelastmembertosign,andwheretheresolution states a date as being the date of his or her signature thereof by any member such statement shall be prima facieevidencethatitwassignedbythatmemberonthatdate.

(2)Subsection(1)shallnotapplytoaresolutiontoremoveanauditorortoremoveadirector.

177 Resolutionsrequiringspecialnotice (1)Where,inthisActorinthearticlesofassociationofacompany,specialnotice is required of a resolution, the resolution shall not be effective unlessnoticeof the intention tomove ithasbeengiven to thecompanynot less than twenty-eightdaysbeforethemeetingatwhichitismoved,andthecompanyshallgiveitsmembersnoticeofanysuchresolutionatthesametimeandinthesamemannerasitgivesnoticeofthemeetingor,ifthatisnotpracticable,shallgivethemnoticethereof,eitherbyadvertisementinanewspaperhavinganappropriatecirculationorinanyothermodeallowedbythearticles,notlessthantwenty-onedays before the meeting:

Providedthatif,afternoticeoftheintentiontomovesucharesolutionhasbeengiventothecompany,ameetingiscalledforadatetwenty-eightdaysorlessafterthenoticehasbeengiven,thenoticethoughnotgivenwithinthetimerequiredbythissubsectionshallbedeemedtohavebeenproperlygivenforthepurposesthereof.

(2)Ifthestatusofanypersoninrelationtoacompanywillbeaffectedbythetermsofaresolutionofwhichspecialnoticehasbeengiventhecompanyshallsendto,orserveupon,suchpersonacopyofsuchresolutionandofthenoticeofthemeetingatwhichitwillbemovedatthetimewhensimilarnoticeisgiventothemembersofthecompany,andsuchpersonshallbeentitledtospeakontheresolutionatthemeetingbeforeanyvoteistakenuponit.

(3)Ifdefaultismadebyacompanyingivingnoticetoitsmembersortoanypersonwhosestatusisaffectedasaforesaidthecompanyandeveryofficerofthecompanywhoisindefaultshallbeliabletoacategory3civilpenalty.

178 Registration and copies of special resolution (1)WithinonemonthafterthepassingofanyspecialresolutionacopyofthatresolutionshallbetransmittedtotheRegistrarwhoshall,subjecttosubsection(2),register that resolution and that resolution shall be of no force or effect until it is so registered:


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Providedthatontheregistrationofthespecialresolutionthatresolutionshallbe of force or effect from the date it was passed.

(2)TheRegistrarmay,exceptupontheorderofthecourt,refusetoregisterany special resolution so transmitted to him or her if such resolution appears to him or her to be contrary to this Act or of the memorandum or articles of the company.

(3)Wherearticleshavebeenregistered,acopyofeveryspecialresolutionforthetimebeinginforceshallbeembodiedinorannexedtoeverycopyofthearticlesissued after the registration of the resolution.

(4)Wherearticleshavenotbeenregistered,acopyofeveryspecialresolutionshallbetransmittedtoanymemberofthecompanyathisorherrequestonpaymentof one United States dollar or such less sum as the company may direct.

(5)Ifdefaultismade— (a) intransmittingthecopyofaspecialresolutiontotheRegistrar (b) incomplyingwithsubsection(3)or(4);thecompanyandeveryofficerofthecompanywhoisindefaultshallbeliabletoacategory4civilpenalty.

179 Resolutions passed at adjourned meetings Ifaresolutionispassedatanadjournedmeetingof— (a) acompany;or (b) theholdersofanyclassofsharesinacompany;or (c) thedirectorsofacompany;

theresolutionshallforallpurposesbetreatedashavingbeenpassedonthedateonwhichitwasinfactpassedandshallnotbedeemedtohavebeenpassedonanyearlierdate.

180 Minutes of meetings of members (1)Arecordofeachmeetingofmembersshallbepreparedaspromptlyaspossiblebutnot later than twenty (20)daysafter themeeting,andshallbe signedbythechairpersonandanysecretaryofthemeeting,whoshallberesponsibleforitscompleteness and accuracy.

(2)Theminutesshallincludethedate,timeandplaceofthemeeting,thenameofthechairpersonandanysecretaryofthemeeting,inthecaseofaprivatecompany,thenamesof theshareholderspresent, theagenda, thenumberofsharesandvotesrepresentedbothinpersonandbyproxy,theballotorotherproceduresusedforvoting,theissuesvotedonandthenumberofvotes“for,”“against”orabstainedoneachissue,asummaryofspeechesanddiscussions,andalistofthedecisionsactuallymadeatthemeeting.

(3)Theminutesshallberetainedbythecompanyandmadeavailabletoanyshareholder for inspection and copying at his or her expense during normal business hours.

(4)IfitcomestothenoticeoftheRegistrarthatacompanyhasnotbeenkeepingminutesinaccordancewiththissectionitshallbeliabletoacategory2civilpenalty.

181 Inspection of minutes (1)Theminutesofproceedingsofanygeneralmeetingofacompany,certifiedbyadirectororsecretary,shallbekeptattheregisteredofficeofthecompanyandshallduringbusinesshours(subjecttosuchreasonablerestrictionsasthecompanymayby

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itsarticlesoringeneralmeetingimpose,sothatnotlessthantwohoursineachdaybeallowedforinspection),beopentotheinspectionofanymemberwithoutcharge.

(2)Anymembershallbeentitledtobefurnished,withinfourteendaysafterheorshehasmadearequestinthatbehalftothecompany,withacopyofsuchminutesasaforesaidcertifiedbythesecretaryoradirectorascorrect,atachargenotexceedingtwentyUnitedStatescentsforeveryhundredwords.

(3)Ifanyinspectionrequiredunderthissectionisrefusedorifanycopyrequiredunder this section isnot sentwithin theproper time theRegistrarmayserveuponcompanyandeveryofficerofthecompanywhoisindefaultacategory3civilpenaltyorder,inwhichtheremediationclausemust,inadditiontoanyotherappropriateremedialaction,requireanimmediateinspectionofthebooksinrespectofallproceedingsofgeneralmeetingsordirectthatthecopiesrequiredshall,subjecttothepaymentoftheappropriatesum,besenttothepersonsrequiringthem.

Sub-Part C: Accounts and audit

182 Keepingoffinancialrecords (1)EverycompanyshallcausetobekeptintheEnglishlanguageor(subjecttotheprovisotosection9(“Formofregistersandotherdocuments”)(3))anyofficiallyrecognisedlanguagefinancialrecordswithrespectto— (a) allsumsofmoneyreceivedandexpendedbythecompanyandthematters

inrespectofwhichthereceiptandexpendituretakesplace; (b) allsalesandpurchasesofgoodsbythecompany; (c) theassetsandliabilitiesofthecompany.

(2)Forthepurposesofsubsection(1),financialrecordsshallnotbedeemedtobekeptwithrespecttothemattersaforesaidiftherearenotkeptsuchrecordsasarenecessarytogiveatrueandfairviewofthestateofthecompany’saffairsandtoexplain transactions.

(3)Thefinancialrecordsshallbekeptattheregisteredofficeofthecompanyoratsuchotherplaceasthedirectorsthinkfitandshallatalltimesbeopentoinspectionby the directors:

ProvidedthatiffinancialrecordsarekeptataplaceoutsideZimbabwethereshallbesentto,andkeptataplacein,Zimbabweandbeatalltimesopentoinspectionby the directors such accounts and returns with respect to the business dealt with in thefinancialrecordssokeptaswilldisclosewithreasonableaccuracythefinancialpositionofthatbusinessatintervalsnotexceedingtwelvemonthsandwillenabletobepreparedinaccordancewiththisActthecompany’sfinancialstatements,andanydocumentannexedtoanyofthosedocumentsgivinginformationwhichisrequiredbythisActandistherebyallowedtobesogiven.

(4)Thefinancialrecordskeptintermsofthissectionmaybedestroyedaftereight years from the completion of the transactions or operations to which they relate.

(5)Ifanydirectorofacompanyfailstotakeallreasonablestepstosecurecomplianceby the companywith the requirements of this sectionor has been thecauseofanydefaultbythecompanythereundertheRegistrarmay(unlessheorsheissatisfiedthatthedirector’sconductwasfraudulent,recklessorwilful,inwhicheventsection 69(“Fraudulent,recklessorwilfulfailureoffinancialaccounting;falsificationofrecords”)(1)(a)shallapply)serveuponhimorheracategory2civilpenaltyorderinwhichtheremediationclausemay,inadditiontoanyotherappropriateremedialaction,requirethatproofbegiventotheRegistrarwithinaspecifiedperiodthat—

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(a) thedirectorconcernedhascommencedorcompletedanappropriatecourseofinstructiontoenablehimorhertocomplywiththerequirementsofthissection;or

(b) thecompanyhasemployedacompetentandreliablepersonwiththedutyofseeingthattherequirementsofthissectionarecompliedwith.

(6)Itshallbenodefencetoacivilpenaltyorderorproposedcivilpenaltyundersubsection(5)foradirectortoprovethatheorshehadreasonablegroundstobelieve,anddidbelieve,thatacompetentandreliablepersonwaschargedwiththedutyofseeingthattherequirementsofthissectionwerecompliedwithandwasinaposition to discharge that duty.

(7)Subsection(3)shallnotexemptapersonfromcompliancewiththeCustomsandExciseAct[Chapter 23:02] or any other law.

(8)Apersonwhoretains, in termsofsection81(2)of the IncomeTaxAct[Chapter 23:06],aphotographicreproductionofanybooksofaccountshallbedeemedforthepurposesofthissectiontohavekeptsuchfinancialrecords.

183 Statement of financial position andstatement of comprehensiveincomeandfinancialyearofholdingcompanyandsubsidiary

(1)Thedirectorsofacompanyshallcausetobemadeoutinrespectofeveryfinancialyearofthecompany,andtobelaidbeforethecompanyateachannualgeneralmeetingrequired tobeheld in termsofsection167(“Annualgeneralmeeting”),astatementoffinancialpositionandastatementofcomprehensiveincomeasattheendofthefinancialyear,whichshallcomplywithsection184(“Generalprovisionsastocontentsandformoffinancialstatements”).

(2)Aholding company’s directors shall ensure that, exceptwhere in theiropiniontherearegoodreasonsagainstit,thefinancialyearofeachofitssubsidiariesshallcoincidewiththecompany’sownfinancialyear.

(3) In addition to the requirements of subsection (1), directors of a publiccompany shall cause to be presented at each annual general shareholders’ meeting the reportoftheboard’sauditcommitteereferredtoinsection220(“Corporategovernanceguidelines forpubliccompanies”),giving adescriptive reviewof thenatureof thebusinessofthecompanyandanysubsidiariesandanychangestherein,andthetotalamountofremunerationpaidtoandthevalueofanybenefitsreceivedbyeachdirectororformerdirectorduringthefinancialyearlastended.

(4)IfanydirectorofacompanyfailstotakeallreasonablestepstocomplywiththerequirementsofthissectiontheRegistrarmay(unlessheorsheissatisfiedthatthedirector’sconductwasfraudulent,recklessorwilful,inwhicheventsection69(“Fraudulent,recklessorwilfulfailureoffinancialaccounting;falsificationofrecords”)(1)(a)shallapply),subjecttosubsection(5),serveuponhimorheracategory3civilpenalty order.

(5)Itshallbeapartialdefencetoacivilpenaltyorderorproposedcivilpenaltyundersubsection(4)foradirectortoprove(theburdenwhereofrestsonhimorher)thatheorshehadreasonablegroundstobelieve,anddidbelieve,thatacompetentandreliablepersonwaschargedwiththedutyofseeingthattherequirementsofthissectionwerecompliedwithandwasinapositiontodischargethatduty,inwhichcasetheRegistrarmaywaivethosepartsofthepenaltyclauseoftheorderreferredtoinsection294(“PowerofRegistrartoissuecivilpenaltyordersandcategoriesthereof”)(4)(a)and(b)(i).

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184 Generalprovisionsastocontentsandformoffinancialstatements (1)Everystatementoffinancialpositionofacompanyshallgiveatrueandfairviewofthestateofaffairsofthecompanyasattheendofitsfinancialyear,andeverystatementofcomprehensiveincomeofacompany,shallgiveatrueandfairviewoftheprofitsandlosses(orincomeandexpenditure,asthecasemaybe)andotheritemsofcomprehensiveincomeofthecompanyforthefinancialyear.

(2)Subjecttosubsection(1),acompany’sstatementoffinancialpositionandstatementofcomprehensiveincomeandincomeandexpenditureaccountshallcomplywithanyrequirementsthatmaybeprescribedinregardtotheirformandcontentandanyadditionalinformationtobeprovidedbywayofnotes.

(3)Therequirementsofsubsection(2)shallbewithoutprejudiceeithertothegeneralrequirementsofsubsection(1)ortoanyotherrequirementsofthisAct.

(4)TheRegistrarmay,ontheapplicationorwiththeconsentofacompany’sdirectors,modifyinrelationtothatcompanyanyoftherequirementsofthisActastothematterstobestatedinacompany’sstatementoffinancialpositionorstatementofcomprehensiveincome,excepttherequirementsofsubsection(1),forthepurposeofadapting them to the circumstances of the company.

(5) Subsections (1) and (2) shall not apply to a company’s statement ofcomprehensiveincomeif— (a) thecompanyhassubsidiaries;and (b) the statement of comprehensive income is framed as a consolidated

statement of comprehensive income dealingwith all or any of thecompany’ssubsidiariesaswellasthecompanyand—

(i) complieswiththerequirementsofthisActrelatingtoconsolidatedstatementsofcomprehensiveincome;and

(ii) showshowmuchoftheconsolidatedcomprehensiveincomeforthefinancialyearisdealtwithintheaccountsofthecompany.

(6) If a director of a company fails to take all reasonable steps to securecompliancebythecompanyasrespectsanyfinancialstatementsrequiredtobelaidbeforethecompanyingeneralmeetingwiththeprovisionsofthissectionandwiththeotherrequirementsofthisActastothematterstobestatedinfinancialstatements,theRegistrarmay(unlessheorsheissatisfiedthatthedirector’sconductwasfraudulent,recklessorwilful,inwhicheventsection69(“Fraudulent,recklessorwilfulfailureoffinancialaccounting;falsificationofrecords”)(1)(a)shallapply),subjecttosubsection(7),serveuponhimorheracategory3civilpenaltyorder

(7)Itshallbeapartialdefencetoacivilpenaltyorderorproposedcivilpenaltyundersubsection(6)foradirectortoprove(theburdenwhereofrestsonhimorher)thatheorshehadreasonablegroundstobelieve,anddidbelieve,thatacompetentandreliablepersonwaschargedwiththedutyofseeingthattherequirementsofthissectionwerecompliedwithandwasinapositiontodischargethatduty,inwhichcasetheRegistrarmaywaivethosepartsofthepenaltyclauseoftheorderreferredtoinsection 294(“PowerofRegistrartoissuecivilpenaltyordersandcategoriesthereof”)(4)(a)and(b)(i).

(8)ForthepurposesofthisAct,exceptwherethecontextotherwiserequires,anyreferencetoastatementoffinancialpositionorstatementofcomprehensiveincomeshallincludeanynotethereonordocumentannexedtheretogivinginformationwhichisrequiredbythisActandistherebyallowedtobesogiven.

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(9) Financial statementsmade in terms of this section shall complywithinternationalfinancialaccountingstandardsadoptedbythePublicAccountantsAuditorsBoardconstitutedunderthePublicAccountantsandAuditorsAct[Chapter 27:12] and prescribed as applicable for the purposes of this section.

185 Meaning of holding company, subsidiary and wholly owned subsidiary (1)Acompanyshall,subjecttosubsection(3),bedeemedtobeasubsidiaryofanotherif— (a) thatothereither— (i) is amember of it and controls the composition of its board of

directors;or (ii) holdsmorethanhalfinnominalvalueofitsequitysharecapital; or (b) thefirst-mentionedcompanyisasubsidiaryofanycompanywhichis

that other’s subsidiary:

Providedthatthefirst-mentionedcompanyshallbedeemedtobeasubsidiaryofthatotherifsubsidiariesofthatotherbetweenthemholdmorethanfiftyper centum innominalvalueoftheequitysharecapitalofthefirst-mentionedcompanyorifthatotherandoneormoreofitssubsidiariesbetweenthemholdmorethanfiftyper centum of such capital.

(2)Forthepurposesofsubsection(1),thecompositionofacompany’sboardofdirectors shall be deemed to be controlled by another company if that other company by the exercise of some power exercisable by it without the consent or concurrence of any otherpersoncanappointorremovetheholdersofalloramajorityofthedirectorships;butforthepurposesofthisprovisionthatothercompanyshallbedeemedtohavepowerto appoint to a directorship with respect to which any of the following conditions is satisfied,thatistosay— (a) thatapersoncannotbeappointedtheretowithouttheexerciseinhisor

herfavourbythatothercompanyofsuchpowerasaforesaid;or (b) thataperson’sappointmenttheretofollowsnecessarilyfromhisorher

appointment as director of that other company.

(3)Indeterminingwhetheronecompanyisasubsidiaryofanother— (a) anysharesheldorpowerexercisablebythatotherinafiduciarycapacity

shallbetreatedasnotheldorexercisablebyit; (b) subjecttoparagraphs(c)and(d),anysharesheldorpowerexercisable— (i) byanypersonasanomineeforthatotherexceptwherethatother

isconcernedonlyinafiduciarycapacity;or (ii) by, or by a nominee for, a subsidiary of that other, not being a

subsidiarywhichisconcernedonlyinafiduciarycapacity;

shallbetreatedasheldorexercisablebythatother;

(c) any sharesheldorpower exercisablebyanypersonbyvirtueof anydebentureofthefirst-mentionedcompanyorofatrustdeedforsecuringanyissueofsuchdebenturesshallbedisregarded;

(d) anysharesheldorpowerexercisableby,orbyanomineefor,thatotheroritssubsidiary,notbeingheldorexercisableasmentionedinparagraph(c),shallbetreatedasnotheldorexercisablebythatotheriftheordinary

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businessofthatotheroritssubsidiary,asthecasemaybe,includesthelending of money and the shares are held or power is exercisable as aforesaid by way of security only for the purposes of a transaction entered into in the ordinary course of that business.

(4)Acompanyshallbedeemedtobethewholly-ownedsubsidiaryofanotherif it has no members except that other and that other’s wholly-owned subsidiaries and its or their nominees.

(5)Acompanyshallbedeemedtobeanother’sholdingcompanyifthatotheris its subsidiary.

(6)Inthissection, theexpression“company”includesanybodycorporate,includingabodycorporateformedunderthelawofaforeigncountry,andtheexpression“equitysharecapital”means,inrelationtoacompany,itsissuedsharecapitalexcludinganypartthereofwhich,neitherasrespectsdividendsnorasrespectscapital,carriesanyrighttoparticipatebeyondaspecifiedamountinadistribution.

186 Obligation to lay group accounts before holding company (1)Whereattheendofitsfinancialyearacompanyhassubsidiaries,accountsorstatements,inthisActreferredtoas“groupaccounts”,dealingashereinaftermentionedwiththestateofaffairsandcomprehensiveincomeofthecompanyandthesubsidiariesshall,subjecttosubsection(2),belaidbeforethecompanyingeneralmeetingwhenthecompany’sownfinancialstatementsaresolaid.

(2)Notwithstandinganythinginsubsection(1)— (a) groupaccountsshallnotberequiredwherethecompanyis,attheend

ofitsfinancialyear,thewhollyownedsubsidiaryofanothercompanyincorporatedinZimbabwe;

(b) groupaccountsneednotdealwithasubsidiaryof thecompanyif thecompany’sdirectorsareoftheopinionthat—

(i) itisimpracticable,orwouldbeofnorealvaluetomembersofthecompany,inviewoftheinsignificantamountsinvolved,orwouldentailexpenseordelayoutofproportiontothevaluetomembersofthecompany;or

(ii) theresultwouldbemisleadingorharmful tothebusinessof thecompanyoranyofitssubsidiaries;or

(iii) the business of the holding company and that of the subsidiaryare so different that they cannot reasonably be treated as a single undertaking;

(c) groupaccountsshallnotberequiredifthedirectorsareofanopiniondescribedinparagraph(b)abouteachofthecompany’ssubsidiaries:

Providedthat— (i) theauditoroftheholdingcompanyshallineverycasereporton

the decision of directors not to deal in group accounts with any subsidiary;

(ii) theapprovaloftheRegistrarshallberequiredfornotdealingingroup accounts with a subsidiary on the ground that the result would be harmful or on the ground of the difference between the business of the holding company and that of the subsidiary.


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(3)IfanydirectorofacompanyfailstotakeallreasonablestepstosecurecomplianceasrespectsthecompanywiththerequirementsofthissectiontheRegistrarmay(unlessheorsheissatisfiedthatthedirector’sconductwasfraudulent,recklessorwilful,inwhicheventsection69(“Fraudulent,recklessorwilfulfailureoffinancialaccounting;falsificationofrecords”)(1)(a)shallapply),subjecttosubsection(4),serveuponhimorheracategory3civilpenaltyorder.

(4)Itshallbeapartialdefencetoacivilpenaltyorderorproposedcivilpenaltyundersubsection(3)foradirectortoprove(theburdenwhereofrestsonhimorher)thatheorshehadreasonablegroundstobelieve,anddidbelieve,thatacompetentandreliablepersonwaschargedwiththedutyofseeingthattherequirementsofthissectionwerecompliedwithandwasinapositiontodischargethatduty,inwhichcasetheRegistrarmaywaivethosepartsofthepenaltyclauseoftheorderreferredtoinsection294(“PowerofRegistrartoissuecivilpenaltyordersandcategoriesthereof”)(4)(a)and(b)(i).

187 Form and contents of group accounts (1)Thegroupaccountslaidbeforeaholdingcompanyshallbeconsolidatedaccountscomprising— (a) aconsolidatedstatementoffinancialpositiondealingwiththestateof

affairs of the company and all the subsidiaries to be dealt with in the groupaccounts;

(b) aconsolidatedstatementofcomprehensiveincomedealingwiththeprofitorloss(orincomeandexpenditure,asthecasemaybe)andotheritemsofcomprehensiveincomeofthecompanyandthosesubsidiaries.

(2)Ifthecompany’sdirectorsareofopinionthatitisbetterforthepurpose— (a) ofpresentingthesameorequivalentinformationaboutthestateofaffairs

andcomprehensiveincomeofthecompanyandthosesubsidiaries;and (b) ofsopresentingitthatitmaybereadilyappreciatedbythecompany’s

members;

thegroupaccountsmaybepreparedinaformotherthanthatrequiredbysubsection(1)andinparticularmayconsistofmorethanonesetofconsolidatedaccounts,thatistosay,onesetdealingwiththecompanyandonegroupofsubsidiariesandoneormoresetsdealingwithothergroupsofsubsidiaries,orofseparateaccountsdealingwitheachofthesubsidiaries,orofstatementsexpandingtheinformationaboutthesubsidiariesinthecompany’sownaccounts,oranycombinationoftheseforms.

(3)Thegroupaccountsmaybewhollyorpartlyincorporatedinthecompany’sownfinancialstatements.

(4)Thegroupaccountslaidbeforeacompanyshallgiveatrueandfairviewofthestateofaffairsandcomprehensiveincomeofthecompanyandthesubsidiariesdealtwiththerebyasawhole,sofarasconcernsmembersofthecompany;andinparticularshallexcludeinter-groupbalancesandanyprofitorloss(orincomeandexpenditure)arisingfromtransactionswithinthegroupinsofarasthoseprofitsorlosses(orincomeandexpenditure)maynothavebeenrealizedorincurredsofarasconcernsmembersof the company.

(5)Wherethefinancialyearofasubsidiarydoesnotcoincidewiththatoftheholdingcompanythegroupaccountsshall,unlesstheRegistrarontheapplicationorwiththeconsentoftheholdingcompany’sdirectorsotherwisedirects,dealwiththesubsidiary’sstateofaffairsasattheendofitsfinancialyearendinglastbeforethatoftheholdingcompanyandwiththesubsidiary’sprofitorlossforthatfinancialyear.


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(6)Withoutprejudice to subsection (4), thegroupaccounts, ifpreparedasconsolidatedaccounts,shallcomplywiththerequirementsoftheregulationsreferredtoinsection301(“Regulations”)(2)sofarasapplicabletheretoandifnotsoprepared,shallgivethesameorequivalentinformation:

ProvidedthattheRegistrarmay,ontheapplicationorwiththeconsentofacompany’sdirectors,modifythesaidrequirementsinrelationtothatcompanyforthepurpose of adapting them to the circumstances of the company.

188 Accountsandauditor’sreporttobeannexedtosignedstatementoffinancialposition

(1)Thestatementofcomprehensiveincomeand,sofarasnotincorporatedinthefinancialstatements,anygroupaccountslaidbeforeacompanyingeneralmeetingshallbeannexedtothestatementoffinancialpositionandapprovedbytheboardofdirectors before the statement offinancial position is signedon its behalf and theauditor’sreportshallbeattachedthereto,exceptinthecaseofaprivatecompanywhichin terms of section166(“Statutorymeetingandstatutoryreport”)(7)isnotrequiredto appoint an auditor.

(2) If anycopyof a statementoffinancialposition is issued, circulatedorpublishedwithouthavingacopyannexedtheretoofthestatementofcomprehensiveincomeoranygroupaccountsrequiredbythissectiontobesoannexedorwithouthavingattachedtheretoacopyoftheauditor’sreportasrequiredbythissection,theRegistrarmayserveuponthecompanyandeveryofficerwhoisindefaultacategory2civilpenaltyorder.

(3)Everystatementoffinancialpositionofacompanyshallbesignedonbehalfof the board by two of the directors of the company.

(4)Ifanycopyofastatementoffinancialpositionwhichhasnotbeensignedasrequiredbythissectionisissued,circulatedorpublished,theRegistrarmayserveuponthecompanyandeveryofficerwhoisindefaultacategory2civilpenaltyorder.

189 Directors’reporttobeattachedtostatementoffinancialposition (1)Thereshallbeattachedtoeverystatementoffinancialpositionlaidbeforea company in general meeting a report by the directors with respect to the state of the company’saffairs,theamount,ifany,alreadypaidordeclaredorwhichtheyrecommendshouldbepaidbywayofdividendand theamount, if any,which theypropose tocarry to reserveswithin themeaning of the regulations referred to in section 301 (“Regulations”)(2)and,ifdirectors’remunerationistobedeterminedatthemeeting,the amount of remuneration recommended:

Providedthatthissubsectionshallnotapplytoaprivatecompanyunlessoneormoremembersofthatprivatecompanyis— (a) apubliccompany,whetherincorporatedunderthisActorthelawofa

foreigncountry;or (b) aprivatecompanywhichisasubsidiary,asdeterminedintermsofsection

185 (“Meaning of holding company, subsidiary andwholly ownedsubsidiary”),ofapubliccompanyreferredtoinparagraph(a).

(2)Thesaidreportshalldeal,sofarasismaterialfortheappreciationofthestate of the company’s affairs by its members and will not in the directors’ opinion be harmfultothebusinessofthecompanyorofanyofitssubsidiaries,withanychangeduringthefinancialyearinthenatureofthecompany’sbusinessorinthecompany’ssubsidiariesorintheclassesofbusinessinwhichthecompanyhasaninterest,whetheras member of another company or otherwise.


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(3)Ifanydirectorofacompanyfailstotakeallreasonablestepstocomplywithsubsection(1)theRegistrarmay(unlessheorsheissatisfiedthatthedirector’sconductwasfraudulent,recklessorwilful, inwhicheventsection69(“Fraudulent,recklessorwilfulfailureoffinancialaccounting;falsificationofrecords”)(1)(a)shallapply),serveuponthedefaultingdirectoracategory1civilpenaltyorder:

ProvidedthattheRegistrarmaywaivethepenaltyifdirectortoprovesthatheorshehadreasonablegroundstobelieve,anddidbelieve,thatacompetentandreliablepersonwaschargedwiththedutyofseeingthattherequirementsofthissectionwerecomplied with and was in a position to discharge that duty.

190 Righttoreceivecopyofstatementoffinancialpositionandauditor’sreport

(1)Acopyofeverystatementoffinancialposition,includingeverydocumentrequiredbythisActtobeannexedthereto,whichistobelaidbeforethecompanyingeneralmeeting, togetherwithgroupaccounts, ifany,preparedundersections186(“Obligationtolaygroupaccountsbeforeholdingcompany”)and187(“Formandcontentsofgroupaccounts”)andacopyoftheauditor’sreport,shall,notlessthanfourteendaysbeforethedateofthemeeting,besenttoallpersonsentitledtoreceivenotices of general meetings of the company:

Providedthatthissubsectionshallnotapplytoaprivatecompanyunlessoneormoremembersofthatprivatecompanyis— (a) apubliccompany,whetherincorporatedunderthisActorthelawofa

foreigncountry;or (b) a private companywhich is a subsidiary, as determined in terms of

section185(“Meaningofholdingcompany,subsidiaryandwhollyownedsubsidiary”),ofapubliccompanyreferredtoinparagraph(a).

(2)Anymemberandanydebentureholderofthecompanyshallbeentitledtobefurnishedondemand,withoutcharge,withacopyofthelaststatementoffinancialpositionof thecompany, includingeverydocumentrequiredbylawtobeannexedthereto,togetherwithacopyoftheauditor’sreportonthestatementoffinancialpositionunlessheorsheshallpreviouslyhavebeensuppliedtherewith.

(3)Ifdefaultismadeincomplyingwithsubsection(1)thecompanyandeveryofficerofthecompanywhoisindefaultshallbeliabletoacategory1civilpenalty, and if,whereanypersonmakesademandforadocumenttowhichheorsheisbyvirtueofsubsection(2)entitled,defaultismadeincomplyingwiththedemandwithinfourteendaysafterthemakingthereof,thecompanyandanyofficerofthecompanywhoisindefaultshallbeliabletoacategory3civilpenalty.

191 Appointment,remuneration,duties,powersandremovalofauditors (1)Thefirstauditorofacompanyshallbeappointedbythedirectorswithinonemonthoftheissueofthecertificatethatthecompanyisentitledtocommencebusinessinthecaseofacompanytowhichsection158(“Restrictionsoncommencementofbusiness”)appliesand,inthecaseofothercompanies,withinonemonthoftheissueofthecertificateofincorporation;andanauditorsoappointedshallholdofficeuntiltheconclusionofthefirstannualgeneralmeeting:

Providedthat— (i) thecompanymayatageneralmeetingremoveanysuchauditorand

appoint in his or her place any other person who has by special notice


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been nominated for appointment by any member of the company and ofwhosenominationnoticehasbeengiventothemembersofthecompanynotlessthanfourteendaysbeforethedateofthemeeting;

(ii) ifthedirectorsfailtoexercisetheirpowersunderthissubsectionthecompanyingeneralmeetingmayappointthefirstauditorandthereuponthesaidpowersofthedirectorsshallcease;

(iii) ifneitherthedirectorsnorthecompanyappointanauditorunderthis subsection the Registrar may on the application of any member do so.

(2)Everycompanyshall,ateachannualgeneralmeeting,appointanauditortoholdofficefromtheconclusionofthatannualgeneralmeetinguntiltheconclusionof the next annual general meeting.

(3)Whereatanannualgeneralmeetingnoauditorisappointedorreappointed,theRegistrar,ontheapplicationofanymembermayappointapersontofillthevacancy.

(4)The company shall,within oneweek of theRegistrar’s power undersubsection(3)becomingexercisable,givetheRegistrarnoticeofthatfactand,ifacompanyfailstogivenoticeasrequiredbythissubsection,thecompanyandeveryofficerofthecompanywhoisindefaultshallbeliabletoacategory3civilpenalty:

Provided that, instead of the remediation clause in the civil penalty orderconcerned,theRegistrarshallgivenoticetothecompanyofhisorherappointmentofthe auditor.

(5)Thedirectorsmayfillanycasualvacancyintheofficeofauditorbutwhileanysuchvacancycontinuesthesurvivingorcontinuingauditor,ifany,mayact.

(6)Theremunerationoftheauditorofacompanyshallbefixedbythecompanyin general meeting or in such manner as the company in general meeting may determine.

Forthepurposesofthissubsection,anysumspaidbythecompanyinrespectofthe auditor’s expenses shall be deemed to be included in the expression “remuneration”.

(7)Aprivatecompanyshallnotberequiredtoappointanauditorif— (a) thenumberofmembersinsuchcompanydoesnotexceedten;and (b) noneofthemembersofsuchcompanyis— (i) apubliccompany,whetherincorporatedunderthisActorthelaw

ofaforeigncountry;or (ii) aprivatecompanywhichisasubsidiary,asdeterminedintermsof

section185(“Meaningofholdingcompany,subsidiaryandwhollyownedsubsidiary”),ofapubliccompanyreferredtoinsubparagraph(i);

and (c) suchcompanyisnotasubsidiaryofaholdingcompanywhichhasitself

appointedauditors;and (d) all themembers in such company agree that an auditor shall not be

appointed.

(8)TherelevantprovisionsofthePublicAccountantsandAuditorsAct[Chapter 27:12] and of generally accepted accounting practices shall apply to the terms of appointment,qualifications,independenceandworkoftheauditor.


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(9)Withoutlimitingtheforegoing— (a) acompany’sauditormaynotownsharesinthecompany,maynotbe

adirectororofficerofthecompany,andmaynotdirectlyorindirectlysupervisethecompany’sinternalaccounts,whileengagedinauditingthecompanyorforaperiodoftwoyearspriortheretoorthereafter;

(b) acompany’sauditormaynotperformnon-auditservicesforthecompanyiftheperformanceofthoseservicesisormaybeinconsistentwiththeperformanceofauditservicesforthecompany

(10)Forthepurposesofsubsection(9)anauditorincludesanindividualwhoisanauditorandanyfamilymemberofthatindividual,andanyfirmthatisanauditororanyemployeeoragentofthatfirmwhoparticipatesinthatfirm’sauditofthecompanyinquestion.

(11)Noperson shall serve as an auditor of a company formore thanfiveconsecutivefinancialyears:

Providedthatwhereapersonhasservedastheauditorordesignatedauditorofacompanyfortwoormoreconsecutivefinancialyearsandthenceasestobesuch,suchperson shall not be re-appointed as the auditor or designated auditor of that company untilaftertheexpiryofatleasttwofurtherfinancialyears.

(12)Acompany’sauditorshallhavetheright— (a) offullaccesstothecompany’sbooks,records,vouchers,securitiesand

documents,andtherighttoverifytheexistenceandvalueofthecompany’sassetsandliabilities;

(b) toaskanydirectororofficerofthecompanyforparticularswhichtheauditor deems necessary for the performance of the auditor’s duties and responsibilities;

(c) ofaccesstoallcurrentandformeraccountsofanycompanysubsidiarythereto andbe entitled to require from the officers of the holdingorsubsidiary company all such information and explanations in connection therewithasheorshemaydeemnecessary;

(d) toattendanygeneralmeetingofthecompanyandtoreceiveallnoticesof and other communications relating to any general meeting which any memberof thecompany is entitled to receiveand tobeheardat anygeneral meeting which he or she attends on any part of the business of the meeting which concerns him or her as auditor.

(13)Specialnoticeshallberequiredforaresolutionatacompany’sannualgeneralmeetingappointingasauditorapersonotherthanaretiringauditororprovidingexpresslythataretiringauditor(otherthanoneretiringbytheoperationofsubsection(11))shallnotbereappointed.

192 Disqualificationsforappointmentasauditor (1)Thefollowingpersonsshallnotbequalifiedforappointmentasauditorsofacompany— (a) anofficerorservantofthecompany; (b) apersonwhoisapartnerofanofficerorservantofthecompany; (c) apersonwhoisanemployeroranemployeeofanofficerorservantof

thecompany; (d) apersonwhoisanofficerorservantofabodycorporatewhichisan

officerofthecompany;


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(e) apersonwhobyhimselforherself,orhisorherpartnerorhisorheremployee,regularlyperformsthedutiesofsecretaryorbookkeepertothe company.

(2)Apersonshallalsonotbequalifiedforappointmentasauditorofacompanyifheorsheis,byvirtueofsubsection(1),disqualifiedforappointmentasauditorofanyotherbodycorporatewhichisthatcompany’ssubsidiaryorholdingcompany,orasubsidiaryofthatcompany’sholdingcompany,orwouldbesodisqualifiedifthebodycorporate were a company.

(3)Any personwho acts as auditor of a companywhen disqualified asaforesaidshallbeguiltyofanoffenceandliabletoafinenotexceedinglevelfourteenor imprisonment not exceeding two years.

(4)Inaddition,theRegistrarmayserveuponacompanythatisknowinglyincontraventionofthissectionacategory2civilpenaltyorder.

193 Auditor’sreport (1)Theauditorshallmakeareporttothemembersontheaccountsexaminedbyhimorherandoneveryfinancialstatementlaidbeforethecompanyingeneralmeetingduringhisorhertenureofofficeandthereportshallcontainstatementsastothefollowingmatters— (a) whether,inhisorheropinion,thefinancialstatementsor,inthecaseof

aholdingcompanysubmittinggroupaccounts,thesaidaccountsofthecompany and the group accounts are properly drawn up in accordance with thisActsoastogiveatrueandfairviewofthestateofthecompany’saffairsatthedateofitsfinancialstatementsforitsfinancialyearendedonthatdate;or

(b) inthecaseofacompanyregisteredasacommercialbank,anacceptinghouseorafinancehouseintermsoftheBankingAct[Chapter 24:20],whether,inhisorheropinion,thefinancialstatementsor,inthecaseofaholdingcompanysubmittinggroupaccounts,thesaidaccountsofthecompany and the group accounts are properly drawn up so as to disclose thestateofthecompany’saffairsatthedateofitsfinancialstatementsforitsfinancialyearendedonthatdate,sofarasisrequiredbytheprovisionsof this Act applicable to the class of company concerned.

(2)Theauditorshallincludeinhisorherreportstatementswhich,inhisorheropinion,arenecessaryif— (a) heorshehasnotobtainedalltheinformationandexplanationswhichto

thebestofhisorherknowledgeandbeliefwerenecessaryforthepurposesofhisorheraudit;

(b) sofarasappearsfromhisorherexamination,properfinancialrecordshavenotbeenkeptbythecompany;

(c) properreturnsadequateforthepurposeofhisorheraudithavenotbeenreceivedfrombranchesnotvisitedbyhimorher;

(d) thecompany’sfinancialstatementsarenotinagreementwiththefinancialrecords and returns from branches.

(3)Intheeventoftheauditorbeingunabletomakesuchreportortomakeitwithoutfurtherqualificationheorsheshallinscribeuponorattachtothestatementoffinancialpositionastatementofthatfactorofthenatureofthequalification,asthecasemaybe,andheorsheshallsetforththereinthefactsorcircumstanceswhichpreventhimorherfrommakingthereportorfrommakingitwithoutqualification.


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(4)Theauditor’sreportoranystatementundersubsection(3)shall,unlessallthememberspresentagreetothecontrary,bereadbeforethecompanyingeneralmeetingandshall,inanyevent,beopentoinspectionbyanymember.

194 Constructionofreferencestodocumentsannexedtoaccounts References in thisAct toadocumentannexedor required tobeannexed toacompany’s accounts or any of them shall not include the directors’ report or the auditor’s report:

Provided thatany informationwhich is requiredby thisAct tobegiven inaccounts,andistherebyallowedtobegiveninastatementannexed,maybegiveninthedirectors’reportinsteadoftheaccountsand,ifanysuchinformationissogiven,the report shall be annexed to the accounts and this Act shall apply in relation thereto accordingly,exceptthattheauditorshallreportthereononlysofarasitgivesthesaidinformation.

Sub-Part D: Directors and other officers

195 Directors and their functions and responsibilities (1)Aprivatecompanywithmorethanoneandfewerthantenshareholdersshallhavetwoormoredirectors,aprivatecompanywithtenormoreshareholdersshallhavenotfewerthanthreedirectors,andapubliccompanyshallhavenotfewerthansevennormorethanfifteendirectors.

(2)AtleastonedirectorshallbeordinarilyresidentinZimbabwe.

(3)Anydirectorwhoisacompany’schiefexecutiveofficershallnotalsobethe chairperson of the board of that company

(4)Eachoreverydirector (as thecasemaybe) shallexercise independentjudgment and shall act within the powers of the company in a way that he or she considers,ingoodfaith,topromotethesuccessofthecompanyforthebenefitofitsshareholders as a whole.

(5)Forthepurposeofsubsection(4),everydirectorshallhaveregardto,amongotherthings— (a) thelong-termconsequencesofanydecision; (b) theinterestsofthecompany’semployees; (c) theneedtofosterthecompany’srelationshipswithsuppliers,customers

andothers; (d) the impact of the company’s operations on the community and the

environment; (e) thedesirabilityofthecompanymaintainingareputationforhighstandards

ofbusinessconduct; (f) theneedtoactfairlyasbetweenshareholdersofthecompany.

(6)Anindividualdirectormaynotassignordelegatehisorherresponsibilityor accountability under this Act to another person.

Providedthatfortheavoidanceofdoubtthissubsectiondoesnotprohibitthedelegationofclerical,administrativeandothernon-coremanagementfunctionstootherstaffortoacompanyserviceproviderlicensedundersection292(“Businessentityincorporationagentsandbusinessentityserviceproviders”).

(7)Everypersonsigning thememorandumofacompanyshall,untilotherdirectorsareappointed,bedeemedtobeadirectorofthecompanyandbeliableforall the duties and obligations of a director:


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Provided thatwhereapersonsigns thememorandum,whetherasagentorotherwise,onbehalfofsomeotherpersonwhoisnotqualifiedtobeadirectorofthecompany,thefirst-mentionedpersonshallbedeemedtobeadirector. (8)Theprovisionofthissectionrelatingtothedutiesofadirectorofacompanyareinadditionto,anddonotderogatefrom,thedutiesofcareandloyaltyoutlinedinsections54(“Dutyofcareandbusinessjudgmentrule”)and55(“Dutyofloyalty”). (9)In thecaseofpubliccompanynodirectorshallserveonmorethansixboardsofunassociatedpubliccompanies,andhisorherservicetootherboardsshallbedisclosedateverygeneralmeeting. (10)Whereanydirectorcontravenessubsection(9),heorsheshallbeindefaultandbeliabletoacategory2civilpenalty: Providedthatanydirectorwhoservesonmorethansixboardsontheeffectivedatemaycontinuetodosountiltheexpirationofhisorhertermofofficeoftheboardinquestion. (11)Theactsofadirectorormanagershallbevalidnotwithstandinganydefectthatmayafterwardsbediscoveredinhisorherappointmentorqualification.

196 Directors acting other than in person at meeting (1)Adecisionthatcouldbevotedonatameetingoftheboardofacompanymayinsteadbeadoptedbywrittenconsent,statingtheactionsotaken,signedbyallofthedirectorsentitledtovoteonthematter.Adecisionmadeinsuchmannerisofthesameeffectasifithadbeenapprovedbyvotingatameeting. (2)Unlessprohibitedbyacompany’smemorandumofassociationorarticlesofassociation,ameetingofacompany’sboardmaybeheldbymeansofelectronic,conference telephone or other audio or visual communications equipment if allparticipantscanhearandtalkorotherwisecommunicateconcurrentlywitheachother.The persons attending a meeting in this way shall be considered to be present at the meeting.

197 Liabilityofdirectorsandprescribedofficers (1)Inthissection— “director’’ includesanalternatedirector,andapersonwhoisamemberof

acommitteeofaboardofacompany,orof theauditcommitteeofacompany,irrespectiveofwhetherornotthepersonisalsoamemberofthecompany’sboard;

“reasonable public notice”, in relation to the giving of such notice by adirectorforthepurposeofproviso(vii)or(viii)toparagraph(d),maybeconstitutedbythegivingofawrittennoticetotheRegistrartimeously,thatistosaybeforetheissueoftheprospectusinthecaseofproviso(viii),oratthetimethedirectorconcernedbecameawareoftheuntruestatementinthecaseofproviso(viii),asthecasemaybe(butineithercasetheonusisonthedirectortoprovetimeousness).

(2)Adirectorofacompanymaybeheldliable— (a) inaccordancewiththeprinciplesofthecommonlawrelatingtobreachof

afiduciaryduty,foranyloss,damagesorcostssustainedbythecompanyasaconsequenceofanybreachbythedirectorof—

(i) a duty contemplated in section 54 (“Duty of care and businessjudgmentrule“),55(“Dutyofloyalty”),and57(“Dutytodiscloseconflictofinterest”)and195(“Directorsandtheirfunctionsandresponsibilities”)(4),(5)and(6);or


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(ii) section56(“Transactionsinvolvingconflictofinterest”);or (iii) anyprovisionofthisActnototherwisementionedinthissection;

or (iv) any provision of the company’smemorandum and articles of

association for which the director is personally responsible or may be held personally liable.

(3)Adirectorofacompanyisliableforanyloss,damagesorcostssustainedbythecompanyasadirectorindirectconsequenceofthedirectorhaving— (a) acted in the nameof the company, signed anything on behalf of the

company,orpurportedtobindthecompanyorauthorisethetakingofanyactionbyoronbehalfofthecompany,despiteknowingthatthedirectorlackedtheauthoritytodoso;or

(b) acquiesced in the carrying on of the company’s business despiteknowingthatitwasbeingconductedinamannerdescribedinsection68(“Fraudulent,recklessorgrosslynegligentconductofbusiness”)(3);or

(c) beenapartytoanactoromissionbythecompanydespiteknowingthattheactoromissionwascalculated todefraudacreditor,employeeorshareholderofthecompany,orhadanotherfraudulentpurpose;or

(d) signed,consentedto,orauthorised,thepublicationof— (i) anyfinancialstatementsthatwerefalseormisleadinginamaterial

respect;or (ii) aprospectusorastatementinlieuofprospectusthatcontains— A. an“untruestatement”asdefinedanddescribedinsection2

(“Interpretation”)(1);or B. astatementtotheeffectthatapersonhadconsentedtobea

directorofthecompany,whennosuchconsenthadbeengiven,despiteknowingthatthestatementwasfalse,misleadingoruntrue,asthecasemaybe:

Providedthattheliabilitycontemplatedinthisparagraphdoesnotapplyif—

(iii) withrespecttoeveryuntruestatementnotpurportingtobemadeontheauthorityofanexpertorofapublicofficialdocumentorstatement,thedirectorhadreasonablegroundstobelieve,anddidup to the time of the allotment of the shares or the acceptance of the offer,asthestatementmaybe,believethatthestatementwastrue;or

(iv) thedirectorhadreasonablegroundstobelieveanddiduptothetimethattheprospectusbelievethattheexpertwhomadethestatementwascompetenttomakeitandconsentasrequiredbythisActtotheissueoftheprospectusorthemakingoftheofferandhadnotwithdrawnthatconsentbeforetheprospectuswasfiledor,tothatdirector’sknowledge,beforeanyallotmentorbeforetheacceptanceoftheoffer;or

(v) anyuntruestatementpurportingtobeastatementmadebyanofficialperson or contained in what purports to be a copy of or extract from apublicofficialdocumentwasacorrectandfairrepresentationofthestatementorcopyorextractfromthedocument;or

(vi) the director consented to become a director of the company,but subsequentlywithdrew that consent before the issue of theprospectusandthatitwasissuedwithouthisorherconsent;or


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(vii) theprospectuswasissuedwithouttheknowledgeorconsentofthedirectorconcerned,andonbecomingawareofitsissue,thedirectorforthwithgavereasonablepublicnoticethatitwasissuedwithouthisorherknowledgeorconsent;or

(viii) aftertheissueoftheprospectusandbeforeallotmentoracceptancethereunder,thedirector,onbecomingawareofanyuntruestatementinit,withdrewanyconsenttotheprospectusandgavereasonablepublicnoticeofthewithdrawalandofthereasonforit;

(e) beenpresentatameeting,orparticipatedinthemakingofadecisionintermsofsection196(“Directorsactingotherthaninpersonatmeeting”),andfailedtovoteagainst—

(i) theissuingofanyunauthorisedshares,despiteknowingthatthoseshares had not been authorised in accordance with section 96 (“Authorisationforshares”);

(ii) theissuingofanyauthorisedsharesordebentures,despiteknowingthat the issue of those shares or debentures was inconsistent with section96and139(“Existingshareholders’rightoffirstrefusaltonewshares”);

(iii) thegrantingofoptionstoanypersoncontemplatedinsection101(“Options for subscription of shares or debentures”)(4), despiteknowingthatanyshares—

A. forwhichtheoptionscouldbeexercised;or B. intowhichanysharescouldbeconverted; hadnotbeenauthorisedintermsofsection96; (iv) theprovisionoffinancial assistance toanypersoncontemplated

in section 123 (“Financial assistance by company for purchaseof its ownor its holding company’s shares”) for the acquisitionofsecuritiesof thecompany,despiteknowingthat theprovisionoffinancial assistancewas inconsistentwith section 121 or thecompany’smemorandum of association, to the extent that theresolutionoragreementhasbeendeclaredvoidintermsofsection123(2)(a)(“Financialassistancebycompanyforpurchaseofitsownoritsholdingcompany’sshares”),readwithsection65(“Allegationsofvoidness,impropriety,etc.byregisteredbusinessentities”)(1);

(v) the provision offinancial assistance to a director for a purposecontemplatedinsection208(“Prohibitionoffinancialassistancetodirectors”),despiteknowingthattheprovisionoffinancialassistancewas inconsistent with that section or the company’s memorandum ofassociation;

(vi) a resolution approving a distribution, despite knowing that thedistributionwas contrary to section138 (“Distributionsmustbeauthorisedbyboard”),subjecttosubsection(4);

(vii) theacquisitionbythecompanyofanyofitsshares,orthesharesofitsholdingcompany,despiteknowingthattheacquisitionwascontrarytosection138or128(“Powerofcompanytopurchaseownshares”);or

(viii) anallotmentbythecompany,despiteknowingthattheallotmentwascontrarytoanyprovisionofSub-PartC(“Allotment”)ofPartII(“ShareCapitalandDebentures”)ofthisChaptertotheextentthattheallotmentoranacceptanceisdeclaredvoidunderthatSub-Partasreadwithsection65(1).


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(4)Theliabilityofadirectorintermsofsubsection(3)(e)(vi)asaconsequenceofthedirectorhavingfailedtovoteagainstadistributionincontraventionofsection138— (a) arisesonlyif— (i) immediatelyaftermakingallofthedistributioncontemplatedina

resolutionintermsofsection135(“Powerofcompanytoarrangefordifferentamountsbeingpaidonshares”),thecompanydoesnotsatisfythesolvencyandliquiditytest;and

(ii) itwasunreasonableatthetimeofthedecisiontoconcludethatthecompanywouldsatisfythesolvencyandliquiditytestaftermakingtherelevantdistribution;

and (b) doesnotexceed,inaggregate,thedifferencebetween— (i) the amount bywhich thevalueof thedistribution exceeded the

amount that could have been distributedwithout causing thecompanytofailtosatisfythesolvencyandliquiditytest;and

(ii) theamount,ifany,recoveredbythecompanyfrompersonstowhomthe distribution was made.

(5) If the board of a company hasmade a decision in amanner thatcontravenedthisAct,ascontemplatedinsubsection(3)(e)— (a) acompany,oranydirectorwhohasbeenormaybeheldliableinterms

ofsubsection(3)(e),mayapplytoacourtforanordersettingasidethedecisionoftheboard;and

(b) thecourtmaymake— (i) anordersettingasidethedecisioninwholeorinpart,absolutelyor

conditionally;and (ii) any furtherorder that is justandequitable in thecircumstances,

includinganorder— A. torectifythedecision,reverseanytransaction,orrestoreany

considerationpaidorbenefitreceivedbyanypersonintermsofthedecisionoftheboard;and

B. requiring the company to indemnify anydirectorwhohasbeenormaybeheldliableintermsofthissection,includingindemnification for the costs of the proceedingsunder thissubsection.

(6)Theliabilityofapersonintermsofthissectionisjointandseveralwithany other person who is or may be held liable for the same act. (7)Proceedingstorecoveranyloss,damagesorcostsforwhichapersonisor may be held liable in terms of this section may not be commenced more than three yearsaftertheactoromissionthatgaverisetothatliability. (8)Inadditiontotheliabilitysetoutelsewhereinthissection,anypersonwhowouldbesoliableisjointlyandseverallyliablewithallothersuchpersons— (a) topaythecostsofallpartiesinthecourtinaproceedingcontemplated

inthissectionunlesstheproceedingsareabandoned,orexculpatethatperson;and

(b) torestoretothecompanyanyamountimproperlypaidbythecompanyasaconsequenceoftheimpugnedact,andnotrecoverableintermsofthis Act.


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(9)Inanyproceedingsagainstadirector,otherthanforwilfulmisconductorwilfulbreachoftrust,thecourtmayrelievethedirector,eitherwhollyorpartly,fromanyliabilitysetoutinthissection,onanytermsthecourtconsidersjustifitappearstothecourtthat— (a) thedirectorisormaybeliable,buthasactedhonestlyandreasonably;

or (b) having regard to all the circumstances of the case, including those

connectedwiththeappointmentofthedirector,itwouldbefairtoexcusethe director.

(10)Adirectorwhohasreasontoapprehendthataclaimmaybemadeallegingthatthedirectorisliable,otherthanforwilfulmisconductorwilfulbreachoftrust,mayapplytoacourtforrelief,andthecourtmaygrantrelieftothedirectoronthesamegroundsasifthematterhadcomebeforethecourtintermsofsubsection(9).

198 Companysecretary:functions,qualificationsanddisqualifications (1)Every company shall have at least one secretary ordinarily resident inZimbabwe.

(2)Theboardofapubliccompanyshallappointoneormoresecretaries,beingapersonorpersonswhoarequalifiedintermsofsubsection(4)tobethesecretaryofapubliccompany,andwhomustnotalsoholdanotherofficeasanofficerofthecompany.

(3)Thefunctionsofthesecretaryshallincludebutneednotberestrictedto— (a) actingascustodianofthecompany’srecordsincludingtheshareholder

recordsreferredtoinSub-PartH(“Transferofsharesanddebentures,evidenceoftitles,etc”)ofPartII(“ShareCapitalandDebentures”)ofChapterIIIandthecompany’saccountingrecords;and

(b) ensuring thatnoticesofall shareholdermeetings,boardmeetingsandboardcommitteemeetingsaregiveninaccordancewiththisAct;and

(c) ensuringthatminutesofallsuchmeetingsarerecordedinaccordancewiththisAct;and

(d) advisingthedirectorsastotheirdutiesandpowersunderthisAct;and (e) making the directors aware of other laws relevant to or affecting the

company;and (f) certifyinginthecompany’sannualfinancialstatementswhetherthecompany

hasfiledrequiredreturnsandnoticesintermsofthisAct,includingbutnot limited to the company’s annual return and the board’s “comply or explain”reporttoshareholdersoncorporategovernanceundersection220 (“Corporategovernanceguidelinesforpubliccompanies”)(3).

(4)Apersonshallbequalifiedtoholdofficeassecretaryofapubliccompanyif— (a) foratleastthreeofthefiveyearsimmediatelybeforehisorherappointment

assecretary,heorsheheldofficeassecretaryofapubliccompany;or (b) heorsheisregisteredorentitledtoberegisteredasacharteredaccountant

undertheCharteredAccountantsAct[Chapter 27:02];or (c) heorsheisregisteredorentitledtoberegisteredasacharteredsecretary

undertheCharteredSecretaries(Private)Act[Chapter 27:03];or (d) heorsheisregisteredorentitledtoberegisteredasalegalpractitioner

undertheLegalPractitionersAct[Chapter 27:07];or


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(e) heorsheisregisteredorentitledtoberegisteredasapublicaccountantor public auditor under the Public Accountants and Auditors Act [Chapter 27:12];or

(f) heorsheholdssuchotherqualificationasmaybeprescribedinregulations.

(5)Thefollowingpersonsshallbedisqualifiedfrombeingappointedassecretaryofapubliccompany(andifanyofthefollowingdisqualificationsaffectasecretaryofaprivatecompany,subsection(10)shallapplythereto)— (a) aminororanyotherpersonunderlegaldisability; (b) exceptwiththeleaveofthecourt,anypersonwhohasatanytimebeen

adjudgedor otherwise declared insolvent or bankrupt under a law inforceinZimbabweoranyothercountry,andhasnotbeenrehabilitatedordischarged;

(c) exceptwiththeleaveofthecourt,anypersonwhohasatanytimebeenconvicted,whetherinZimbabweorelsewhere,oftheft,fraud,forgeryor uttering a forged document or perjury and has been sentenced for that offencetoimprisonmentwithouttheoptionofafineortoafineexceedinglevelfive;

(d) exceptwiththeleaveofthecourt,anypersonwhohasbeenremovedbyacompetentcourtfromanofficeoftrustonaccountofmisconduct.

(6)Thedirectorsofeverypubliccompanyshalltakereasonablestepstoensurethatthecompany’ssecretaryisapersonwhoisqualifiedintermsofsubsection(4)andisnotdisqualifiedintermsofsubsection(5)and, inaddition,hastherequisiteknowledgeandexperiencetodischargethefunctionsofsecretaryofthecompany.

(7)Asecretaryofapubliccompanyshallceasetoholdofficeassuchif— (a) he or she has at any timebeenor is adjudgedor otherwise declared

insolventorbankruptundera lawinforce inZimbabweoranyothercountry;or

(b) heorsheisconvicted,whetherinZimbabweorelsewhere,oftheft,fraud,forgery or uttering a forged document or perjury and has been sentenced therefortoserveatermofimprisonmentwithouttheoptionofafineortoafineexceedinglevelfive;or

(c) heorsheisremovedbyacompetentcourtfromanyofficeoftrustonaccount of misconduct.

(8)Ifapersonwhoisdisqualifiedunderthissectionfrombeingorcontinuingtobeasecretaryofanypubliccompanydirectlyorindirectlytakespartinorisconcernedinthemanagementofanycompany,heorsheshallbeguiltyofanoffenceandliabletoafinenotexceedinglevelsevenortoimprisonmentforaperiodnotexceedingtwoyearsortobothsuchfineandsuchimprisonment.

(9)Nothinginthissectionshallbedeemedtopreventacompanyfromapplyingunderitsregulationsanyfurtherdisqualificationfortheappointmentof,ortheretentionofofficeby,asecretary.

(10)Thedirectororprincipalshareholderofaprivatecompanyisnotboundbytheprovisionsofsubsections(4)and(5)whenappointingorcontinuingtoretainthesecretaryofthatcompany,butthedirectororprincipalshareholdermustfilewiththeRegistrar(withinthirtydaysofbecomingsoaware)astatementintheeventthatthesecretaryofhisorhercompanybecomesaffectedbyanyofthedisqualificationsinsubsection(3)thatwouldapplytohimorherifthesecretarywasthesecretaryofapubliccompany,whichstatementshallbeavailableforinspectiontothepublicatnormalworkinghours.


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Providedthatthedirectororprincipalshareholdershallwithdrawsuchfilingintheeventofthesecretaryofhisorhercompanynolongerbeingsubjecttoanysuchdisqualification.

199 Restrictionsonappointmentor advertisementof director; sharequalificationsofdirectors

(1)Thissectionshallnotapplyto— (a) anassociationlicensedundersection82(“Powertodispense“Limited”

incertaincases”);or (b) aprivatecompany;or (c) a companywhichwas a private company before becoming a public

company;or (d) aprospectusissuedbyoronbehalfofacompanyaftertheexpirationof

one year from the date at which the company was entitled to commence business.

(2)Apersonshallnotbecapableofbeingappointeddirectorofacompanybythearticles,andshallnotbenamedasadirectororproposeddirectorofacompanyinthelisttobelodgedintermsofsubsection(4)orinanyprospectusissuedbyoronbehalfofthecompany,orinrelationtoanintendedcompanyorinanystatementinlieuofprospectuslodgedbyoronbehalfofthecompany,unless,beforethelodgingofthelistorregistrationofthearticlesorthepublicationoftheprospectus,orthelodgingofthestatementinlieuofprospectus,asthecasemaybe,heorshehashimselforherselforbyhisorheragentauthorisedinwriting— (a) signedandlodgedwiththeRegistraraconsentinwritingtoactassuch

director;and (b) eithersignedthememorandumofassociationforanumberofsharesnot

lessthanhisorherqualification,ifany,orsignedandlodgedwiththeRegistraracontractinwritingtotakefromthecompanyandpayforhisorherqualificationshares,ifany.

(3)The share qualificationmentioned in subsection (2)means a sharequalification required on appointment to the office of director orwithin a perioddeterminedbyreferencetothetimeofappointmentandthewords“qualificationshares”shall be construed accordingly.

(4)Whenapplicationismadeundersection 18(“Registrationofconstitutivedocuments”)forregistrationofthememorandumandofthearticles,ifany,ofacompanytheapplicantshalllodgewiththeRegistraralist,intheprescribedform,ofthepersons,ifany,notbeinglessthantwo,withtheirfullnames,addressesandoccupations,whohaveconsentedtobedirectorsofthecompanyand,uponsuchregistration,thepersonswhohavesoconsentedshall,untilotherdirectorsareappointed,bedeemedtobethedirectors of the company and liable for all the duties and obligations of a director.

(5)Forthepurposesofsubsection(4),apersonwho,havingconsentedtobeadirector,hasbeforethelodgingofthelistwiththeRegistrarwithdrawnhisorherconsentbynoticeinwritinglodgedwiththeRegistrar,shallbedeemedtobeapersonwho has not so consented.

(6)Withoutprejudicetotherestrictionsimposedbythissection,itshallbethedutyofeverydirectorwhoisbythearticlesofthecompanyrequiredtoholdaspecifiedsharequalificationandwhoisnotalreadyqualified,toobtainhisqualificationwithintwomonthsafterhisorherappointmentorsuchshortertimeasmaybefixedbythearticles.


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(7)Theofficeofdirectorofacompanyshallbevacatedifthedirectordoesnot,within two months from the date of his or her appointment or within such shorter time asmaybefixedbythearticles,obtainhisqualificationorif,aftertheexpirationofthesaidperiodorshortertime,heorsheceasesatanytimetoholdhisorherqualification.

(8)Apersonvacatingofficeundersubsection(7)shallbeincapableofbeingreappointeddirectorofthecompanyuntilheorshehasobtainedhisorherqualification.

(9)If,aftertheexpirationofthesaidperiodorshortertime,anyunqualifiedpersonactsasadirectorofthecompany,theRegistrarmayserveuponhimorheracategory1civilpenaltyorder, inwhich thecumulativepenalty shallbecalculatedforeverydaybetweentheexpirationofthesaidperiodorshortertime,orthedayonwhichheorsheceasedtobequalified,asthecasemaybe,andthelastdayonwhichitisprovedthatheorsheactedasadirector.

200 Disqualificationforappointmentasdirector (1)Anyofthefollowingpersonsshallbedisqualifiedfrombeingappointedadirectorofapubliccompany— (a) abodycorporate;or (b) aminororanyotherpersonunderlegaldisability;or (c) apersonwhoisremovedbythecourtfromanyofficeoftrustonaccount

ofmisconductsavewiththeleaveofthecourt;or (d) apersonwhohasatanytimebeenconvictedwhetherinZimbabweor

elsewhere, of theft, fraud, forgery or perjury andhas been sentencedtherefortoserveatermofimprisonmentwithouttheoptionofafineortoafineexceedinglevelfive.

(2)Adirectorofanypubliccompanyshallceasetoholdofficeassuchif— (a) heorshehasanytimebeenorisadjudgedorotherwisedeclaredinsolvent

orbankruptunderalawinforceinZimbabweoranyothercountry;or (b) heorsheisconvicted,whetherinZimbabweorelsewhereoftheft,fraud,

forgeryorperjuryandhasbeensentencedthereforetoserveatermofimprisonmentwithouttheoptionofafineortoafineexceedinglevelfive;or

(c) exceptwiththeleaveofthecourt,anypersonwhohasatanytimebeenadjudgedor otherwise declared insolvent or bankrupt under a law inforceinZimbabweoranyothercountry,andhasnotbeenrehabilitatedordischarged;

(3)Ifanypersonwhoisdisqualifiedunderthissectionfrombeingorcontinuingtobeadirectorofanycompanydirectlyorindirectlytakespartinorisconcernedinthe management of any company he or she shall be guilty of an offence and liable to a finenotexceedingleveltenortoimprisonmentforaperiodnotexceedingtwoyearsortobothsuchfineandsuchimprisonment.

(4)Nothinginthissectionshallbedeemedtopreventacompanyfromapplyingunderitsregulationsanyfurtherdisqualificationfortheappointmentof,ortheretentionofofficeby,adirector.

(5) In relation to private companies, the secretaryor principal shareholdershallfilewiththeRegistrar(withinthirtydaysofbecomingsoaware)astatementintheeventthatadirectorofhisorhercompanyisorbecomesaffectedbyanyofthedisqualificationsinthissectionthatwouldapplytohimorherifthedirectorwasthedirectorofapubliccompany,whichstatementshallbeavailableforinspectiontothepublicatnormalworkinghours:


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Providedthatthesecretaryorprincipalshareholdershallwithdrawsuchfilingintheeventofthedirectorofhisorhercompanynolongerbeingsubjecttoanysuchdisqualification.

201 Appointmentofdirectorstobevotedonindividually (1)Atageneralmeetingofacompanyotherthanaprivatecompanyamotionfor the appointment of two or more persons as directors of the company by a single resolutionshallnotbemade,unlessaresolutionthatitshallbesomadehasfirstbeenagreedtobythemeetingwithoutanyvotebeinggivenagainstit.

(2)Aresolutionmovedincontraventionofsubsection(1)shallbevoid,whetherornotitsbeingsomovedwasobjectedtoatthetime:

Providedthat— (i) thissubsectionshallnotbetakenasexcludingtheoperationofsection

195(“Directorsandtheirfunctionsandresponsibilities”)(5); (ii) wherearesolutionsomovedispassed,noprovisionfortheautomatic

reappointment of retiring directors in default of another appointment shall apply.

(3) For the purposes of this section, amotion for approving a person’sappointment or for nominating a person for appointment shall be treated as a motion for his or her appointment.

202 Removalandresignationofdirectors (1)Oneormoredirectorsmayberemoved,withorwithoutastatedreasonorcause,atageneralmeetingbyamajorityofthevotesofsharesthenentitledtovoteatanelectionofdirectors,exceptthatnodirectormayberemovedunlessthenoticeofthemeetingstatesthatapurposeofthemeetingwastovoteontheremovalofsuchdirector at the meeting.

(2)The removal of a director shall not in itself prejudice any right tocompensationuponremovalwhichthedirectormayhaveunderacontractwiththecompany.However,theelectionorstatusofapersonasadirectorshallnot,initself,create any such rights.

(3)Adirectormayresignatanytimebygivingwrittennotice,asfarinadvanceasispracticable,totheboardofdirectorsoritschairperson.Aresignationiseffectivewhenthenoticeisgivenunlessthenoticespecifiesafuturedate.Thependingvacancymaybefilledbeforetheeffectivedateoftheresignation,butthesuccessorshallnottakeofficeuntiltheeffectivedate.

203 Vacancies on board of directors (1)Avacancyonaboardofdirectorsshallbefilledbyelectionatthenextgeneralmeetingatwhichdirectorsaretobeelected,exceptthatthecompany’sarticlesofassociationmayprovidethattheboardofdirectorsmayfillsuchvacancyuntilsuchtime,inwhichcaseitmaydosobutsubjecttosubsection(2).

(2)Ifatanytimevacanciesonaboardequaltwenty-five(25)per centum or moreof the totalnumberofboard seats, theboard shall conveneanextraordinaryshareholdermeetingtomeetwithintwomonthsafterthateventoccurs,forthepurposefillingthevacancies.

(3)Theforegoingshallnotapply if theannualgeneralmeetingis tooccurwithin that time.


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(4)Adirectorelectedtofillavacancyshallserveuntiltheexpirationofthetermofthedirectorwhosevacancythepersonfilled.

204 Quorumandvoterequired (1)Amajorityofthetotalnumberofdirectorsfixedinacompany’sarticlesofassociationshallconstituteaquorumfordecisionmakingandthetransactionofbusiness,unlessagreaternumberforaquorumisspecifiedinthearticlesofassociation.

(2)Theaffirmativevoteofamajorityofthedirectorspresentatameetingatwhichaquorumispresentshallbetheactanddecisionoftheboardofdirectors,unlessthearticlesofassociationrequiresagreaternumberofdirectors.

(3)Thechairpersonoftheboardshallhaveacastingvoteintheeventofadeadlockofthevotereferredtoinsubsection(2),unlessprovidedotherwiseinthearticles of association.

205 Minutes of meeting of board and committees (1)Minutesofeachmeetingoftheboardandanycommitteeshallbepreparedpromptlyafterthemeeting,andshallbesubmittedtotheboardorcommitteeatitsnextmeetingforitsreviewandadoption.

(2)Theminutesreferredtoinsubsection(1)shallinclude— (a) astatementoftheplaceandtimeofthemeeting;and (b) thepersonspresent;and (c) theagendaatthemeeting;and (d) theissuessubmittedforvoting;and (e) theresultsofeachvoteincludingthenamesofthedirectorswhovoted

“for”or“against”orwhoabstained;and (f) thedecisionswhichwereadoptedatthemeeting.

(3)Theminutesrequiredtobekeptintermsofthissectionshallbedeemedapprovedifsignedbythechairpersonofthemeeting.

(4)Failuretoactasrequiredbysubsection(1)shallnotinitselfaffectotherwisevaliddecisionsoftheboardofdirectors

(5)IfitcomestothenoticeoftheRegistrarthatacompanyhasnotbeenkeepingminutesinaccordancewiththissectionitshallbeliabletoacategory2civilpenalty.

206 Independentdirectorsrequiredforpubliccompanies (1)Inthissection— “independentdirector”meansadirectorofthecompanywhohasnot,orwhose

familymembershavenot receivedanypaymentorheldanyshareorinterest,oranypostinthecompanyreferredtointhedefinitionof“non-executivedirector”;

“non-executivedirector”meansadirectorof thecompanywho,oranyofwhose family members either separately or together with him or her or eachother,duringthetwoyearsprecedingthetimeinquestion—

(a) wasnotanemployeeofthecompany;and (b) didnot— (i) maketoorreceivefromthecompanypaymentsofmorethan

fiftythousand(500000)UnitedStatesdollarsortheequivalentthereof;or


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(ii) ownmorethanatwenty(20)per centum of the shares or other ownershipinterestofthesameextent,directlyorindirectly,inanentitythatmadetoorreceivedfromthecompanypaymentsofmorethantheamountstatedinsubparagraph(i);or

(iii) actasapartner,manager,directororofficerofapartnershiporcompanythatmadetoorreceivedfromthecompanypaymentsofmorethansuchamount;

and (c) didnotowndirectlyorindirectly(includingforthispurposeownership

byandfamilyshareholderorrelatedperson)morethantwenty(20)per centumofthesharesofanytypeorclassofthecompany;and

(d) wasnotengageddirectlyorindirectlyasanauditorforthecompany.

(2)Apubliccompanyshallhaveatleastthreenon–executiveorindependentdirectors on its board of directors.

(3)Inapubliccompany,anypersonwhonominatescandidatesfortheboardwho would comprise a majority of the members of the board must nominate at least threecandidatesanyoneofwhomwould,ifappointed,beanindependentdirector.

207 Shareholderapprovalofdirectors’emoluments (1)Acompanymaypayreasonableemolumentstodirectorswhichmayincludeshares or options for shares of the company. (2)Theemolumentsofadirectorofapubliccompanymustbeapprovedbythe shareholders of that company at the annual general meeting. (3)IfitcomestothenoticeoftheRegistrarthatapubliccompanyhasnotcompliedwithsubsection(2)totheRegistrarshallserveacategory2civilpenaltyorder upon the company

208 Prohibitionoffinancialassistancetodirectors (1)Itshallnotbelawfulforacompanytomakealoanorrenderotherfinancialassistance to any person who is its director or a director of its holding company or to enterintoanyguaranteeorprovideanysecurityinconnectionwithaloanmadetosucha person as aforesaid by any other person:

Providedthatnothinginthissectionshallapply— (a) subjecttosubsection(2),toanythingdonetoprovideanysuchperson

as aforesaid with funds to meet expenditure incurred or to be incurred by him or her for the purposes of the company or for the purpose of enablinghimorherproperlytoperformhisorherdutiesasanofficerofthecompany;or

(b) inthecaseofacompanywhoseordinarybusinessincludesthelendingofmoneyorthegivingofguaranteesinconnectionwithloansmadebyotherpersons,toanythingdonebythecompanyintheordinarycourseofthatbusiness;or

(c) toanythingdonebyaprivatecompany,whichisnotasubsidiarycompany,with the consent of members holding at least nine-tenths of the issued sharecapital;or

(d) tothemakingofaloantoadirectorwithaviewtoenablinghimorherto purchase or subscribe for fully paid shares in the company to be held byhimorherorintrustforhimorher,iftheloanismadeinaccordancewithsection123(“Financialassistancebycompanyforpurchaseofitsown or its holding company’s shares”).


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(2)Proviso(1)(a)shallnotauthorisethemakingofanyloanortheenteringintoanyguaranteeortheprovisionofanysecurity,except— (a) with thepriorapprovalof thecompanygivenatageneralmeetingat

which the purposes of the expenditure and the amount of the loan or the extentoftheguaranteeorsecurity,asthecasemaybe,aredisclosed;or

(b) onconditionthat,iftheapprovalofthecompanyisnotgivenasaforesaidatorbeforethenextfollowingannualgeneralmeeting,theloanshallberepaidortheliabilityundertheguaranteeorsecurityshallbedischarged,asthecasemaybe,withinsixmonthsfromtheconclusionofthatmeeting.

(3)Wheretheapprovalofthecompanyisnotgivenasrequiredbyanysuchcondition, thedirectorsauthorising themakingof the loanor theentering into theguarantee or the provision of the security shall be jointly and severally liable toindemnify the company against any loss arising therefrom.

(4)IfitcomestothenoticeoftheRegistrarthatanydefaulthasbeenmadeincomplyingwithsubsection(1),heorshemayserveacategory3civilpenaltyorderupon the company and everyofficerofthecompanywhoisindefault,inwhichtheremediationclauseshallrequirethedirectorreceivinganyloanincontraventionofthissectiontorepayittothecompanywithinthespecifiedperiodtogetherwithinterestattwicetheleveloftheprescribedrateofinterestprevailingatthetimethecivilpenaltyorder is issued

(5)Inrelationtoanyprivatecompany,thesecretaryorprincipalshareholdershallfilewiththeRegistrar(withinthirtydaysofbecomingsoaware)astatementintheeventthatadirectorreceivesanyloanwhichinthissectionwouldbeprohibitedifthedirectorwasadirectorofapubliccompany,whichstatementshallbeavailableforinspectionbythepublicduringnormalworkinghours.

209 Approvalofcompanyrequisiteforpaymentbyittodirectorforlossofoffice

(1)Itshallnotbelawfulforapubliccompanytomaketoanydirectorofthecompanyanypaymentbywayofcompensationforlossofofficeorasconsiderationfororinconnectionwithhisorherretirementfromoffice,withoutfullparticularswithrespect to theproposedpayment, including theamount thereof,beingdisclosed tomembersofthecompanyandtheproposalbeingapprovedbythecompanyingeneralmeeting.

(2) In relation to private companies, the secretaryor principal shareholdershallfilewiththeRegistrar(withinthirtydaysofbecomingsoaware)astatementintheeventthatadirectorhasbeenpaidforlossofoffice,furnishingalltheparticularsthereof,whichstatementshallbeavailableforinspectionbythepublicduringnormalworkinghours.

210 Approval of company requisite for payment in connectionwithtransferofitspropertytodirectorforlossofoffice

(1)Itshallnotbelawful,inconnectionwiththetransferofthewholeoranypartoftheundertakingorpropertyofapubliccompany,foranypaymenttobemadeby any person to any director of the company by way of compensation for loss of officeorasconsiderationfororinconnectionwithhisorherretirementfromoffice,unlessparticularswithrespecttotheproposedpayment,includingtheamountthereof,havebeendisclosedtothemembersofthecompanyandtheproposalapprovedbythecompany in general meeting.


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(2)Whereapaymentwhichisherebydeclaredtobeillegalismadetoadirectorofthecompany,theamountreceivedshallbedeemedtohavebeenreceivedbyhimorher in trust for the company.

(3) In relation to private companies, the secretaryor principal shareholdershallfilewiththeRegistrar(withinthirtydaysofbecomingsoaware)astatementintheeventthatatransfercontemplatedbysubsection(1)hasbeenmade,furnishingalltheparticularsthereof,whichstatementshallbeavailableforinspectionbythepublicduringnormalworkinghours.

211 Dutyofdirector todisclosepayments for lossofoffice,made inconnection with transfer of shares in company

(1)Where,inconnectionwiththetransfertoanypersonsofalloranyofthesharesinapubliccompany,beingatransferresultingfrom— (a) anoffermadetothegeneralbodyofshareholders;or (b) anoffermadebyoronbehalfofsomeotherbodycorporatewithaview

to the company becoming its subsidiary or a subsidiary of its holding company;or

(c) anoffermadebyoronbehalfofanindividualwithaviewtohisorherobtaining the right to exercise or control the exercise of not less than one-thirdofthevotingpoweratanygeneralmeetingofthecompany;or

(d) anyotherofferwhichisconditionalonacceptancetoagivenextent;

a payment is to be made to a director of the company by way of compensation for lossofofficeorasconsiderationfororinconnectionwithhisorherretirementfromoffice,itshallbethedutyofthatdirectortotakeallreasonablestepstosecurethatparticularswithrespecttotheproposedpayment,includingtheamountthereof,shallbeincludedinorsentwithanynoticeoftheoffermadefortheirshareswhichisgivento any shareholders

(2)If— (a) anysuchdirectorfailstotakereasonablestepsasaforesaid;or (b) anypersonwhohasbeenproperlyrequiredbyanysuchdirectortoinclude

the said particulars in or send them with any such notice as aforesaid fails sotodo;

suchdirectororsuchperson,asthecasemaybe,shallbeliabletoacategory1civilpenalty.

(3)If— (a) therequirementsofsubsection(1)arenotcompliedwithinrelationto

anysuchpaymentasisthereinmentioned;or (b) themakingoftheproposedpaymentisnot,beforethetransferofany

sharesinpursuanceoftheoffer,approvedbyameetingsummonedforthe purpose of the holders of the shares to which the offer relates and of otherholdersofsharesofthesameclassasanyofthesaidshares;

anysumreceivedbythedirectoronaccountofthepaymentshallbedeemedtohavebeenreceivedbyhimorherintrustforanypersonswhohavesoldtheirsharesasaresult of the offer made and the expenses incurred by him or her in distributing that sum amongst those persons shall be borne by him or her and not retained out of that sum.

(4)Where the shareholders referred to in subsection (3)(b) are not all themembersofthecompanyandnoprovisionismadebythearticlesforsummoningorregulatingsuchameetingasismentionedinthatprovision,theprovisionsofthisAct


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andofthecompany’sarticlesrelatingtogeneralmeetingsofthecompanyshall,forthatpurpose,applytothemeetingeitherwithoutmodificationorwithsuchmodificationsas the Registrar on the application of any person concerned may direct for the purpose of adapting them to the circumstances of the meeting.

(5)Ifatameetingsummonedforthepurposeofapprovinganypaymentasrequiredbysubsection(3)(b)aquorumisnotpresentand,afterthemeetinghasbeenadjournedtoalaterdate,aquorumisagainnotpresent,thepaymentshallbedeemedforthepurposesofthatsubsectiontohavebeenapproved.

212 Provisionssupplementarytosections209,210and211 (1)Whereinproceedingsfortherecoveryofanypaymentashaving,byvirtueofsection209(“Approvalofcompanyrequisiteforpaymentbyittodirectorforlossofoffice”)(1),210(“Approvalforcompanyrequisiteforpaymentinconnectionwithtransferofitspropertytodirectorforlossofoffice”)(1)and(2)or211(“Dutyofdirectortodisclosepaymentforlossofoffice,madewithtransferofsharesincompany”)(1)and(3),beenreceivedbyanypersonintrustitisshownthat— (a) thepaymentwasmadeinpursuanceofanyarrangemententeredintoas

partoftheagreementforthetransferinquestionorwithinoneyearbeforeortwoyearsafterthatagreementortheofferleadingthereto;and

(b) thecompanyoranypersontowhomthetransferwasmadewasprivytothatarrangement;

thepaymentshallbedeemed,exceptinsofarasthecontraryisshown,tobeonetowhichtheaforementionedprovisionsapply.

(2)If,inconnectionwithanysuchtransferasismentionedinsection210or211— (a) thepricetobepaidtoadirectorofthecompanywhoseofficeistobe

abolishedorwhoistoretirefromofficeforanysharesinthecompanyheldbyhimorherisinexcessofthepricewhichcouldatthetimehavebeenobtainedbyotherholdersofthelikeshares;or

(b) anyvaluableconsiderationisgiventoanysuchdirector;

theexcessorthemoneyvalueoftheconsideration,asthecasemaybe,shall,forthepurposesofthatsection,bedeemedtohavebeenapaymentmadetohimorherbywayofcompensationforlossofofficeorasconsiderationfororinconnectionwithhisorherretirementfromoffice.

(3)Referencesinsection208(“Prohibitionoffinancialassistancetodirectors”),209 or 210 to payments made to any director of a company by way of compensation for lossofofficeorasconsiderationfororinconnectionwithhisorherretirementfromofficedonotincludeanybona fide payment by way of damages for breach of contract orbywayofpensioninrespectofpastservicesandforthepurposesofthissubsectionthe expression “pension” includes any superannuation allowance, superannuationgratuity or similar payment.

(4)Nothinginsection208or209 shallbetakentoprejudicetheoperationofanyruleoflawrequiringdisclosuretobemadewithrespecttoanysuchpaymentsasarethereinmentionedorwithrespecttoanyotherlikepaymentsmadeortobemadeto the directors of a company.

213 Registerofdirectors’shareholdings (1)Everycompany,otherthanaprivatecompany,shallkeeparegistershowingasrespectseachdirectorofthecompanythenumber,descriptionandamountofany


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sharesinordebenturesofthecompanyoranyotherbodycorporate,beingthecompany’ssubsidiaryorholdingcompanyorasubsidiaryofthecompany’sholdingcompany,whichare held by or in trust for him or her or of which he or she has any right to become the holder,whetheronpaymentornot:

Providedthattheregisterneednotincludesharesinanybodycorporatewhichis the wholly owned subsidiary of another body corporate.

(2)Thenatureandextentofadirector’sinterestorrightinoroveranysharesor debentures recorded in relation to him or her in the said register must be indicated in the register.

(3)Thecompanyshallnot,byvirtueofanythingdoneforthepurposesofthissection,beaffectedwithnoticeoforputuponinquiryasto,therightsofanypersonin relation to any shares or debentures.

(4)Thesaidregistershall,subjecttothissection,bekeptatthecompany’sregisteredofficeandshallbeopentoinspectionduringbusinesshours,subjecttosuchreasonablerestrictionsasthecompanymaybyitsarticlesoringeneralmeetingimpose,sothatnotlessthantwohoursineachdaybeallowedforinspection,asfollows— (a) during the period beginning fourteen days before the date of the company’s

annual general meeting and ending three days after the date of its conclusion,itshallbeopentotheinspectionofanymemberorholderofdebenturesofthecompany;and

(b) during that or any other period it shall be open to the inspection of any person acting on behalf of the Registrar.

In computing the fourteen days and the three days mentioned in this subsection any day which is a Saturday or Sunday or public holiday shall be disregarded.

(5)TheRegistrarmayatanytimerequireacopyofthesaidregisteroranypart thereof.

(6)Thesaidregistershallbeproducedatthecommencementofthecompany’sannual general meeting and remain open and accessible during the continuance of the meeting to any person attending the meeting.

(7)Inthissection— (a) any person in accordance with whose directions or instructions the

directors of a company are accustomed to act shall be deemed to be a directorofthecompany;and

(b) adirectorofacompanyshallbedeemedtohold,ortohaveaninterestorrightinorover,anysharesordebenturesifabodycorporateotherthanthecompanyholdsthemorhasthatinterestorrightinoroverthem,and—

(i) that body corporate or its directors are accustomed to act inaccordancewithhisorherdirectionsorinstructions;or

(ii) heorsheisentitledtoexerciseorcontroltheexerciseofone-thirdormoreofthevotingpoweratanygeneralmeetingofthatbodycorporate.

(8)Itshallbethedutyofeverydirectorofacompanyandofeverypersondeemed tobeadirectorunder subsection (7) (a) togivenotice to thecompanyofsuch matters relating to himself or herself as may be necessary for the purposes of thissection.Anysuchnoticeshallbeinwritingandifitisnotgivenatameetingofdirectorsthepersongivingitshalltakereasonablestepstosecurethatitisbrought


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upandreadatthenextmeetingofdirectorsafteritisgiven.Anypersonwhomakesdefault in complying with this subsection shall be guilty of an offence and liable to a finenotexceedinglevelsixortoimprisonmentforaperiodnotexceedingsixmonthsortobothsuchfineandsuchimprisonment.

(9)Ifdefaultismadeincomplyingwith— (a) subsection(1)or(2),thecompanyandeveryofficerofthecompanywho

isindefaultshallbeliabletoacategory3civilpenalty; (b) subsection(4),thecompanyandeveryofficerofthecompanywhoisin

defaultshallbeliabletoacategory4civilpenalty; (c) subsection(5),thecompanyandeveryofficerofthecompanywhoisin

defaultshallbeliabletoacategory2civilpenalty; (d) subsection(6)or(8),thecompanyandeveryofficerofthecompanywho

isindefaultshallbeliabletoacategory1civilpenalty.

214 Prohibitionofallotmentofsharestodirectorssaveonsametermsastoallmembers,andrestrictiononsaleofundertakingsbydirectors

(1)Notwithstandinganythinginthearticles,thedirectorsofacompanyshallnotbeempowered,withouttheapprovalofthecompanyingeneralmeeting— (a) toissueorallotreservesharesornewsharestoanydirectororhisorher

nomineesaveinsofarastheyareissuedorallottedtohimorherortosuchnomineeasamemberonthesametermsandconditionsashavebeen simultaneously offered in respect of the said issue or allotment of shares to all the members of the company in proportion to their existing holdings;

(b) todisposeoftheundertakingofthecompanyorofthewholeorthegreaterpart of the assets of the company.

(2)No resolution of the company shall be effective as approving of thedifferential issue or allotment of shares to a director or of a disposal in terms of subsection(1)(b)unlessitauthorises,interms,thespecifictransactionproposedbythe directors.

215 Particularsinaccountsofdirectors’salariesandpensions (1) Inanyaccountsofacompany laidbefore it ingeneralmeetingor inastatementannexedtheretothereshall,subjecttoandinaccordancewiththissection,beshownsofarastheinformationiscontainedinthecompany’sfinancialrecordsorthecompanyhastherighttoobtainitfromthepersonsconcerned— (a) theaggregateamountofthedirectors’emoluments;and (b) theaggregateamountofdirectors’orpastdirectors’pensions;and (c) theaggregateamountofanycompensationtodirectorsorpastdirectors

inrespectoflossofoffice.

(2)Theamounttobeshownundersubsection(1)(a)— (a) shall include any emoluments paid to or receivable by anyperson in

respectofhisorherservicesasdirectorofthecompanyorinrespectofhisorherservices,whiledirectorofthecompany,asdirectorofanysubsidiary thereof or otherwise in connection with the management of theaffairsofthecompanyoranysubsidiarythereof;and

(b) shalldistinguishbetweenemolumentsinrespectofservicesasdirector,whetherofthecompanyoritssubsidiary,andotheremoluments;


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and for thepurposes of this section the expression “emoluments”, in relation to adirector,includesfeesandshareoftheprofits,sharesandshareoptions,anysumspaidby way of expenses allowance in so far as those sums are deemed under any law to be taxableincomeoftherecipient,anycontributionpaidinrespectofhimorherunderanypensionschemeandtheestimatedmoneyvalueofanyotherbenefitsreceivedbyhim or her otherwise than in cash.

(3)Theamounttobeshownundersubsection(1)(b)— (a) shallnotincludeanypensionpaidorreceivableunderapensionscheme

if the scheme is such that the contributions thereunder are substantially adequateforthemaintenanceofthescheme,butsaveasaforesaidshallincludeanypensionpaidorreceivableinrespectofanysuchservicesofa director or past director of the company as are mentioned in subsection (2),whethertoorbyhimorheror,onhisorhernominationorbyvirtueofdependenceonorotherconnectionwithhimorher,toorbyanyotherperson;and

(b) shall distinguish betweenpensions in respect of services as director,whetherofthecompanyoritssubsidiary,andotherpensions;

and for the purposes of this section the expression “pension” includes any superannuation allowance,superannuationgratuityorsimilarpaymentandtheexpression“pensionscheme”meansaschemefortheprovisionofpensionsinrespectofservicesasdirectororotherwisewhichismaintainedinwholeorinpartbymeansofcontributions,andtheexpression“contribution”,inrelationtoapensionscheme,meansanypayment,includinganinsurancepremium,paidforthepurposesoftheschemebyorinrespectofpersonsrenderingservicesinrespectofwhichpensionswillormaybecomepayableunderthescheme,exceptthatitdoesnotincludeanypaymentinrespectoftwoormorepersons if the amount paid in respect of each of them is not ascertainable.

(4)Theamounttobeshownundersubsection(1)(c)— (a) shallincludeanysumspaidtoorreceivablebyadirectororpastdirector

bywayofcompensationforthelossofofficeasdirectorofthecompanyorfortheloss,whiledirectorofthecompanyoronorinconnectionwithhisorherceasingtobeadirectorofthecompany,ofanyotherofficeinconnectionwiththemanagementofthecompany’saffairsorofanyofficeas director or otherwise in connection with the management of the affairs ofanysubsidiarythereof;and

(b) shalldistinguishbetweencompensationinrespectoftheofficeofdirector,whetherofthecompanyoritssubsidiary,andcompensationinrespectofotheroffices;

andforthepurposesofthissectionreferencestocompensationforlossofofficeshallinclude sums paid as consideration for or in connection with a person’s retirement fromoffice.

(5)Theamountstobeshownundereachparagraphofsubsection(1)— (a) shallincludeallrelevantsumspaidbyorreceivablefrom— (i) thecompany;and (ii) thecompany’ssubsidiaries;and (iii) anyotherperson; except sums to be accounted for to the company or any of its subsidiaries

or,byvirtueofsection211(“Dutyofdirectortodisclosepaymentforlossofoffice,madeinconnectionwithtransferofsharesincompany”),to past or present members of the company or any of its subsidiaries or anyclassofthosemembers;and


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(b) shalldistinguish,inthecaseoftheamounttobeshownundersubsection(1)(c), between the sums respectively paid byor receivable from thecompany,thecompany’ssubsidiariesandpersonsotherthanthecompanyand its subsidiaries.

(6)Theamountstobeshownunderthissectionforanyfinancialyearshallbethesumsreceivableinrespectofthatyear,wheneverpaid,or,inthecaseofsumsnotreceivableinrespectofaperiod,thesumspaidduringthatyearso,however,thatwhere— (a) anysumsarenotshownintheaccountsfortherelevantfinancialyearon

thegroundthatthepersonreceivingthemisliabletoaccountthereforasmentionedinsubsection(5)(a),buttheliabilityisthereafterwhollyorpartlyreleasedorisnotenforcedwithinaperiodoftwoyears;or

(b) anysumspaidbywayofexpensesallowanceareincludedintherecipient’staxableincomeaftertheendoftherelevantfinancialyear;

thosesumsshall,totheextenttowhichtheliabilityisreleasedornotenforcedortheyareincludedasaforesaid,asthecasemaybe,beshowninthefirstaccountsinwhichitis practicable to show them or in a statement annexed thereto and shall be distinguished fromtheamountstobeshownthereinapartfromthisprovision.

(7)Whereitisnecessarysotodoforthepurposeofmakinganydistinctionrequiredby this section in any amount to be shown thereunder, the directorsmayapportionanypaymentsbetweenthemattersinrespectofwhichtheyhavebeenpaidorarereceivableinsuchmannerastheythinkappropriate.

(8) If in the case of any accounts the requirements of this section are notcompliedwith,itshallbethedutyoftheauditorsofthecompanybywhomtheaccountsareexaminedtoincludeintheirreportthereon,sofarastheyarereasonablyabletodoso,astatementgivingtherequiredparticulars.

(9)Inthissectionanyreferencetoacompany’ssubsidiary— (a) inrelationtoapersonwhoisorwas,whileadirectorofthecompany,a

directoralso,byvirtueofthecompany’snomination,directorindirect,ofanyotherbodycorporate,shall,subjecttoparagraph(b),includethatbodycorporate,whetherornotitisorwasinfactthecompany’ssubsidiary;and

(b) shall,forthepurposesofsubsections(2)and(3),betakenasreferringtoasubsidiaryatthetimetheserviceswererenderedand,forthepurposesofsubsection(4),betakenasreferringtoasubsidiaryimmediatelybeforethelossofofficeasdirectorofthecompany.

(10)Itshallbethedutyofeverydirectorofapubliccompanyandofeverypersonwhohasatanytimeduringtheprecedingtwoyearsbeenadirectortogivenoticeto the company of such matters relating to himself or herself as may be necessary for thepurposesofthissection;andifheorshemakesdefaultincomplyingwithsuchdutyheorsheshallbeliabletoacategory3civilpenalty.

216 Particularsinaccountsofloanstoofficers (1)Saveinthecaseofprivatecompanies,theaccountswhich,inpursuanceofthisAct,aretobelaidbeforeeverycompanyingeneralmeetingshall,subjecttothissection,containparticularsshowing— (a) theamountofanyloanswhichduringtheperiodtowhichtheaccounts

relatehavebeenmadebythecompanyorbyanysubsidiarycompany,orbyanyotherpersonunderaguaranteefromoronasecurityprovidedbythe


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companyorsuchsubsidiarytoanydirectororotherofficerofthecompany,includinganysuchloanswhichwererepaidduringthesaidperiod;

(b) theamountofanyloansmadeinmanneraforesaidtoanydirectororofficerat any time before the period aforesaid and outstanding at the expiration thereof.

(2)Withrespecttoloanssubsection(1)shallnotapply— (a) inthecaseofacompanyorasubsidiarythereoftheordinarybusinessof

whichincludesthelendingofmoney,toaloanmadebythecompanyorthesubsidiaryintheordinarycourseofitsbusiness;or

(b) toaloanmadebythecompanyorthesubsidiarytoanyemployeeofthecompany if the loan does not exceed four thousand United States dollars andiscertifiedbythedirectorsofthecompanyorthesubsidiary,asthecasemaybe,tohavebeenmadeinaccordancewithanyschemeadoptedby the company or the subsidiary with respect to loans to its employees.

(3)Withrespecttoloanssubsection(1)shallapplytoaloantoanypersonwhohas,duringthecompany’sfinancialyear,beenadirectororotherofficerofthecompanymadebeforeheorshebecameadirectororofficer,asitappliestoaloantoadirectororofficerofthecompany.

(4)Ifinthecaseofanysuchaccountsasaforesaidprovisionsofthissectionarenotcompliedwith,itshallbethedutyoftheauditorsofthecompanybywhomtheaccountsareexaminedtoincludeintheirreportonthebalancesheetofthecompany,sofarastheyarereasonablyabletodoso,astatementgivingtherequiredparticulars.

(5)Referencesinthissectiontoasubsidiaryshallbetakenasreferringtoasubsidiaryattheendofthecompany’sfinancialyear,whetherornotasubsidiaryatthe date of the loan.

(6)Itshallbethedutyofeverydirectorandofeveryotherofficerofacompanyandofeverypersonwhohad,atanytimewithintheprevioustwoyears,beenadirectororofficertogivenoticetothecompanyofanysuchmattersrelatingtohimselforherselfasmaybenecessaryforthepurposesofthissection;andifheorshemakesdefaultincomplyingwithsuchdutyheorsheshallbeliabletoacategory3civilpenalty.

217 Register of directors and secretaries (1)Everycompanyshallkeepattheofficeatwhichtheregisterofmembersofthecompanyiskeptaregisterofitsdirectorsandsecretaries.

(2)The said register shall containwith respect to eachdirector his or herpresentfirstnameandsurname,anyformerfirstnameandsurname,anidentificationreferencenumberappearinginhisorheridentitydocument,hisorherfullresidentialorbusinessaddressandpostaladdress,hisorhernationalityandparticularsofanyother directorships held by him or her:

Providedthatitshallnotbenecessaryfortheregistertocontainparticularsof directorships held by a director in companies of which the company is the wholly owned subsidiary or which are the wholly owned subsidiaries either of the company oranothercompanyofwhichthecompanyisthewhollyownedsubsidiary,andforthepurposesofthisprovisotheexpression“company”shallincludeanybodycorporateincorporated in Zimbabwe.

(3)Thesaidregistershallcontainthefollowingparticularswithrespecttothesecretary,thatistosay— (a) inthecaseofanindividual,hisorherpresentfirstnameandsurname,

anyformerfirstnameandsurname,anidentificationreferencenumber


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appearing in his or her identity document and his or her full residential addressorbusinessandpostaladdresses;and

(b) inthecaseofacorporation,partnershiporotherassociation,itsnameandregisteredorprincipaloffice.

(4)Thecompanyshall,withintheperiodsrespectivelymentionedinsubsection(5),delivertotheRegistrarareturnintheprescribedformcontainingtheparticularsspecifiedinthesaidregisterandanotificationintheprescribedformofanychangeamong its directors or in its secretary or in any of the particulars contained in the register and of the date of any such change:

Providedthat,exceptwhenmakingitsannualreturnintermsofsection165(“Annualreturntobemadebycompany”),itshallnotbenecessaryforacompanytodelivertotheRegistraranotificationofanychangeintheparticularsofdirectorshipsheld by any of its directors in any other company.

(5)Theperiodwithinwhichthereturnornotificationreferredtoinsubsection(4)istobedeliveredtotheRegistrarshallbeonemonthaftertheincorporationofthecompanyorthedateonwhichthechangeisnotifiedtothecompany,asthecasemaybe.

(6)Itshallbethedutyofeverydirectorandsecretaryofeverycompanytofurnish thecompanywithallparticulars required for inclusion in the said register,includinganyadditiontooralterationorotherchangeinanysuchparticulars,andanydirector or secretary who neglects or fails without reasonable excuse to furnish the companywithanyparticularssorequiredwithinsevendaysafterdemandmadebythecompany,orwhofurnishesthecompanywithanyparticularwhichisincorrectinanyrespect,shallbeindefaultandliabletoacategory3civilpenalty.

(7)Theresignationofadirectororasecretaryshallnotrelievehimorherofhisorherdutiesasdirectororsecretary,asthecasemaybe,underthisActorunderthearticlesofthecompanyunlessthedirectororsecretary,havingnotifiedtheRegistrarandthecompanyofhisorherresignation,hadreasonablegroundtobelievethatthecompanywouldcomplywithsubsection(5).

(8)The register tobekept under this section shall, duringbusinesshours,subject to such reasonable restrictions as the company may by its articles or in general meetingimpose,sothatnotlessthantwohoursineachdaybeallowedforinspection,beopentotheinspectionofanymemberofthecompanywithoutcharge,andofanyother person on payment of twenty cents or such less sum as the company may prescribe for each inspection.

(9)Thecompanyshall,onapplication,furnishanypersonwithacopyorextractfromsuchregisteronpaymentoftwenty-fivecentsorsuchlesssumasthecompanymayprescribeforeveryhundredwordsorpartthereofoftherequiredcopyorextractoraffordtosuchpersonadequatefacilitiesformakingsuchcopyorextract.

Thecompanyshallcauseanycopyorextractsorequiredbyanypersontobesent to that person within a period of twenty-one days commencing on the day next afterthedayonwhichtherequirementisreceivedbythecompany.

(10)Subjecttosubsection(11),ifdefaultismadeincomplyingwithsubsection(1),(2),(3)or(4)thedefaultingcompanyshallbeliabletoacategory4civilpenalty.

(11)Ifanyinspectionunderthissectionisrefused,thedefaultingcompanyshallbeliabletoacategory2civilpenalty.

(12)Forthepurposesofthissection—


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(a) apersoninaccordancewithwhosedirectionsorinstructionsthedirectorsof a company are accustomed to act shall be deemed to be a director and officerofthecompany;

(b) inthecaseofapeerorpersonusuallyknownbyatitledifferentfromhisorhersurnametheexpression“surname”meansthattitle;

(c) referencestoaformerfirstnameorsurnamedonotinclude— (i) inthecaseofanyperson,aformerfirstnameorsurnamewherethe

name or surname was changed or disused before the person bearing thenameattainedtheageofeighteenyears;or

(ii) inthecaseofamarriedwoman,thenameorsurnamebywhichshewasknownprevioustothemarriage.

Sub-Part E: Responsibilities of boards, audit committees of public company and corporate governance guidelines for public companies

218 Board’sroleandresponsibilities (1)Theboardofdirectorsshallbe responsible fordecisionsonallmattersexceptthosereservedtotheshareholdersbythisActorbythecompany’s constitutivedocuments.

(2)Withoutlimitingtheforegoing,theboard’sresponsibilitiesinclude— (a) determininganddirectingoverallbusinessperformanceandstrategyplans

forthecompany;and (b) ensuringthatthefinancialrecords,financialstatementsandexternalaudit

referredtoinSub-PartC(“Accountsandaudit”)arekept,maintainedandperformedasstatedinthatSub-Part;and

(c) theappointment,removal,compensationandperformanceofofficersandoversightofmanagementofthecompany;and

(d) theconveningofandpreparationoftheinitialagendaforshareholdermeetings;and

(e) determiningtherecorddateforshareholdersentitledtoparticipateinashareholdermeeting,andsettingtheamountsandtherecorddatesof,andpaymentdatesfor,andproceduresinconnectionwith,thepaymentofdividendsandotherdistributions;and

(f) authorisingtheissuanceofsharesandothersecuritiesthattheboardisauthorised to issue and authorising the borrowing of money and otherwise incurringdebt,exceptineachcasewhenthosepowersarereservedtotheshareholders;and

(g) decidinganyothermattersreferredtotheexclusivecompetenceoftheboardofdirectorsinthecompany’sconstitutivedocuments.

(3)Theboardshallexercisecollectivelytheresponsibilitiesthatundersection195(“Directorsandtheirfunctionsandresponsibilities”)(2)directorsmustexerciseindividually.

(4)Theresponsibilitiesandaccountabilityof theboardofdirectorsand itscommitteesmaynotbetransferredto,dischargedbyordeterminedbyotherpersonsorotherbodieswithinoroutside thecompany; inparticular,an individualdirectormay not assign or delegate his or her responsibilities or accountability under this Act to another person.


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219 Audit committee of public company (1)TheBoardofeverypubliccompanyshallhavesuchcommitteesasmaybespecifiedinitsarticlesofassociation,butmustinanyeventappointanauditcommitteeconsistingof at least three appointees, all ofwhomshall be independent directors(undernocircumstancesmaythechairpersonoftheboardbeamemberoftheauditcommittee)andhavingtheresponsibilitiesspecifiedinsubsection(2).

(2)Theauditcommitteeshallberesponsiblefor— (a) the selection, remuneration, and termsof engagement of an external

auditor,who,initsjudgment,isindependentofthecompany,subjecttoratificationbytheshareholders;and

(b) proposing, for approval by the shareholders, the engagement of thatauditor upon such remuneration and other terms as it has determined to bereasonable;and

(c) monitoringtheindependenceofthecompany’sexternalauditorintermsofsubsection(4);and

(d) dischargingtheparticulartasksreferredtoinsubsection(5);and (e) reportingtotheshareholdersgenerallyonitsactivitiesandonmattersof

its greatest concern.

(3)Subsection(2)doesnotprecludetheappointmentbytheshareholdersatanannualgeneralmeetingofanauditorotherthanonenominatedbytheauditcommittee,butifsuchanauditorisappointed,theappointmentshallbevalidonlyiftheauditcommitteeissatisfiedthattheproposedauditorisindependentofthecompanyandqualifiedtoauditpubliccompaniesunderthePublicAccountantsandAuditorsAct[Chapter 27:12].

(4)Forthatpurposeofsubsection(2)(c)theauditcommitteeshallhaveauthoritytopre-approveanyarrangementunderwhichtheauditor,directlyorindirectly,providesnon-auditservicestothecompany,andtheauditcommitteeshall,inanyevent,makeadeterminationatleastonceeachyearoftheauditor’sindependencetakingaccountofany relationships of the auditor with the company or other persons that may compromise the auditor’s independence

(5)Theauditcommitteeshall,inaddition— (a) regularlyreviewanddiscusswiththeauditorthescopeandresultsofits

audit,anydifficultiestheauditorencounteredincludinganyrestrictionsonitsaccesstorequestedinformationandanydisagreementsordifficultiesencounteredwithmanagement;and

(b) reviewanddiscusswiththecompany’smanagementandtheauditoreachannualandeachquarterlyfinancialstatementofthecompanyincludingjudgmentsmadeinconnectionwiththefinancialstatements;and

(c) review and discuss the adequacy of the company’s internal auditingpersonnel and procedures and its internal controls and compliance procedures,andanyriskmanagementsystems,andanychangestothose;and

(d) overseethecompany’scompliancewithlegalandregulatoryrequirementsincluding but not limited to its compliance with generally accepted accountingpractices;and

(e) reviewanddiscussarrangementsunderwhichcompanyemployeescanconfidentially raise concerns about possible improprieties infinancialreportingorothermatters,andensurethatarrangementsareinplaceforindependentinvestigationandfollow-upregardingsuchmatters.


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(6)Theboardshallensurethattheauditcommitteehastheresourcesnecessaryfor its duties including the authority to engage external legal, accounting or otheradvisorswithoutseekingtheapprovaloftheBoard.Thecompanyshallprovidefundingfor the compensation of any such persons.

220Corporategovernanceguidelinesforpubliccompanies (1)The board of every public company shall establish or adoptwrittencorporategovernanceguidelinescoveringmatterssuchasstandardsforqualificationandindependenceofadirector,directors’responsibilitiesincludingmeetingattendance,diligence in reviewingmaterials, and rules for disclosure and reviewof potentialconflicts of interestwith the company, director compensation policy, successionplanningforbothdirectorsandofficers,andothercorporategovernancemattersdeemedappropriate. Such guidelines shall be consistent with the then current National Code onCorporateGovernance.

(2)Thecompanyshallmakesuchguidelinesavailableinprinttoanyshareholderwhorequestsit,attheshareholder’sexpense.

(3)Ateachannualshareholders’meeting thecompany’sboardofdirectorsshall report to the meeting on the company’s compliance with its guidelines and their conformitytotheprinciplessetforthintheNationalCodeonCorporateGovernance,andexplaintheextentifanytowhichithasvariedthemorbelievesthatanynoncompliancetherewithisjustified.

(4)Everypubliccompanyshallformulateandimplementapolicytopromotediversityandgenderbalanceintheirgovernancestructuresandemploymentpoliciesfrom the board downwards.

221 Officersofcompany (1)Aboardofdirectorsshallappointoneormoreindividualpersonsasofficers.

(2)A personmay be both a director and an officer, and a personmaysimultaneouslyholdmorethanoneoffice,unlessprovidedotherwiseinthecompany’smemorandum or articles.

(3)Theofficersshallbeunderthedirectionoftheboardofdirectorsandtheirresponsibility shall includemanagement andoperation of current activities of thecompanyorpartsthereof,otherthanmatterswithintheexclusivecompetenceoftheboard of directors or the members.

(4)Theboardofdirectorsmayelectaheadofficerandgivesuchpersonthetitle “chief executiveofficer,” “president,” “managingdirector,” or another similartitle,andtheperson’sdutiesmaybeprescribedindetailinthecompany’sarticlesofassociation or by a separate resolution of the board.

(5)Theheadofficerreferredtoinsubsection(4)shallhaveauthoritytoactgenerallyinthecompany’sname,representingthecompany’sinterests,concludingtransactions on the company’s behalf and giving instructions to the company’semployees.

(6)Theboardshallelect suchotherofficers,andmayauthoriseofficers toappointsubordinateofficers,astheboardconsidersappropriate,andtheboardmayprescribetheirrespectivetitles,functionsandauthorities.

(7)Anappointmentasanofficershallnotofitselfcreatecontractualrights,andanyofficermayberemovedbytheboardofdirectorsatanytimewithorwithoutspecificcause,butsuchremovalshallnotinitselfprejudicerightsunderanemploymentcontract,ifany,ofthepersonsoremoved.


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Sub-Part F: Protection of minority shareholders

222 Meaning of “member” and “company” in sections 223 to 225 (1) In sections 223 (“Order on application ofmember”), 224 (“Order onapplicationofRegistrar”)and225(“PowersofHighCourtinapplicationsundersections223and224”)— “member” includes a person who is not a member of the company but to whom

sharesinthecompanyhavebeentransferredortransmittedbyoperationof law.

(2)Insections223and224— “company” includesabodycorporate referred to in section43 (“Powerof

inspectorstoinvestigaterelatedregisteredorunregisteredentities”).

223 Order on application of member A member of a company may apply to the court for an order in terms of section 225 (“PowersofHighCourtinapplicationsundersections223to224”)onthegroundthatthecompany’saffairsarebeingorhavebeenconductedinamannerwhichisoppressiveorunfairlyprejudicialtotheinterestsofsomepartofthemembers,includinghimselforherself,orthatanyactualorproposedactoromissionofthecompany,includinganactoromissiononitsbehalf,isorwouldbesooppressiveorprejudicial.

224 Order on application of Registrar (1)Ifinthecaseofanycompany— (a) theRegistrarhasreceivedareportfromaninvestigatorundersection45

(“Registrar’sreport”)(1);and (b) itappearstohimorherthatthecompany’saffairsarebeingorhavebeen

conductedinamannerwhichisoppressiveorunfairlyprejudicialtotheinterestsofsomepartofthemembers,orthatanyactualorproposedactoromissionthecompany,includinganactorofomissiononitsbehalf,isorwouldbesooppressiveorprejudicial;

heorshemay,inadditiontoorinsteadofapplyingundersection46(“Proceedingsoninspector’sreport”)(2) forthewindingupofthecompany,applytothecourtforanorder in terms of section 225 (“Powers of High Court in applications under sections 223 to 224”).

225 Powers of court in applications under sections 223 and 224 (1)IftheHighCourtissatisfiedthatanapplicationundersection223(“Orderonapplicationofmember”)or224(“OrderonapplicationofRegistrar”)iswellfounded,itmaymakesuchorderasitthinksfitforgivingreliefinrespectofthematterscomplainedof.

(2)Without prejudice to the generality of subsection (1), the court’s ordermay— (a) regulatetheconductofthecompany’saffairsinthefuture; (b) requirethecompanytorefrainfromdoingorcontinuinganactcomplained

of by the applicant or to do an act which the applicant has complained it hasomittedtodo;

(c) authorisecivilproceedingstobebroughtinthenameandonbehalfofthecompanybysuchpersonorpersonsasthecourtmaydirect;


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(d) provideforthepurchaseofthesharesofanymembersofthecompanybyothermembersorbythecompanyitselfand,inthecaseofapurchasebythecompanyitself,thereductionofthecompany’scapitalaccordingly.

(3) If an order under this section prohibits a company from altering itsconstitutivedocuments,thecompanyshallnothavepowerwithoutleaveofthecourttomakeanysuchalteration. (4)Anyalterationinthecompany’sconstitutivedocumentsmadebyvirtueofan order under this section shall be of the same effect as if duly made by resolution of the company. (5)Acopyofanorderunderthissectionalteringorgivingleavetoalteracompany’sconstitutivedocuments,certifiedbytheregistrarofthecourtshall,withinfourteendaysfromthemakingoftheorderorsuchlongerperiodasthecourtmayallow,bedeliveredbythecompanytotheRegistrarforregistration.

(6)IfitcomestothenoticeoftheRegistrarthatacompanyhasmadedefaultincomplyingwithsubsection(5),thedefaultingcompanyshallbeliabletoa category 3civilpenalty.

Sub-Part G: Mergers, etc.

226 DefinitionsinChapterIIPartIII(G) InthisSub-Part— “amalgamation” means a merger in which one more existing companies merge

intoanotherexistingcompany; “consolidation” means a merger in which two or more companies are

consolidatedintoanewcompany; “major asset transaction” means a transaction or related series of transactions

involving— (a) thepurchaseorotheracquisitionoutside theusualcourseof the

company’sbusiness;or (b) thesaleorothertransferoutsidetheusualcourseofthecompany’s

business;or (c) the pledgeormortgage or other encumbrance outside the usual

courseofthecompany’sbusiness; by the company of another company’s property, property rights, or

otherrightsthevalueofwhich,onthedateofthecompany’sdecisiontocompletethetransaction,isfiftyper centumormoreofthebookvalueof the company’s assets based on the company’s most recently compiled statementoffinancialposition;

“merger” means amalgamation or consolidation of two or more companies.

227 Powertoundertakemergersandmajorassettransactions AprivateorpubliccompanyorcooperativecompanymayundertakeandcompleteamergeratanytimeasprovidedbytheTariffandCompetitionAct[Chapter 14:20] or a major asset transaction in accordance with this Sub-Part.

228 Procedure for merger (1)Twoormorepubliccompaniesoranycombinationofcompaniesconsistingofatleastonepubliccompanyandatleastoneprivatecompany(hereaftercalledthe“mergingcompanies”)mayundertakeamergerwhichmustcomplywiththefollowingrequirements—


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(a) enterintoaprovisionalcontractformergercompliantwithsection229(“Contentsofcontractofmerger”);and

(b) themergingcompaniesshallpublishnoticeoftheproposedmergerinthe Gazette and in a daily newspaper circulating in the district in which theregisteredofficeofthecompanyissituated,makingmentionofthenamesofthemergingcompanies;

(c) givenoticeoftheprovisionalcontractofmergertotheshareholdersofeachofthemergingcompanies,whichnoticeshallbecompliantwiththerequirementsforaspecialresolutionandshallbeaccompaniedby—

(i) acopyofthecontractformergertogetherwithanexplanationwhichdescribesthelegalandeconomicgroundsforthemerger;and

(ii) any recommendation of the board of directors on the proposedmergerandthereasonsfortherecommendation;and

(iii) acopyofanopinionofan independentfinancialadviser ifsuchan opinion has been obtained or is required under section 230(“Independentfinancialopinion”);and

(iv) theannualfinancialstatementsofallthecompanieswhicharepartiestothemergerforthepreviousthreeyears(oranyshortertimeofthecompany’sexistence):

Providedifthelatestannualfinancialstatementwasasofadatemorethansixmonthsbeforethecontractformerger,anauditedfinancialstatementfortheinterveningperiodendingnotlessthanonemonthbeforetheshareholdermeetingconcernedwhichreflectsthefinancialconditionofthecompanyconcerned(exceptthattheforegoing shall not apply to any new company which was created tobethesurvivingcompanyinthemerger),and

(v) anoticethatintheeventthatthemergerisapproved,dissentingshareholders are entitled to the rights referred to section 233 (“Dissentingshareholders’appraisalrights”);

(d) notlaterthanfourteendaysaftertheapprovalofthemergerbythelastshareholdermeetingtoapproveit,themergedcompanyorthemergingcompanies,asthecasemaybe,shall—

(i) file the contract formergerwith theRegistrar in the prescribedmannerandformandtogetherwiththeprescribedfee,uponwhichregistrationthemergershallbecomeeffective;

(ii) publishnoticeofthemergerintheGazette and in a daily newspaper circulating in the district inwhich the registered office of thecompanyissituated,makingmentionofthenamesofthemergingcompanies.

(2)Notwithstandingtheforegoingprovisionsofthissection,acompanythatowns ninety per centum or more of the shares of each class of shares of another company may— (a) mergethatsubsidiaryintoitself;or (b) mergethatcompanyintoanothersuchsubsidiary;or (c) mergeitselfintothatsubsidiary;

withouttheapprovaloftheboardofdirectorsorshareholdersofthesubsidiary,unlesstheconstitutivedocumentsofthesubsidiaryexpresslyprovidesotherwise.

(3)Acompanyengaginginamergerreferredtoinsubsection(2)shallnotrequireapprovalof itsshareholders in termsof thissection,unless theconstitutive


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documentsoftheholdingcompanyprovidesotherwise.Inanysuchcasewhereapprovalbythesubsidiary’sshareholdersisnotrequired,theparentcompanyshall,withintendaysaftertheeffectivedateofthemerger,notifyeachofthesubsidiary’sshareholdersthatthemergerhasbecomeeffective.

(4) If default ismade in complyingwith subsection (1) (d) (i) or (ii) thedefaultingmergedcompanyorthemergingcompanies,asthecasemaybe,shallbeliabletoacategory3civilpenalty.

229 Contentsofcontractofmerger Acontractofmergershallinclude— (a) thenameoftheregisteredofficeandcompanysecretaryofeachcompany

thatwillmergeandofthesurvivingornewcompanyintowhicheachcompanyplanstomerge;and

(b) thetermsandconditionsoftheproposedmerger;and (c) themannerandbasisofconvertingthesharesofeachmergingcompany

intocashorotherproperty,orshares,othersecuritiesordebtorotherobligationsofthesurvivingornewcompanyorofanyshareholderofthesurvivingcompany;and

(d) thefulltextoftheconstitutivedocumentsofthesurvivingornewcompanyasitwillbeineffectimmediatelyfollowingthemerger;and

(e) thedatefromwhichthetransactionsofeachnon-survivingcompanyshallbetreatedforaccountingpurposesasbeingthoseofthesurvivingornewcompany;and

(f) therightsconferredbythesurvivingornewcompanyontheholdersofsecuritiesotherthanshares,orthemeasuresproposedconcerningthem;and

(g) anyprovisionsunderwhichtheproposedmergercanbeabandonedbeforeitscompletion;and

(h) other provisions relating to themerger includingbut not limited to apossibleprovisionthatpaymentwillnotbemadeforanyconvertedsharesuntilafterthemergerhasbecomeeffective.

230 Independentfinancialopinion Theboard of directors of a private companymay, and the board of a publiccompanymust,obtainanopinionofanindependentprofessionalfinancialadviseronthetermsofthecontractformergerandtheproposedmerger,inwhichtheadvisershallstate— (a) theadviser’sanalysisandanexplanationofallthetermsofthecontract

formerger,includingthemethodormethodsusedtoarriveatanyproposedshareexchangeratioandthevaluesarrivedatusingeachmethod;and

(b) anopinionastothefairnessofthemergertotheshareholdersand,ifthereismorethanonetypeorclassofshareholders,toeachtypeorclassof shareholders and creditors of the merging companies.

231Effectofmerger The effect of a merger is that-- (a) thecompaniesthatarepartiestothemergerareonesinglecompanywhich

willbetheneworsurvivingcompanynamedinitsconstitutivedocumentsfiledwiththeRegistrarundersection 228(“Procedureformerger”)(1)(d)(i),andtheseparateexistenceofallsuchcompaniesexceptthesurvivingornewcompanyshallterminateonthedateofsuchfiling;and


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(b) thesurvivingornewcompanyownsalloftheassetsofandclaimsbyeachcompanythatwasapartytothemerger,ineachcaseofeverykind,whetherincontract,delictorotherwiseandwhetherknownorunknown,andwilloweallofthedebts,liabilitiesandobligationsofandbesubjecttoand responsible for all of the claims by any person against each company thatwasapartytothemerger,ineachcaseofeverykind,whetherincontact,delictorotherwiseandwhetherknownorunknown;and

(c) alllegalactionsorotherclaimsagainstanycompanythatwasapartytothemergermaybecontinuedagainstthesurvivingornewcompany,which will be substituted in the lawsuit or claim for the company whose existencehasterminated;and

(d) theconstitutivedocumentsofthesurvivingornewcompanyshallbetheconstitutivedocumentsassetforthinortogetherwiththecontract;and

(e) thesharesofeachcompanythatwasapartytothemergerareconvertedintoshares,othersecuritiesordebtorotherobligationsortherighttoreceivemoneyofthesurvivingornewcompany,andtheformerholdersofsuchsharesshallbeentitledonlytotherightsprovidedinthecontractof merger.

232 Procedure for major asset transactions (1)Apubliccompanymayundertakeamajorassettransactionsubjecttothefollowingconditions— (a) theboardofdirectorsofthecompanymustrecommendthetransaction

anddirectthatitbesubmittedforapprovaltoanannualorextraordinaryshareholdermeeting;and

(b) writtennoticeofthetransactionmustbedispatchednotlessthantwenty-onedaysbeforethemeetingoftheshareholders,statingthatthepurposeofthemeetingistoconsiderthetransactionandincluding—

(i) asummaryofthetransactionandtherecommendationoftheboardofdirectorsonthetransaction;and

(ii) astatementoftheshareholders’righttodissenttothetransaction;and

(iii) a statement that in the event that the transaction is approved,aggrievedshareholdersareentitledtotherightsreferredtosection233(“Dissentingshareholdersappraisalrights”);and

(c) the shareholders shall approve the transaction by adopting a specialresolutionupontheaffirmativevoteofholdersofallsharesentitledtovoteonthetransactionand,ifgroupvotingisrequired,aspecialresolutionofthevotesofeachvotinggroupentitledtogroupvotingonthetransactionandof the totalnumberofvotesof the sharesentitled tovoteon thetransaction.

(2)Ifatanytimebeforethetransactioninquestionisreferredtoameetingofshareholders,anydisputeorquestionarisesastowhetherthetransactioninquestionisoutsidetheusualcourseofthebusinessofthecompanyornot,orthatthetransactionisamergerandnotamajorassettransaction,anydissentingdirectororshareholderof the company concerned or any other interested person may on notice to the other disputantsmakeachamberapplicationtoaMagistratehavingjurisdictionintheareawherethecompanyhasitsregisteredoffice.

233Dissentingshareholders’appraisalrights (1)Ifacompanyhasgivennoticetoshareholdersofameetingtoconsideradoptingaresolutiontoenterintoatransactioncontemplatedinsection143(“Variation


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ofrightsattachingtoshares”)and228(“Procedureformerger”),thatnoticemustincludea statement informing shareholders of their rights under this section.

(2)Atanytimebeforearesolutionreferredtoinsubsection(1)istobevotedon,adissentingshareholdermaygivethecompanyawrittennoticeobjectingtotheresolution.

(3)Within ten business days after a company has adopted a resolutioncontemplatedinthissection,thecompanymustsendanoticethattheresolutionhasbeenadoptedtoeachshareholderwho— (a) gavethecompanyawrittennoticeofobjectionintermsofsubsection

(1);and (b) hasneither— (i) withdrawnthatnotice;or (ii) votedinsupportoftheresolution.

(4)Ashareholdermaydemandthatthecompanypaytheshareholderthefairvalueforallofthesharesofthecompanyheldbythatpersonif— (a) theshareholder— (i) sentthecompanyanoticeofobjection,subjecttosubsection(5);

and (ii) inthecaseofsection140(“NoticetoRegistrarofconsolidation

ofsharecapital,conversionofsharesintostock”)holdssharesofaclassthatismateriallyandadverselyaffectedbythealteration;

and (b) thecompanyhasadoptedtheresolutioncontemplatedinsubsection(1);

and (c) theshareholder— (i) votedagainstthatresolution;and (ii) hascompliedwithalloftheproceduralrequirementsofthissection.

(5)The requirement of subsection (4)(a)(i) does not apply if the companyfailedtogivenoticeofthemeeting,orfailedtoincludeinthatnoticeastatementofthe shareholders rights under this section.

(6)Ashareholderwhosatisfiestherequirementsofsubsection(4)maymakeademandcontemplatedinthatsubsectionbydeliveringawrittennoticetothecompanywithin— (a) twentybusinessdaysafterreceivinganoticeundersubsection(4);or (b) iftheshareholderdoesnotreceiveanoticeundersubsection(4),within

twenty business days after learning that the resolution has been adopted.

(7)Ademanddeliveredintermsofsubsections(4)to(6)muststate— (a) theshareholder’snameandaddress;and (b) thenumberandclassofsharesinrespectofwhichtheshareholderseeks

payment;and (c) ademandforpaymentofthefairvalueofthoseshares.

(8)Ashareholderwhohassentademandintermsofsubsections(4)to(6)hasnofurtherrightsinrespectofthoseshares,otherthantobepaidtheirfairvalue,unless—


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(a) theshareholderwithdrawsthatdemandbeforethecompanymakesanofferundersubsection(9),orallowsanoffermadebythecompanytolapse,ascontemplatedinsubsection(10)(b);or

(b) thecompanyfailstomakeanofferinaccordancewithsubsection(9)andtheshareholderwithdrawsthedemand;or

(c) the company revokes the adopted resolution that gave rise to theshareholder’s rights under this section.

(9) If any of the events contemplated in subsection (8) occur, all of theshareholder’s rights in respect of the shares are reinstated without interruption.

(10)Withinfivebusinessdaysafterthelaterof— (a) thedayonwhichtheactionapprovedbytheresolutioniseffective;or (b) thelastdayforthereceiptofdemandsintermsofsubsection(6)(a);or (c) thedaythecompanyreceivedademandascontemplatedinsubsection

(6)(b),ifapplicable;

the company must send to each shareholder who has sent such a demand a written offertopayanamountconsideredbythecompany’sdirectorstobethefairvalueoftherelevantshares,subjecttosubsection(14),accompaniedbyastatementshowinghowthatvaluewasdetermined.

(11)Everyoffermadeundersubsection(10)— (a) inrespectofsharesofthesameclassorseriesmustbeonthesameterms;

and (b) lapsesifithasnotbeenacceptedwithinthirtybusinessdaysafteritwas

made.

(12)Ifashareholderacceptsanoffermadeundersubsection(10)— (a) theshareholdermusteitherinthecaseof— (i) sharesevidencedbycertificates,tendertherelevantsharecertificates

tothecompanyorthecompany’stransferagent;or (ii) uncertificatedshares,takethestepsrequiredintermsofsection151

(“Transferoftitletosharesanddebentures”)todirectthetransferofthosesharestothecompanyorthecompany’stransferagent;

and (b) thecompanymustpay thatshareholder theagreedamountwithin ten

businessdaysaftertheshareholderacceptedtheofferand— (i) tenderedthesharecertificates;or (ii) directedthetransfertothecompanyofuncertificatedshares.

(13)Ashareholderwhohasmadeademandintermsofsubsections(4)to(7)mayapplytoacourttodetermineafairvalueinrespectofthesharesthatwerethesubjectofthatdemand,andanorderrequiringthecompanytopaytheshareholderthefairvaluesodetermined,ifthecompanyhas— (a) failedtomakeanofferundersubsection(10);or (b) madeanofferthattheshareholderconsiderstobeinadequate,andthat

offer has not lapsed. (14)Onanapplicationtothecourtundersubsection(13)— (a) all dissenting shareholderswhohave not accepted an offer from the

company as at the date of the application must be joined as parties and areboundbythedecisionofthecourt;and


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(b) thecompanymustnotifyeachaffecteddissentingshareholderofthedate,placeandconsequencesoftheapplicationandoftheirrighttoparticipateinthecourtproceedings;and

(c) thecourt— (i) maydeterminewhetheranyotherpersonisadissentingshareholder

whoshouldbejoinedasaparty;and (ii) mustdetermineafairvalueinrespectofthesharesofalldissenting

shareholders,subjecttosubsection(15);and (iii) initsdiscretionmay— A. appoint one or more appraisers to assist it in determining the

fairvalueinrespectoftheshares;or B. allowareasonablerateofinterestontheamountpayableto

eachdissentingshareholderfromthedatetheactionapprovedbytheresolutioniseffective,untilthedateofpayment;

and (iv) maymakeanappropriateorderofcosts,havingregardtoanyoffer

madebythecompany,andthefinaldeterminationofthefairvaluebythecourt;and

(v) mustmakeanorderrequiring— A. thedissentingshareholderstoeitherwithdrawtheirrespective

demands,inwhichcasetheshareholderisreinstatedtotheirfullrightsasashareholder,ortocomplywithsubsection(12)(a);and

B. thecompanytopaythefairvalueinrespectoftheirsharesto each dissenting shareholder who complies with subsection (12)(a),subjecttoanyconditionsthecourtconsidersnecessarytoensure that thecompanyfulfils itsobligationsunder thissection.

(15)Thefairvalueinrespectofanysharesmustbedeterminedasatthedateonwhich,andtimeimmediatelybefore,thecompanyadoptedtheresolutionthatgaverise to a shareholder’s rights under this section.

(16)Iftherearereasonablegroundstobelievethatcompliancebyacompanywithsubsection(12)(b),orwithacourtorder in termsofsubsection(14)(c)(v)(B),would result in the company being unable to pay its debts as they fall due and payable fortheensuingtwelvemonths— (a) thecompanymayapplytoacourtforanordervaryingthecompany’s

obligationsintermsoftherelevantsubsection;and (b) thecourtmaymakeanorderthat— (i) isjustandequitable,havingregardtothefinancialcircumstances

ofthecompany;and (ii) ensuresthatthepersontowhomthecompanyowesmoneyinterms

of this section is paid at the earliest possible date compatible with thecompanysatisfyingitsotherfinancialobligationsastheyfalldue and payable.

(17)Iftheresolutionthatgaverisetoashareholder’srightsunderthissectionauthorisedthecompanytoconcludeamergerormajorassettransactionorvariationofshareswithoneormoreothercompanies,suchthatthecompanywhosesharesarethesubjectofademandintermsofthissectionhasceasedtoexist,theobligationsofthat


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company under this section are obligations of the successor to that company resulting fromtheamalgamationormergerorvariationofshares.

(18)Forgreatercertainty,themakingofademand,tenderingofsharesandpayment by a company to a shareholder in terms of this section do not constitute a distributionbythecompany,oranacquisitionofitssharesbythecompanywithinthemeaningofsection128(“Powerofcompanytopurchaseitsownshares”),andthereforearenotsubjectto— (a) theprovisionsofthatsection;or (b) theapplicationbythecompanyofthesolvencyandliquiditytestsetout

insection102(“Solvencyandliquiditytest”).

Sub-Part H: Takeovers

234DefinitionsinSub-PartH InthisSub-Part— “associate”ofapersonmeansanynaturalorjuristicpersonwho(whetheror

notwithaviewtoenablingthemtoacquireacontrolblockofsharesinapubliccompany)isanassociateinvirtueofalloranyofthefollowing,thatistosayinvirtueof—

(a) acting bymutual agreement in concert or combinationwith thefirst-mentionedperson;or

(b) holdingthecontrolblockofsharesinthefirst-mentionedperson,orthefirstmentionedpersonholdingthecontrollingblockofsharesintheassociate;or

(c) actinginaccordancewiththefirst-mentionedperson’sinstructions,orthefirst-mentionedpersonactinginaccordancewiththeassociate’sinstructions;or

(d) beingrelatedbybloodormarriagetoeachother; “controlblock”meansthirty-fiveper centum or more of the total of the ordinary

sharesofacompanyandanypreferenceshareswhichhavetherighttovotewithordinaryshares.

235Disclosureofpotentialcontrolacquisition (1)Apersonwhoaloneortogetherwithanyassociateacquiresorownsmorethan twenty per centumof theordinary sharesofapubliccompanyshall,no laterthanfifteendaysfromthedatethatsuchpersonacquiressuchnumberofshares,sendwrittennoticetothecompanystatingtheperson’sname,thenamesoftheassociateorassociates,ifany,thenumberofsharesofthecompanybelongingtohimorherortoeachofthem(asthecasemaybe),andwhetherthepersonintendstoacquireacontrolblock.

(2)Ifapersonmakesdefaultincomplyingwithsubsection(1)thecompanysecretaryorotherresponsibleofficerofthepubliccompanyconcernedshallrequestanyperson— (a) towhomitisabouttoallot,issueortransferanyofitssharesthatmay

exceedthethresholdmentionedinthatprovision,tofurnishitwiththeinformationrequiredbythatprovision,andifthepersonfailsorrefuseswithinareasonabletimetocomplywiththerequestthecompanyshallnotallot,issueortransferthesharesorinteresttohimorher;or

(b) whomithasreasontobelieveholdssharesthatmayexceedthethresholdmentionedinthatprovisiontofurnishitwiththeinformationrequired


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bythatprovision,andforsolongasthepersonfailsorrefuseswithinareasonabletimetocomplywiththerequestheorsheshallnot,eitherpersonallyorbyproxy,castavoteattachedtothesharenorreceiveadividendpayableontheshare.

236Acquisitionofcontrolblockofsharesofpubliccompany (1)Apersonwhointends,aloneortogetherwithoneormoreassociatestoacquire, taking intoaccount thenumberof sharesbelonging to thepersonand theassociateorassociates,acontrolblockofsharesofapubliccompanymust,nolaterthanthirtydayspriortothedateofacquiringthecontrolblock,sendwrittennoticetothecompanystatingtheperson’sintenttoacquireacontrolblockofshares.

(2)Apubliccompanyinwhichacontrolblockofsharesissoughttobeacquiredundersubsection(1),maystoptheacquisitionofthecontrolblock,byadecisionofashareholdermeetingwithinthethirty-daynoticeperiod,adoptedbymajorityvoteoftheholdersofordinarysharesparticipatinginthemeeting,excludingvotesofsharesheldbyshareholderswhointendtoacquirethecontrolblock,andexcludingvotesofsharesheldbyassociateswhointendtoacquirethecontrolblock.

(3)Anyshareholderorclassofshareholdersmayforgoodcauseshown,byapplicationtoamagistrateinchambershavingjurisdictionintheareawherethetakeoverisbeingeffected,applyforaninterdictstoppingtheacquisitionofthecontrolblockafternoticeofintentiontoacquireitisgivenintermsofthissection,whereuponthemagistratemayifheorshethinksfit,referthematterfortrial.

237 Offer for remaining shares (1)Apersonwhoaloneortogetherwiththeperson’sassociateorassociateshasacquiredacontrolblockofsharesofapubliccompanymustonthedateofacquisitiongivenoticethereoftoshareholdersinwritingandwithinsixtydaysofsuchnoticemustgivefurthernoticeinwritingtoalloftheremainingcompany’sshareholdersofferingtoacquirethecompany’sordinarysharesbelongingtothematapricenotlessthantheweightedaveragepriceatwhichheorsheacquiredthecompany’ssharescomprisingthecontrolblockduringthelastsixmonthsprecedingthedateofacquisitionofthecontrolblock,exceptforthecasewhenashareholdermeetingadoptsadecisiontowaivetherightsofshareholderstosellthesharesbelongingtotheminaccordancewithsubsection(3).

(2)Thenoticeofoffershallcontaininformationidentifyinganddescribingthepersonwhohasacquiredthecontrolblockandtheperson’sassociateorassociates,includingtheirnames,residenceandbusinessaddresses,thenumberofsharesbelongingtothem,thepriceofferedfortheshares,thepriceorpricespaidbythemfortheshareswhichtheyhold,andtheperiodduringwhichtheoffereeshareholderscanaccepttheoffertoacquireshares(whichmaynotbelessthanthirtydaysfromthedateofsendingtheoffertoshareholders).

(3)Anydecisionundersubsection(1)towaivetheshareholders’righttosellsharesbelongingtothemtoapersonwhohasacquiredorintendstoacquireacontrolblockmaybeadoptedbyashareholdermeetingbyamajorityofvotesoftheholdersofordinarysharesparticipatinginthemeeting,excludingvotesofsharesbelongingtothepersonwhohasacquiredorintendstoacquireacontrolblockofsharesandexcludingvotesofsharesheldbytheperson’sassociateorassociates.

(4)Anyshareholderorclassofshareholdersmaybyapplicationtoamagistrateinchambershavingjurisdictionintheareawherethetakeoverisbeingeffected,applyforaninterdictstoppingtheacquisitionofthecontrolblockonthegroundsthatthe


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personacquiringthecontrolblockandhisorherassociatesarenotcomplyingwiththerequirementsofthissection,whereuponthemagistratemayifheorshethinksfit,refer the matter for trial.

(5)Acquisitionofacontrolblockandsendingtoholdersofordinarysharestheoffertoacquiretheordinarysharesbelongingtothemshallbecompletedwithinonehundredandtwentydaysfromthedateofsendingthenoticeundersubsection(2)oftheofferofacontrolblockofacompany’sshares.

238Drag-along:rightofofferorwith90%tosqueezeoutminority (1)Ifwithinonehundredandtwentydaysafterthedateofanoffermadeundersection237(“Offerforremainingshares”)theofferhasbeenacceptedbytheholdersof at least ninety per centumofthetargetshares,otherthananysuchsharesheldbeforetheofferbytheofferoranditsassociateorassociates— (a) the offerormaywithin sixty days thereafter notify the holders of the

remaining target shares that the offer has been accepted to that extent andtheofferorwishestoacquireallremainingtargetshares;and

(b) aftergivingsuchnoticetheofferorshallbeentitledandboundtoacquireall such remaining shares on the same terms that applied to shares whose holders accepted the original offer.

(2)Ifanoffertoacquiresuchremainingshareshasnotbeenacceptedbyallsuchofferees, theofferormayapply to themagistratescourthavingjurisdiction intheareawherethetakeoverisbeingeffected,foranorderauthorisingtheofferortogiveagainthenoticecontemplatedbysubsection(1)(b)withtheeffectstatedinthatsubsection.Thecourtshallissuesuchorderifthecourtfindsthat— (a) theminimumnumberofacceptancesreferredtoinsubsection(1)have

beenreceived;and (b) theofferor,aftermakingreasonableinquiries,hasbeenunabletotrace

holdersifanyoftargetsharestowhomthenoticeisnotgiven;and (c) thecourtissatisfiedthatitisjustandreasonabletomaketheorderhaving

regard,inparticular,tothenumberofholdersoftargetshareswhohavebeentracedandnotifiedbutwhohavenotacceptedtheoffer.

239Tag-along:rightofminoritytosellouttoofferorhaving90% (1) If anoffermadeunder section237 (“Offer for remaining shares”) hasresultedintheofferor’sacquisitionofatleastninetyper centumofthetargetshares,the offeror must inform the holders of the remaining target shares in writing no later thanthirtydaysafteracquiringthemthattheofferhasresultedintheacquisitionofthetarget shares to that extent.

(2)Withinninetydaysofreceiptofsuchinformationanyholderoftheremainingtargetsharesmaydemandbynoticeinwritingthattheofferoracquireallofthatperson’starget shares.

(3)After receiving suchnotice the offeror is bound to acquire all of suchperson’s target shares on the same terms that applied to shares of holders who accepted the original offer.

(4)Anofferorwhofailstocomplywiththissectionissubjecttoacategory3civilpenalty.


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PART IV

foreiGn comPanies

Sub Part A: General

240DefinitionsinChapterIIPartIV(A) ForthepurposesofthisPart— “bankingcompany”meansacompanywhichcarriesoninZimbabwebanking

businessasdefinedinsection2(1)oftheBankingAct[Chapter 24:20]; “insurance company” means a company which carries on insurance business

withinthemeaningoftheInsuranceAct[Chapter 24:07]; “placeof business”, in relation to a company,means anyplacewhere the

companytransactsorholdsitselfoutastransactingbusiness,andincludesasharetransferorshareregistrationoffice;

“principalofficer”,inrelationtoaforeigncompany,meansthepersonnotifiedin termsof section241 (“Requirements as to foreign companies”)(3)(b)asthepersonresponsibleforthemanagementofthebusinessofthatcompany in Zimbabwe

241Requirementsastoforeigncompanies (1)Subjecttosubsection(16),everyforeigncompanywhichintendstoestablishaplaceofbusinessinZimbabweshallsubmittotheMinister— (a) acopy,dulycertifiedtobeatruecopyoftheoriginalbyadirectorresiding

inZimbabweorbyanotarypublic,ofitsconstitutivedocumentsand,iftheinstrumentisinaforeignlanguage,acertifiedtranslationthereof;

(b) alistintheprescribedformofitsdirectorsresidentorwhowillupontheestablishment of the place of business be resident in Zimbabwe containing inrespectofeachdirectorsimilarparticularstothoserequiredbysection217(“Registerofdirectorsandsecretaries”)tobecontainedintheregisterofdirectorsandsecretariesreferredtointhatsection;

(c) iftheforeigncompanyisthesubsidiaryofanothercompanyorcompanies,the name or names of such holding company or companies as the case may be.

(2)Unless theMinister isof theopinion that itwouldnotbe in thepublicinteresttodoso,heorsheshallissueacertificate,subjecttosuchconditionsasmaybeprescribed, authorising the foreign company to establish a placeof business inZimbabwe.

(3)NoforeigncompanyshallestablishaplaceofbusinesswithinZimbabweunlessitisregisteredandforsuchpurposeshalllodgewiththeRegistrar— (a) thedocumentsreferredtoinsubsection(1)togetherwiththecertificate

referredtoinsubsection(2); (b) anoticeintheprescribedformofthenameandresidentialaddressofthe

principalofficerwhowillbethepersonresponsibleforthemanagementofitsbusinessinZimbabwe,beingapersonwhoisordinarilyresidentoracitizenofZimbabweandshallacceptonitsbehalfserviceofprocessandanynoticerequiredtobeservedonit:

(c) theaddressofitsprincipalplaceofbusinessinZimbabwe

(4)Ifanyalterationismadein— (a) theconstitutivedocumentsofaforeigncompany;or


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(b) thedirectorsresidentinZimbabweortheprincipalofficerofaforeigncompany or the particulars contained in the list referred to in subsection (1)(b);or

(c) theaddressofthesaidprincipalplaceofbusiness;

theforeigncompanyshall,withinonemonthofsuchalteration,lodgewiththeRegistrarforregistrationareturncontainingparticularsofthealterationand,ifthealterationis inanyinstrumentreferredto inparagraph(a),alsoacertifiedcopyandcertifiedtranslation,ifneedbe,oftheinstrumentshowingthealteration.

(5)Everyforeigncompanyshall,withinonemonthafterthedateofarequestinwritingbytheRegistrartothateffect,lodgewiththeRegistrarparticularsofthename,residentialaddressandnationalityofeverydirectorofthatforeigncompanywho is not resident in Zimbabwe.

(6)Anyprocessornoticerequiredtobeservedonaforeigncompanyshallbesufficientlyservedifdeliveredattheaddressoftheprincipalofficer:

Providedthat— (a) whereanysuchforeigncompanymakesdefaultinfilingwiththeRegistrar

thenameandaddressofitsprincipalofficer;or (b) if at any time the principal officer is deador has ceased to reside in

Zimbabweorforanyotherreasoncannotbeserved;

anyprocessornoticemaybeservedontheforeigncompanybyleavingitatanyplaceof business established by it in Zimbabwe.

(7)Everyforeigncompanyshallineveryyearmakeoutastatementoffinancialpositionandprofitorlossandothercomprehensiveincomeaccount,insuchform,andcontainingsuchparticularsandincludingsuchdocumentsasunderthisActitwould,haditbeenacompanywithinthemeaningofthisAct,havebeenrequiredtomakeoutand lay before the company in general meeting and lodge a copy of such statement offinancialposition,profitorlossandothercomprehensiveincomeaccountwiththeRegistrar.Ifsuchstatementoffinancialpositionandotherdocumentsareinaforeignlanguagethereshallbeannexedacertifiedtranslationthereof:

Providedthatthissubsectionshallnotapplytoaforeigncompanywhichisabankingcompanyoraninsurancecompany.

(8)Everyforeigncompanyshall,withinonemonthafterthe1st January in each year,lodgewiththeRegistrarforregistrationareturnintheprescribedformcontainingparticulars of the nominal and issued share capital of the foreign company as at that date and such other particulars as may be prescribed:

Providedthataforeigncompanyshallnotberequiredtolodgesuchreturninthe year following that in which it was registered in Zimbabwe.

(9)IfanyforeigncompanyceasestohaveaplaceofbusinesswithinZimbabwe,it shall,within onemonthof such cessation, givewrittennotice of the fact to theRegistrar,andasfromthedateonwhichthenoticeissogiventheobligationoftheforeigncompanytodelivertotheRegistraranydocument,saveanydocumentwhichshouldhavebeendeliveredpriortosuchcessation,shallcease.

(10)OnreceiptofanoticefromaforeigncompanythatithasceasedtohaveaplaceofbusinessinZimbabwe,theRegistrarshallremovethenameofthatforeigncompany from the register and shall publish notice thereof in the Gazette.

(11)WhentheRegistrarhasreasonablecausetobelievethataforeigncompanyhasceasedtohaveaplaceofbusinessinZimbabwe,section52(“Strikingoffofdefunct


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businessentitiesfromregisterandremedyforpersonsaggrievedbystrikingoff”)shall,withsuchchangesasmaybenecessary,apply.

(12)WheretheMinisterisoftheopinionthatitwillbeinthepublicinteresttodoso,heorshemay,notlaterthansixmonthsaftertheregistrationoftheforeigncompanyconcerned— (a) revoke;or (b) amendanyconditionsoforimposeanynewconditionsupon;thecertificateissuedintermsofsubsection(2)inrespectofanyforeigncompany:

Providedthat— (i) beforeexercisinganyofhisorherpowersintermsofthissubsection,

theMinistershallgivetheforeigncompanyconcernednotlessthanonemonth’snoticeinwritingofhisorherproposaltodoso,andshallafforditanopportunityofmaking,inwriting,suchrepresentationstohimorherrelatingtohisorherproposalasitmaywish;

(ii) aforeigncompanywhoserepresentationstotheMinisterarerejectedmaywithinfourteendaysofreceivingnoticeofrejectionhaverecoursetotheHighCourtintermsoftheAdministrativeJusticeAct[Chapter10:28] (No.12of2004).

(13)Ifanyforeigncompany— (a) establishesaplaceofbusinesswithinZimbabwewithoutbeingregistered;

or (b) carriesonbusinessinZimbabweafterthecertificatewhichwasissued

inrespectoftheforeigncompanyintermsofsubsection(2)hasbeenrevokedintermsofsubsection(12);

theforeigncompanyandeveryofficeroftheforeigncompanyinZimbabwewhoisindefaultshallbeguiltyofanoffenceandliabletoafinenotexceedingleveleleven.

(14)Inaddition,theRegistrarmayserveupontheforeigncompanyandeveryofficeroftheforeigncompanyinZimbabwewhoisindefaultasdescribedinsubsection(13)acategory4civilpenaltyorder.

(15)Ifanyforeigncompany— (a) establishesaplaceofbusinesswithinZimbabwewithoutbeingregistered

the foreign company and every officer of the foreign company inZimbabweshallbeliabletoacategory2civilpenalty;or

(b) failstocomplywithsubsection(1),(3)or(7),theforeigncompanyandeveryofficeroftheforeigncompanyinZimbabweshallbeliabletoacategory2civilpenalty;or

(c) failstocomplywithanyconditionimposeduponanycertificatewhichwasissuedinrespectoftheforeigncompanyintermsofsubsection(2),theforeigncompanyandeveryofficeroftheforeigncompanyinZimbabweshallbeliabletoacategory4civilpenalty;or

(d) failstocomplywithsubsection(4),(5),(8)or(9),theforeigncompanyandeveryofficeroftheforeigncompanyinZimbabweshallbeliabletoacategory3civilpenalty;or

(e) carriesonbusinessinZimbabweafterthecertificatewhichwasissuedinrespectoftheforeigncompanyintermsofsubsection(2)hasbeenrevokedintermsofsubsection(12),theforeigncompanyandeveryofficeroftheforeigncompanyinZimbabweshallbeliabletoacategory1civilpenalty.


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(16)Thissectionshallnotapplytoanyforeigncompanywhich— (a) hasobtainedaninvestmentlicence; (b) hasobtainedalicenceasabankoraninsurer; (c) isoperatinginaspecialeconomiczoneintermsoftheSpecialEconomic

ZonesAct[Chapter 14:34](No.7of2016).

242 Furtheradministrativedutiesofforeigncompany (1)Everyforeigncompanyshall— (a) continuouslydisplayontheoutsideofeveryplaceinwhichitcarrieson

businessinZimbabweinaconspicuousposition,inletterseasilylegible,itsnameandthecountryinwhichitisincorporated;and

(b) haveitsnameengravedinlegiblecharactersonitsseal,ifany;and (c) haveitsnamementionedinlegiblecharactersinallletterheads,notices,

advertisementsandotherofficialpublicationsofthecompanyandinallbillsofexchange,promissorynotes,endorsements,chequesandordersformoney or goods purporting to be signed by or on behalf of the company andinalldeliverynotes, invoices,receiptsandlettersofcreditofthecompanyandadditionally,inthecaseofletterheads,havementionedinlegible characters the name of the foreign country in which the company isincorporated;and

(d) inallbusinesslettersonorinwhichthenameofthecompanyappearsandwhichareissuedorsentbythecompanytoanyperson,stateinlegiblecharacters,withrespecttoeverydirectorresidentinZimbabweor,ifthereisnosuchdirector,theprincipalofficer,hisorherpresentfirstnamesortheinitialsthereofandpresentsurname;and

(e) inrespectofitstransactionswithinZimbabwe,complywithsection182(“Keepingoffinancialrecords”).

(2)Section28(“Provisionsinconnectionwithuseofnamesbycompaniesandprivatebusinesscorporations”)(1)(c)andsubsections(2),(3),(4),(5)and(6)ofthatsectionandsection31(“Postaladdress,registeredofficeandelectronicmailaddress”)(3)shallapply,withsuchchangesasmaybenecessary,inrelationtoaforeigncompanyandtotheofficersoranypersonactingonbehalfofanofficerofaforeigncompany.

(3)Forthepurposesofsubsection(1)(d)— “businessletter”includesanyquotationororderformbutdoesnotincludeany

invoice,statement,deliverynote,packingnoteorsimilardocument.

243Exemptioninrespectoftransferduty Notwithstandinganythingcontainedinanylaw,wheneveraforeigncompanysatisfiesthecourtthat— (a) itcarriesonitsprincipalbusinesswithinZimbabwe;and (b) thecompanyisabouttobeorisbeingwoundupvoluntarilyinitscountry

of incorporation for the purpose of transferring the whole of its business andpropertywhereversituatetoacompanywhichwillbeorhasbeenregisteredunderthisAct,hereinafterreferredtoasthenewcompany,forthepurposeofacquiringsuchbusinessandproperty;and

(c) thesoleconsiderationforsuchtransferistheissuetothemembersofthe foreign company of shares in the new company in proportion to their shareholdingsintheforeigncompany;and

(d) nosharesinthenewcompanywillbeavailableforissuetoanypersonsotherthanthemembersoftheforeigncompany;


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thecourtmay,subjecttothecertificateoftheRegistrarthat— (i) the foreigncompany isbeingwoundupvoluntarily for the said

purpose;and (ii) acompanyhasbeenregisteredunderthisActforthesaidpurpose;

and (iii) themembersoftheforeigncompanyhavehadissuedtothemthe

sharesinthenewcompanytowhichtheyareentitled;

orderthatnodutyshallbepayableinrespectofthetransferofimmovablepropertyfrom the foreign company to the company so registered.

Sub-Part B: Prospectuses of foreign companies

244Provisionswithrespecttoprospectusofforeigncompany (1)Nopersonshall— (a) issue,circulateordistribute inZimbabweanyprospectusoffering for

subscriptionsharesinordebenturesofaforeigncompany,whethertheforeign company has or has not been established or when formed will or willnotestablishaplaceofbusinessinZimbabwe,unless—

(i) before the issue, circulationor distributionof the prospectus inZimbabweacopythereof,certifiedbythechairpersonandtwootherdirectors of the foreign company or by all directors of the company if the number is certified to be less than three as having beenapprovedbyresolutionofthemanagingbody,hasbeendeliveredforregistrationtotheRegistrar;and

(ii) theprospectus stateson the faceof it that thecopyhasbeensodelivered;and

(iii) theprospectusisdated;and (iv) theprospectusotherwisecomplieswiththissectionandsection245

(“Contentsofprospectus”); or (b) issuetoanypersoninZimbabweaformofapplicationforsharesinor

debentures of such a foreign company or intended foreign company as aforesaid,unless theformisattached toaprospectuswhichcomplieswith this section and section 245:

Providedthatthisprovisionshallnotapplyifitisshownthattheform of application was issued in connection with a bona fideinvitationto a person to enter into an underwriting agreement with respect to the shares or debentures.

(2)Thissectionshallapply toaprospectusorformofapplicationwhetherissuedonorwithreferencetotheformationofaforeigncompanyorsubsequently.

(3)Whereanydocumentbywhichanysharesinordebenturesofaforeigncompanyareofferedforsaletothepublicwould,iftheforeigncompanyhadbeenacompanywithin themeaningof thisAct,havebeendeemedbyvirtueofsection111(“Documentcontainingofferofsharesordebenturesforsaletobedeemedtobeprospectus”)tobeaprospectusissuedbytheforeigncompany,thatdocumentshallbedeemedtobe,forthepurposeofthissection,aprospectusissuedbytheforeigncompany.

(4)Anofferof sharesordebentures for subscriptionor sale toanypersonwhose ordinary business or part of whose ordinary business it is to buy or sell shares


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ordebentures,whetherasprincipaloragent,shallnotbedeemedanoffertothepublicfor the purposes of this section.

(5)Section108(“Civilliabilityformisstatementsinprospectus”)shallextendtoeveryprospectustowhichthissectionapplies.

(6)Subsection(1)(a)(iii)and(iv)and(b)andsubsections(2)to(4)shallnotapplytotheissueonlytoexistingmembersordebentureholdersofaforeigncompany,of a prospectus or form of application relating to shares in or debentures of the foreign company,whetheranapplicantforsuchsharesordebentureswillorwillnothavetherighttorenounceinfavourofotherpersons.

(7)Anypersonwho is knowingly responsible for the issue, circulationordistribution of any prospectus or for the issue of a form of application for shares or debenturesincontraventionofanyofthissectionshallbeguiltyofanoffenceandliabletoafinenotexceedinglevelelevenortoimprisonmentforaperiodnotexceedingtwoyearsortobothsuchfineandsuchimprisonment.

245Contentsofprospectus (1)Aprospectusissued,circulatedordistributedundersection244(“Provisionswithrespecttoprospectusofforeigncompany”) shall— (a) containparticularswithrespecttothefollowingmatters— (i) theinstrumentconstitutingordefiningtheconstitutionoftheforeign

company; (ii) theenactmentsorprovisionshavingtheforceofanenactment,byor

underwhichtheincorporationoftheforeigncompanywaseffected; (iii) an address inZimbabwewhere the said instrument, enactments

orprovisionsorcopies thereofand, if the sameare ina foreignlanguage,acertifiedtranslationthereofcanbeinspected;

(iv) thedateonwhichandthecountryinwhichtheforeigncompanywasincorporated;

(v) whethertheforeigncompanyhasestablishedaplaceofbusinessinZimbabweand,ifso,theaddressofitsprincipalofficeinZimbabwe:

Providedthatsubparagraphs(i),(ii)and(iii)shallnotapplyin the case of a prospectus issued more than two years after the date atwhichtheforeigncompanycommencedbusinessinZimbabwe;

(b) subject tothissection,statethemattersspecifiedinPartIandsetoutthereportsspecifiedinPartII,subjectalwaystoPartIII,oftheFourthSchedule:

Providedthatinparagraph2ofthesaidScheduleareferencetothe constitution of the company shall be substituted for the reference to the articles.

(2)Anyconditionrequiringorbindinganyapplicantforsharesordebenturestowaivecompliancewithanyrequirementofthissection,orpurportingtoaffecthimorherwithnoticeofanycontract,documentormatternotspecificallyreferredtointheprospectus,shallbevoid.

(3) In the event of non-compliancewith or contravention of any of therequirementsofthissection,adirectororotherpersonresponsiblefortheprospectusshallnotincuranyliabilitybyreasonofthenon-complianceorcontravention,if— (a) asregardsanymatternotdisclosed,heorsheprovesthatheorshewas

notcognisantthereof;or


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(b) heorsheprovesthatthenon-complianceorcontraventionarosefromanhonestmistakeoffactonhisorherpart;or

(c) thenon-complianceorcontraventionwasinrespectofmatterswhich,intheopinionofthecourtdealingwiththecase,wereimmaterialorwereotherwisesuchasought,intheopinionofthatcourt,havingregardtoallthecircumstancesofthecase,reasonablytobeexcused:

Providedthat,intheeventoffailuretoincludeinaprospectusa statement with respect to the matters contained in paragraph 15 of the FourthSchedule(“Formofannualreturnofcompany”),nodirectororother person shall incur any liability in respect of the failure unless it be provedthatheorshehadknowledgeofthemattersnotdisclosed.

(4)Nothinginthissectionorsection244 shall limit or diminish any liability whichanypersonmayincurunderthecommonlaworthisAct,apartfromthissection.

246 Provisionsastoexpert’sconsentandallotment (1)Aprospectusshallbedeemednottocomplywithsections244(“Provisionswithrespecttoprospectusofforeigncompany”)and245(“Contentsofprospectus”)— (a) if,whereitincludesorreferstoastatementpurportingtobemadebyan

expert,heorshehasnotgivenorhasbeforedeliveryofacopyoftheprospectus for registration withdrawn his or her written consent to the issue of the prospectus with the statement or reference in the form and context in which it is included and there does not appear in the prospectus astatementthatheorshehasgivenandhasnotwithdrawnhisorherconsentasaforesaid;or

(b) ifitdoesnothavetheeffect,whereanapplicationismadeinpursuancethereof, of rendering all persons concerned bound by section 120(“Allotmentofsharesanddebenturestobedealtinonstockexchange”)so far as applicable.

(2)Therequirementsofsection244(1)fordeliveryofacopyoftheprospectustotheRegistrarbeforetheprospectusisissued,circulatedordistributedinZimbabweshallbedeemednottobesatisfiedunlessthereisendorsedonorattachedtothecopysodelivered— (a) any consent required by the foregoing subsection to the issue of the

prospectus;and (b) thewrittenconsentsotoactofanypersonnamedintheprospectusas

thelegalpractitioner,auditor,bankerorbrokerofthecompany;and (c) acopyofanycontractrequiredbysection244(1)(b) and paragraph 14

oftheFourthScheduletobestatedintheprospectusor,inthecaseofacontractnotreducedtowriting,amemorandumgivingfullparticularsthereof;and

(d) wherethepersonmakinganyreportrequiredbysection244(1)(b) to be setoutintheprospectushasmadeinthereport,orhaswithoutgivingthereasons indicated in the report any such adjustments as are mentioned in thisActrelatingtosuchreports,awrittenstatementsignedbythatpersonsettingouttheadjustmentsandgivingthereasonstherefor.

(3)Whereanysuchcontractasismentionedinsubsection(2)(c)iswhollyorpartlyinaforeignlanguage,thereferenceinthatparagraphtoacopyofthecontractshallbetakenasareferencetoacopyofacertifiedtranslationthereof.


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CHAPTER IV

Private Business corPoration and other Business entities

PART I

Private Business corPorations

Sub-Part A: Incorporation of private business corporations and matters incidental thereto

247 Formation Anyoneormorepersons,notexceedingtwenty,whoqualifyformembershipofaprivatebusinesscorporationintermsofsection253(“Requirementsformembership”)may,bysubscribingtheirnamestoanincorporationstatementandotherwisecomplyingwiththerequirementsofthisActinrespectofregistration,formaprivatebusinesscorporation.

248Incorporationstatement,signingthereofandregistrationofprivatebusiness corporation

(1)Theincorporationstatementshallbeintheprescribedformandshallstate— (a) the nameof the private business corporationwith “PrivateBusiness

Corporation”asthelastwordsofthenameortheabbreviation“PBC”,incapitalletters,attheendofthename;and

(b) thepostaladdressoftheprivatebusinesscorporationforthepurposesofsection31(“Postaladdress,registeredofficeandelectronicmailaddress”);and

(c) thephysicaladdress,notbeingapostofficeboxorprivatebagnumber,oftheregisteredofficeoftheprivatebusinesscorporationforthepurposesofsection31;and

(d) thefullnameofeachmemberandhisorhernationalidentitynumberor,ifheorshehasnosuchnumber,thenumberofanyotherofficialidentitydocumentheorshemaypossessandhisorherdateofbirth;and

(e) the percentage of eachmember’s interest in the private businesscorporation,takingthetotalofmembers’interestsasonehundredper centum;and

(f) theamountofeachmember’scontributiontotheassetsoftheprivatebusiness corporation, stating the extent towhich each contribution isincashorinpropertyorinservicesrenderedtowardstheformationorregistrationoftheprivatebusinesscorporation,andstatingthefairvalueofanycontributionthatisnotincash;and

(g) thenameandpostaladdressofanaccountingofficertowhomthemembersof the private business corporation intend to submit their financialstatementsintermsofsection274(“Examinationoffinancialstatementsandreportthereon”);and

(h) thedateoftheendofthefinancialyearoftheprivatebusinesscorporation.

(2)Subjecttosection27(“Statementofobjectsofregisteredbusinessentityandeffectthereof”),theincorporationstatementshallstatetheobjectsoftheprivatebusiness corporation.

(3)Anincorporationstatementshallbesignedby— (a) every personwho is to become amember of the private business

corporationuponitsincorporation;and


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(b) apersonwhoisqualifiedtobecometheaccountingofficeroftheprivatebusiness corporation upon its incorporation.

(4)Theeffectofeachmember’ssignatureonanincorporationstatementshallbetoacknowledgethecorrectnessofeachitemintheincorporationstatementandthefairnessofanyvaluationincludedthereinintermsof subsection(1)(f),andtheeffectofthesignatureofthepersonreferredtoinsubsection(3)(b)shallbetoindicatethatheorshehasnocausetobelievethatsuchvaluationisunfair.

(5)Theregistrationofincorporationstatementsandtheissuanceofacertificateof incorporation shall be as provided in section 18 (“Registration of constitutivedocuments”).

249 Registration of amended incorporation statement (1)Subjecttotheprovisotosection253(“Requirementsformembership”)(1),ifanychangetakesplaceinanyofthemattersstatedinanincorporationstatementinaccordancewithsection248(“Incorporationstatement,signingthereofandregistrationofPrivateBusinessCorporations”)(1)(d),(e)or(f),theprivatebusinesscorporationshallwithintwenty-eightdayssendtotheRegistrar— (a) an amended incorporation statement complying in every respectwith

section248(1) andincorporatingthechangethathastakenplace,signedin accordance with section 248 (3)byeveryexistingandnewmember,togetherwiththeduplicateoriginalororiginalsorcopyorcopiesrequiredbysection18(“RegistrationofConstitutivedocuments”)(3);and

(b) the private business corporation’s copy of its original incorporationstatementandanypreviousamendedincorporationstatement.

(2)TheRegistrar shall, upon payment of the prescribed fee, register anyamendedincorporationstatementsenttohimorherintermsofsubsection(1)ifitisinaccordancewiththeprovisionsofthisAct.

(3)OnregisteringanamendedincorporationstatementtheRegistrarshall— (a) endorseoneachcopythedateofregistration;and (b) endorse on each copy of the private business corporation’s original

incorporation statement and any previous amended incorporationstatementthedateofregistrationofthenewamendment;and

(c) returntotheprivatebusinesscorporationonecopyofthenewamendedincorporation statement and its own copy of its original incorporation statementandanypreviousamendedincorporationstatementifanysoendorsed.

(4)Ifanychangetakesplaceinanyofthemattersstatedinanincorporationstatement in terms of section 248(1) (a), (b), (c), (g) or (h), the private businesscorporationandtheRegistrarshallproceedintermsofsubsections(1),(2)and(3),but thechangeshallnot takeeffectuntil registrationof theamendedincorporationstatementoranylaterdatespecifiedtherein.

(5)Ifaprivatebusinesscorporationdefaultsincomplyingwithsubsection(1)or(4),theRegistrarmay,onhisorherownmotionoronapplicationbyamemberorcreditor,serveonthemembersindividuallybyregisteredpostorelectronicmailadirection that they rectify the default within twenty-eight days.

(6)Ifthemembersofaprivatebusinesscorporationfailtocomplywithanydirectiongivenintermsofsubsection(5),theRegistrarmay,byfurtherwrittennoticeservedonthemembersindividuallybyregisteredpostorelectronicmail,imposeonthem,oranyofthem,liabilityjointlyandseverallywiththeprivatebusinesscorporation

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foreverydebtoftheprivatebusinesscorporationincurredfromthedateonwhichthedirectionreferredtoinsubsection(5)wassentuntilthedefaultisrectified.

(7)On application by anymember ormembers the courtmay relieve themembersoranyofthemfromanyliabilityimposedundersubsection(6).

250 Conversionofprivatebusinesscorporationintocompany (1)AprivatebusinesscorporationthatwishestoconverttoacompanyshalldelivertotheRegistrar— (a) anapplicationintheprescribedformsignedbyallitsmembers;and (b) alldocumentsnecessaryfortheformationofacompanyunderthisAct.

(2)IftheRegistrarissatisfiedthattheprivatebusinesscorporationhascompliedwithsubsection(1)andisnotindefaultunderthisAct,heorsheshall— (a) cancelitsregistrationasaprivatebusinesscorporation;and (b) proceed in accordancewith section18 (“RegistrationofConstitutive

documents”).

(3)AcompanyregisteredinaccordancewiththissectionshallbeacompanyforallpurposesunderthisActandshallbethesamebodycorporateastheprivatebusinesscorporationfromwhichitwasconverted.

251Conversionofcompanyintoprivatebusinesscorporation (1)Anycompanyhavingnotmorethantwentymembers,allofwhomqualifyformembershipofaprivatebusinesscorporationintermsofsection253(“Requirementsformembership”),mayapplyforconversiontoaprivatebusinesscorporationintermsof this section.

(2)Acompanyreferredtoinsubsection(1)shallpublishanoticeintheGazette andinanewspapercirculatinginthedistrictinwhichitsregisteredofficeissituatedstatingthat— (a) anapplicationisintendedtobemade,onadatetobespecifiedinthe

notice,totheRegistrarfortheconversionofthecompanytoaprivatebusinesscorporation;and

(b) theapplicationmaybeinspectedattheofficeoftheRegistrar;and (c) anyinterestedpersonwhowishestoopposetheapplicationmaydosoby

lodginghisorherobjectionsandhisorhernameandaddress,inwriting,with the Registrar within the ten days next following the date on which the application will be made.

(3)Whereacompanyhasgivennoticeintermsofsubsection(2),itshalllodgewiththeRegistrar,notlaterthanthedatespecifiedinthenotice— (a) anapplicationforconversionintheprescribedformsignedbyall the

membersofthecompanyandcontainingastatementthatuponconversiontheassetsoftheprivatebusinesscorporation,fairlyvalued,willexceeditsliabilitiesandthatuponconversionitwillbeabletopayitsdebtsastheybecomedueintheordinarycourseofitsbusiness;and

(b) an incorporation statement which complies with section 248(“Incorporation statement, signing thereof and registration of privatebusinesscorporations”) but in which the members’ contributions to the privatebusinesscorporationareshownasanaggregateamount,whichamountshallnotbegreaterthantheexcessofthefairvalueoftheassetstobeacquiredbytheprivatebusinesscorporationovertheliabilitiestobeassumedbytheprivatebusinesscorporation:

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Providedthat— (i) theprivatebusinesscorporationmaytreatanyportionofsuchexcess

notreflectedasmembers’contributionsasamountswhichmaybedistributedtoitsmembers;

(ii) themembers’interestsintheprivatebusinesscorporationshallbeinthesameproportionstoeachotherastheirrelativeshareholdingsin the company.

(4)An incorporation statement referred to subsection (3) ( b) shall reflecteverymemberof thecompanyasamemberof theprivatebusinesscorporationonitsincorporation,andshallbesignedaccordinglybyeverysuchmemberandbyanaccountingofficerintermsofsection248(3).

(5)Upontheexpiryoftheperiodoftendaysnextfollowingthedatespecifiedintermsofsubsection(2)(a),theRegistrarshall,ifheorsheissatisfiedthatsubsections(2)and(3)havebeencompliedwithbythecompany,considertheapplicationandanyobjectionstheretothatmayhavebeenlodgedandmaygrantorrefusetheapplication:

Providedthat,ifanyobjectionshavebeenlodged,theRegistrarshallgivetheobjector or objectors and the company an opportunity of being heard in the matter.

(6)TheRegistrar shall notify the company and anyobjector of his or herdecisionontheapplicationforconversionandthecompanyoranyobjectormay,withintendaysofthenotificationofthedecision,appealagainstittotheHighCourt,whichmayconfirm,reverseorvarythedecisionoftheRegistrarorgivesuchotherdirectioninthematterasitthinksfit.

(7)Where an application for conversionhas beengranted in termsof thissection,theRegistrarshallproceedintermsofsection18(“Registrationofconstitutivedocuments”) (5)and (6)andshall include in thecertificateof incorporationof theprivatebusinesscorporationastatementthattheprivatebusinesscorporationhasbeenconvertedfromacompany,referringtoitspreviousnameandregisterednumber.

(8)When he or she has registered a private business corporationwhichpreviously existed as a company, theRegistrar shall ensure that the company’sregistration has been cancelled.

(9)Upon registration of a private business corporationwhich previouslyexistedasacompany,theprivatebusinesscorporationshallforthwithgivenoticeofitsconversioninwritingtoallthecreditorsofthecompanyatthetimeofconversionand to all other parties to contracts or legal proceedings in which the company was concernedatthetimeofconversion.

(10)Ontheregistrationofaprivatebusinesscorporationwhichpreviouslyexistedasacompany,alltheassets,rights,obligationsandliabilitiesofthecompanyconcernedshallvest in theprivatebusinesscorporationandany legalproceedingsinstituted by or against the company or other things done or commenced by or against thecompanyshallbedeemedtohavebeeninstituted,doneorcommenced,asthecasemaybe,byoragainsttheprivatebusinesscorporation.

(11)Theconversionofacompanytoaprivatebusinesscorporationshallnotaffect— (a) anyliabilityofadirectororofficerofthecompanytothecompanyonthe

groundofbreachoftrustornegligence,ortoanyotherpersonpursuanttoanyprovisionofthisAct;and

(b) anyliabilityofthecompany,orofanyotherperson,assurety;


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andthejuristicpersonofthecompanyshallcontinuetoexistintheformoftheprivatebusinesscorporationtowhichithasbeenconverted.

(12)Upontheproductionbyaprivatebusinesscorporation,whichpreviouslyexistedasacompany,ofitscertificateofincorporationtoanyregistrarorotherofficerchargedwiththecustodyofanyregisterorrecordintermsofanylaw,suchregistrarorofficershall,freeofcharge,makeallsuchalterationsinhisorherregistersorrecordsasmaybenecessaryasaresultoftheconversionofthecompanytoaprivatebusinesscorporation,andnotransferorstampdutyshallbepayableinrespectthereof.

Sub-Part B: Members

252Numberofmembers;commencementandterminationofmembership (1)Aprivatebusinesscorporationshallhaveaminimumofonememberanda maximum of twenty members.

(2)Aprivatebusinesscorporationshallnotceasetoexistsolelyonaccountofitshavingnomembersormorethantwentymembers:

Providedthat— (i) anypersonwhoknowinglycausesaprivatebusinesscorporation

toincuradebtwhilstithasnomembersshallbeliable,jointlyandseverallywiththeprivatebusinesscorporation,forthedebt;

(ii) ifaprivatebusinesscorporationhasorpurportstohavemorethantwentymembers, everymemberandpurportedmember shallbeliable,jointlyandseverallywiththeprivatebusinesscorporation,foreverydebtincurredbytheprivatebusinesscorporationwhilstthe number of its members and purported members exceeds twenty.

(3)Section20(“Effectofregistrationofconstitutivedocumentsandlimitationofliabilityofmembersofcompaniesandprivatebusinesscorporations”)(3)(b)describeshowmembership in a private business corporation is commenced, evidenced andterminated.

253 Requirementsformembership (1)Subjecttothissection,onlyindividualnaturalpersonsactingintheirownrightmaybemembersofaprivatebusinesscorporation,andnopartnership,associationorbodycorporateorotherlegalpersonshallbeamember,whetherdirectlyorthrougha nominee:

Providedthat,ifamemberdiesorbecomesinsolvent,mentallychallengedorsubjecttoanyotherlegaldisability,hisorherestatemay,withoutitbeingnecessarytoamendtheincorporationstatement,becomeamemberinhisorherplace,andheor she or his or her estate shall be represented for all purposes of membership by his or her executor, trustee, curator or other legal representative,whether or not suchrepresentativeisapartnership,associationorbodycorporateorotherlegalperson.

(2)Subjecttothissection,aminororanunrehabilitatedinsolventmaybeamemberofaprivatebusinesscorporation:

Providedthatinthecaseofaminorheorsheshallberepresentedorassistedbyhisorherguardianintheexerciseofhisorherrightsanddutiesasamember,and,inthecaseofanunrehabilitatedinsolvent,heorshemustexhibittotheRegistrarthewrittenleaveofhisorhertrusteeininsolvencytobecomesuchmember.

(3)Any person, partnership, association or body corporate or other legalpersonwhoorwhich,asthecasemaybe,purportstobecomeamemberofaprivate


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businesscorporationincontraventionofsubsection(1)or(2)shall,notwithstandingtheinvalidityofhisorheroritspurportedmembership,beliablejointlyandseverallywiththeprivatebusinesscorporationforeverydebtoftheprivatebusinesscorporationincurred while such purported membership continues.

254 Members’contributions (1)Eachpersonwhoistobecomeamemberofaprivatebusinesscorporationupon its incorporation shall,with theagreementofeveryother suchperson,makeacontributiontotheprivatebusinesscorporation’sassetsintheformofmoneyorpropertyorservicesrenderedtowardsitsformationorregistration,orinacombinationof those forms.

(2)Anypersonbecomingamemberofanexistingprivatebusinesscorporationmay,withtheagreementofallexistingmembers,makeacontributiontotheprivatebusinesscorporation’sassetssimilartothatreferredtoinsubsection(1).

(3)Anymember’scontributionmay,withtheagreementofallmembers,beincreased or reduced:

Provided that a reduction involving a reduction of the private businesscorporation’s assets shall be subject to section 270 (“Restriction on payments tomembers”).

(4)Aprivatebusinesscorporationshallrecordandsecuretheregistrationofany new member’s contribution and any increase or reduction in an existing member’s contributionby theprocedure laiddown in section249 (“Registrationofamendedincorporationstatement”)(1).

(5)Allmoneypayableorpropertytransferablebyanymembertotheprivatebusiness corporation as a member’s contribution shall be a debt due by him or her to theprivatebusinesscorporation.

255 Cessationofmembershipbyorderofcourt (1)Onapplicationbyaprivatebusinesscorporationorbyanymemberormembers,acourtmayorderthatanymembershallceasetobeamemberoftheprivatebusinesscorporationinanyofthefollowingcases— (a) wherethememberisshowntothesatisfactionofthecourttohavebecome

permanentlyofunsoundmind; (b) wherethememberisshowntothesatisfactionofthecourttohavebecome

in any other way permanently incapable of performing his or her duties asamember;

(c) wherethememberhasbeenguiltyofsuchconductas,intheopinionofthecourt,regardbeinghadtothenatureoftheprivatebusinesscorporation’sundertaking,iscalculatedprejudiciallytoaffectthecarryingonoftheundertaking;

(d) wherethememberhaswilfullyorpersistentlycommittedabreachoftheprivatebusinesscorporation’sby-laws,orhasotherwisesoconductedhimselforherselfinmattersrelatingtotheprivatebusinesscorporation’sundertakingthatitisnotreasonablypracticablefortheothermemberormemberstocarryontheundertakinginassociationwithhimorher;

(e) whenevercircumstanceshavearisenwhich,intheopinionofthecourt,renderitjustandequitablethatthemembershouldceasetobeamemberoftheprivatebusinesscorporation.


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(2)Applicationtoacourtoneitherorbothofthegroundsspecifiedinsubsection(1)(c)and(d)shallnotbemadebythememberwhoseconductisallegedtojustifythemakingofanorderthatheorsheshallceasetobeamember.

(3)Thecourtmakinganorderintermsofsubsection(1)(a)mayorderfortheappointmentofacuratorwhomayrepresentamemberinaprivatebusinesscorporation.

(4)The courtmaking an order in termsof subsection (1)maymake suchconsequentialordersasappeartoitnecessarytoeffectajustsettlementbetweentheperson ithasordered toceasebeingamember, theothermembersand theprivatebusiness corporation concerned.

Sub-Part C: Members’ interests

256 Natureofmember’sinterest (1)Eachmember’sinterestinaprivatebusinesscorporationshallbeexpressedasapercentage,takingthetotalofmembers’interestsasonehundredper centum,andshallbetransferablebythemethodspecifiedbysection249(“Registrationofamendedincorporationstatement”).

(2)Eachmember’s interest in a private business corporation shall entitlehimorher,onthewindingupordissolutionoftheprivatebusinesscorporation,toacorrespondingpercentageoftheassetsoftheprivatebusinesscorporationthatarethendistributable to members.

(3)Eachmember’sinterestinaprivatebusinesscorporationshallbeheldbythatmemberalone,andshallnotbecapableofjointownership.

257 Certificateofmember’sinterest (1)Eachmembershallbeentitledtoacertificateshowingthepercentageofhisorherinterestintheprivatebusinesscorporation,signedbyeverymember.

(2)Whenever the percentage of amember’s interest in a private businesscorporation changes he or she shall forthwith surrender to the private businesscorporationforcancellationanycertificatepreviouslyissuedtohimorherandheorsheshallbeentitledtoanewcertificatereflectinghisorhercurrentinterest.

(3)Ifaprivatebusinesscorporationisaregistereduseroftheelectronicregistry,itmayissuemembershipinterestsindematerialisedform,subjecttotheconditionsoftheissuanceofsuchsharesinsection289(“Useofelectronicregistryotherwisethanforbusinessentityregistration”).

(4)Anyholderofadematerialisedmembershipinterestmaydemandproofoftitletohisorhermembershipinterestintheformofamaterialcertificatesignedbyeverymemberinaccordancewithsubsection(1),andthecorporationconcernedshallissuesuchcertificatetothemembernolaterthanfourteendaysaftersuchrequestisreceivedinwriting:

Providedthatifthereisanylawfulrestrictiononthetransferofsuchaninterest,suchcertificateshallbeclearlyendorsedtothateffect.

258 Acquisitionofmember’sinterestbynewmember Subject to the by-lawsof the private business corporation concerned, a newmembermay acquire his or hermember’s interest in an existing private businesscorporationeither— (a) subjecttosection 259(“Otherdisposalsofmembers’interests”),from

oneormoreexistingmembersortheirestates;or


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(b) bymakingacontributiontotheassetsoftheprivatebusinesscorporationinaccordancewithsection254(“Members’contributions”)(2),inwhichcase the percentage of his or her interest shall be agreed between him or her and the existing members.

259 Disposalofinterestofinsolventmember (1)Ontheinsolvencyofthesolememberofaprivatebusinesscorporationhisorhertrusteeininsolvencyshall,intheexerciseofhisorherfunctionsastrustee,haveunrestrictedpowertosellhisorhermember’sinterest.

(2)Ontheinsolvencyofamemberofaprivatebusinesscorporationhavingtwoormoremembershisorhertrusteeininsolvencyshall,intheexerciseofhisorherfunctionsastrustee,havepowertosellthemember’sinterest— (a) totheprivatebusinesscorporation,subjecttosection263(“Acquisition

byprivatebusinesscorporationofmembers’interests”);or (b) toanyoralloftheothermemberspro rata or in such proportions as they

andthetrusteemayagree;or (c) aftergivingarightofpre-emptionontwenty-eightdays’writtennotice

totheprivatebusinesscorporationandtheothermembers,toanypersonqualifiedundersection253(“Requirementsformembership”) tobeamember.

(3)Themembersofaprivatebusinesscorporationshallbeobligedtoacceptasanewmemberapersonwhohasacquiredaninsolventmember’sinterestinaccordancewithsubsection(2)(c).

(4)Noby-lawsoragreementtowhichtheprivatebusinesscorporationoranymemberisapartyshallaffectthepowersconferredonatrusteeininsolvencybythissection

260 Disposal of interest of deceased member (1)Theexecutorof theestateofadeceasedmemberofaprivatebusinesscorporationshallgiveeffecttoanyby-lawoftheprivatebusinesscorporationwhichmakesprovisionforthesaleordisposalofthemember’sinterestonhisorherdeath,andanysuchby-lawshalloverrideanyprovisiontothecontraryinthedeceasedmember’swill or the law of intestate succession.

(2)Ifthereisnoprovisiontothecontraryintheby-lawsoftheprivatebusinesscorporationconcerned,onthedeathofthesolememberofaprivatebusinesscorporationhisorherexecutorshallhaveunrestrictedpower,intheexerciseofhisorherfunctionsasexecutor,tosellordisposeofthemember’sinterest.

(3)Ifthereisnoprovisiontothecontraryintheby-lawsoftheprivatebusinesscorporationconcerned,onthedeathofamemberofaprivatebusinesscorporationhavingtwoormoremembers,hisorherexecutorshallhavepower,intheexerciseofhisorherfunctionsasexecutor,tosellordisposeofthemember’sinterest— (a) totheprivatebusinesscorporation,subjecttosection263(“Acquisition

byprivatebusinesscorporationofmembers’interests”);or (b) toalloranyoftheremainingmemberspro rata or in such proportions

astheyandtheexecutormayagree;or (c) aftergivingarightofpre-emptionontwenty-eightdays’writtennotice

totheprivatebusinesscorporationandtheothermembers,toanypersonqualifiedundersection253(“Requirementsformembership”) to be a member.

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(4)Themembersofaprivatebusinesscorporationshallbeobligedtoacceptasanewmemberanypersonwhohasacquiredadeceasedmember’sinterestinaccordancewithsubsection(3)(c).

261Otherdisposalsofmembers’interests Subject to sections 255 (“Cessationofmembership byorder of court”), 259(“Disposalofinterestofinsolventmember”)and260(“Disposalofinterestofdeceasedmember”),aprivatebusinesscorporation’sby-lawsmayrestricttherighttodisposeofmembers’interests,butintheabsenceofsuchrestrictionalldisposalsofmembers’interestsshallrequiretheconsentofeverymember.

262 Maintenanceoftotalmembers’interests To maintain the total members’ interests at one hundred per centum,inconformitywithsection248(“Incorporationstatement,signingthereofandregistrationofprivatebusinesscorporation”)(1)(e),andsection256(“Natureofmember’sinterest”)(1)— (a) whenapersonbecomesanewmemberofanexistingprivatebusiness

corporationbymakingacontribution to itsassets inaccordancewithsection254(“Members’contributions”)(2),theinterestsofallexistingmembersshallbe reduced inproportion to theirexistingpercentages,sothatthetotalofthosereductionsequalsthepercentageoftheinterestacquiredbythenewmemberinaccordancewithsection258(“Acquisitionofmember’sinterestbynewmember”)(b);and

(b) whenaprivatebusinesscorporationacquiresanymember’sinterestitshallbe distributed between the remaining members’ interests in proportion to their existing percentages.

263 Acquisitionbyprivatebusinesscorporationofmembers’interests (1) Subject to section 252 (“Number ofmembers; commencement andterminationofmembership”),aprivatebusinesscorporationmay— (a) acceptthesurrenderofanymember’sinterestfornoconsideration;or (b) with the consent of allmembers, acquire anymember’s interest in

exchangeforpaymentorthedeliveryofpropertyif,immediatelyaftersuchpaymentordelivery,theprivatebusinesscorporation’sassets,fairlyvalued,willexceeditsliabilitiesanditwillbeabletopayitsdebtsasthey become due in the ordinary course of its business.

(2)Ifaprivatebusinesscorporationmakesapaymentordeliverspropertyincontraventionofsubsection(1)(b)thepurportedacquisitionoftheinterestshallbevoidandeverymember,includingbothpartiestothepurportedacquisition,shallbeliable,jointlyandseverallywiththeprivatebusinesscorporation,foreverydebtoftheprivatebusinesscorporationincurredbeforetheacquisitionwasgiven,unlessheorshecanprovethatheorshehadnoknowledgeofthemakingofthepaymentordeliveryofthepropertyortookallreasonablestepstopreventit.

264 Financialassistancebyprivatebusinesscorporationforacquisitionofmembers’interests

(1)Aprivatebusinesscorporationmay,withtheconsentofallitsmembers,givefinancial assistance for the acquisition of amember’s interest in the privatebusinesscorporationif,immediatelyaftersuchassistanceisgiven,theprivatebusinesscorporation’s assets, excluding any claimor security resulting from the givingofassistance,fairlyvalued,willexceeditsliabilitiesanditwillbeabletopayitsdebtsas they become due in the ordinary course of its business:

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Providedthat,wherethelendingofmoneyisapartoftheordinarybusinessofaprivatebusinesscorporation,nothinginthissubsectionshallbetakentoprohibitthelendingofmoneybytheprivatebusinesscorporationintheordinarycourseofitsbusiness.

(2)Ifaprivatebusinesscorporationgivesfinancialassistancefortheacquisitionofamember’sinterestintheprivatebusinesscorporationincontraventionofsubsection(1),thepurportedgivingoftheassistanceandacquisitionoftheinterestshallbevoidandeverymember,includingbothpartiestothepurportedacquisition,shallbeliable,jointlyandseverallywiththeprivatebusinesscorporation,foreverydebtoftheprivatebusinesscorporationincurredbeforetheassistancewasgiven,unlessheorshecanprovethatheorshehadnoknowledgeofthegivingoftheassistanceortookallreasonablestepstopreventit.

Sub-Part D: Management and administration

265 Powerofmemberstobindprivatebusinesscorporation (1)Subjecttothissection,everymemberwhoisnotaminorshallbeanagentoftheprivatebusinesscorporationforthepurposeofthebusinessoftheprivatebusinesscorporation

(2)Theactsofeverymembershallbindtheprivatebusinesscorporationif— (a) suchactswereauthorised,expresslyorimpliedly,bytheprivatebusiness

corporationorweresubsequentlyratifiedbyit;or (b) suchactsweredoneforcarryingon,intheusualway,businessofthe

kindcarriedonbytheprivatebusinesscorporation,unlessthemembersoactinghasinfactnoauthoritytoactfortheprivatebusinesscorporationin the particular matter and the person with whom he or she is dealing kneworoughtreasonablytohaveknownthatheorshehadnoauthority.

(3)Whereanyactofamemberisforapurposeapparentlynotconnectedwiththeprivatebusinesscorporation’sordinarybusiness,theprivatebusinesscorporationshallnotbeboundunlessitauthorisedhimorhertodotheactorsubsequentlyratifiedthe act.

(4) Ifaprivatebusinesscorporation’sby-lawsoranyagreementplaceanyrestrictionontheauthorityofanymembertobindtheprivatebusinesscorporation,noactdoneincontraventionoftherestrictionshallbindtheprivatebusinesscorporationtoanypersonwhokneworoughtreasonablytohaveknownoftherestriction.

(5)The fact that some but not all of themembers of a private businesscorporationaredescribedasdirectorsorexecutivemembersshallnotofitselfbetakenasnotice,forthepurposesofsubsection(2)(b)orsubsection(4),thatanymembernotsodescribedhasnoauthorityorrestrictedauthoritytoactonbehalfoftheprivatebusiness corporation.

266 Bylaws (1)Aprivatebusinesscorporationshallifithasnotadoptedtheby-lawsspecifiedinTableDoftheSixthSchedule— (a) assoonaspracticableadoptby-lawsagreedtobyallmembersregulating

themanagementofitsaffairs;or (b) ontheregistrationofitsincorporationstatementoratanytimethereafter

adopt all or any of the by-laws set out in Table D in the Sixth Schedule (“ModelArticlesandBy-laws”).

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(2)By-lawsshallbesignedbyeverymemberatthetimeoftheiradoption,andshallbekeptattheregisteredofficeoftheprivatebusinesscorporationoraccountingofficer’sphysicaladdress.

(3)Aprivatebusinesscorporationmayatameeting,bytheaffirmativevotesofmemberswhosecombinedintereststotalatleastseventy-fiveper centum,amenditsby-laws,andanyamendmentsomadeintheby-lawsshallbeasvalidasiforiginallycontained therein and be subject to amendment by the same method.

(4)SubjecttothisAct,by-lawsshall,whensignedbyeverymemberatthetimeoftheadoption,bindtheprivatebusinesscorporationandthemembersthereof,includingpersonsbecomingmembersafterthetimeofadoption,tothesameextentasiftheyhadbeensignedbyeachmemberandcontainedundertakingsonthepartofeachmembertoobservealltheby-laws.

(5)Allmoneyspayableorpropertytransferablebyanymembertotheprivatebusinesscorporationundertheby-lawsshallbeadebtduebyhimorhertotheprivatebusiness corporation.

(6)Everymemberofaprivatebusinesscorporationshallbeentitledtoonefreecopyoftheprivatebusinesscorporation’sby-lawsandofanyamendmentsthereto.

(7)Intheabsenceofby-lawsthemembersofaprivatebusinesscorporationmay,subjecttosection267(“Variablerulesformanagement”),regulatethemanagementof its affairs in any manner agreed to by them from time to time.

267 Variable rules for management (1)UnlessotherwiseprovidedinthisActorintheby-lawsoftheprivatebusinesscorporationconcernedorinanyagreementbetweenmembersorbetweentheprivatebusinesscorporationconcernedanditsmembers— (a) everymembermay takepart in themanagementof the affairsof the

privatebusinesscorporation; (b) nomember shall be entitled to remuneration for taking part in the

managementoftheaffairsoftheprivatebusinesscorporation; (c) anydifferencearisingbetweenmembersinconnectionwiththeaffairs

oftheprivatebusinesscorporationshallbedecidedbymajorityvote.

(2)Eachmatterlistedbelowshallrequiretheagreementofalloftheprivatebusiness corporationmembers, unless provided otherwise in the private businesscorporationby-laws.Theby-lawsmayreducesuchunanimousvoterequirementforanyorallmatterslistedbelowbyspecifyingasmallervoterequirement,butnotlessthanasimplemajorityofallmembers’votingpower— (a) amendmentoftheprivatebusinesscorporation’sincorporationstatement

orby-laws(butanamendmentmaynotinanyeventincreaseamember’sobligationtomakecontributionsoreliminateorreduceamember’srights,withoutthatmember’sconsent);

(b) authorisation or ratificationof a conflict of interest transactionunderChapterIIPartIVofthisAct;

(c) makingofadistributiontomembers,includingapurchasebytheprivatebusinesscorporationofamember’sinterest;

(d) admissionofanewmemberoftheprivatebusinesscorporation,includingeither a transferee of an existing member’s interest or a person who becomes a newmember by a payment into the capital of the privatebusinesscorporation;


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(e) adecisiontodissolvetheprivatebusinesscorporation; (f) adecisiontomergetheprivatebusinesscorporationwithanotherprivate

businesscorporation; (g) adecisiontoconverttheprivatebusinesscorporationintoanotherform

ofentity;or (h) thesale,lease,pledge,mortgageorothertransferofallorsubstantially

alloftheprivatebusinesscorporation’sassets.

(3)Iftheby-lawsoftheprivatebusinesscorporationsoallowtheelectionandresponsibilitiesofmanagersshallbeinaccordancewiththerelevantprovisionsofthemodel by-laws in Table D of the Sixth Schedule.

(4)A manager of a private business corporation is an agent of the private business corporation with authority to represent and bind the private business corporation in transactions with third parties. An act of a manager, including signing an agreement in the private business corporation’s name, which is for carrying on the usual business of the private business corporation, is binding on the private business corporation, unless the manager had no authority to act for the private business corporation in that particular matter and the person with whom the manager was dealing knew that the manager lacked authority.

(5)Anactof amanagerwhich isnot apparently for carryingon theusualbusiness of the private business corporation is binding on the private businesscorporation only if the act was authorised by the members.

(6)Amanagerorotherpersonwhoknowinglypurportstoactforaprivatebusiness corporationwithout authorityof theprivatebusiness corporation shall bepersonallyliablefordamagescausedtherebytotheprivatebusinesscorporationandany person with whom he or she has dealt.

268 Meetings of members (1)Everyprivatebusinesscorporationwithmorethanonemembershallholdameetingofitsmembersannually,tobeknownasitsannualmeeting,notlaterthansixmonthsaftertheendoftheprivatebusinesscorporation’sfinancialyear.

(2)Anymemberofaprivatebusinesscorporationmayatanytimeconveneanadditionalmeetingbygivingallmemberssevendaysnotice,notnecessarilyinwriting,of the time and place and purpose of the meeting:

Providedthatthetimeandplaceofthemeetingshallbeconvenientfortheattendance of members.

(3)Unlessotherwiseprovidedintheby-laws,atanymeetingofmembersofaprivatebusinesscorporation— (a) to constitute a quorum, there shall be present in personor byproxy,

memberswhoseinterestsexceedfiftyper centum of the total members’ interests;

(b) thechairpersonofthemeetingshallbethememberelectedaschairpersonoftheprivatebusinesscorporationor,ifnomemberhasbeensoelectedorheorsheisnotpresent,themeetingshallelectitsownchairperson.

(c) thechairpersonshallnothaveacastingvote; (d) eachmembershallhaveavotecorrespondingwiththepercentageofhis

or her interest:

Providedthattheappointmentofaproxybyamembershallbeinwriting.


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(4)Everyprivatebusinesscorporationshallcauseminutesofallproceedingsofmeetingsofitsmemberstobekeptforthatpurpose,andanysuchminutes,signedbythechairpersonofthemeetingorofthenextsucceedingmeeting,shallbeevidenceoftheproceedingsandevidencethatthemeetingwasproperlyconvenedandconducted:

Providedthatnolaterthanthreemonthsaftertheannualmeetingthechairpersonorotherresponsiblememberoftheprivatebusinesscorporationshallsubmitasigneddeclaration in accordance with the prescribed form that the annual meeting was held in conformity with this section.

(5)Unlessotherwiseprovidedintheby-lawsofaprivatebusinesscorporation,aresolutioninwritingsignedbyallthemembersforthetimebeingentitledtoreceivenoticeofandtoattendandvoteatmeetingsofmembersshall,witheffectfromthedateofthelastsignature,whichdateshallberecordedonthesigneddocument,beasvalidandeffectiveasifithadbeenpassedatameetingofmembersdulyconvenedandheldin terms of this section.

269 Protection against unfair prejudice (1)Amembermayapplytoacourtforanorderunderthissectiononthegroundthattheprivatebusinesscorporation’saffairsarebeingorhavebeenconductedinamannerwhichisunfairlyprejudicialto— (a) hisorherinterests;or (b) hisorherinterestsandtheinterestsofoneormoreoftheothermembers;

oronthegroundthatanyactualorproposedactoromissionoftheprivatebusinesscorporation,includinganactoromissiononitsbehalf,isorwouldbesoprejudicial.

(2)Subsection(1)shallapplytoapersonwhoisnotamemberbutisrepresentingorassistingamemberorhisorherestateinaccordancewithsection259(“Disposalofinterestofinsolventmember”)(1)or(2),andreferencesinthissectiontoamemberor members shall be construed accordingly.

(3)Ifthecourtissatisfiedthatanapplicationunderthissectioniswellfounded,itmaymakesuchorderasitthinksfitforgivingreliefinrespectofthematterscomplainedof.

(4)Without prejudice to the generality of subsection (3), the court’s ordermay— (a) regulatetheconductoftheprivatebusinesscorporation’saffairsinthe

future; (b) requiretheprivatebusinesscorporationto— (i) refrain from doing or continuing an act complained of by the

applicant; (ii) doanactwhichtheapplicanthascomplainedithasomittedtodo; (c) authorisecivilproceedingstobebroughtordefendedinthenameand

onbehalfoftheprivatebusinesscorporationbysuchpersonorpersonsandonsuchtermsasthecourtmaydirect;

(d) provideforthepurchaseoftheinterestsofanymembersoftheprivatebusiness corporation by othermembers or by the private businesscorporation itself.

(5)Ifanorderunderthissectionrequiredtheprivatebusinesscorporationnottomakeany,oranyspecified,amendmentinitsincorporationstatementorby-laws,theprivatebusinesscorporationshallnotthenhavepowerwithoutleaveofthecourttomakeanysuchamendmentinbreachofthatrequirement.


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(6)Anyamendmentinaprivatebusinesscorporation’sincorporationstatementorby-lawsmadebyvirtueofanorderunderthissectionshallbeofthesameeffectasifdulymadebyagreementofallthemembers,andtheprovisionsofthisActshallapply to the incorporation statement and by-laws as so amended accordingly.

270 Restriction on payments to members (1)Aprivate business corporation shall not directly or indirectly pay anydividend,makeanydistribution,repayanycontribution,makeanyotherpaymentortransferanypropertytoanymemberbyreasononlyofhisorhermembershipunless,immediatelyafterthepaymentortransfer,theprivatebusinesscorporation’sassets,fairlyvalued,willexceeditsliabilitiesanditwillbeabletopayitsdebtsastheybecomedue in the ordinary course of its business.

(2)Amembershallrepayanymoneyandreturnanypropertyheorshehasreceivedfromtheprivatebusinesscorporationincontraventionofsubsection(1),anduntilheorshedoessoheorsheshallbeliable,jointlyandseverallywiththeprivatebusinesscorporation,forallitsdebts.

(3)Nothinginthissectionshallapplytothedischargebyaprivatebusinesscorporationingoodfaithof— (a) anobligationtowardsamemberarisingoutofcontractorenrichmentand

resultingfromtheprivatebusinesscorporation— (i) employingthememberasanofficeroremployee;or (ii) buyingorhiringpropertyfromthememberorborrowingmoney

fromhimorherorotherwisecontractingwithhimorher; (iii) intheordinarycourseofitsbusiness; or (b) astatutoryobligationtowardsamember;or (c) adelictualobligationtowardsamember.

(4)Amember,managerorotherpersonwhocausessuchaprohibiteddistributiontobemade,andwhoknewatthetimethatthedistributionwasthusprohibited,shallbepersonallyliabletotheprivatebusinesscorporationforthereturnoftheamountofall such distributions.

Sub-Part E: Accounting

271 Financial records (1)Everyprivatebusinesscorporationshallcausefinancialrecordstobekeptin accordance with this section.

(2)Thefinancialrecordsshallbesuchasarenecessaryfairlytopresentthestateof affairs andbusinessof theprivatebusiness corporationand to explain thetransactionsandfinancialpositionoftheprivatebusinesscorporation,including— (a) recordsshowingitsassetsandliabilities,members’contributions,undrawn

profits,revaluationsoffixedassetsandamountsofloanstoandfrommembers;and

(b) recordscontainingentriesfromdaytodayofallcashreceivedandpaidout,insufficientdetailtoenablethenatureofthetransactionsand,exceptinthecaseofcashsales,thenamesofthepartiestothetransactionstobeidentified;and

(c) recordsofallgoodspurchasedandsoldoncredit,andservicesreceivedandrenderedoncredit,insufficientdetailtoenablethenatureofthosegoodsorservicesandthepartiestothetransactionstobeidentified;and


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(d) statementsoftheannualstock-takingandrecordstoenablethevalueofstockattheendofthefinancialyeartobedetermined;and

(e) voucherssupportingentriesinthefinancialrecords.

(3)Thefinancialrecordsrelatingto— (a) contributionsbymembers;and (b) loanstoandfrommembers;and (c) paymentstomembers;

shallcontainsufficientdetailofindividualtransactionstoenablethenatureandpurposethereoftobeclearlyidentified.

(4)Thefinancialrecordsreferredtoinsubsection(1)shallbekeptinsuchamannerastoprovideadequateprecautionsagainstfalsificationandtofacilitatethediscoveryofanyfalsification.

(5)Thefinancialrecordsreferredtoinsubsection(1)shallbekeptattheplaceorplacesofbusinessorattheregisteredofficeoftheprivatebusinesscorporationoraccountingofficer’sphysicaladdressconcernedand,whereverkept,shallbeopenatall reasonable times for inspection by any member.

(6)Everyprivatebusinesscorporationshallpreserveitsfinancialrecordsforsixyearsfromtheendofthefinancialyeartowhichtheyrelate.

(7)Ifanymemberofaprivatebusinesscorporationfailstotakeallreasonablestepstosecurecompliancebytheprivatebusinesscorporationwiththerequirementsofthissection,orhasbyhisorherownwilfulactbeenthecauseofdefaultbytheprivatebusinesscorporationincomplyingwithanyofthoserequirements,,theRegistrarmay(unlessheorsheissatisfiedthatthemember’sconductwasfraudulent,recklessorwilful,inwhicheventsection69(“Fraudulent,recklessorwilfulfailureoffinancialaccounting;falsificationofrecords”)(1)(b)shallapply),subjecttosubsection(8),serveuponhimorheracategory3civilpenaltyorder

(8)Itshallbeapartialdefencetoacivilpenaltyorderorproposedcivilpenaltyundersubsection(7)foradirectortoprove(theburdenwhereofrestsonhimorher)thatheorshehadreasonablegroundstobelieve,anddidbelieve,thatacompetentandreliablepersonwaschargedwiththedutyofseeingthattherequirementsofthissectionwerecompliedwithandwasinapositiontodischargethatduty,inwhichcasetheRegistrarmaywaivethosepartsofthepenaltyclauseoftheorderreferredtoinsection 294 (“PowerofRegistrartoissuecivilpenaltyordersandcategoriesthereof”)(4)(a)and(b)(i).

272 Financial year (1)Thedateoftheendofthefinancialyearofaprivatebusinesscorporationshall be fixed in accordancewith section 248 (“Incorporation statement, signingthereofandregistrationofprivatebusinesscorporation”)(1)(h)andmaybechangedinaccordancewithsection249(“Registrationofamendedincorporationstatement”):

Providedthatthechangefromanoldtoanewfinancialyearshallbeeffectedbyfixingaperiodofnotlessthansixmonthsandnotmorethaneighteenmonthsastheprivatebusinesscorporation’sfinancialyearontheoccasionofthechange.

(2)Forconvenienceofaccounting,aprivatebusinesscorporationmaytakeastheendofitsfinancialyearanydatenotmorethanfourteendaysbeforeorafterthedatefixedinaccordancewithsubsection(1).


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273 Annualfinancialstatements (1)Themembersofaprivatebusinesscorporationshall,withinthreemonthsaftertheendofeveryfinancialyearoftheprivatebusinesscorporation,causefinancialstatementsinrespectofthatfinancialyeartobemadeout.

(2)Thefinancialstatementsofaprivatebusinesscorporation— (a) shallconsistof— (i) a statement offinancial position and anynotes thereon,where

applicable;and (ii) an income statement, or any similar financial statementwhere

appropriate,andanynotesthereonwhereapplicable; and (b) shall, in conformity with generally accepted accounting practice

appropriate to thebusiness of theprivate business corporation, fairlypresentthestateofaffairsoftheprivatebusinesscorporationasattheendofthefinancialyearconcerned,andtheresultsofitsoperationsforthatyear;and

(c) shall disclose separately the aggregate amounts, as at the endof thefinancialyear,ofcontributionsbymembers,undrawnprofits,revaluationsoffixed assets and amounts of loans to and frommembers, and thechangesinthoseamountsduringtheyear;and

(d) shallbeinagreementwiththefinancialrecords,whichshallbesummarisedinsuchaformthat—

(i) compliancewiththissubsectionismadepossible;and (ii) anaccountingofficerisenabledtoreporttothecorporationinterms

ofsection275(“Dutiesofaccountingofficer”)(1)(c) withouthavingtorefertoanysubsidiaryfinancialrecordsandvoucherssupportingtheentriesinthefinancialrecords:

Provided that nothing contained in this paragraph shall beconstruedaspreventinganaccountingofficer,ifheorsheconsidersitnecessary,frominspectingsuchsubsidiaryfinancialrecordsandvouchers;and

(e) shallcontain thereportofanaccountingofficer referred to insection275(1)(c).

(3)Theannualfinancialstatementsofaprivatebusinesscorporationshallbeapprovedandsignedbyoronbehalfofoneormorememberswhohaveanaggregateofmorethanfiftyper centum of all the members’ interests. (4)Ifanymemberofaprivatebusinesscorporationfailstotakeallreasonablestepstocomplywiththerequirementsofthissection,orhasbyhisorherownactbeenthecauseofanydefaultbytheprivatebusinesscorporationoritsmembersincomplyingwithanyofthoserequirements,theRegistrarmay(unlessheorsheissatisfiedthatthemember’sconductwasfraudulent,recklessorwilful,inwhicheventsection69(“Fraudulent,recklessorwilfulfailureoffinancialaccounting;falsificationofrecords”)(1)(b)shallapply),subjecttosubsection(6),serveuponhimorheracategory3civilpenalty order. (5)Itshallbeapartialdefencetoacivilpenaltyorderorproposedcivilpenaltyundersubsection(4)foramembertoprove(theburdenwhereofrestsonhimorher)thatheorshehadreasonablegroundstobelieve,anddidbelieve,thatacompetentandreliablepersonwaschargedwiththedutyofseeingthattherequirementsofthissectionwerecompliedwithandwasinapositiontodischargethatduty,inwhichcase


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theRegistrarmaywaivethosepartsofthepenaltyclauseoftheorderreferredtoinsection294(“PowerofRegistrartoissuecivilpenaltyordersandcategoriesthereof”)(4)(a)and(b)(i).

274 Examinationoffinancialstatementsandreportthereon (1)Notlaterthanthreemonthsaftercompletionofitsannualfinancialstatementsintermsofsection273(“Annualfinancialstatements”),aprivatebusinesscorporationshallsubmitthemtoanaccountingofficer,whoshallbeapersonwhoiseither— (a) amember, entitled topractise as such, of a profession approved by

the Minister in accordance with regulations made under section 301 (“Regulations”);or

(b) apersonlicensedbytheMinisterinaccordancewithregulationsmadeundersection301;

forexamination, reviewand report in termsof section275 (“Dutiesofaccountingofficer”).

(2)Aprivatebusinesscorporationmaysubmititsfinancialstatementstooneofitsownmembersforexamination,reviewandreportifthememberisqualifiedundersubsection(1)tobeanaccountingofficerandtheprivatebusinesscorporationhasatleast one other member.

(3)Ifanymemberofaprivatebusinesscorporationfailstotakeallreasonablestepstocomplywiththerequirementsofthissection,orhasbyhisorherownactbeenthecauseofanydefaultbytheprivatebusinesscorporationoritsmembersincomplyingwithanyofthoserequirements,theRegistrarmay(unlessheorsheissatisfiedthatthemember’sconductwasfraudulent,recklessorwilful,inwhicheventsection68(“Fraudulent,recklessorwilfulfailureoffinancialaccounting;falsificationofrecords”)(1)(b)shallapply),subjecttosubsection(6),serveuponhimorheracategory3civilpenalty order.

(4)Itshallbeapartialdefencetoacivilpenaltyorderorproposedcivilpenaltyundersubsection(4)foramembertoprove(theburdenwhereofrestsonhimorher)thatheorshehadreasonablegroundstobelieve,anddidbelieve,thatacompetentandreliablepersonwaschargedwiththedutyofseeingthattherequirementsofthissectionwerecompliedwithandwasinapositiontodischargethatduty,inwhichcasetheRegistrarmaywaivethosepartsofthepenaltyclauseoftheorderreferredtoinsection294(“PowerofRegistrartoissuecivilpenaltyordersandcategoriesthereof”)(4)(a)and(b)(i).

275Dutiesofaccountingofficer (1)Anaccountingofficertowhomtheannualfinancialstatementsofaprivatebusinesscorporationhavebeensubmittedintermsofsection274(“Examinationoffinancialstatementsandreportthereon”)shallwithoutdelay— (a) determinewhethertheannualfinancialstatementsareinagreementwith

thefinancialrecordsoftheprivatebusinesscorporationasprovidedinsection273(“Annualfinancialstatements”)(2)(d);and

(b) review the appropriateness of the accounting policies applied in thepreparationoftheannualfinancialstatements;and

(c) report in respect of paragraphs (a) and (b) to the private businesscorporation.

(2)IfintheperformanceofhisorherdutiestheaccountingofficerofaprivatebusinesscorporationbecomesawareofanycontraventionofthisAct,heorsheshall


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describethenatureofsuchcontraventioninhisorherreportmadeintermsofsubsection(1)(c).

(3)Ifanaccountingofficeris— (a) amemberoremployeeoftheprivatebusinesscorporation;or (b) apartnerofamemberoremployeeoftheprivatebusinesscorporation;

or (c) amemberofapartnershiporfirmwhichemploysamemberoremployee

oftheprivatebusinesscorporation;

heorsheshallstatethatfactinhisorherreportmadeintermsofsubsection(1)(c).

(4)Ifanaccountingofficerofaprivatebusinesscorporation— (a) atany timeknows,orhas reason tobelieve, that theprivatebusiness

corporation is not carrying on business or is not in operation and has no intentionofresumingoperationsintheforeseeablefuture;or

(b) intheperformanceofhisorherdutiesfinds— (i) that any change in respect of any particularsmentioned in the

privatebusinesscorporation’sincorporationstatementhasnotbeenregistered;or

(ii) thatthefinancialstatementspreparedintermsofsection273indicatethat,asattheendofthefinancialyearconcerned,theprivatebusinesscorporation’sliabilitiesexceededitsassets;or

(iii) that the financial statements prepared in terms of section 273incorrectlyindicatethat,asattheendtothefinancialyearconcerned,theassetsoftheprivatebusinesscorporationexceededitsliabilities,orifheorshehasreasontobelievethatsuchanincorrectindicationisgiven;

heorsheshallforthwithreporthisorherfindingstotheRegistrar:

Providedthat,iftheaccountingofficersubsequentlyfindsthatanymatterorsituation reported on in terms of this section has been amended he or she may report thereon to the Registrar.

(5)AnyreportsubmittedtotheRegistrarintermsofsubsection(4),includingany subsequent report submitted in termsof theproviso thereto, shallbeopen forinspectionathisorherofficeintermsofsection14(“InspectionandcopiesofdocumentsinCompaniesOfficeandproductionofdocumentsinevidence”).

276 Accountingofficer’srightofaccesstorecords,etc.,andtoconvenemeetings

Anaccountingofficertowhomtheannualfinancialstatementsofaprivatebusinesscorporationhavebeensubmittedintermsofsection274(“Examinationoffinancialstatementsandreportthereon”)shall— (a) havearightofaccessatalltimestotherecords,accounts,vouchersand

securitiesoftheprivatebusinesscorporation;and (b) beentitledtorequirefromthemembersandanymanagerandemployee

oftheprivatebusinesscorporationsuchinformationandexplanationsasheorshethinksnecessaryfortheperformanceofhisorherduties;and

(c) havethesamerightasisconferredonmembersoftheprivatebusinesscorporationbysection268(“Meetingsofmembers”)(2) toconveneameetingofmembers;and


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(d) beentitledtobeheardatanymeetingofmembersoftheprivatebusinesscorporation on any matter which concerns him or her as the accounting officer.

277 Terminationofaccountingofficer’smandate (1)Ifforanyreasonaprivatebusinesscorporationterminatesthemandateofanaccountingofficerbeforeheorshehasbeenabletocarryouthisorherdutiesintermsofsection275(“Dutiesofaccountingofficer”),theaccountingofficershallforthwithreportthefactoftermination,inwriting,totheRegistrar.

(2)Ifanaccountingofficerhasreasontobelievethattheterminationofhisorhermandateresultsfromthecommissionbytheprivatebusinesscorporationoranymemberofanyfraudorfinancialorotherirregularityintheconductoftheprivatebusinesscorporation’saffairs,heorsheshallappendtohisorherreportundersubsection(1)aconcisestatementofthefraudorirregularity.

(3)Noactionorotherproceedingsshalllieagainstanaccountingofficerinrespectofanystatementmadeintermsofsubsection(2)unlessitisfalseandmalicious.

PART II

other Business entities

278 Voluntaryregistrationofpartnershipagreements,etc. (1) In this section “constitutivedocument”,means, as the casemaybe, apartnershipagreement,ajointventureagreementoraconstitution,orothercontractoragreementbywhichtheentityorunregisteredassociation,inquestionisconstituted.

(2)Theauthorisedrepresentativeofanypartnership,syndicate,consortium,jointventureorunregisteredassociation,may,onpaymentoftheprescribedfeeandintheprescribedmannerregisteracopyoftheconstitutivedocumentrelatingtotheentityinquestion,andthereuponthedocumentlodgedintheRegistry shall be deemed for all purposes to be the authentic record of such document.

(3)AcertificatebytheRegistrarthat— (a) theconstitutivedocumentofapartnership,ajointventureorunregistered

associationisregisteredwiththeOffice;or (b) acopyoftheconstitutivedocumentofapartnershipagreement,ajoint

ventureagreementorunregisteredassociationisanauthenticcopyoftheoneregisteredattheOffice;

shallbepresumptiveproofofthefactsthuscertifiedandbeadmissibleassuchinalllegal proceedings.

(4)AnychangestoaconstitutivedocumentregisteredunderthissectionmustbenotifiedtotheRegistrarwithintheprescribedtimeandintheprescribedmanner,indefault of which the party responsible for the registration shall be liable to a category 2civilpenalty.

CHAPTER V

electronic reGistry

279 InterpretationinChapterV InthisPart—


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“access”,meansgaining entry into, instructingor communicatingwith thelogical, arithmetical ormemory function resources of the electronicregistry;

“affixingadigitalsignature”,inrelationtoanelectronicrecordorcommunication,means authenticating the electronic record or communication by means ofadigitalsignature;

“businessentityregistrationwork”meansthepreparationbyalegalpractitioner,charteredaccountant,charteredsecretary,businessentityincorporationagentorbusinessentityserviceproviderofanydocumentforregistrationwiththeOfficeorforattestationorexecutionbytheRegistrar;

“computer”meansanyelectronic,magnetic,opticalorotherhighspeeddataprocessing device or systemwhich performs logical, arithmetic andmemory functionsbymanipulationof electronic,magnetic or opticalimpulsesandincludesall input,output,processing,storage,computersoftware or communication facilities which are connected or related to thecomputerinacomputersystemoracomputernetwork;

“computer network”means the interconnectionof oneormore computersthrough—

(a) theuseofsatellite,microwave,terrestriallineorothercommunicationmedia;and

(b) terminalsoracomplexconsistingoftwoormoreinterconnectedcomputers whether or not the interconnection is continuously maintained;

“computersystem”,meansadeviceorcollectionofdevices,includinginputandoutputdevices,capableofbeingusedwithexternalfileswhichcontaincomputerprogrammes,electronicinstructions,inputandoutputdatathatperforms logic, arithmetic, data storage and retrieval, communicationcontrolandotherfunctions;

“digital signature” means an electronic signature created by computer that is intended by the registered user using it and by the Registrar accepting it tohavethesameeffectasamanualsignature,andwhichcomplieswiththerequirementsforacceptanceasadigitalsignaturespecifiedinsection284(“Digitalsignatures”)(1);

“electronicdata”meansanyinformation,knowledge,fact,conceptorinstructionstored internally in the memory of the computer or represented in any form (including computer printouts,magnetic optical storagemedia,punchedcardsorpunchedtapes)thatisbeingorhasbeenpreparedinaformalised manner and is intended to be or is being or has been processed inacomputersystemornetwork;

“electronic registry”means thecomputersystemorcomputernetwork thatconstitutes theelectronicversionof theOffice for theRegistrationofCompaniesandOtherBusinessEntities;

“electronicrecordorcommunication”meanselectronicdatathatisrecorded,received or sent in an electronic formor inmicrofilmor computer-generatedmicrofiche;

“intermediary”,with respect to any particular electronic communication,meansanypersonwhoonbehalfofanotherpersonreceives,storesortransmitsthatcommunicationorprovidesanyservicewithrespecttothatcommunication;


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“Internet” has the meaning given to that word by the Postal andTelecommunicationsAct[Chapter 12:03];

“notarialpractice”,meanstheworkofanotarypublic; “originator”,meansapersonwhosends,generates, storesor transmitsany

electroniccommunicationtobesent,generated,storedortransmittedtoanyotherperson,butdoesnotincludeanintermediary;

“registereduser”meansapersonregisteredintermsofsection283(“Registrationofregisteredusersandsuspensionorcancellationofregistration”);

“researcher” means a person engaged in research and information gathering forstatistical,economic,sociologicalandsimilarbona fide scientificoracademicwork;

“self-actor”meansapersonwishingtoregisteracompany(otherthanashellcompanyorashelfcompany)orprivatebusinesscorporationonhisorherownbehalforonbehalfofhisorherfellowmembers,thatistosaywithout the assistanceof a legal practitioner, chartered accountant orcharteredsecretary;

“uniqueelectronicdocument”meansadocumentinelectronicformhavingnocontemporaneousmaterialcounterpart,orwhosematerialprototypeislost,damagedordestroyed;

“useragreement”,meanstheagreementbetweentheregistereduserandtheRegistrarreferredtoinsection282(“Useragreements”).

280 Establishmentofelectronicregistry (1)TheRegistrarmay establish an electronic registry, forwhich purpose,despiteanythingtothecontraryinthisAct,theRegistrarmay— (a) digitiseeveryregister,constitutivedocumentorotherrecordunderhis

orhercharge;and (b) establishandmaintainacomputersystemforthepurposeofapplying

information technology to any process or procedure under thisAct,includingthedespatchandreceiptandprocessingofanyreturn,record,declaration,form,notice,statementorotherrecordordocumentforthepurposes of this Act.

(2)The electronic registry shall becomeoperational fromsuchdate as theRegistrar, in consultationwith theMinister, shall specify by notice in a statutoryinstrument:

ProvidedthatbeforesuchdatetheRegistrarmayintermsofsections282(“Useragreements”)and284(“Digitalsignatures”)registerusersoftheelectronicregistryto allow them to access the electronic registry for research and information gathering purposes only.

(3)Theuseof theelectronicregistryshallberestrictedtoregisteredusers,but— (a) suchuseshallnotinterruptorprejudicethecontinueduseofthepaper-

basedRegistrybyuserswhoarenotsoregistered;and (b) registeredusersmayberequiredtouseconcurrentlythepaper-baseddeeds

registry to such extent and under such conditions or in such circumstances asmaybeprescribedbyregulationsundersection301(“Regulations”).


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281 Useofelectronicdatagenerallyasevidence (1)Intheeventofanydiscrepancybetweenanelectroniccopyofadocumentlodgedwiththeelectronicregistryandthematerialversionofthesamedocumentthatislodgedwiththepaper-basedRegistry,thelattershallbedeemedtobetheauthenticrecord of the document.

(2)Ifauniqueelectronicdocumentisgeneratedby,storedwithorcommunicatedto,fromorthroughtheelectronicregistry,acertificatebytheRegistrar— (a) thatthedocumentisauniqueelectronicdocumentandthatisorwasso

generated,storedandcommunicated;or (b) astotheidentityoftheoriginatororrecipientofthedocument;or (c) that,tothebestofhisorherknowledge,thecontentsofthedocument

areanauthenticrecordofanytransactiontowhichitrelates;or (d) attestingtoalloranycombinationoftheforegoingparagraphs(a),(b)

and(c);

shallbepresumptiveproofofthefactsthuscertifiedandbeadmissibleassuchinalllegal proceedings.

(3)Apartfromsubsection(2),withrespecttotheadmissibilityinevidenceofanyelectronicdataforanypurposeunderthisAct,andnotwithstandinganythingtothecontrarycontainedinanyotherlaw,theadmissibilityinevidenceofanyelectronicdataforanypurposeunderthisActshallnotbedenied— (a) onthesolegroundthatitiselectronicdata;or (b) ifitisthebestevidencethatthepersonadducingitcanreasonablybe

expectedtoobtain,onthegroundsthatitisnotinoriginalform.

(4)Informationintheformofelectronicdatashallbegivendueevidentialweight.

(5)Inassessingtheevidentialweightofelectronicdataacourtshallhaveregardto such of the following considerations as may be applicable in the circumstances of thecase— (a) thereliabilityofthemannerinwhichthedatawasgenerated,storedand

communicated;and (b) the reliability of themanner inwhich the integrity of the datawas

maintained;and (c) themannerinwhichitsoriginatorwasidentified.

282 User agreements TheRegistrarshall,forthepurposeofregulatingtheuseoftheelectronicregistrybyregisteredusers,enterintoauseragreementwitheachregisteredusersubstantiallyintheformsetoutintheSeventhSchedule(“UserAgreement”).

283 Registration of registered users and suspension or cancellation of registration

(1)Nopersonshallcommunicatewith theRegistrar through theelectronicregistry unless such person is a registered user.

(2)Anapplicationforregistrationasaregisteredusershallbemadeintheprescribedform,andbeaccompaniedbytheuseragreementcompletedbytheapplicantandtheprescribedfee,ifany,andsuchotherinformationastheRegistrarmayreasonablyrequiretheapplicanttofurnishinsupportoftheapplication.


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(3)If,afterconsideringanapplicationintermsofsubsection(2)andmakingsuchenquiriesasheor shemaydeemnecessary, theRegistrar is satisfied that theapplicant— (a) isapersonqualifiedtodobusinessentityregistrationworkornotarial

practice,oraresearcher,oraself-actor; (b) willintroduceadequatemeasuresto— (i) preventdisclosureofthedigitalsignatureallocatedtohimorherby

theRegistrartoanypersonnotauthorisedtoaffixsuchsignature;and

(ii) safeguardtheintegrityofinformationcommunicatedthroughtheelectronicregistry,apartfromanychangewhichmayoccurinthenormal course of such communication or during storage and display ofsuchinformation;

and (c) willmaintainthestandardofreliabilityofhisorherowncomputersystem

requiredinaccordancewiththeuseragreement;

theRegistrarmayapprovetheapplication,subjecttosuchreasonableconditionsasheor she may impose either generally or in relation to the applicant.

(4)If,atanytimeaftergrantinganapplicationintermsofsubsection(2),theRegistrarissatisfiedthataregistereduser— (a) hasnotcompliedwiththerequirementsofhisorheruseragreementor

with any condition or obligation imposed by the Registrar in respect of suchregistration;or

(b) hasmadeafalseormisleadingstatementwithrespecttoanymaterialfactoromitstostateanymaterialfactwhichwasrequiredtobestatedintheapplicationforregistration;or

(c) hascontravenedorfailedtocomplywithanyprovisionofthisAct;or (d) hasbeenconvictedofanoffenceunderthisAct;or (e) hasbeenconvictedofanoffenceinvolvingdishonesty;or (f) isanunrehabilitatedsolventorliquidated;or (g) nolongercarriesonthebusinessforwhichtheregistrationwasissued;

theRegistrarmay cancel or suspend for a specifiedperiod the registrationof theregistered user.

(5)Beforecancellingorsuspendingtheregistrationofaregistereduserintermsofsubsection(4)theRegistrarshall— (a) give notice to the registered user of the proposed cancellation or

suspension;and (b) providethereasonsfortheproposedcancellationorsuspension;and (c) affordtheregistereduserareasonableopportunitytorespondandmake

representations as to why the registration should not be cancelled or suspended.

284 Digital signatures (1)Everydigitalsignatureintendedforuseinconnectionwiththeelectronicregistryshallcomplywiththefollowingrequirements,namely,itmust— (a) beuniquetotheregistereduserandunderthesolecontroloftheregistered

user;and


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(b) becapableofverification;and (c) belinkedorattachedtoelectronicallytransmitteddatainsuchamanner

that,iftheintegrityofthedatatransmittediscompromised,thedigitalsignatureisinvalidated;and

(d) be in complete conformitywith the requirements prescribed by theRegistrar and contained in the user agreement.

(2)TheRegistrarshall,onregisteringauser,allocatetotheregistereduser— (a) if the user is a natural person, a digital signature or sufficient digital

signatures for the user and each employee of the user nominated in the useragreement;or

(b) iftheuserisnotanaturalperson,sufficientdigitalsignaturesforeachemployee of the user nominated in the user agreement.

285 Production and retention of documents WhereanyprovisionofthisActprescribesorrequiresthatdocuments,records,informationorthelikeshouldberetainedforaspecificperiod,thatrequirementshallbedeemed tohavebeen satisfiedby a registereduser if suchdocuments, records,informationorthelikearesoretainedinelectronicformthat— (a) the information contained therein remains accessible so as to be

subsequentlyusable;and (b) theelectronicrecordisretainedintheformatinwhichitwasoriginally

generated,sentorreceivedorinaformatwhichcanbedemonstratedtorepresentaccuratelytheinformationoriginallygenerated,sentorreceived;and

(c) thedetailswhichwillfacilitatetheidentityoftheorigin,destination,dateandtimeofdispatchorreceiptofsuchelectronicrecordareavailableinthe electronic record.

286 Sending and receipt of electronic communications (1)Anelectroniccommunicationthroughtheelectronicregistryortherecordofsuchcommunicationshallbeattributedtotheoriginator— (a) ifitwassentbytheoriginator;or (b) ifitwassentbyapersonwhohadtheauthoritytoactonbehalfofthe

originatorinrespectofthatcommunicationorrecord;or (c) ifitwassentbyacomputersystemprogrammedbyoronbehalfofthe

originator to operate automatically.

(2)Where the Registrar and a registered user have not agreed that anacknowledgmentofreceiptofelectroniccommunicationbegiveninanyparticularformorbyanyparticularmethod,anacknowledgementmaybegivenby— (a) anycommunicationbytheRegistrar,electronicorotherwise;or (b) conduct by theRegistrar or any officer sufficient to indicate to the

registered user that the electronic communicationhasbeenreceived.

(3)WheretheRegistrarandtheregistereduserhaveagreedthatanelectroniccommunicationshallbebindingonlyonthereceiptofanacknowledgementofsuchelectroniccommunication,then,unlesssuchacknowledgementhasbeensoreceivedwithinsuchtimeasagreedupon,suchelectroniccommunicationshallbedeemednottohavebeensent.


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(4)Asbetween theelectronic registryandanyothercomputersystemofaregistereduser,thelodgementofanelectroniccommunicationoccurswhenitentersacomputer system outside the control of the originator.

(5)Thetimeofreceiptofanelectroniccommunicationshallbethetimewhentheelectroniccommunicationentersthecomputer— (a) wheretheelectroniccommunicationisbyaregistereduser,atanyoffice

oftheRegistry,ortotheRegistrar,towhicheveritwasaddressed,andsuchofficeshallbetheplaceofreceipt;or

(b) iftheelectroniccommunicationissentbytheRegistryortheRegistrartoaregistereduser,attheplaceofreceiptthatisstipulatedintheuseragreement.

(6)Wheneveranyregistereduserisauthorisedtosubmitandsignelectronicallyanyreturn,record,declaration,form,notice,statementorthelike,whichisrequiredtobesubmittedandsignedintermsofthisAct,suchsignatureelectronicallyaffixedtosuchelectroniccommunicationandcommunicatedtotheRegistryortheRegistrar,shall,forthepurposesofthisAct,haveeffectasifitwasaffixedtheretoinmanuscript,and acceptance thereof shall not be denied if it is in conformity with the user agreement concluded between the Registrar and the registered user.

(7)TheRegistrarmay,notwithstandinganythingtothecontrarycontainedinthissection,permitanyregistereduser tosubmitelectronically,anyreturn, record,declaration,form,notice,statementorthelike,whichisrequiredtobesubmittedintermsofthisAct,byusingtheInternet,andsubjecttosuchexceptions,adaptationsoradditionalrequirementsastheRegistrarmaystipulateorprescribe,thissectionshallapply to the submission of the foregoing documents using the Internet.

287 Obligations, indemnities and presumptions with respect to digital signatures

(1)Ifthesecurityofadigitalsignatureallocatedtoaregistereduserhasbeencompromised in any manner the registered user shall inform the Registrar in writing of that fact without delay.

(2)No liability shall attach to theRegistrar, theRegistryor anyofficeroremployee thereof for any failure on the part of a registered user to ensure the security ofthedigitalsignatureallocatedtohimorherand,inparticular,whereelectronicdataauthenticatedbyadigitalsignatureisreceivedbytheRegistryortheRegistrar— (a) withouttheauthorityoftheregisteredusertowhomsuchsignaturewas

allocated;and (b) beforenotificationtotheRegistryortheRegistrarbytheregistereduser

that the security of the digital signature allocated to him or her has been compromised;

the Registry or the Registrar shall be entitled to assume that such data has been communicatedby,orwiththeauthorityof,theregistereduserofthatdigitalsignature.

(3)WhereinanyproceedingsorprosecutionunderthisActorinanydisputetowhichtheRegistryisaparty,thequestionariseswhetheradigitalsignatureaffixedto any electronic communication to the Registry or the Registrar was used in such communicationwithorwithouttheconsentandauthorityoftheregistereduser,itshallbepresumed,intheabsenceofprooftothecontrary,thatsuchsignaturewassousedwith the consent and authority of the registered user.


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288 Alternativestoelectroniccommunicationincertaincases (1)Whenevertheelectronicregistryoracomputersystemofaregistereduserisinoperative,theregistereduserandtheRegistrarshallcommunicatewitheachotherin writing in the manner prescribed in this Act.

(2)TheRegistrarmay at any time require from any registered user thesubmission of any original document required to be produced under any of theprovisionsofthisAct.

289 Use of electronic registry otherwise than for business entity registration

(1)TheRegistrarmay,inaccordancewiththeprescribedconditionsandsubjectto payment of the prescribed fee, if any, permit any companyor private businesscorporation to become a registered user of electronic registry for any or all of the followingpurposes— (a) thekeepingandrenderingofdocumentsandreturnsinelectronicform

forthepurposesofsections9(“Formofregistersandotherdocuments”)and15(“Additionalcopiesofreturnsorrecords”);

(b) theelectronicserviceofprocessanddocumentsasbetweenthecompanyor private business corporation and theOffice in termsof section64(“Serviceofdocuments”);

(c) the issuanceofuncertificatedsharesorofdematerialisedmembershipinterestsintermsofsection153(“Evidenceoftitletoshares”)or257(“Certificateofmember’sinterest”)(3);

(d) the issuanceofdebentures indematerialised form in termsof section154(“Creationandregistrationofdebentures;contractstosubscribefordebentures”);

(e) thekeepingofanelectronicregisterofmembersintermsofsection159(“Registerandindexofmembersanduseofregisteraspresumptiveproofofmembership”).

(2)Fortheavoidanceofdoubtitisdeclaredthatnothinginthissectionprohibitsregistered business entities that are not registered users from transacting their internal orexternalbusinesselectronically,butunlessanduntiltheybecomeregistereduserstheymustcontinuetocomplyfullywiththepaper-basedrequirementsofthesectionsofthisActmentionedinsubsection(1).

290 Unlawful uses of computer systems (1)Apersonwho,notbeingtheregistereduserofadigitalsignaturetowhomitisallocated,usessuchasignatureinanyelectroniccommunicationtotheRegistryortheRegistrarwithouttheauthorityofsuchregistereduser,commitsanoffenceandisliabletoafinenotexceedinglevel12ortoimprisonmentforaperiodnotexceedingtenyearsortobothsuchfineandsuchimprisonment.

(2)Apersonwho— (a) makesafalseelectronicrecordorfalsifiesanelectronicrecord;or (b) dishonestlyorfraudulently— (i) makes, affixes anydigital signature to, transmits or executes an

electronicrecordorcommunication;or (ii) causes anyother person tomake, affix anydigital signature to,

execute,transmitorexecuteanelectronicrecordorcommunication;


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commitsanoffenceandisliabletoafinenotexceedinglevel12ortoimprisonmentforaperiodnotexceedingtenyearsortobothsuchfineandsuchimprisonment.

291 Restrictions on disclosure of information (1)ExceptforthepurposesofaprosecutioninrespectofanoffenceunderthisAct,nouseroftheelectronicregistrywhoisregisteredtouseitforpurposesotherthanbusinessentityregistrationwork,businessentityserviceprovision,ornotarialpracticeshall— (a) disclose toanyotherpersonanyinformationrelating toan individual

withouttheconsentoftheindividualconcerned;or (b) putanyinformationobtainedfromtheelectronicregistryintothepublic

domainunlesssuchinformationissufficientlyanonymised,thatistosayitmustonlybepresentedinbulkforstatisticalpurposesandsopresentedasnottonameanyindividualtowhichsuchinformationrelates.

(2)Anypersonwhocontravenessubsection(1)shallbeguiltyofanoffenceandliabletoafinenotexceedinglevel6ortoimprisonmentforaperiodnotexceedingoneyearortobothsuchfineandsuchimprisonment.

CHAPTER VI

Business Entity incorPoration AGents and Business Entity Service Providers, and shell and shelf comPanies

292 Businessentity incorporationagentsandbusinessentityserviceproviders

(1)Inthissection— “business entity incorporation agent” means a person licensed under this section

todobusinessentityregistrationwork; “businessentityregistrationwork”meansthepreparationbyanyperson for

profit,orotherwisethanonhisorherownbehalf,ofanydocumentforregistrationwiththeCompaniesOfficeorforattestationorexecutionbytheRegistrar;

“businessentityserviceprovision”meansthebusinessofprovidinganyoneormoreofthefollowingservicesforprofit,andotherwisethanonhisor her own behalf or on behalf of more than three registrable business entities(whetherornotinadditiontodoingbusinessentityregistrationwork)—

(a) actingas,orarrangingforanotherpersontoactas,adirectororsecretaryofacompanyorapartnerofapartnership,ortoholdasimilarpositioninrelationtootherlegalpersons;

(b) providingaregisteredoffice,businessaddressoraccommodation,correspondence or administrative address for a company, apartnershiporanyotherlegalpersonorarrangement;

(c) managing the share registers of other companies and providingservicespertinenttheretosuchastheissuanceofsharecertificatesand the payments of dividends to shareholders onbehalf of thecompaniesinquestion;

(d) acting as, or arranging for another person to act as, a nomineeshareholderforanotherperson;


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and “business entity serviceprovider”shallbeconstruedaccordingly.

(2)Nopersonother than a legal practitioner, chartered accountant, personregistered under the Public Accountants and Auditors Act [Chapter 27:12] or chartered secretarymayengageinbusinessentityregistrationworkorbusinessentityserviceprovisionunlessheorsheislicensedintermsofthissection.

(3)Anyindividualwho— (a) isnotalegalpractitioner,charteredaccountant,personregisteredunder

thePublicAccountantsandAuditorsAct[Chapter 27:12] or chartered secretary;but

(b) isanindividualwhohaseitherorbothofthefollowingqualifications— (i) isregisteredasapublicaccountantorauditorintermsofthePublic

AccountantsandAuditorsAct[Chapter 27:12];or (ii) hasaBachelorinBusinessAdministrationdegreefromarecognised

universityoranequivalentprescribedqualification;

may apply to the Registrar in the prescribed form and manner and on payment of the prescribed fee to be licensed as a business entity incorporation agent or business entity serviceprovider.

(4)Anypersonwho— (a) isnotalegalpractitioner,charteredaccountantorcharteredsecretary;

and (b) isincorporatedasacompanyunderthisAct;

may apply to the Registrar in the prescribed form and manner and on payment of the prescribed fee to be licensed as a business entity incorporation agent or a business entityserviceprovider.

(5)IftheRegistrarissatisfiedthattheapplicantisqualifiedtobeabusinessentityincorporationagentorbusinessentityserviceprovider,theRegistrarshallissuehim,heroritwithalicenceintheprescribedformwithorwithoutsuchconditionsasmaybespecifiedinthelicence:

Providedthatitshallnotbenecessaryforapersonlicensedasabusinessentityserviceproviderwhoseservicesincludetheincorporationofbusinessentitiestobealsolicensed as a business entity incorporation agent.

(6)Abusinessentityincorporationagent’slicenceorabusinessentityserviceprovider’slicenceshallnotbetransferable

(7)Abusinessentityincorporationagent’slicenceorabusinessentityserviceprovider’slicenceshallexpireonthe31stDecemberfollowingtheyearinwhichitwasissued,andmayberenewedinaccordancewiththeprovisionsofthissectionforobtainingafirstlicence.

(8)TheRegistrarmay refuse an application for a licence or the renewalthereof,orcancelorsuspendalicenceiftheapplicantorlicenseehas— (a) givenfalseormisleadinginformationinanapplicationtobelicensed;or (b) persistentlyfailedtocomplywithanyprovisionofthisAct;or (c) beenconvictedofanoffenceunderthisAct,oranyotheroffenceinvolving

fraud,forgery,ormoneylaundering,oranoffencereferredtoinChapterIX (“bribery and corruption”) of theCriminalLaw (Codification andReform)Act[Chapter 9:23].


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(9)Anypersonotherthanalegalpractitioner,charteredaccountant,charteredsecretary, licensedbusiness entity incorporation agent or licensedbusiness entityserviceproviderwhoengagesinoroffersservicesinconnectionwithbusinessentityregistrationworkorbusinessentityserviceprovisionshallbeguiltyofanoffenceandisliabletoafineoflevel7orimprisonmentforaperiodoftwoyearsorboth.

(10)Apersonwho,havingbeenlicensedtoengageinbusinessentityregistrationworkorbusinessentityserviceprovision,continuestoengageinsuchworkaftertheexpiryofhisorherlicence,shallbeindefaultandliableto category4civilpenalty.

(11)Any personwho, at the effective date, is engaged in business entityregistrationworkorbusinessentityserviceprovisionatthedateofcommencementofthisActshallhavesixmonthswithinwhichtobecomelicensedintermsofthissection

293 Shell and shelf companies (1)Inthissection— “active business entity”means a companyor private business corporation

that,inadditiontosubmittingregularstatutoryreturnsandnoticestotheRegistrar,isbeingoperatedinaccordancewithitsstatedobjects,andisotherwiseactiveinbusiness;

“shelf company” means a shell company incorporated or registered in the name of a person who intends to sell or otherwise transfer it to another person orpersons,whointurnmayoperateitasanactivebusinessentity,ashellcompanyorashelfcompany;

“shellcompany”meansacompanythat,apartfromsubmittingregularstatutoryreturnsandnoticestotheRegistrar,isnotbeingoperatedinaccordancewithitsstatedobjects,orisnototherwiseactiveinbusinessformorethantwelve(12)monthsafteritsregistration.

(2)Anypersonengaginginbusinessentityregistrationworkorbusinessentityserviceprovisionwhowishes to incorporate any shelf companyor shell company whethersinglyorinbulk— (a) mustlodgetogetherwiththeconstitutivedocumentsoftheshelfcompany

orshellcompanyinquestionadeclarationtotheeffectthattheconstitutivedocumentsrelatetosuchshelfcompanyorshellcompany;and

(b) shall(subjecttoaprescribeddiscountforbulklodgements)paydoublethefeesfortheregistrationofeachsetofconstitutivedocumentsrelatingto each such company.

(3)IfitcomestothenoticeoftheRegistrarthatanypersonengaginginbusinessentityregistrationworkorbusinessentityserviceprovisionhasincorporatedanyshelfcompanyorshellcompanywithoutmakingthedeclarationrequiredbysubsection(2)(a),theRegistrarshallserveonthatpersonacategory2civilpenaltyorder,whoseremediationclauseshallrequirethepaymentofthefeesoutstandingforeachnamedshelfcompanyorshellcompanydealtwithincontraventionofsubsection(2).


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CHAPTER VII

General

PART Icivil Penalty orders

294 PowerofRegistrartoissuecivilpenaltyordersandcategoriesthereof (1)WheredefaultismadeincomplyingwithanyprovisionofthisActorofregulationsmadeunderthisActforwhichacivilpenaltyisspecifiedtobeleviable,theRegistrarmay,inadditionto,andwithoutderogatingfrom,anycriminalornon-criminalpenaltythatmaybeimposedbythisAct,oranyotherlawfortheconductconstitutingthedefault,serveuponthedefaulteracivilpenaltyorderoftheappropriatecategoryspecifiedinsubsection(2),(3),(4),(5)or(6)oranycombinationofsuchordersastheprovisioninquestionmayallow. (2)A category1 civil penalty order provides for a combination of afixedpenaltyandacumulativepenaltyoveraperiodnotexceedingninetydaysforaspecifiedcompletedand irremediabledefault (that is tosayadefault inrespectofwhichnoremediationissoughtbytheRegistrarorispossible),ofwhich— (a) thefixedpenaltyshallbethemaximumamountspecifiedforlevelten;

and (b) thecumulativepenaltyshallbeapenaltyof themaximumamountof

levelthreeforeachday(beginningonthedayaftertheserviceofacivilpenaltyorder)duringwhichthedefaulterfailstopaythecivilpenaltyunderparagraph(a).

(3)Acategory2civilpenaltyorderprovidesforacumulativecivilpenaltyforaspecifiedcompletedbutremediabledefaultwhich— (a) mustbesuspendedconditionallyuponthedefaultertakingtheremedial

actionspecifiedinthecivilpenaltyorderwithinthespecifiedperiod;and (b) uponthecivilpenaltybecomingoperativebecauseofnon-compliance

with the requested remedial action, shall provide for apenaltyof themaximumamountoflevelthreeforeachday,notexceedingninetydays,duringwhichthedefaultercontinuestobeindefault(beginningonthedayafterthelastdayonwhichthedefaulterfailstotaketheremedialaction).

(4)A category3 civil penalty order provides for a combination of afixedpenaltyandpotentiallytwocumulativepenaltiesforaspecifiedcompletedbutpartiallyremediabledefault,ofwhich— (a) thefixedpenaltyshallbethemaximumamountspecifiedforlevelfive;

and (b) thecumulativepenalty— (i) relatingtoparagraph(a)shallbeapenaltyofthemaximumamount

oflevelthreeforeachday(beginningonthedayaftertheserviceofacivilpenaltyorder)duringwhichthedefaulterfailstopaythecivilpenaltyunderparagraph(a);and

(ii) relatingtothetakingofthespecifiedremedialaction— A. shall be themaximumamount of level three for eachday,

notexceedingninetydays,thatthedefaulterfailstotakethespecified remedialactionwitheffect froma specifieddate;


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and B. mustbesuspendedconditionallyuponthedefaultertakingthe

remedialactionspecifiedinthecivilpenaltyorderwithinthetimespecifiedintheorder.

(5)Acategory4civilpenaltyorderprovidesforacumulativepenaltyforacontinuingdefaultwhich— (a) mustbesuspendedconditionallyuponthedefaulterimmediately(that

is tosay,onthedayafter thecivilpenaltyisservedonhimorherorsuchlongerperiodnotexceedingsevendaysasmaybespecifiedintheprovisionorintheorderinquestion)ceasingthedefault;and

(b) uponthecivilpenaltybecomingoperativebecauseoffailuretoceasethedefaultimmediately,shallbethemaximumamountfixedforleveloneforeachdayduringwhichthedefaultcontinues,notexceedingaperiodof ninety days.

(6)A category5 civil penalty order provides for a combination of afixedpenaltyandacumulativepenaltyforaspecifiedcontinuingdefaultwherethetimeofcomplianceisoftheessence— (a) bothofwhichpenaltiesmustbesuspendedconditionallyuponthedefaulter

takingtheremedialactionspecifiedinthecivilpenaltyorderwithinthetimespecifiedintheorder;and

(b) which, upon the civil penalty becoming operative because of non-compliancewiththerequestedremedialaction,shallprovide—

(i) afixedpenaltyofthemaximumamountforleveltenfornotmeetingthespecifieddeadline;and

(ii) acumulativepenaltyofthemaximumamountoflevelthreeforeachday,notexceedingninetydays,forwhichthedefaulterfailstopaytheamountspecifiedinsubparagraph(i).

(7)ReferencesinthisActto— (a) the“citationclause”ofacivilpenaltyorderarereferencestothepartof

theorderinwhichtheRegistrarnamesthedefaulterandcitestheprovisionoftheActinrespectofwhichthedefaultwasmadeorisalleged,togetherwith(ifnecessary)abriefstatementofthefactsconstitutingthedefault;or

(b) the“penaltyclause”ofacivilpenaltyorderarereferencestothepartoftheorderthatfixesthepenaltytobepaidbythedefaulter,and“fixedpenaltyclause”and“cumulativepenaltyclause”shallbeconstruedaccordingly;or

(c) the“remediationclause”ofacivilpenaltyorderarereferencestothepartof the order that stipulates the remedialactiontobetakenby the defaulter.

295 Service and enforcement of civil penalties and destination ofproceeds thereof

(1)ReferencestotheRegistrarservinguponadefaulteranycivilpenaltyorderintermsofthisAct(orservinguponanallegeddefaulterashowcausenoticereferredtoinsection296(“Additionaldueprocessrequirementsbeforeserviceofcertaincivilpenaltyorders”),aretobeinterpretedasrequiringtheRegistrartodeliversuchorder(orsuchnotice)inwritingtothedefaulter(orallegeddefaulter)concernedinanyofthefollowingways—


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(a) byregisteredpostaddressed to thedefaulter’s (orallegeddefaulter’s)principalofficeinZimbabweorotherplaceofbusinessofthedefaulter(orallegeddefaulter);or

(b) byhanddeliverytothedirector,manager,secretaryoraccountingofficerofthedefaulter(orallegeddefaulter)inperson(orthroughaninspectororotherpersonemployedintheOffice,orapoliceofficer),ortoaresponsibleindividualattheplaceofbusinessofthedefaulter;or

(c) bydeliverythroughacommercialcourierservicetothedefaulter’s(orallegeddefaulter’s)principalofficeinZimbabweorotherplaceofbusinessofthedefaulter(orallegeddefaulter);or

(d) byelectronicmailortelefacsimileattheelectronicmailortelefacsimileaddress furnished by the defaulter(orallegeddefaulter)totheRegistrar:

Providedthatinthiscaseacopyoftheorderornoticeshallalsobe sent to the electronic mail or telefacsimile address of the defaulter’s (orallegeddefaulter’s)legalpractitionerinZimbabwe.

(2)TheRegistrarshallnotextendtheperiodspecifiedinacivilpenaltyorderforcompliancetherewithexceptupongoodcauseshowntohimorherbythedefaulter,andanyextensionoftimesograntedshallbenotedbytheRegistrarinthecivilpenaltyenforcementregisterreferredtoinsection297(“Evidentiaryprovisionsinconnectionwithcivilpenaltyorders”).

(3)IfinthisActboththedefaultingcompanyandeveryofficerofthecompanywhoisindefaultaresaidtobeliabletoacivilpenaltyorder,theRegistrarmay— (a) inthesamecivilpenaltyorder,namethedefaultingcompanyandevery

officerconcernedasbeingso liable separately,or issue separatecivilpenaltyordersinrespectofthedefaultingcompanyandeachoftheofficersconcerned;

(b) maychoosetoservetheorderonlyuponthedefaultingcompanyif,inhisorheropinion(whichopiniontheRegistrarshallnoteinthecivilpenaltyenforcementregisterreferredtoinsection297,theremaybeasubstantialdisputeoffactabouttheidentityoftheparticularofficerorofficerswhomay be in default:

Providedthatnothinginthissectionaffectsthedefaultliabilityofofficersofthecompanymentionedinsubsection(8).

(4)TheRegistrarmay,inthecitationclauseofasinglecivilpenaltyorder,citetwoormoredefaultsrelatingtodifferentprovisionsofthisActifthedefaultsinquestion— (a) occurredconcurrentlyorwithinaperiodnotexceedingsixmonthsfrom

thefirstdefaultordefaultstothelastdefaultordefaults;or (b) aroseinconnectionwiththesamesetoffacts.

(5)WhereinthisActthesameactsoromissionsareliabletobothcriminalandcivilpenaltyproceedings,theRegistrarmayserveacivilpenaltyorderatanytimebeforethecommencementofthecriminalproceedingsinrelationtothatdefault,thatistosayatanytimebefore— (a) summonsisissuedtotheaccusedpersonfortheprosecutionoftheoffence;

or (b) astatementofthechargeislodgedwiththeclerkofthemagistratescourt

beforewhichtheaccusedistobetried,wheretheoffenceistobetriedsummarily;or


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(c) anindictmenthasbeenservedupontheaccusedperson,wherethepersonistobetriedbeforetheHighCourt;

asthecasemaybe,butmaynotserveanycivilpenaltyorderafterthecommencementofthecriminalproceedingsuntilafterthoseproceedingsareconcluded(thecriminalproceedingsaredeemedforthispurposetobeconcludedeveniftheyareappealedortakenonreview).(Fortheavoidanceofdoubtitisdeclaredthattheacquittalofanalleged defaulter in criminal proceedings does not excuse the defaulter from liability forcivilpenaltyproceedings).

(6)Upontheexpiryoftheninetydayperiodwithinwhichanycivilpenaltyorderofanycategorymustbepaid,thedefaultershallbeguiltyofanoffenceandliabletoafinenotexceedinglevel6ortoimprisonmentforaperiodnotexceedingoneyearor to both.

(7)Theamountofanycivilpenaltyshall— (a) bepayabletotheRegistrarandshallformpartofthefundsoftheOffice;

and (b) beadebtduetotheOfficeandmaybesuedforinanyproceedingsinthe

nameoftheRegistrarinanycourtofcompetentciviljurisdiction.

(8)Ifthedefaulterisacompany,privatebusinesscorporationorotherbodycorporate,everyofficerofthecompany,corporationorbodycorporate,mentionedinthecivilpenaltyorderbynameorbyoffice,isdeemedtobeindefaultandanyoneofthemcan,onthebasisofjointandseveralliability,bemadebytheRegistrartopaythecivilpenaltyintheeventthatthecompany,corporationorbodycorporatedoesnotpay.

(9)IftheRegistrarintermsofsubsection(7)(b)desirestoinstituteproceedingstorecovertheamountsoftwoormorecivilpenaltiesinanycourtofcompetentciviljurisdiction,heorshemay,afternoticetoallinterestedparties,bringasingleactioninrelationtotherecoveryofthosepenaltiesiftheordersrelatingtothosepenalties— (a) wereallservedwithintheperiodoftwelvemonthsprecedingtheinstitution

oftheproceedings;and (b) wereserved— (i) onthesamecompanyorprivatebusinesscorporation;or (ii) inrelationtothesamedefaultorsetofdefaults,whethercommitted

bythesamecompanyorprivatebusinesscorporationordifferentcompaniesorprivatebusinesscorporations;or

(iii) ontwoormorecompaniesorprivatebusinesscorporationswhoseregisteredofficesareinthesameareaofjurisdictionofthecourtbefore which the proceedings are instituted.

(10)Unless theRegistrar has earlier recovered in civil court the amountoutstandingunderacivilpenaltyorder,acourtconvictingapersonofanoffenceagainstsubsection(6),mayonitsownmotionorontheapplicationoftheprosecutorandinadditiontoanypenaltywhichitmayimposegivesummaryjudgementinfavouroftheRegistrarfortheamountofanyoutstandingcivilpenaltyduefromtheconvicteddefaulter.


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296 Additionaldueprocessrequirementsbeforeserviceofcertaincivilpenalty orders

(1)ExceptinrelationtoanycivilpenaltyorderwhichtheRegistrarissatisfiedconcernsastrictlyadministrativedefaultthatdoesnotinvolveanysubstantivedisputeoffact,theRegistrarmustnotifytheallegeddefaulterinwritingoftheRegistrar’sintentiontoservethecivilpenaltyorder(whichnoticeshallhereafterbecalleda“showcausenotice”)andtheRegistrar’sreasonsfordoingsoandshallcallupontheallegeddefaultertoshowcausewithintheperiodspecifiedinthenotice(whichperiodshallnotbelessthanforty-eighthoursormorethansevendaysfromthedateofserviceofthenotice)whythecivilpenaltyordershouldnotbeserveduponhimorher,and,iftheallegeddefaulter— (a) makesnorepresentationstheretowithinthenoticeperiod,theRegistrar

shallproceedtoservethecivilpenaltyorder,or (b) makesrepresentationsshowingthattheallegeddefaultinquestionwas

not wilful or was due to circumstances beyond the alleged defaulter’s controlorforanyotherreasonspecifiedinthecivilpenaltyprovisioninquestion,theRegistrarshallnotproceedtoservethecivilpenaltyorder;or

(c) makesno representationsof thekind referred to inparagraph (b) theRegistrarshallproceedtoservethecivilpenaltyorder.

(2)Inaddition,whereitappearstotheRegistrarfromwrittenrepresentationsreceivedundersubsection(1)thattheremaybeamaterialdisputeoffactconcerningtheexistenceoranysalientaspectoftheallegeddefault,theRegistrarmustaffordtheallegeddefaulteranopportunity tobeheardbymakingoral representationsbeforetheRegistrar,forwhichpurposetheRegistrarshallhavethesamepowers,rightsandprivilegesasareconferreduponacommissionerbytheCommissionsofInquiryAct[Chapter 10:07],otherthanthepowertoorderapersontobedetainedincustody,andsections 9 to 13 and 15 to 19 of that Act shall apply with necessary changes in relation tothehearinganddeterminationbeforetheRegistraroftheallegeddefaultinquestion,andtoanypersonsummonedtogiveevidenceorgivingevidencebeforetheRegistrar.

(3)Anypersonwhoisaggrievedbyacivilpenaltyordermadeafterthemakingof representations in terms of this section may appeal against the order to a Magistrate’s CourtorajudgeoftheHighCourt,andthemagistrateorthejudgemaymakesuchorderasheorshethinksfit

297 Evidentiaryprovisionsinconnectionwithcivilpenaltyorders (1)ForthepurposesofthisSub-ParttheRegistrarshallkeepacivilpenaltyenforcementregisterwhereinshallberecorded— (a) thedateofserviceofeveryshowcausenotice,thenameandthephysical

orregisteredofficeaddressofthepersonuponwhomitwasserved,thecivil penalty provision in relation towhich the allegeddefaulterwasallegedtobeindefault,andwhetherornottheshowcausenoticewasfollowedbytheserviceofacivilpenaltyorder:

Provided that a record or an adequate summary of anyrepresentations made in response to a show cause notice shall be made bywayofanentryorcross-referencein,orannexureto,theregister,andifrecordedbywayofannexureorcross-reference,therepresentationsmustbepreservedforaperiodofatleastthreeyearsfromthedatewhentheyweremadetotheRegistrar;


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(b) thedateofserviceofeverycivilpenaltyorder,thenameandthephysicalorregisteredofficeaddressofthepersonuponwhomitwasserved,thecivilpenaltyprovisioninrelationtowhichthedefaulterwasindefault,andthedateonwhichthecivilpenaltyorderwascompliedwithorthepenaltythereunderwasrecoveredasthecasemaybe.

(2)Acopyof—. (a) anyentryinthecivilpenaltyenforcementregister,andofanyannexure

theretoorrecordcross-referencedtherein,authenticatedbytheRegistrarasatruecopyoftheoriginal,shallonitsmereproductioninanycivilorcriminalproceedingsbyanyperson,beprima facie proof of the contents therein;or

(b) any civil penalty order that has been served in terms of thisAct,authenticatedbytheRegistrarasatruecopyoftheoriginal,shallonitsmereproductioninanycivilorcriminalproceedingsbyanyperson,beprima facieproofoftheserviceoftheorderonthedatestatedthereinuponthedefaulternamedtherein,andofthecontentsoftheorder.

PART IIfurther General Provisions

298Enforcementofdutytomakereturns Ifaregisteredbusinessentity,havingmadedefaultincomplyingwithanyprovisionofthisActwhichrequiresittofilewith,deliverorsendtotheRegistraranyreturn,accountorotherrecord,ortogivenoticetohimorherofanymatter,failstomakegoodthedefaultwithinfourteendaysaftertheserviceofanoticeontheregisteredbusinessentityrequiringittodoso,theRegistrarmayserveacategory2civilpenaltyorder upon the defaulting registered business entity.

299 Co-operationwithforeigncompanyregistries (1)ThePresident,ortheMinisterwiththePresident’sauthority,mayenterintoagreementswiththegovernmentofanyothercountryorterritorywithaviewtotherenderingofreciprocalassistanceinanyorallofthefollowing— (a) theincorporationorregistrationofcompaniesandotherbusinessentities

andtheexchangeofinformationrelatedthereto; (b) theexchangeofinformationandtherenderingofmutualassistancerelated

to the combating of the transnational abuse of the company form for criminalpurposes,themonitoringofthequalityoftheassistancegivenandthekeepingofrecordsofrequestsforinformationorassistanceandoftheresponsesthereto;

(c) theadministrationofanyofficeorofficesthatareacounterparttotheOfficefortheRegistrationofCompaniesandOtherBusinessEntities,includingthemutualsecondmentandtrainingofthestaffoftheOfficeandsuchoffices.

(2)Inparticular,anagreementreferredtoinsubsection(1)mayempowertheRegistrarorthefinancialintelligenceunitoftheReserveBank,onhisorheroritsownbehalforonbehalfofanylawenforcementagency,toseekbeneficialownershiporotherinformationinrespectofanycompanyfromtheforeigncounterpart,and,likewise,mayprovidebeneficialownershiporotherinformationinrespectofanycompanytothe foreign counterpart. (3)AssoonasmaybeaftertheconclusionofanysuchagreementthetermsthereofshallbenotifiedbythePresidentbyproclamationintheGazette,whereuponuntilsuchproclamationisrevokedbythePresidenttheagreementshallhaveeffect


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asifenactedinthisActbutonlyif,andforsolongas,theagreementhastheeffectoflaw in such country or territory.

(4)ThePresidentmayatanytimerevokeanysuchproclamationbyafurtherproclamation in the Gazette,andtheagreementshallceasetohaveeffectuponthedatefixedinsuchlatterproclamation,buttherevocationofanyproclamationshallnotaffectthevalidityofanythingpreviouslydonethereunder.

(5)Anyagreementreferredtoinsubsection(1)maybemadewithretrospectiveeffect if the President considers it expedient so to do.

300 MinistermaygivepolicydirectionstoRegistrar (1) Subject tosubsection(2), theMinistermay,onhisorherownmotionor at thewritten request of theRegistrar in any specific or general case, give the RegistrarsuchgeneraldirectionsrelatingtothepolicytheRegistraristoobserveinthe exerciseofhisorherfunctionsreferredtoinsections25(“Prohibitionofundesirablename”),39 (“InvestigationbyRegistrar”),41(“Investigationtodetermineownershiporcontrol”),142(“Paymentofinterestoutofcapital”)(b),(c)and(d),184(“Generalprovisionastocontentsandformoffinancialstatements”)(4),186(“Obligationtolaygroupaccountsbeforeholdingcompany”)(2)(c)(ii),187 (“Formandcontentsof groupaccounts”)(5)and(6)(proviso),191(“Appointmentremuneration,duties,powersandremovalofauditors”)(1)(proviso(iii))and(3),211(“Dutyofdirectortodisclosepaymentsforlossofoffice,madeinconnectionwithtransferofsharesincompany”)(4),213 (“Registerofdirectors’shareholdings(4)(b),224(“OrderonapplicationofRegistrar”)and299(“Co-operationwithforeigncompanyregistries”), or generally in the exercise of his or her functions as the Minister considers to be necessary in the national interest

(2) Beforegiving theRegistrar adirection in termsof subsection (1), theMinistershall(unlesstheRegistrarrequestedthedirection)informtheRegistrar,inwriting,oftheproposeddirectionandtheRegistrarshall,withinthirtydaysorsuchfurtherperiodastheMinistermayallow,submittotheMinister,inwriting,hisorherviewsontheproposal.

(3)TheRegistrarshalltakeallnecessarystepstocomplywithanydirectiongiventohimorherintermsofsubsection(1).

(4)WhenanydirectionhasbeengiventotheRegistrarintermsofsubsection(1),theRegistrarshallensurethatthedirectionissetoutintheOffice’sannualreport.

301 Regulations (1)TheMinistermay,afterconsultationwiththeCompaniesOffice,fromtimetotimemake— (a) regulationsprovidingforanythingrequiredbythisActtobeprescribed

byregulations;and (b) regulationsalteringanyamountreferredtoinsection40(“Investigation

on request ofminority stakeholders”(3), 155 (“Register ofmortgagesanddebenturesandregisterofdebentureholders”(5),(6)and(7),160(“Inspectionofregisterandindex”)(1)and(2),170(“Generalprovisionsas tomeetings andvotes andpower of court to ordermeeting”) (1),174(“Circulationofmembers’resolutions”)(2)(b),181(“Inspectionof minutes”)(2),215(“Particularsinaccountsofloanstoofficers”)(2)(b)or217(“Registerofdirectorsandsecretaries”)(8)and(9);

(c) suchotherregulationsasheorshemaydeemexpedientornecessaryforthe carrying out of the purposes of this Act.


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(2)Whenmaking regulations for the purpose of section 184 (“General provisionsastocontentsandformoffinancialstatements”)(2),theMinistershallhaveregard to generally accepted accounting practices.

302 Alterationoffees,tables,formsandcertainprovisionsofthisAct. (1)TheMinistermay,fromtimetotime— (a) alteroraddtothetablesintheThirdSchedule(“Formofstatementin

lieuofprospectustobedeliveredtoRegistrarbyacompanywhichdoesnot issue prospectus or which does not go to allotment on a prospectus issuesandreportstobesetouttherein”);

(b) alteranyoftheTablesintheSixthSchedule(“modelarticles”)oranyoftheformsintheFirst,Second,ThirdandFourthSchedulesbutnosuchalterationinoradditiontoSixthScheduleshall,asrespectsanycompanyorprivatebusinesscorporation registered before the publication of the alterationoraddition,repealanyportionofSixthSchedulewhichatthedateofsuchpublicationappliestoit;

(c) subject to subsection (3), amend any provisions concernedwith the electronic Registry in ChapterV or the Seventh Schedule (“UserAgreement”).

(2)Any alteration, addition or amendmentmade in terms of subsection(1)shallbebystatutory instrumentandfromthedateofpublicationofastatutory instrumentmadeundersubsection(1)(a)or(b)anyreferenceinthisActtoanyScheduleor Table shall be construed as a reference to that Schedule or Table with any alterations oradditionsmadeandinforceintermsofsubsection(1):

Providedthatnoalterationoradditionmadeintermsofsubsection(1)(b)shallapplytoaforeigncompanywhichisabankingcompanyasdefinedin section 240 (DefinitionsinChapterIIPartIV(A)).

(3)TheMinistershallonthenextsittingdayoftheNationalAssemblyafterheorshepublishesastatutoryinstrumentintermsofsubsection(1)(c),lay it before theNationalAssemblyand,unlesstheNationalAssemblybyanegativeresolutionearlierresolvesnottoapproveit,thestatutoryinstrumentshallcomeintoeffectonthe thirtieth day after the date on which it was laid before the National Assembly.

303 Repeals,re-registrationofcompaniesandPBCs,generaltransitionalprovisionsandsavings

(1)InthisPart–– “repealedCompaniesAct”meanstheCompaniesAct[Chapter 24:03]; “repealedPrivateBusinessCorporationsAct”means thePublicBusiness

CorporationsAct[Chapter 24:11]; “transferdate”meansthedatefixedbytheMinisterintermsofsubsection(4)

(b)or,wheretwoormoresuchdatesaresofixed,thefirstsuchdate.

(2)Subjecttothissection,theCompaniesAct[Chapter 24:03]andthePrivateBusinessCorporationsAct[Chapter 24:11] are repealed.

(3)The establishment forwhich theChiefRegistrar ofCompanieswas responsibleundertherepealedCompaniesAct(the“CompaniesRegistrationOffice”)shallcontinueinexistenceaftertheeffectivedateastheOfficefortheRegistrationofCompaniesandOtherBusinessEntities(the“CompaniesOffice”).

(4)TheassetsandrightsoftheStatewhich—


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(a) before the effective date,were usedor otherwise connectedwith theCompaniesRegistrationOffice;and

(b) arespecifiedbytheMinisterbynoticeinastatutoryinstrument;

together with any liabilities or obligations attaching to them shall be transferred with effectfromthetransferdatetotheCompaniesOffice .

(5)Ontherelevanttransferdate,everyassetandliabilityoftheStatewhichthe Minister has directed shall be transferred to the Companies Office shallvestintheCompaniesOffice.

(6)All contracts, instruments, documents, banking accounts andworking arrangements that subsisted immediatelybeforetherelevanttransferdateandtowhichthe State on behalf of the CompaniesRegistrationOfficewasapartyshall,onandafterthatdate,beasfullyeffectiveandenforceableagainstorinfavouroftheCompaniesOffice.

(7)ItshallnotbenecessaryfortheRegistrarofDeedstomakeanyendorsementontitledeedsorotherdocumentsorinhisorherregistersinrespectofanyimmovableproperty,rightorobligationwhichpassestotheCompaniesOffice underthissection,buttheRegistrarofDeeds,whensorequestedinwritingbytheRegistrar in relation toanyparticularsuchproperty,rightorobligation,shallcause the name of the Office tobesubstituted,freeofcharge,forthatoftheStateontheappropriatetitledeedorother document or in the appropriate register.

(8)Subject to subsection (9), everydomestic companyorprivatebusinesscorporationincorporated,andeveryforeigncompanyregisteredundertherepealedCompaniesActor repealedPrivateBusinessCorporationsAct, as thecasemaybe,thatappearsintheregistersoftheCompaniesRegistrationOfficeontheeffectivedateshall continue to be incorporated or registered under the same name and registration numberpreviouslyassignedtoitasifincorporatedorregisteredundertheappropriateprovisionsofthisAct.

(9)Acompanyorprivatebusinesscorporationreferredtosubsection(8)mustwithinaperiodoftwelvemonthsfromtheeffectivedatere-registerunderthisActbysubmittingtheformintheTenthScheduleasmaybeappropriate,togetherwiththefeeandotherdocumentationasmayberequiredintermsofthatform. A company or privatebusinesscorporationmustre-registerunderitsexistingname,withoutprejudiceto its right after re-registration to change its name under section 26.

(10)Theobjectofre-registrationundersubsection(9)istwofold,namely— (a) toestablishanewandupdatedregisterofcompaniesandprivatebusiness

corporations; (b) toexpungeapparentlydefunctbusinessentitiesfromtheregister,thatis

tosayacompanyorprivatebusinesscorporationwhichappearstotheRegistrartobedefunctbecause—

(i) itisnotsubmittingtotheRegistrarthestatutoryreturnsandnoticesrequiredbytherepealedActs and this Act;and

(ii) itappearstotheRegistrartobeinactive,thatistosayitisnotbeingoperatedorisnotactiveinbusiness.

(11)Accordingly under subsection (10) no company or private businesscorporationmaychangeitsname,address,registeredoffice,directorshiporitssharestructure or do any other thing affecting its rights and liabilities and those of its membersundertheguiseofre-registration,withoutprejudicehowevertoitsrightto


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makesuchchangesinaccordancewiththeformalitiesprescribedinthisAct,before,after or together with re-registration.

(12)Theeffectoffailingtore-registerintermsofsubsection(9)isthattheexistingcompanyorprivatebusinesscorporationwillbestruckofftheregisterwitheffectfromtheexpiryoftheperiodoftwelvemonthsreferredtointhatsubsection,andsubjecttothissection,willnolongerbeabletocarryonbusinessasacompanyorprivatebusinesscorporationunlessitregistersasanewcompanyorprivatebusinesscorporation under Part I of Chapter II after that date.

(13)Fortheavoidanceofdoubtitisdeclaredthatthere-registrationintermsofsubsection(9)orofanexistingcompanyorprivatebusinesscorporationdoesnot— (a) createanewlegalentity;or (b) prejudiceoraffecttheidentityofthebodycorporateconstitutedbythe

companyorprivatebusinesscorporationitscontinuityasalegalentity;or

(c) affect the property, rights or obligations of the company or private businesscorporation;or

(d) affectlegalorotherproceedingsbyoragainstthecompanyorprivatebusiness corporation.

(14)Fortheavoidanceofdoubtitisdeclaredthatthefailurebyanexistingcompanyorprivatebusinesscorporationtore-registerintermsofsubsection(9)doesnot– (a) affect the property, rights or obligations of the company or private

businesscorporationinrelationtoitsmembersorthirdparties;or (b) affectlegalorotherproceedingsbyoragainstthecompanyorprivate

business corporation in relation to its members or third parties. (15)Subjecttothissection,everylicenceissuedandinforceundersection82(“Powertodispensewith“Limited”incertaincases”)oftherepealedCompaniesAct,shallcontinueinforceaftertheeffectivedate. (16) Anycauseof actionorproceedingwhichexistedorwaspendingbyor against theRegistrar immediatelybefore the effective datemaybe enforcedor continued,asthecasemaybe,onandafterthatdatebyoragainsttheRegistrarinthesamewaythatitmighthavebeenenforcedorcontinuedbyoragainsttheRegistrarhad this Act not been passed. (17)AnyguaranteeorsuretyshipwhichwasgivenormadebytheGovernmentoranyotherpersoninrespectofanydebtorobligationoftheCompaniesOfficeortheRegistrarandwhichwaseffectiveimmediatelybeforetheeffectivedateshallremainfullyeffectiveagainsttheguarantororsuretyonandafterthatdateinrelationtotherepaymentofthedebtortheperformanceoftheobligation,asthecasemaybe,bytheCompaniesOfficeortheRegistrartowhichitwastransferred. (18)TheRegistrar,everyassistantRegistrarandothercivilservantemployedintheCompaniesRegistrationOfficebeforetheeffectivedateshallcontinueinsuchofficeoremploymentaftertheeffectivedateasmembersoftheCivilService. (19)TheportionoftheproceedsoffeesandotherrevenuesthataccruedtotheDeedsRetentionFundbeforetheeffectivedateshallcontinuetosoaccrueaftertheeffectivedateuntilsuchtime,ifany,asaseparateretentionFundisestablishedfortheOffice undersection18ofthePublicFinanceManagementAct[Chapter 22:19](No.11of2009).

(20)Fortheavoidanceofdoubt,ifontheeffectivedate––


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(a) therewereanydisciplinaryproceedingsintermsofthePublicServiceAct[Chapter 16:04] pending against a person who is employed in the CompaniesRegistrationOffice,suchproceedingsshallcontinueaftertheeffectivedate;

(b) anypromotionoradvancementwasbeingprocessedintermsofthePublicServiceAct[Chapter 16:04] in relation to any person employed in the CompaniesRegistrationofficesuchpromotionoradvancementshallbeprocessedandcompletedaftertheeffectivedate.

(21)Allregulationsandotherstatutoryinstrumentsandgeneralnoticesinforceorhavingeffectimmediatelybeforetheeffectivedate,shallcontinueinforceorhaveeffectaftertheeffectivedateuntilrepealedorreplacedunderthisAct. (22)Atany timewithinaperiodof twenty-fourmonths fromtheeffectivedate, theMinister,afterconsultationwith theMinister responsible forFinanceandtheCompaniesOffice,maymakeanyregulationsforthepurposeofthissectionand section301(“Regulations”)thatheorshedeemsnecessaryorexpedienttomanagethe transition from the repealed Acts to this Act.

304 TransitionalProvisionsinrelationtoparvalueofshares,treasuryshares,capitalaccountsandsharecertificates

(1)Despitesection93(“Legalnatureofcompanysharesandrequirementtohaveshareholders”)(2)anysharesofacompanyexistingontheeffectivedate(inthissectioncalleda“pre-existingcompany”)thathavebeenissuedwithanominalorparvalue,andareheldbyashareholderimmediatelybeforetheeffectivedate,continuetohavethenominalorparvalueassignedtothemwhenissued,subjecttoanyregulationsmadeintermsofsection303(22). (2)Afailureofanysharecertificateissuedbyapre-existingcompanytosatisfytherequirementsofsection153(“Evidenceoftitletoshares”)(2)— (a) isnotacontraventionofthatsection;and (b) doesnotinvalidatethatsharecertificate.

FIRST SCHEDULE (Section 10)

FORM OF MEMORANDUM OF ASSOCIATION OF A COMPANY

1st. The name of the company is “The Zimbabwe Transport Company Limited”.

2nd.Theobjectsforwhichthecompanyisestablishedare,“theconveyanceofpassengersandgoodsinmotorvehiclesbetweensuchplacesasthecompanymayfrom time to time determine and the doing of all such other things as are incidental or conducivetotheattainmentoftheaboveobject”.

3rd. The liability of the members is limited.

4th.Thesharecapitalofthecompanyisfourhundredthousanddollarsdividedinto one thousand shares of four hundred dollars each.

We, the several personswhose names and addresses are subscribed, are desirous of being formed into a company, in pursuance of thismemorandumof association,andwerespectivelyagreetotakethenumberofsharesinthecapitalofthecompanysetoppositeourrespectivenames.

Names, Addresses, and Descriptions of Subscribers:

Number of shares taken by each subscriber:

Totalsharestaken___________

___________


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Dated the ......................................................................... day of .................................................20..........................................

Witnesstotheabovesignatures,.....................................................

Address....................................................................................................

SECOND SCHEDULE (Section 9)

FORMOFSTATEMENTINLIEUOFPROSPECTUSTOBEDELIVEREDTOREGISTRARBYPRIVATECOMPANYONCEASINGTOBEPRIVATE

COMPANYANDREPORTSTOBESETOUTTHEREIN

PART I

FORMOFSTATEMENTANDPARTICULARSTOBECONTAINEDTHEREIN

CompaniesAct[Chapter 24:03]

StatementinlieuofProspectusdeliveredforregistrationby............................................

(Insertthenameofthecompany).Pursuanttosection35oftheCompaniesAct[Chapter 24:03].Deliveredforregistrationby................................................. 1. Names,descriptionsandaddressesofdirectorsorproposeddirectors. 2. (a) Thenominalsharecapitalofthecompany......................... $ Dividedinto........................................................................ Sharesof$each Sharesof$each Sharesof$each (b) Amount,ifany,ofabovecapitalwhichconsistsof redeemablepreferenceshares. Sharesof$each (c) Theearliestdateonwhichthecompanyhaspowerto redeem these shares 3. (a) Amountofsharesissued..................................................... Sharesof$each Dividedinto........................................................................ Sharesof$each Sharesof$each Sharesof$each (b) Amount of commissions paid in connection therewith 4. Unless more than one year has elapsed since the date on which theCompanywasentitledtocommencebusiness— (a) Amountofpreliminaryexpenses....................................... $ Bywhomthoseexpenseshavebeenpaidorarepayable. $ (b) Amountpaidtoanypromoter.............................................Nameofpromoter: Amount$ (c) Considerationforthepayment........................................... Consideration:

(d) Anyotherbenefitgiventoanypromoter............................Natureandvalue ofbenefit

(e) Considerationforgivingofbenefit .................................... Consideration:


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5.Ifthesharecapitalofthecompanyisdividedintodifferent classesofshares,therightofvotingatmeetingsofthecompany conferredby,andtherightsinrespectofcapitalanddividends attachedto,theseveralclassesofsharesrespectively

THIRD SCHEDULE (Section 86)

form of statement in lieu of ProsPectus to Be delivered to reGistrar By a comPany Which does not issue a ProsPectus or Which does not Go to allotment on a ProsPectus issued, and rePorts to Be set out therein

PART I

form of statement and Particulars to Be contained therein

comPanies act [Chapter 24:31]

StatementinlieuofProspectusdeliveredforregistrationby

.......................................................................................................................................(InsertthenameoftheCompany)

Pursuanttosection66oftheCompaniesAct[Chapter 24:31].

Deliveredforregistrationby...........................................................................................

(I) Names, descriptions and addresses of directors or proposeddirectors.

(II)— (a) Thenominalsharecapitalofthecompany. ...................... $ Dividedinto ................................................................. Sharesof$each Sharesof$each Sharesof$each (b) Amount,ifany,ofabovecapitalwhichconsistsof redeemable preference shares ...................................... Sharesof$each (c) Theearliestdateonwhichthecompanyhaspowerto redeem these shares.

III. If the share capital of the company is divided into differentclassesofsharestherightofvotingatmeetingsofthecompanyconferredby,andtherightsinrespectofcapitalanddividendsattachedto,theseveralclassesofsharesrespectively.

IV.— (a) Numberandamountofsharesanddebenturesagreedto 1......sharesof$ be issued as fully or partly paid up otherwise than in cash. fully paid. 2. ...shares upon which$per

share credited as paid.

(b) Theconsiderationfortheintendedissueofthose 3......debenture$ shares and debentures.

4..Consideration:

V. The substance of any contract or arrangement or proposed 1. contractorarrangement,wherebyanyoptionorpreferential


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rightofanykindhasbeenorisproposedtobegiventoany 2.Sharesof persontosubscribeforanysharesinordebenturesofacompany $and ortoacquirethemfromapersontowhomtheyhavebeen Debenturesof$ allottedoragreedtobeallottedwithaviewtohisoffering themforsale;givingthenumber,descriptionandamountof any such shares or debentures and including the following particularsoftheoptionorright— (a) Theperiodduringwhichitisexercisable. 3.Until (b) Thepricetobepaidforsharesordebenturessubscribed for under it. 4. (c) Theconsideration,ifany,givenortobegivenforitor for the right to it. 5. Consideration: (d) Thenamesandaddressesofthepersontowhomitor 6. Names and therighttoitwasgivenorifgiventoexistingmembers Addresses: ordebentureholdersassuch,therelevantsharesor debentures. (e) Anyothermaterialfactorcircumstancesrelevantto . 7. the grant of such option or right. VI.— (a) Namesandaddressesofvendorsofpropertypurchased

oracquired,orproposedtobepurchasedoracquired,bythe company except where the contract for its purchase oracquisitionwasenteredintointheordinarycourseofthe business intended to be carried on by the company or the amount of the purchase money is not material.

(b) Amount(incash,sharesordebentures)payabletoeachseparatevendor.

(c) Theamountpayablebywayofpremium, if any,oneach share which has been or is to be issued stating the reasons for any such premium and where some shares havebeenoraretobeissuedatapremiumandothersharesatalesserornopremium,alsothereasonsforthedifferentiation,andhowanypremiumistobeorhas been disposed of.

(d) Amount,ifany,paidorpayable(incashorsharesor Total purchase price debentures)foranysuchproperty,specifyingamount, . $ ifany,paidorpayableforgoodwill. Cash................$

Shares..............$Debentures......$

Goodwill.........$

(e) Shortparticularsofanytransactionrelatingtoanysuchproperty which was completed within the two preceding yearsandinwhichanyvendortothecompanyoranypersonwhois,orwasatthetimethereof,apromoter,director or proposed director of the company had any interest, direct or indirect,with particulars of suchinterest.

VII.— (a) Amount,ifany,paidorpayableascommissionfor Amountpaid subscribing or agreeing to subscribe or procuring or agreeing to procure subscriptions for any shares or Amount payable debenturesinthecompany;or


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(b) Rateofcommission Rateper centum. (c) Thenumberofshares,ifany,whichpersonshaveagreed

for a commission to subscribe absolutely.

VIII.— (a) Estimatedamountofpreliminaryexpenses (b) Bywhomthoseexpenseshavebeenpaidorarepayable $ (c) Amountpaidorintendedtobepaidtoanypromoter Nameofpromoter: Considerationforthepayment Amount$ Consideration: (d) Anyotherbenefitgivenorintendedtobegiventoany Nameofpromoter: promoter Natureandvalue

ofbenefit: Considerationforgivingofbenefit Consideration:

IX.— (a) Dates of, parties to and general nature of every

material contract (other than contracts entered intoin the ordinary course of the business intended to be carried on by the company or entered into more than twoyearsbeforethedeliveryofthisstatement).

(b) Time and place at which the contracts or copies thereof maybeinspectedor(1)inthecaseofacontractnot reduced to writing, a memorandum giving fullparticulars thereof, and (2) in the case of a contractwholly or partly in a foreign language, a copyof atranslation thereof in English or embodying a translation inEnglishofthepartsinaforeignlanguage,asthecasemaybe,beingatranslationcertifiedintheprescribedmanner.

X. Namesandaddressesoftheauditorsofthecompany,ifany

XI. Fullparticularsofthenatureandextentoftheinterest,ifany,of everydirector or promoter in thepromotionof, or in thepropertyacquiredwithintwoyearsofthedateoftheprospectusor proposed to be acquired by, the company, orwhere theinterest of such director or promoter consists in being a member of a partnership, company, syndicate or other associationofpersons,thenatureandextentoftheinterestofsuchpartnership,company, syndicate or other association and the nature andextent of such director’s or promoter’s interest in the partnership company,syndicateorotherassociation,withastatementofallsums paid or agreed to be paid to him or her or to it in cash or shares or otherwise by any person either to induce him or her tobecome,ortoqualifyhimorheras,adirectororotherwiseforservicesrenderedbyhimorherorbyitinconnectionwiththe promotion or formation of the company.

(Signaturesofthepersonsabovenamedasdirectorsorproposeddirectorsoroftheiragentsauthorisedinwriting). .........................

Date


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PART II

rePorts to Be set out

1. Whereitisproposedtoacquireabusiness,areportmadebyaccountants,whoshallbenamedinthestatement,upon— (a) theprofitsorlossesofthebusinessinrespectofeachofthefivefinancial

yearsimmediatelyprecedingthedeliveryofthestatementtotheRegistrar;and

(b) the assets and liabilities of the business at the last date towhich theaccounts of the business were made up.

2. (1)whereitisproposedtoacquiresharesinabodycorporatewhichbyreasonof the acquisitionor anything tobedone in consequence thereof or in connectiontherewithwillbecomeasubsidiaryof thecompany,areportmadebyaccountants,whoshallbenamedinthestatement,withrespecttotheprofitsandlossesandassetsandliabilitiesoftheotherbodycorporateinaccordancewithsubparagraph(2)or(3)asthecaserequires,indicatinghowtheprofitsorlossesoftheotherbodycorporatedealtwithbythereportwould,inrespectofthesharestobeacquired,haveconcernedmembersofthecompany,andwhatallowancewouldhavefallentobemadeinrelationtoassetsandliabilitiessodealtwith,forholdersofothershares,ifthecompanyhadatallmaterialtimesheldthesharestobeacquired.

(2)Iftheotherbodycorporatehasnosubsidiaries,thereportreferredtoinsubparagraph(1)shall— (a) sofarasregardsprofitsandlosses,dealwiththeprofitsorlossesofthe

bodycorporateinrespectofeachofthefivefinancialyearsimmediatelyprecedingthedeliveryofthestatementtotheRegistrar;

(b) sofarasregardsassetsandliabilities,dealwiththeassetsandliabilitiesof the body corporate at the last date to which the accounts of the body corporate were made up.

(3) If the other body corporate has subsidiaries, the report referred to insubparagraph(1)shall— (a) sofarasregardsprofitsandlosses,dealseparatelywiththeotherbody

corporate’s profits or losses as providedby subparagraph (2), and inadditiondeal—

(i) asawholewiththecombinedprofitsorlossesofitssubsidiaries,sofarastheyconcernmembersoftheotherbodycorporate;or

(ii) individuallywiththeprofitsorlossesofeachsubsidiary,sofarastheyconcernmembersoftheotherbodycorporate;

or,insteadofdealingseparatelywiththeotherbodycorporate’sprofitsorlosses,dealasawholewiththeprofitsorlossesoftheotherbodycorporateand,sofarastheyconcernmembersoftheotherbodycorporate,withthecombinedprofitsorlossesofitssubsidiaries;

(b) sofarasregardsassetsandliabilities,dealseparatelywiththeotherbodycorporate’sassetsandliabilitiesasprovidedbysubparagraph(2)and,inaddition,dealeither—

(i) asawholewiththecombinedassetsandliabilitiesofitssubsidiaries,withorwithouttheotherbodycorporate’sassetsandliabilities;or

(ii) individuallywiththeassetsandliabilitiesofeachsubsidiary; and shall indicate as respects the assets and liabilities of the subsidiaries

the allowance to be made for persons other than members of the company.


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PART III

Provisions aPPlyinG to Parts i and II of this schedule

3. InthisScheduletheexpression“vendor”includesavendorasdefinedinPartIIIoftheEighthScheduleandtheexpression“financialyear”hasthemeaningassignedto it in that Part of that Schedule.

4. Ifinthecaseofabusinesswhichhasbeencarriedon,orofabodycorporatewhichhasbeencarryingonbusiness,forlessthanfiveyears,theaccountsofthebusinessorbodycorporatehaveonlybeenmadeupinrespectoffouryears,threeyears,twoyearsoroneyear,PartIIofthisScheduleshallhaveeffectasifreferencestofouryears,threeyears,twoyearsoroneyear,asthecasemaybe,weresubstitutedforreferencestofiveyears.

5. AnyreportrequiredbyPartIIofthisScheduleshalleitherindicatebywayofnoteanyadjustmentsasrespectsthefiguresofanyprofitsorlossesorassetsandliabilitiesdealtwithbythereportwhichappeartothepersonmakingthereportnecessaryorshallmakethoseadjustmentsandindicatethatadjustmentshavebeenmade.

6. AnyreportbyaccountantsrequiredbyPartIIofthisScheduleshallnotbemadebyanyaccountantwhoisanofficerorservant,orapartneroremployeroforintheemploymentofanofficerorservant,ofthecompanyorofthecompany’ssubsidiaryorholdingcompanyorofasubsidiaryofthecompany’sholdingcompany;andforthepurposesofthisparagraphtheexpression“officer”shallincludeaproposeddirectorbut not an auditor.

FOURTH SCHEDULE(Section 165)

form of annual return of a comPany

The ComPanies Act[Chapter 24:03]

Form of Annual Return of a ComPany

Annual Return of the ....................................................................................Company,

Limited,madeuptothedateoftheAnnualGeneralMeeting.

Date of Meeting ..................................... (Adjournedto .............................................

Theaddressoftheregisteredofficeofthecompanyis:—

........................................................................................................................................

........................................................................................................................................

Theaddressatwhich the registerofmembers iskept (ifnotkeptat the registeredoffice):—

........................................................................................................................................

........................................................................................................................................

........................................................................................................................................

A. Summary of Shares and Debentures(a) Number of shares

Number of shares ........................................................................dividedinto:(Insert number and class)

.................. ........................................... shares


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.................. ........................................... shares

.................. ........................................... shares

.................. ........................................... shares (b) Issued Shares and Debentures Number Class

Number of shares of each class taken up to the date of this return. .................. ........................................... shares

.................. ........................................... shares

.................. ........................................... shares

.................. ........................................... shares Number of shares of each class fully paid up .................. ........................................... shares

.................. ........................................... shares

.................. ........................................... shares

.................. ........................................... shares

B. Particulars of Directors, Auditors and Secretaries

NamesandAddressesoftheDirectors,AuditorsandSecretariesofthe.............................,Limited,onthe...........dayof......................,20..................

DirectorsNames Addresses Other Directorships

AuditorsNames Addresses

SecretaryNames Addresses

..................................................Director

................................................Secretary

CopyofLastAuditedBalanceSheetandAccountsoftheCompany(whererequiredintermsofsection165oftheAct.)

Note: Thisreturnmustincludeacopy,certifiedbothbyaDirectorandbytheSecretaryoftheCompanytobeatruecopy,ofeverybalancesheet(includingeverydocumentrequiredbylawtobeannexedtothebalancesheet)laidbeforethecompanyingeneralmeetingduring theperiod towhich the summary relates, and, in addition, a copy,certifiedasaforesaid,ofthereportoftheauditorson,andofthereportofthedirectorsaccompanying,suchbalancesheet.

Certificates to be given by a Private Company

A.—Wecertify—


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(i) that theCompany has not since the date of the incorporation of theCompany/thelastAnnualReturn*issuedanyinvitationtothepublictosubscribeforanysharesordebenturesoftheCompany;

*Deletewhicheverisinappropriate.

(ii) thenumberofmembersofthecompanyis..................

.................................................Director

.................................................Secretary

B.—Should the number ofmembers of theCompany exceedfifty, the followingcertificateisrequired:—

WecertifythattheexcessofmembersoftheCompanyabovefiftyconsistswhollyofpersonswhoareintheemploymentoftheCompanyand/orofpersonswho,havingbeenformerlyintheemploymentoftheCompany,werewhileinsuchemployment,andhavecontinuedafterthedeterminationofsuchemploymenttobe,membersoftheCompany.

.................................................Director

.................................................

FIFTH SCHEDULE(Section 10, 18 (1)(b), 69(2))fees

FIRSTTABLE

Table of fees to be paid by a company (other than a foreign company) under this Act

1. Forregistrationofacompany— fiftycentsforevery$100orportionof$100ofthenominalcapitalofthecompany,

withaminimumfeeof— (a) inthecaseofaprivatecompanyoranon-profitcompany 100,00 (b) inthecaseofanyothercompany 500,00 2. Forregistrationofanyincreaseofcapitalmadeafterthefirstregistration ofthecompany— fiftycentsforevery$100orportionof$100ofsuchadditionalcapital 3. For registration of any statement in lieu of the prospectus pursuant to section86to116 75,00 4. Forregistrationofanyprospectuspursuanttosection56 75,00 5. Oneachapplicationforsearchastoavailabilityofanameornames proposedtobeadoptedbyorforacompany,includingareservationof suchnameornames 30,00

SECONDTABLETable of fees to be paid by a foreign company under this Act

l. Fortheregistrationofthecharter,statutesormemorandumandarticlesof thecompanyorotherinstrumentconsistingordefiningtheconstitution ofthecompany 300,00


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2. Fortheregistrationoftheprospectusofthecompany 75,00

THIRDTABLETable of fees to be paid in respect of any company or foreign company under this Act 1. FordeliverytotheRegistrarofanyannualreturnpursuanttosection165 orsection241(8)ofthisAct— (a) wherethesharecapitalofthecompanydoesnotexceed$20000 50,00 (b) wherethesharecapitalofthecompanyexceeds$20000 50,00 plusanadditional$10foreach$10000orpartthereofoftheshare capitalinexcessof$20000,subjecttoamaximumfeeof$500.

Forthepurposesofthisitem,thesharecapitalofacompany

means the share capital subscribed for or issued in payment forservicesrenderedorrightsacquiredorotherwiseallotted,whether fully paid-up or not.

2. ForthedeliverytotheRegistrarofanyreturn,documentornotice requiredtobelodgedwiththeRegistrarpursuanttothisActandnot otherwiseprovidedfor: 5,00

Providedthatthisfeeshallnotbepayableifthereturn,documentor notice is lodged within the time prescribed by the Act 3. ForeveryreportpreparedforthecourtbytheRegistrar 15,00 4. ForanycertificateissuedbytheRegistrar 10,00 5. For each entry extracted from any register for publication in a newspaperorperiodical 0,50 6. Foracopyofanydocument,perpage 1,00

SIXTH SCHEDULE(Section 18 (1)(b), 170(7)(a) and 266(1)(b))

model articles and By-laWs

[Explanatory note: in this Schedule annotations in square brackets and italics do not form part of the articles but are inserted to draw the attention of potential adopters

or adapters of these articles to relevant provisions of this Act]

taBle a: model articles for PuBlic comPanies

index to the articles

Part 1: interPretation and limitation of liaBilityArticle 1. Definitions. 2. Liability of members.

Part 2: directors

DireCtors’ powers anD responsibilities

3. Directors’ general authority. 4. Members’ reserve power. 5. Directors may delegate. 6. Committees.


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DeCision-making by DireCtors

7. Directors to take decisions collectively 8. Calling a directors’ meeting 9. Participation in directors’ meetings 10. Quorum for directors’ meetings 11. Meetings where total number of directors less than quorum 12. Chairing directors’ meetings 13. Voting at directors’ meetings: general rules 14. Chairperson’s casting vote at directors’ meetings 15. Alternates voting at directors’ meetings 16. Conflicts of interest 17. Proposing directors’ written resolutions 18. Adoption of directors’ written resolutions 19. Directors’discretiontomakefurtherrules.

appointment of DireCtors

20. Methods of appointing directors 21. Retirement of directors by rotation 22. Termination of director’s appointment 23. Directors’ remuneration 24. Directors’ expenses.

alternate DireCtors

25. Appointment and removal of alternates 26. Rights and responsibilities of alternate directors 27. Termination of alternate directorship.

Part 3: decision-makinG By memBers

organisation of general meetings

28. Members can call general meeting if not enough directors

29. Attendance and speaking at general meetings

30. Quorum for general meetings

31. Chairing general meetings

32. Attendance and speaking by directors and non-members

33. Adjournment.

Voting at general meetings

34. Voting: general

35. Errors and disputes

36. Demanding a poll

37. Procedure on a poll

38. Content of proxy notices


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39. Deliveryofproxynotices 40. Amendments to resolutions

restriCtions on members’ rights

41. Novotingofsharesonwhichmoneyowedtocompany

appliCation of rules to Class meetings

42. Class meetings.

Part 4: shares and distriButions

issue of shares

43. Powers to issue different classes of share 44. Payment of commissions on subscription for shares

interests in shares

45. Company not bound by less than absolute interests

share CertifiCates

46. Certificates to be issued except in certain cases 47. Contents and execution of share certificates 48. Consolidated share certificates 49. Replacementsharecertificates

share not helD in CertifiCateD form

50. Uncertificated shares 51. Share warrants.

partly paiD shares

52. Company’s lien over partly paid shares 53. Enforcement of the company’s lien 54. Call notices 55. Liability to pay calls 56. When call notice need not be issued 57. Failure to comply with call notice: automatic consequences 58. Notice of intended forfeiture 59. Directors’ power to forfeit shares 60. Effect of forfeiture 61. Procedure following forfeiture 62. Surrender of shares.

transfer anD transmission of shares

63. Transfers of certificated shares 64. Transfer of uncertificated shares 65. Transmission of shares 66. Transmittees’ rights

Article


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67. Exercise of transmittees’ rights 68. Transmittees bound by prior notices

ConsoliDation of shares

69. Procedure for disposing of fractions of shares.Distributions

70. Procedure for declaring dividends. 71. Calculation of dividends. 72. Payment of dividends and other distributions. 73. Deductions from distributions in respect of sums owed to the company. 74. No interest on distributions. 75. Unclaimed distributions. 76. Non-cash distributions. 77. Waiverofdistributions.

Capitalisation of profits

78. Authority to capitalise and appropriation of capitalised sums

Part 5: miscellaneous Provisions

CommuniCations

79. Means of communication to be used. 80. Failure to notify contact details.

aDministratiVe arrangements

81. Company seals. 82. Destruction of documents. 83. No right to inspect accounts and other records. 84. Provisionforemployeesoncessationofbusiness.

DireCtors’ inDemnity anD insuranCe

85. Indemnity 86. Insurance

Part 1: interPretation and limitation of liaBility

Definitions

1.(1)Inthearticles,unlessthecontextrequiresotherwise— “alternate”or“alternatedirector”hasthemeaninggiveninarticle25; “appointor”hasthemeaninggiveninarticle25; “articles”meansthecompany’sarticlesofassociation; “call”hasthemeaninggiveninarticle54; “callnotice”hasthemeaninggiveninarticle54; “certificate”meansapapercertificate(otherthanasharewarrant)evidencing

aperson’stitletospecifiedsharesorothersecurities; “certificated”inrelationtoashare,meansthatitisnotanuncertificatedshare

or a share in respect of which a share warrant has been issued and is current;

Article


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“chairperson”hasthemeaninggiveninarticle12; “chairpersonofthemeeting”hasthemeaninggiveninarticle31; “Act”meanstheCompaniesandOtherBusinessEntitiesAct[Chapter 24:31]; “company’slien”hasthemeaninggiveninarticle52; “director”meansadirectorofthecompany,andincludesanypersonoccupying

thepositionofdirector,bywhatevernamecalled; “distributionrecipient”hasthemeaninggiveninarticle72; “document”includes,unlessotherwisespecified,anydocumentsentorsupplied

inelectronicform; “fullypaid”inrelationtoashare,meansthatthenominalvalueandanypremium

tobepaidtothecompanyinrespectofthatsharehavebeenpaidtothecompany;

“holder” in relation to shares means the person whose name is entered in the registerofmembersastheholderoftheshares,or,inthecaseofashareinrespectofwhichasharewarranthasbeenissued(andnotcancelled),thepersoninpossessionofthatwarrant;

“insolvency”includesindividualinsolvencyproceedingsinajurisdictionotherthanZimbabwewhichhaveaneffectsimilartothatofinsolvency;

“instrument”meansadocumentinhardcopyform; “lienenforcementnotice”hasthemeaninggiveninarticle53; “member”hasthemeaninggiveninsection83oftheCompaniesAct; “ordinaryresolution”hasthemeaninggiveninsection175(4) oftheAct; “paid”meanspaidorcreditedaspaid; “participate”,inrelationtoadirectors’meeting,hasthemeaninggiveninarticle9; “partlypaid”inrelationtoasharemeansthatpartofthatshare’snominalvalue

oranypremiumatwhichitwasissuedhasnotbeenpaidtothecompany; “prescribed rate of interest” means the maximum rate of interest prescribed in

termsofthePrescribedRateofInterestAct[Chapter 8:10] or any other lawthatmaybesubstitutedforthatAct;

“proxynotice”hasthemeaninggiveninarticle38; “securitiesseal”hasthemeaninggiveninarticle47; “shares”meanssharesinthecompany; “specialresolution”hasthemeaninggiveninsection175 oftheAct;; “subsidiary”hasthemeaninggiveninsection185 oftheAct; “transmittee” means a person entitled to a share by reason of the death or

insolvencyofashareholderorotherwisebyoperationoflaw; “uncertificated”hasthemeaninggiveninsection2(1) oftheAct; “writing”meanstherepresentationorreproductionofwords,symbolsorother

informationinavisibleformbyanymethodorcombinationofmethods,whether sent or supplied in electronic form or otherwise.

(2)Unlessthecontextotherwiserequires,otherwordsorexpressionscontainedin these articles bear the same meaning as in the Act as in force on the date when these articles become binding on the company.


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Liability of members

2.Theliabilityofthemembersislimitedtotheamount,ifany,unpaidontheshares held by them.

Part 2: directors


Directors’ general authority

3.Subject to thearticles, thedirectorsareresponsiblefor themanagementofthecompany’sbusiness,forwhichpurposetheymayexerciseallthepowersofthecompany.

Members’ reserve power

4.(1)Themembersmay,byspecialresolution,directthedirectorstotake,orrefrainfromtaking,specifiedaction.

(2)Nosuchspecialresolutioninvalidatesanythingwhichthedirectorshavedone before the passing of the resolution.

Directors may delegate

5.(1)Subjecttothearticles,thedirectorsmaydelegateanyofthepowerswhichareconferredonthemunderthearticles— (a) tosuchpersonorcommittee;and (b) bysuchmeans(includingbypowerofattorney);and (c) tosuchanextent;and (d) inrelationtosuchmattersorterritories;and (e) onsuchtermsandconditions;

astheythinkfit.

(2) If the directors so specify, any such delegationmay authorise furtherdelegation of the directors’ powers by any person to whom they are delegated.

(3)Thedirectorsmayrevokeanydelegationinwholeorpart,oralteritstermsand conditions.

Committees 6.(1)Committeestowhichthedirectorsdelegateanyoftheirpowersmustfollowprocedureswhicharebasedasfarastheyareapplicableonthoseprovisionsofthearticleswhichgovernthetakingofdecisionsbydirectors.

(2)Thedirectorsmaymakerulesofprocedureforalloranycommittees,whichprevailoverrulesderivedfromthearticlesiftheyarenotconsistentwiththem.


Directors to take decisions collectively

7.Decisionsofthedirectorsmaybetaken— (a) atadirectors’meeting;or (b) intheformofadirectors’writtenresolution.

Calling a directors’ meeting

8.(1)Anydirectormaycalladirectors’meeting.

(2) The company secretarymust call a directors’meeting if a director sorequests.


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(3)Adirectors’meetingiscalledbygivingnoticeofthemeetingtothedirectors.

(4)Noticeofanydirectors’meetingmustindicate— (a) itsproposeddateandtime;and (b) whereitistotakeplace;and (c) ifitisanticipatedthatdirectorsparticipatinginthemeetingwillnotbe

inthesameplace,howitisproposedthattheyshouldcommunicatewitheach other during the meeting.

(5)Noticeofadirectors’meetingmustbegiventoeachdirector,butneednotbe in writing.

(6)Noticeofadirectors’meetingneednotbegiventodirectorswhowaivetheirentitlementtonoticeofthatmeeting,bygivingnoticetothateffecttothecompanynot more than 7 days after the date on which the meeting is held. Where such notice is givenafterthemeetinghasbeenheld,thatdoesnotaffectthevalidityofthemeeting,or of any business conducted at it.

Participation in directors’ meetings

9.(1)Subjecttothearticles,directorsparticipateinadirectors’meeting,orpartofadirectors’meeting,when— (a) themeetinghasbeencalledandtakesplaceinaccordancewiththearticles;

and (b) theycaneachcommunicateto theothersanyinformationoropinions

theyhaveonanyparticularitemofthebusinessofthemeeting.

(2)Indeterminingwhetherdirectorsareparticipatinginadirectors’meeting,itisirrelevantwhereanydirectorisorhowtheycommunicatewitheachother.

(3)Ifallthedirectorsparticipatinginameetingarenotinthesameplace,theymaydecidethatthemeetingistobetreatedastakingplacewhereveranyofthemis.

Quorum for directors’ meetings

10.(1)Atadirectors’meeting,unlessaquorumisparticipating,noproposalistobevotedon,exceptaproposaltocallanothermeeting.

(2)Thequorumfordirectors’meetingsmaybefixedfromtimetotimebyadecisionofthedirectors,butitmustneverbelessthantwo,andunlessotherwisefixedit is two.

Meetings where total number of directors less than quorum

11.(1)Thisarticleapplieswherethetotalnumberofdirectorsforthetimebeingislessthanthequorumfordirectors’meetings.

(2)Ifthereisonlyonedirector,thatdirectormayappointsufficientdirectorstomakeupaquorumorcallageneralmeetingtodoso.

(3)Ifthereismorethanonedirector— (a) adirectors’meetingmaytakeplace,ifitiscalledinaccordancewiththe

articlesandatleasttwodirectorsparticipateinit,withaviewtoappointingsufficientdirectorstomakeupaquorumorcallingageneralmeetingtodoso;and

(b) if a directors’meeting is called but only one director attends at theappointeddateand time toparticipate in it, thatdirectormayappointsufficientdirectorstomakeupaquorumorcallageneralmeetingtodoso.


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Chairing directors’ meetings

12.(1)Thedirectorsmayappointadirectortochairtheirmeetings.

(2)Thepersonsoappointedforthetimebeingisknownasthechairperson.

(3)Thedirectorsmayappointotherdirectorsasdeputyorassistantchairpersonto chair directors’ meetings in the chairperson’s absence.

(4)Thedirectorsmayterminatetheappointmentofthechairperson,deputyor assistant chairperson at any time.

(5)Ifneitherthechairpersonnoranydirectorappointedgenerallytochairdirectors’ meetings in the chairperson’s absence is participating in a meeting within tenminutesofthetimeatwhichitwastostart,theparticipatingdirectorsmustappointoneofthemselvestochairit.

Voting at directors’ meetings: general rules

13.(1)Subjecttothearticles,adecisionistakenatadirectors’meetingbyamajorityofthevotesoftheparticipatingdirectors.

(2)Subjecttothearticles,eachdirectorparticipatinginadirectors’meetinghasonevote.

(3)Subjecttothearticles,ifadirectorhasaninterestinanactualorproposedtransactionorarrangementwiththecompany— (a) thatdirectorandthatdirector’salternatemaynotvoteonanyproposal

relatingtoit;but (b) this does not preclude the alternate from voting in relation to that

transaction or arrangement on behalf of another appointor who does not havesuchaninterest.

Chairperson’s casting vote at directors’ meetings

14.(1)Ifthenumbersofvotesforandagainstaproposalareequal,thechairpersonorotherdirectorchairingthemeetinghasacastingvote.

(2)Butthisdoesnotapplyif,inaccordancewiththearticles,thechairpersonorotherdirectorisnottobecountedasparticipatinginthedecision-makingprocessforquorumorvotingpurposes.

Alternates voting at directors’ meetings

15.Adirectorwhoisalsoanalternatedirectorhasanadditionalvoteonbehalfofeachappointorwhois— (a) notparticipatinginadirectors’meeting;and (b) wouldhavebeenentitledtovoteiftheywereparticipatinginit.

Conflicts of interest

16.(1)Ifadirectors’meeting,orpartofadirectors’meeting,isconcernedwithan actual or proposed transaction or arrangement with the company in which a director isinterested,thatdirectorisnottobecountedasparticipatinginthatmeeting,orpartofameeting,forquorumorvotingpurposes.

(2)Butifsub-article(3)applies,adirectorwhoisinterestedinanactualorproposed transaction or arrangement with the company is to be counted as participating inadecisionatadirectors’meeting,orpartofadirectors’meeting,relatingtoitforquorumandvotingpurposes.


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(3)Thissub-articleapplieswhen— (a) the company by ordinary resolution disapplies the provision of the

articleswhichwouldotherwisepreventadirectorfrombeingcountedasparticipatingin,orvotingat,adirectors’meeting;or

(b) thedirector’sinterestcannotreasonablyberegardedaslikelytogiverisetoaconflictofinterest;or

(c) thedirector’sconflictofinterestarisesfromapermittedcause.

(4)Forthepurposesofthisarticle,thefollowingarepermittedcauses— (a) a guarantee given, or to be given, by or to a director in respect of

an obligation incurred by or on behalf of the company or any of its subsidiaries;

(b) subscription,oranagreementtosubscribe,forsharesorothersecuritiesofthecompanyoranyofitssubsidiaries,ortounderwrite,sub-underwrite,orguaranteesubscriptionforanysuchsharesorsecurities;

(c) arrangementspursuanttowhichbenefitsaremadeavailabletoemployeesand directors or former employees and directors of the company or any ofitssubsidiarieswhichdonotprovidespecialbenefitsfordirectorsorformer directors.

(5)Subjecttosub-article(6),ifaquestionarisesatameetingofdirectorsorof a committee of directors as to the right of a director to participate in the meeting (orpartofthemeeting)forvotingorquorumpurposes,thequestionmay,beforetheconclusionofthemeeting,bereferredtothechairpersonwhoserulinginrelationtoanydirectorotherthanthechairpersonistobefinalandconclusive.

(6)Ifanyquestionastotherighttoparticipateinthemeeting(orpartofthemeeting)shouldariseinrespectofthechairperson,thequestionistobedecidedbyadecisionofthedirectorsatthatmeeting,forwhichpurposethechairpersonisnottobecountedasparticipatinginthemeeting(orthatpartofthemeeting)forvotingorquorumpurposes.

Proposing directors’ written resolutions

17.(1)Anydirectormayproposeadirectors’writtenresolution.

(2)Thecompanysecretarymustproposeadirectors’writtenresolutionifadirectorsorequests.

(3)Adirectors’writtenresolutionisproposedbygivingnoticeoftheproposedresolution to the directors.

(4)Noticeofaproposeddirectors’writtenresolutionmustindicate— (a) theproposedresolution;and (b) thetimebywhichitisproposedthatthedirectorsshouldadoptit.

(5)Noticeofaproposeddirectors’writtenresolutionmustbegiveninwritingto each director.

(6)Anydecisionwhichapersongivingnoticeofaproposeddirectors’writtenresolution takes regarding the process of adopting that resolutionmust be takenreasonably in good faith.

Adoption of directors’ written resolutions

18.(1)Aproposeddirectors’writtenresolutionisadoptedwhenallthedirectorswhowouldhavebeenentitledtovoteontheresolutionatadirectors’meetinghave


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signedoneormorecopiesofit,providedthatthosedirectorswouldhaveformedaquorumatsuchameeting.

(2)Itisimmaterialwhetheranydirectorsignstheresolutionbeforeorafterthe time by which the notice proposed that it should be adopted.

(3)Onceadirectors’writtenresolutionhasbeenadopted,itmustbetreatedasifithadbeenadecisiontakenatadirectors’meetinginaccordancewiththearticles.

(4)Thecompanysecretarymustensurethatthecompanykeepsarecord,inwriting,ofalldirectors’writtenresolutionsforatleasttenyearsfromthedateoftheiradoption.

Directors’ discretion to make further rules

19. Subjecttothearticles, thedirectorsmaymakeanyrulewhichtheythinkfit abouthow they takedecisions, andabouthowsuch rules are tobe recordedorcommunicated to directors.


Methods of appointing directors

20.Anypersonwhoiswillingtoactasadirector,andispermittedbylawtodoso,maybeappointedtobeadirector— (a) byordinaryresolution;or (b) byadecisionofthedirectors.

Retirement of directors by rotation

21.(1)Atthefirstannualgeneralmeetingallthedirectorsmustretirefromoffice.

(2)Ateverysubsequentannualgeneralmeetinganydirectors— (a) whohavebeenappointedbythedirectorssincethelastannualgeneral

meeting;or (b) whowerenotappointedorreappointedatoneoftheprecedingtwoannual

generalmeetings,mustretirefromofficeandmayofferthemselvesforreappointment by the members.

Termination of director’s appointment

22.Apersonceasestobeadirectorassoonas— (a) thatpersonceasestobeadirectorbyvirtueofanyprovisionoftheAct

orisprohibitedfrombeingadirectorbylaw; (b) aliquidationorderismadeagainstthatperson; (c) acompositionismadewiththatperson’screditorsgenerallyinsatisfaction

ofthatperson’sdebts; (d) aregisteredmedicalpractitionerwhoistreatingthatpersongivesawritten

opinion to the company stating that that person has become physically or mentally incapable of acting as a director and may remain so for more thanthreemonths;

(e) byreasonofthatperson’smentalhealth,acourtmakesanorderwhichwholly or partly prevents that person frompersonally exercising anypowersorrightswhichthatpersonwouldotherwisehave;

(f) notificationisreceivedbythecompanyfromthedirectorthatthedirectorisresigningfromofficeasdirector,andsuchresignationhastakeneffectin accordance with its terms.


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Directors’ remuneration

23.(1)Directorsmayundertakeanyservicesforthecompanythatthedirectorsdecide.

(2)Directorsareentitledtosuchremunerationasthedirectorsdetermine— (a) fortheirservicestothecompanyasdirectors;and (b) foranyotherservicewhichtheyundertakeforthecompany.

(3)Subjecttothearticles,adirector’sremunerationmay— (a) takeanyform;and (b) includeanyarrangementsinconnectionwiththepaymentofapension,

allowanceorgratuity,oranydeath,sicknessordisabilitybenefits,toorin respect of that director.

(4)Unlessthedirectorsdecideotherwise,directors’remunerationaccruesfromday to day.

(5)Unlessthedirectorsdecideotherwise,directorsarenotaccountabletothecompany forany remunerationwhich they receiveasdirectorsorotherofficersoremployees of the company’s subsidiaries or of any other body corporate in which the company is interested.

Directors’ expenses

24. The company may pay any reasonable expenses which the directors properly incurinconnectionwiththeirattendanceat— (a) meetingsofdirectorsorcommitteesofdirectors;or (b) generalmeetings;or (c) separatemeetingsoftheholdersofanyclassofsharesorofdebenturesof

thecompany,orotherwiseinconnectionwiththeexerciseoftheirpowersand the discharge of their responsibilities in relation to the company.

alternate DireCtors

Appointment and removal of alternates

25. (1)Anydirector (the “appointor”)may appoint as an alternate anyotherdirector,oranyotherpersonapprovedbyresolutionofthedirectors,to— (a) exercisethatdirector’spowers;and (b) carryoutthatdirector’sresponsibilities;

inrelationtothetakingofdecisionsbythedirectorsintheabsenceofthealternate’sappointor.

(2)Anyappointmentorremovalofanalternatemustbeeffectedbynoticeinwritingtothecompanysignedbytheappointor,orinanyothermannerapprovedbythe directors.

(3)Thenoticemust— (a) identifytheproposedalternate;and (b) in thecaseofanoticeofappointment,containastatementsignedby

the proposed alternate that the proposed alternate is willing to act as the alternateofthedirectorgivingthenotice.

Rights and responsibilities of alternate directors

26.(1) Analternatedirectorhas thesamerights, inrelationtoanydirectors’meetingordirectors’writtenresolution,asthealternate’sappointor.

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(2)Exceptasthearticlesspecifyotherwise,alternatedirectors— (a) aredeemedforallpurposestobedirectors;and (b) areliablefortheirownactsandomissions;and (c) aresubjecttothesamerestrictionsastheirappointors;and (d) arenotdeemedtobeagentsoforfortheirappointors. (3)Apersonwhoisanalternatedirectorbutnotadirector— (a) maybecountedasparticipatingforthepurposesofdeterminingwhether

a quorum is participating (but only if that person’s appointor is notparticipating);and

(b) maysignawrittenresolution(butonlyifitisnotsignedortobesignedbythatperson’sappointor).

No alternate may be counted as more than one director for such purposes.

(4) An alternate director is not entitled to receive any remuneration fromthecompanyforservingasanalternatedirectorexceptsuchpartof thealternate’sappointor’s remuneration as the appointor may direct by notice in writing made to the company.

Termination of alternate directorship

27.Analternatedirector’sappointmentasanalternateterminates— (a) whenthealternate’sappointorrevokestheappointmentbynoticetothe

companyinwritingspecifyingwhenitistoterminate;or (b) ontheoccurrenceinrelationto thealternateofanyeventwhich, if it

occurred in relation to the alternate’s appointor,would result in theterminationoftheappointor’sappointmentasadirector;or

(c) onthedeathofthealternate’sappointor;or (d) when thealternate’sappointor’sappointmentasadirector terminates,

except that an alternate’s appointment as an alternate does not terminate when the appointor retires by rotation at a general meeting and is then re-appointed as a director at the same general meeting.

Part 3: decision-makinG By memBers


Members can call general meeting if not enough directors

28.If— (a) thecompanyhasfewerthantwodirectors;and (b) thedirector(ifany)isunableorunwillingtoappointsufficientdirectors

tomakeupaquorumortocallageneralmeetingtodoso;

thentwoormoremembersmaycallageneralmeeting(orinstructthecompanysecretarytodoso)forthepurposeofappointingoneormoredirectors.

Attendance and speaking at general meetings

29.(1)Apersonisabletoexercisetherighttospeakatageneralmeetingwhenthatpersonisinapositiontocommunicatetoallthoseattendingthemeeting,duringthemeeting,anyinformationoropinionswhichthatpersonhasonthebusinessofthemeeting.

(2)Apersonisabletoexercisetherighttovoteatageneralmeetingwhen— (a) thatpersonisabletovote,duringthemeeting,onresolutionsputtothe

voteatthemeeting;and

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(b) thatperson’svotecanbetakenintoaccountindeterminingwhetherornotsuchresolutionsarepassedatthesametimeasthevotesofalltheother persons attending the meeting.

(3)Thedirectorsmaymakewhateverarrangementstheyconsiderappropriatetoenablethoseattendingageneralmeetingtoexercisetheirrightstospeakorvoteatit. (4)Indeterminingattendanceatageneralmeeting,itisimmaterialwhetherany two or more members attending it are in the same place as each other. (5)Twoormorepersonswhoarenotinthesameplaceaseachotherattendageneralmeetingiftheircircumstancesaresuchthatiftheyhave(orweretohave)rightstospeakandvoteatthatmeeting,theyare(orwouldbe)abletoexercisethem.

Quorum for general meetings

30. No business other than the appointment of the chairman of the meeting is to be transacted at a general meeting if the persons attending it do not constitute a quorum.

Chairing general meetings

31.(1)Ifthedirectorshaveappointedachairperson,thechairperson shall chair general meetings if present and willing to do so.

(2)Ifthedirectorshavenotappointedachairperson,orifthechairpersonisunwilling to chair the meeting or is not present within ten minutes of the time at which ameetingwasduetostart— (a) thedirectorspresent;or (b) (ifnodirectorsarepresent),themeeting;

mustappointadirectorormembertochairthemeeting,andtheappointmentofthechairpersonofthemeetingmustbethefirstbusinessofthemeeting.

(3)Thepersonchairingameetinginaccordancewiththisarticleisreferredtoas “the chairperson of the meeting”.

Attendance and speaking by directors and non-members

32.(1)Directorsmayattendandspeakatgeneralmeetings,whetherornottheyare members.

(2)Thechairpersonofthemeetingmaypermitotherpersonswhoarenot— (a) membersofthecompany;or (b) otherwiseentitledtoexercisetherightsofmembersinrelationtogeneral

meetings;toattendandspeakatageneralmeeting.

Adjournment

33.(1)Ifthepersonsattendingageneralmeetingwithinhalfanhourofthetimeatwhichthemeetingwasduetostartdonotconstituteaquorum,orifduringameetingaquorumceasestobepresent,thechairperson of the meeting must adjourn it. (2)Thechairpersonofthemeetingmayadjournageneralmeetingatwhichaquorumispresentif— (a) themeetingconsentstoanadjournment;or (b) it appears to the chairperson of the meeting that an adjournment is

necessary to protect the safety of any person attending the meeting or ensure that the business of the meeting is conducted in an orderly manner.

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(3)Thechairpersonofthemeetingmustadjournageneralmeetingifdirectedto do so by the meeting.

(4)Whenadjourningageneralmeeting,thechairpersonofthemeetingmust— (a) eitherspecifythetimeandplacetowhichitisadjournedorstatethatit

istocontinueatatimeandplacetobefixedbythedirectors,and (b) haveregardtoanydirectionsastothetimeandplaceofanyadjournment

whichhavebeengivenbythemeeting.

(5)Ifthecontinuationofanadjournedmeetingistotakeplacemorethan14daysafteritwasadjourned,thecompanymustgiveatleast7cleardays’noticeofit(thatis,excludingthedayoftheadjournedmeetingandthedayonwhichthenoticeisgiven)— (a) tothesamepersonstowhomnoticeofthecompany’sgeneralmeetings

isrequiredtobegiven;and (b) containingthesameinformationwhichsuchnoticeisrequiredtocontain.

(6) Nobusinessmaybetransactedatanadjournedgeneralmeetingwhichcouldnotproperlyhavebeen transactedat themeeting if theadjournmenthadnottakenplace.


Voting: general

34.Aresolutionputtothevoteofageneralmeetingmustbedecidedonashowof hands unless a poll is duly demanded in accordance with the articles.

Errors and disputes 35.(1)Noobjectionmayberaisedtothequalificationofanypersonvotingatageneralmeetingexceptatthemeetingoradjournedmeetingatwhichthevoteobjectedtoistendered,andeveryvotenotdisallowedatthemeetingisvalid.

(2) Anysuchobjectionmustbereferredtothechairpersonofthemeetingwhosedecisionisfinal.

Demanding a poll

36.(1)Apollonaresolutionmaybedemanded— (a) inadvanceofthegeneralmeetingwhereitistobeputtothevote;or (b) atageneralmeeting,eitherbeforeashowofhandsonthatresolution

or immediately after the result of a show of hands on that resolution is declared.

(2)Apollmaybedemandedby— (a) thechairpersonofthemeeting;or (b) thedirectors;or (c) twoormorepersonshavingtherighttovoteontheresolution;or (d) apersonorpersonsrepresentingnotlessthanonetenthofthetotalvoting

rightsofallthemembershavingtherighttovoteontheresolution.

(3)Ademandforapollmaybewithdrawnif— (a) thepollhasnotyetbeentaken,and (b) thechairperson of the meeting consents to the withdrawal.

Procedure on a poll

37.(1)Subjecttothearticles,pollsatgeneralmeetingsmustbetakenwhen,whereand in such manner as the chairperson of the meeting directs.

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(2)Thechairpersonofthemeetingmayappointscrutineers(whoneednotbemembers)anddecidehowandwhentheresultofthepollistobedeclared.

(3)Theresultofapollshallbethedecisionofthemeetinginrespectoftheresolution on which the poll was demanded.

(4)Apollon— (a) theelectionofthechairpersonofthemeeting;or (b) aquestionofadjournment;

mustbetakenimmediately.

(5)Otherpollsmustbetakenwithin30daysoftheirbeingdemanded.

(6)Ademandforapolldoesnotpreventageneralmeetingfromcontinuing,exceptasregardsthequestiononwhichthepollwasdemanded.

(7)Nonoticeneedbegivenofapollnottakenimmediatelyifthetimeandplaceatwhichitistobetakenareannouncedatthemeetingatwhichitisdemanded.

(8)Inanyothercase,atleast7days’noticemustbegivenspecifyingthetimeandplaceatwhichthepollistobetaken.

Content of proxy notices

38.(1)Proxiesmayonlyvalidlybeappointedbyanoticeinwriting(a“proxynotice”)which— (a) statesthenameandaddressofthememberappointingtheproxy;and (b) identifiesthepersonappointedtobethatmember’sproxyandthegeneral

meetinginrelationtowhichthatpersonisappointed;and (c) is signed by or on behalf of themember appointing the proxy, or is

authenticatedinsuchmannerasthedirectorsmaydetermine;and (d) is delivered to the company in accordancewith the articles and any

instructions contained in the notice of the general meeting to which they relate.

(2)Thecompanymayrequireproxynoticestobedeliveredinaparticularform,andmayspecifydifferentformsfordifferentpurposes.

(3)Proxynoticesmayspecifyhowtheproxyappointedunderthemistovote(orthattheproxyistoabstainfromvoting)ononeormoreresolutions.

(4)Unlessaproxynoticeindicatesotherwise,itmustbetreatedas— (a) allowingthepersonappointedunderitasaproxydiscretionastohowto

voteonanyancillaryorproceduralresolutionsputtothemeeting,and (b) appointingthatpersonasaproxyinrelationtoanyadjournmentofthe

general meeting to which it relates as well as the meeting itself.

Delivery of proxy notices

39.(1)Anynoticeofageneralmeetingmustspecifytheaddressoraddresses(“proxynotificationaddress”)atwhichthecompanyoritsagentswillreceiveproxynoticesrelatingtothatmeeting,oranyadjournmentofit,deliveredinhardcopyorelectronic form.

(2)Apersonwhoisentitledtoattend,speakorvote(eitheronashowofhandsoronapoll)atageneralmeetingremainssoentitledinrespectofthatmeetingoranyadjournmentofit,eventhoughavalidproxynoticehasbeendeliveredtothecompanyby or on behalf of that person.

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(3)Subjecttosub-articles(4)and(5),aproxynoticemustbedeliveredtoaproxynotificationaddressnotlessthan48hoursbeforethegeneralmeetingoradjournedmeeting to which it relates.

(4)Inthecaseofapolltakenmorethan48hoursafteritisdemanded,thenoticemustbedeliveredtoaproxynotificationaddressnotlessthan24hoursbeforethetimeappointedforthetakingofthepoll.

(5)Inthecaseofapollnottakenduringthemeetingbuttakennotmorethan48hoursafteritwasdemanded,theproxynoticemustbedelivered— (a) inaccordancewithsub-article(3);or (b) atthemeetingatwhichthepollwasdemandedtothechairperson,secretary

or any director.

(6) Anappointmentunderaproxynoticemayberevokedbydeliveringanoticeinwritinggivenbyoronbehalfofthepersonbywhomoronwhosebehalftheproxynoticewasgiventoaproxynotificationaddress.

(7)Anoticerevokingaproxyappointmentonlytakeseffectifitisdeliveredbefore— (a) thestartofthemeetingoradjournedmeetingtowhichitrelates,or (b) (inthecaseofapollnottakenonthesamedayasthemeetingoradjourned

meeting)thetimeappointedfortakingthepolltowhichitrelates.

(8)Ifaproxynoticeisnotsignedbythepersonappointingtheproxy,itmustbeaccompaniedbywrittenevidenceoftheauthorityofthepersonwhoexecutedittoexecute it on the appointor’s behalf.

Amendments to resolutions

40.(1)Anordinaryresolutiontobeproposedatageneralmeetingmaybeamendedbyordinaryresolutionif— (a) noticeoftheproposedamendmentisgiventothecompanysecretaryin

writingbyapersonentitledtovoteatthegeneralmeetingatwhichitistobeproposednotlessthan48hoursbeforethemeetingistotakeplace(orsuchlatertimeasthechairpersonofthemeetingmaydetermine),and

(b) the proposed amendment does not, in the reasonable opinion of thechairpersonofthemeeting,materiallyalterthescopeoftheresolution.

(2)Aspecialresolutiontobeproposedatageneralmeetingmaybeamendedbyordinaryresolution,if— (a) thechairperson of the meeting proposes the amendment at the general

meetingatwhichtheresolutionistobeproposed,and (b) the amendment does not go beyondwhat is necessary to correct a

grammaticalorothernon-substantiveerrorintheresolution.

(3)Ifthechairpersonofthemeeting,actingingoodfaith,wronglydecidesthatanamendmenttoaresolutionisoutoforder,thechairperson’serrordoesnotinvalidatethevoteonthatresolution.

restriCtions on members’ rights

No voting of shares on which money owed to company

41.Novotingrightsattachedtoasharemaybeexercisedatanygeneralmeeting,atanyadjournmentofit,oronanypollcalledatorinrelationtoit,unlessallamountspayabletothecompanyinrespectofthatsharehavebeenpaid.

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appliCation of rules to Class meetings

Class meetings

42.Theprovisionsofthearticlesrelatingtogeneralmeetingsapply,withanynecessarymodifications,tomeetingsoftheholdersofanyclassofshares.


ISSUE OF SHARES

Powers to issue different classes of share

43.(1)Subjecttothearticles,butwithoutprejudicetotherightsattachedtoanyexistingshare,thecompanymayissueshareswithsuchrightsorrestrictionsasmaybe determined by ordinary resolution.

(2)Thecompanymayissueshareswhicharetoberedeemed,orareliabletoberedeemedattheoptionofthecompanyortheholder,andthedirectorsmaydeterminetheterms,conditionsandmannerofredemptionofanysuchshares.

Payment of commissions on subscription for shares

44.(1)Thecompanymaypayanypersonacommissioninconsiderationforthatperson— (a) subscribing,oragreeingtosubscribe,forshares;or (b) procuring,oragreeingtoprocure,subscriptionsforshares.

(2)Anysuchcommissionmaybepaid— (a) incash,orinfullypaidorpartlypaidsharesorothersecurities,orpartly

inonewayandpartlyintheother;and (b) inrespectofaconditionaloranabsolutesubscription.

interests in shares

Company not bound by less than absolute interests

45.Exceptasrequiredbylaw,nopersonis toberecognisedbythecompanyasholdinganyshareuponanytrust,andexceptasotherwiserequiredbylaworthearticles,thecompanyisnotinanywaytobeboundbyorrecogniseanyinterestinashare other than the holder’s absolute ownership of it and all the rights attaching to it.

share CertifiCates

Certificates to be issued except in certain cases

46.(1)Thecompanymustissueeachmemberwithoneormorecertificatesinrespect of the shares which that member holds.

(2)Thisarticledoesnotapplyto— (a) uncertificatedshares;or (b) sharesinrespectofwhichasharewarranthasbeenissued;or (c) sharesinrespectofwhichtheActpermitsthecompanynottoissuea

certificate.

(3)Exceptasotherwisespecifiedinthearticles,allcertificatesmustbeissuedfree of charge.

(4)Nocertificatemaybeissuedinrespectofsharesofmorethanoneclass.

(5)Ifmorethanonepersonholdsashare,onlyonecertificatemaybeissuedin respect of it.


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Contents and execution of share certificates

47.(1)Everycertificatemustspecify— (a) inrespectofhowmanyshares,ofwhatclass,itisissued;and (b) thenominalvalueofthoseshares;and (c) theamountpaiduponthem;and (d) anydistinguishingnumbersassignedtothem.

(2)Certificatesmust— (a) haveaffixedtothemthecompany’scommonsealoranofficialsealwhich

is a facsimile of the company’s common seal with the addition on its face oftheword“Securities”(a“securitiesseal”);or

(b) beotherwiseexecutedinaccordancewiththeAct.

Consolidated share certificates

48.(1)Whenamember’sholdingofsharesofaparticularclassincreases,thecompanymayissuethatmemberwith— (a) asingle,consolidatedcertificateinrespectofallthesharesofaparticular

classwhichthatmemberholds;or (b) aseparatecertificateinrespectofonlythosesharesbywhichthatmember’s

holding has increased.

(2)Whenamember’sholdingofsharesofaparticularclassisreduced,thecompanymustensurethatthememberisissuedwithoneormorecertificatesinrespectofthenumberofsharesheldbythememberafterthatreduction.Butthecompanyneednot(intheabsenceofarequestfromthemember)issueanynewcertificateif— (a) alltheshareswhichthemembernolongerholdsasaresultofthereduction;

and (b) noneoftheshareswhichthememberretainsfollowingthereduction;were,immediatelybeforethereduction,representedbythesamecertificate.

(3)Amembermayrequestthecompany,inwriting,toreplace— (a) themember’sseparatecertificateswithaconsolidatedcertificate;or (b) themember’sconsolidatedcertificatewithtwoormoreseparatecertificates

representing such proportion of the shares as the member may specify.

(4) When the company complieswith such a request itmay charge suchreasonable fee as the directors may decide for doing so.

(5)Aconsolidatedcertificatemustnotbeissuedunlessanycertificateswhichitistoreplacehavefirstbeenreturnedtothecompanyforcancellation.

Replacement share certificates

49.(1)Ifacertificateissuedinrespectofamember’ssharesis— (a) damagedordefaced,or (b) saidtobelost,stolenordestroyed,

thatmemberisentitledtobeissuedwithareplacementcertificateinrespectofthesame shares.

(2) Amember exercising the right to be issuedwith such a replacementcertificate—

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(a) mayatthesametimeexercisetherighttobeissuedwithasinglecertificateorseparatecertificates;and

(b) mustreturnthecertificatewhichistobereplacedtothecompanyifitisdamagedordefaced;and

(c) must complywith such conditions as to evidence, indemnity and thepayment of a reasonable fee as the directors decide.

share not helD in CertifiCateD form

Uncertificated shares

50.(1)Inthisarticle,“therelevantrules”means— (a) anyapplicableprovisionoftheActabouttheholding,evidencingoftitle

to,ortransferofsharesotherthanincertificatedform;and (b) anyapplicablelegislation,rulesorotherarrangementsmadeunderorby

virtueofsuchprovision.

(2)Theprovisionsofthisarticlehaveeffectsubjecttotherelevantrules.

(3)Anyprovisionofthearticleswhichisinconsistentwiththerelevantrulesmustbedisregarded,totheextentthatitisinconsistent,whenevertherelevantrulesapply.

(4)Anyshareorclassofsharesofthecompanymaybeissuedorheldonsuchterms,orinsuchaway,that— (a) titletoitorthemisnot,ormustnotbe,evidencedbyacertificate;or (b) itortheymayormustbetransferredwhollyorpartlywithoutacertificate.

(5)Thedirectorshavepowertotakesuchstepsastheythinkfitinrelationto— (a) theevidencingofandtransferoftitletouncertificatedshares(including

inconnectionwiththeissueofsuchshares);or (b) anyrecordsrelatingtotheholdingofuncertificatedshares;or (c) theconversionofcertificatedsharesintouncertificatedshares;or (d) theconversionofuncertificatedsharesintocertificatedshares.

(6)Thecompanymaybynoticetotheholderofasharerequirethatshare— (a) ifitisuncertificated,tobeconvertedintocertificatedform;and (b) ifitiscertificated,tobeconvertedintouncertificatedform;

to enable it to be dealt with in accordance with the articles.

(7)If— (a) thearticlesgivethedirectorspowertotakeaction,orrequireotherpersons

totakeaction,inordertosell,transferorotherwisedisposeofshares;and (b) uncertificatedsharesaresubjecttothatpower,butthepowerisexpressed

intermswhichassumetheuseofacertificateorotherwritteninstrument;

thedirectorsmaytakesuchactionasisnecessaryorexpedienttoachievethesameresultswhenexercisingthatpowerinrelationtouncertificatedshares.

(8)Inparticular,thedirectorsmaytakesuchactionastheyconsiderappropriateto achieve the sale, transfer, disposal, forfeiture, re-allotment or surrender of anuncertificatedshareorotherwisetoenforcealieninrespectofit.

(9)Unlessthedirectorsotherwisedetermine,shareswhichamemberholdsinuncertificatedformmustbetreatedasseparateholdingsfromanyshareswhichthatmemberholdsincertificatedform.

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(10)Aclassofsharesmustnotbetreatedastwoclassessimplybecausesomesharesofthatclassareheldincertificatedformandothersareheldinuncertificatedform.

Share warrants 51.(1)Thedirectorsmayissueasharewarrantinrespectofanyfullypaidshare.

(2)Sharewarrantsmustbe— (a) issuedinsuchform;and (b) executedinsuchmanner,

as the directors decide. (3)Asharerepresentedbyasharewarrantmaybetransferredbydeliveryofthe warrant representing it. (4)Thedirectorsmaymakeprovisionforthepaymentofdividendsinrespectof any share represented by a share warrant. (5)Subjecttothearticles,thedirectorsmaydecidetheconditionsonwhichanysharewarrantisissued.Inparticular,theymay— (a) decidetheconditionsonwhichnewwarrantsaretobeissuedinplaceof

warrantswhicharedamagedordefaced,orsaidtohavebeenlost,stolenordestroyed;and

(b) decidetheconditionsonwhichbearersofwarrantsareentitledtoattendandvoteatgeneralmeetings;and

(c) decidetheconditionssubjecttowhichbearersofwarrantsmaysurrendertheirwarrantsoastoholdtheirsharesincertificatedoruncertificatedforminstead;and

(d) varytheconditionsofissueofanywarrantfromtimetotime;and the bearer of a warrant is subject to the conditions and procedures in force in relation toit,whetherornottheyweredecidedorspecifiedbeforethewarrantwasissued. (6)Subjecttotheconditionsonwhichthewarrantsareissuedfromtimetotime,bearersofsharewarrantshavethesamerightsandprivilegesastheywouldiftheir names had been included in the register as holders of the shares represented by their warrants. (7)Thecompanymustnotinanywaybeboundbyorrecogniseanyinterestin a share represented by a share warrant other than the absolute right of the bearer of that warrant to that warrant.

partly paiD shares

Company’s lien over partly paid shares

52.(1)Thecompanyhasalien(“thecompany’slien”)overeverysharewhichispartlypaidforanypartof— (a) thatshare’snominalvalue;and (b) anypremiumatwhichitwasissued;

whichhasnotbeenpaidtothecompany,andwhichispayableimmediatelyoratsometimeinthefuture,whetherornotacallnoticehasbeensentinrespectofit.

(2)Thecompany’slienoverashare— (a) takespriorityoveranythirdparty’sinterestinthatshare;and (b) extends to any dividend or othermoney payable by the company in

respectofthatshareand(ifthelienisenforcedandtheshareissoldbythecompany)theproceedsofsaleofthatshare.

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(3) Thedirectorsmay at any timedecide that a sharewhich is orwouldotherwisebesubjecttothecompany’slienshallnotbesubjecttoit,eitherwhollyorin part.

Enforcement of the company’s lien

53.(1)Subjecttotheprovisionsofthisarticle,if— (a) alienenforcementnoticehasbeengiveninrespectofashare;and (b) thepersontowhomthenoticewasgivenhasfailedtocomplywithit;

the company may sell that share in such manner as the directors decide.

(2)Alienenforcementnotice— (a) mayonlybegiveninrespectofasharewhichissubjecttothecompany’s

lien,inrespectofwhichasumispayableandtheduedateforpaymentofthatsumhaspassed;and

(b) mustspecifytheshareconcerned;and (c) mustrequirepaymentofthesumpayablewithin14daysofthenotice;

and (d) mustbeaddressedeithertotheholderoftheshareortoapersonentitled

toitbyreasonoftheholder’sdeath,insolvencyorotherwise;and (e) muststatethecompany’sintentiontoselltheshareifthenoticeisnot

complied with.

(3)Wheresharesaresoldunderthisarticle— (a) thedirectorsmayauthoriseanypersontoexecuteaninstrumentoftransfer

ofthesharestothepurchaserorapersonnominatedbythepurchaser,and

(b) thetransfereeisnotboundtoseetotheapplicationoftheconsideration,and the transferee’stitleisnotaffectedbyanyirregularityinorinvalidityof the process leading to the sale.

(4)Thenetproceedsofanysuchsale(afterpaymentofthecostsofsaleandanyothercostsofenforcingthelien)mustbeapplied— (a) first,inpaymentofsomuchofthesumforwhichthelienexistsaswas

payableatthedateofthelienenforcementnotice; (b) second,tothepersonentitledtothesharesatthedateofthesale,but

onlyafterthecertificateforthesharessoldhasbeensurrenderedtothecompanyforcancellationorasuitableindemnityhasbeengivenforanylostcertificates,andsubjecttoalienequivalentto the company’s lien overthesharesbeforethesaleforanymoneypayableinrespectoftheshares after the date of the lien enforcement notice.

(5) Astatutorydeclarationbyadirectoror thecompanysecretarythat thedeclarant is a director or the company secretary and that a share has been sold to satisfy thecompany’slienonaspecifieddate— (a) is conclusive evidence of the facts stated in it as against all persons

claimingtobeentitledtotheshare;and (b) subjecttocompliancewithanyotherformalitiesoftransferrequiredby

thearticlesorbylaw,constitutesagoodtitletotheshare.

Call notices

54.(1) Subjecttothearticlesandthetermsonwhichsharesareallotted,thedirectorsmaysendanotice(a“callnotice”)toamemberrequiringthemembertopay

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thecompanyaspecifiedsumofmoney(a“call”)whichispayableinrespectofshareswhich that member holds at the date when the directors decide to send the call notice.

(2)Acallnotice— (a) maynotrequireamembertopayacallwhichexceedsthetotalsumunpaid

onthatmember’sshares(whetherastotheshare’snominalvalueoranyamountpayabletothecompanybywayofpremium);and

(b) muststatewhenandhowanycalltowhichitrelatesitistobepaid;and (c) maypermitorrequirethecalltobepaidbyinstalments.

(3) Amembermustcomplywith therequirementsofacallnotice,butnomemberisobligedtopayanycallbefore14dayshavepassedsincethenoticewassent.

(4) Before thecompanyhas receivedanycalldueunder a callnotice thedirectorsmay— (a) revokeitwhollyorinpart;or (b) specifyalatertimeforpaymentthanisspecifiedinthenotice;

by a further notice in writing to the member in respect of whose shares the call is made.

Liability to pay calls

55.(1)Liabilitytopayacallisnotextinguishedortransferredbytransferringthesharesinrespectofwhichitisrequiredtobepaid.

(2)Jointholdersofasharearejointlyandseverallyliabletopayallcallsinrespect of that share.

(3)Subjecttothetermsonwhichsharesareallotted,thedirectorsmay,whenissuingshares,providethatcallnoticessenttotheholdersofthosesharesmayrequirethem— (a) topaycallswhicharenotthesame;or (b) topaycallsatdifferenttimes.

When call notice need not be issued

56.(1)Acallnoticeneednotbeissuedinrespectofsumswhicharespecified,inthetermsonwhichashareisissued,asbeingpayabletothecompanyinrespectofthatshare(whetherinrespectofnominalvalueorpremium)— (a) onallotment;or (b) ontheoccurrenceofaparticularevent;or (c) onadatefixedbyorinaccordancewiththetermsofissue.

(2)Butiftheduedateforpaymentofsuchasumhaspassedandithasnotbeenpaid,theholderoftheshareconcernedistreatedinallrespectsashavingfailedtocomplywithacallnoticeinrespectofthatsum,andisliabletothesameconsequencesas regards the payment of interest and forfeiture.

Failure to comply with call notice: automatic consequences

57.(1)Ifapersonisliabletopayacallandfailstodosobythecallpaymentdate— (a) thedirectorsmayissueanoticeofintendedforfeituretothatperson;and (b) untilthecallispaid,thatpersonmustpaythecompanyinterestonthe

callfromthecallpaymentdateattherelevantrate.

(2)Forthepurposesofthisarticle—

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(a) the“callpaymentdate”isthetimewhenthecallnoticestatesthatacallispayable,unlessthedirectorsgiveanoticespecifyingalaterdate,inwhichcasethe“callpaymentdate”isthatlaterdate;

(b) the“relevantrate”is— (i) theratefixedbythetermsonwhichtheshareinrespectofwhich

thecallisduewasallotted;or (ii) suchotherrateaswasfixedinthecallnoticewhichrequiredpayment

ofthecall,orhasotherwisebeendeterminedbythedirectors;or (iii) ifnorateisfixedineitheroftheseways,5percentper annum.

(3)Therelevantratemustnotexceedbymorethan5percentagepointstheprescribed rate of interest.

(4)Thedirectorsmaywaiveanyobligationtopayinterestonacallwhollyorin part.

Notice of intended forfeiture

58.Anoticeofintendedforfeiture— (a) maybesentinrespectofanyshareinrespectofwhichacallhasnotbeen

paidasrequiredbyacallnotice;and (b) mustbesenttotheholderofthatshareortoapersonentitledtoitby

reasonoftheholder’sdeath,insolvencyorotherwise;and (c) mustrequirepaymentofthecallandanyaccruedinterestbyadatewhich

isnotlessthan14daysafterthedateofthenotice;and (d) muststatehowthepaymentistobemade;and (e) muststatethatifthenoticeisnotcompliedwith,thesharesinrespectof

which the call is payable will be liable to be forfeited.

Directors’ power to forfeit shares

59. If a notice of intended forfeiture is not complied with before the date by which paymentofthecallisrequiredinthenoticeofintendedforfeiture,thedirectorsmaydecidethatanyshareinrespectofwhichitwasgivenisforfeited,andtheforfeitureistoincludealldividendsorothermoneyspayableinrespectoftheforfeitedsharesandnot paid before the forfeiture.

Effect of forfeiture

60.(1)Subjecttothearticles,theforfeitureofashareextinguishes— (a) allinterestsinthatshare,andallclaimsanddemandsagainstthecompany

inrespectofit;and (b) allotherrightsandliabilitiesincidentaltotheshareasbetweentheperson

whose share it was prior to the forfeiture and the company.

(2)Anysharewhichisforfeitedinaccordancewiththearticles— (a) is deemed to havebeen forfeitedwhen the directors decide that it is

forfeited;and (b) isdeemedtobethepropertyofthecompany;and (c) maybesold,re-allottedorotherwisedisposedofasthedirectorsthink

fit.

(3)Ifaperson’sshareshavebeenforfeited— (a) thecompanymustsendthatpersonnoticethatforfeiturehasoccurred

andrecorditintheregisterofmembers;and

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(b) thatpersonceasestobeamemberinrespectofthoseshares; (c) thatpersonmustsurrenderthecertificateforthesharesforfeitedtothe

companyforcancellation; (d) thatpersonremainsliabletothecompanyforallsumspayablebythat

person under the articles at the date of forfeiture in respect of those shares,includinganyinterest(whetheraccruedbeforeorafterthedateofforfeiture);and

(e) thedirectorsmaywaivepaymentofsuchsumswhollyorinpartorenforcepaymentwithoutanyallowanceforthevalueofthesharesatthetimeofforfeitureorforanyconsiderationreceivedontheirdisposal.

(4)Atanytimebeforethecompanydisposesofaforfeitedshare,thedirectorsmay decide to cancel the forfeiture on payment of all calls and interest due in respect ofitandonsuchothertermsastheythinkfit.

Procedure following forfeiture

61.(1)Ifaforfeitedshareistobedisposedofbybeingtransferred,thecompanymay receive theconsideration for the transfer and thedirectorsmayauthoriseanyperson to execute the instrument of transfer.

(2)A statutorydeclarationby adirectoror the company secretary that thedeclarant is a director or the company secretary and that a share has been forfeited on aspecifieddate— (a) is conclusive evidence of the facts stated in it as against all persons

claimingtobeentitledtotheshare;and (b) subjecttocompliancewithanyotherformalitiesoftransferrequiredby

thearticlesorbylaw,constitutesagoodtitletotheshare.

(3)Apersontowhomaforfeitedshareistransferredisnotboundtoseetotheapplicationoftheconsideration(ifany)noristhatperson’stitletotheshareaffectedbyanyirregularityinorinvalidityoftheprocessleadingtotheforfeitureortransferof the share.

(4)Ifthecompanysellsaforfeitedshare,thepersonwhohelditpriortoitsforfeitureisentitledtoreceivefromthecompanytheproceedsofsuchsale,netofanycommission,andexcludinganyamountwhich— (a) was,orwouldhavebecome,payable;and (b) hadnot,whenthatsharewasforfeited,beenpaidbythatpersoninrespect

ofthatshare;

but no interest is payable to such a person in respect of such proceeds and the company isnotrequiredtoaccountforanymoneyearnedonthem.

Surrender of shares

62.(1)Amembermaysurrenderanyshare— (a) inrespectofwhichthedirectorsmayissueanoticeofintendedforfeiture;

or (b) whichthedirectorsmayforfeit;or (c) whichhasbeenforfeited.

(2)Thedirectorsmayacceptthesurrenderofanysuchshare.

(3)Theeffectofsurrenderonashareisthesameastheeffectofforfeitureonthat share.

(4)Asharewhichhasbeensurrenderedmaybedealtwithinthesamewayasa share which has been forfeited.

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transfer anD transmission of shares

Transfers of certificated shares

63.(1)Certificatedsharesmaybetransferredbymeansofaninstrumentoftransferinanyusualformoranyotherformapprovedbythedirectors,whichisexecutedbyoronbehalfof— (a) thetransferor;and (b) (ifanyofthesharesispartlypaid)thetransferee.

(2)Nofeemaybechargedforregisteringanyinstrumentoftransferorotherdocument relating to or affecting the title to any share.

(3)Thecompanymayretainanyinstrumentoftransferwhichisregistered.

(4)Thetransferorremainstheholderofacertificatedshareuntilthetransferee’sname is entered in the register of members as holder of it.

(5)Thedirectorsmayrefusetoregisterthetransferofacertificatedshareif— (a) theshareisnotfullypaid;or (b) thetransferisnotlodgedatthecompany’sregisteredofficeorsuchother

placeasthedirectorshaveappointed;or (c) thetransferisnotaccompaniedbythecertificateforthesharestowhichit

relates,orsuchotherevidenceasthedirectorsmayreasonablyrequiretoshowthetransferor’srighttomakethetransfer,orevidenceoftherightofsomeoneotherthanthetransferortomakethetransferonthetransferor’sbehalf;or

(d) thetransferisinrespectofmorethanoneclassofshare;or (e) thetransferisinfavourofmorethanfourtransferees.

(6)Ifthedirectorsrefusetoregisterthetransferofashare,theinstrumentoftransfer must be returned to the transferee with the notice of refusal unless they suspect that the proposed transfer may be fraudulent.

Transfer of uncertificated shares

64.Atransferofanuncertificatedsharemustnotberegisteredifitisinfavourof more than four transferees.

Transmission of shares

65.(1)Iftitletoasharepassestoatransmittee,thecompanymayonlyrecognisethetransmitteeashavinganytitletothatshare.

(2)Nothinginthesearticlesreleasestheestateofadeceasedmemberfromanyliability in respect of a share solely or jointly held by that member.

Transmittees’ rights

66.(1)Atransmitteewhoproducessuchevidenceofentitlementtosharesasthedirectorsmayproperlyrequire— (a) may,subjecttothearticles,chooseeithertobecometheholderofthose

sharesortohavethemtransferredtoanotherperson;and (b) subjecttothearticles,andpendinganytransferofthesharestoanother

person,hasthesamerightsastheholderhad.

(2)Buttransmitteesdonothavetherighttoattendorvoteatageneralmeetingin respect of shares towhich they are entitled, by reasonof the holder’s death orinsolvencyorotherwise,unlesstheybecometheholdersofthoseshares

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Exercise of transmittees’ rights

67.(1)Transmitteeswhowishtobecometheholdersofsharestowhichtheyhavebecome entitled must notify the company in writing of that wish.

(2) If the share is a certificated share and a transmitteewishes to have ittransferredtoanotherperson,thetransmitteemustexecuteaninstrumentoftransferin respect of it.

(3)Iftheshareisanuncertificatedshareandthetransmitteewishestohaveittransferredtoanotherperson,thetransmitteemust— (a) procurethatallappropriateinstructionsaregiventoeffectthetransfer,

or (b) procurethattheuncertificatedshareischangedintocertificatedformand

then execute an instrument of transfer in respect of it.

(4)Anytransfermadeorexecutedunderthisarticleistobetreatedasifitweremadeorexecutedbythepersonfromwhomthetransmitteehasderivedrightsinrespectoftheshare,andasiftheeventwhichgaverisetothetransmissionhadnotoccurred.

Transmittees bound by prior notices

68.Ifanoticeisgiventoamemberinrespectofsharesandatransmitteeisentitledtothoseshares,thetransmitteeisboundbythenoticeifitwasgiventothememberbefore the transmittee’s name has been entered in the register of members.

ConsoliDation of shares

Procedure for disposing of fractions of shares

69.(1)Thisarticleapplieswhere— (a) therehasbeenaconsolidationordivisionofshares;and (b) asaresult,membersareentitledtofractionsofshares.

(2)Thedirectorsmay— (a) sell the shares representing the fractions to anyperson including the

companyforthebestpricereasonablyobtainable;and (b) in thecaseofacertificatedshare,authoriseanyperson toexecutean

instrument of transfer of the shares to the purchaser or a person nominated bythepurchaser;and

(c) distributethenetproceedsofsaleindueproportionamongtheholdersof the shares.

(3)Whereanyholder’sentitlementtoaportionoftheproceedsofsaleamountstolessthanaminimumfiguredeterminedbythedirectors,thatmember’sportionmaybe distributed to an organisation which is a charity for the purposes of the law.

(4)Thepersontowhomthesharesaretransferredisnotobligedtoensurethatanypurchasemoneyisreceivedbythepersonentitledtotherelevantfractions.

(5)Thetransferee’stitletothesharesisnotaffectedbyanyirregularityinorinvalidityoftheprocessleadingtotheirsale.

Distributions

Procedure for declaring dividends

70. (1)The companymayby ordinary resolution declare dividends, and thedirectorsmaydecidetopayinterimdividends.


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(2)A dividendmust not be declared unless the directors havemade arecommendation as to its amount. Such a dividendmust not exceed the amountrecommended by the directors.

(3)Nodividendmaybedeclaredorpaidunlessitisinaccordancewithmembers’respectiverights.

(4)Unlessthemembers’resolutiontodeclareordirectors’decisiontopayadividend,orthetermsonwhichsharesareissued,specifyotherwise,itmustbepaidbyreference to each member’s holding of shares on the date of the resolution or decision to declare or pay it.

(5)Ifthecompany’ssharecapitalisdividedintodifferentclasses,nointerimdividendmaybepaidonsharescarryingdeferredornon-preferredrightsif,atthetimeofpayment,anypreferentialdividendisinarrear.

(6)Thedirectorsmaypayatintervalsanydividendpayableatafixedrateifitappearstothemthattheprofitsavailablefordistributionjustifythepayment.

(7)Ifthedirectorsactingoodfaith,theydonotincuranyliabilitytotheholdersof shares conferring preferred rights for any loss they may suffer by the lawful payment ofaninterimdividendonshareswithdeferredornon-preferredrights.

Calculation of dividends

71.(1)Exceptasotherwiseprovidedbythearticlesortherightsattachedtoshares,alldividendsmustbe— (a) declaredandpaidaccording to theamountspaidupon theshareson

whichthedividendispaid;and (b) apportioned and paid proportionately to the amounts paid up on the

shares during any portion or portions of the period in respect of which thedividendispaid.

(2)Ifanyshareisissuedontermsprovidingthatitranksfordividendasfromaparticulardate,thatshareranksfordividendaccordingly.

(3)Forthepurposesofcalculatingdividends,noaccountistobetakenofanyamountwhichhasbeenpaiduponashareinadvanceoftheduedateforpaymentofthat amount.

Payment of dividends and other distributions

72.(1)Whereadividendorothersumwhichisadistributionispayableinrespectofashare,itmustbepaidbyoneormoreofthefollowingmeans— (a) transfertoabankorbuildingsocietyaccountspecifiedbythedistribution

recipienteitherinwritingorasthedirectorsmayotherwisedecide;or (b) sendingachequemadepayabletothedistributionrecipientbyposttothe

distributionrecipientatthedistributionrecipient’sregisteredaddress(ifthedistributionrecipientisaholderoftheshare),or(inanyothercase)toanaddressspecifiedbythedistributionrecipienteitherinwritingorasthedirectorsmayotherwisedecide;or

(c) sendingachequemadepayabletosuchpersonbyposttosuchpersonatsuchaddressasthedistributionrecipienthasspecifiedeitherinwritingorasthedirectorsmayotherwisedecide;or

(d) anyothermeansofpaymentasthedirectorsagreewiththedistributionrecipient either in writing or by such other means as the directors decide.

(2)Inthearticles,“thedistributionrecipient”means,inrespectofashareinrespectofwhichadividendorothersumispayable—

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(a) theholderoftheshare;or (b) ifthesharehastwoormorejointholders,whicheverofthemisnamed

firstintheregisterofmembers;or (c) if the holder is no longer entitled to the share by reasonof death or

insolvency,orotherwisebyoperationoflaw,thetransmittee.

Deductions from distributions in respect of sums owed to the company

73.(1)If— (a) ashareissubjecttothecompany’slien;and (b) thedirectorsareentitledtoissuealienenforcementnoticeinrespectof

it;theymay,insteadofissuingalienenforcementnotice,deductfromanydividendorother sum payable in respect of the share any sum of money which is payable to the companyinrespectofthatsharetotheextentthattheyareentitledtorequirepaymentunder a lien enforcement notice.

(2)Moneysodeductedmustbeusedtopayanyofthesumspayableinrespectof that share.

(3)Thecompanymustnotifythedistributionrecipientinwritingof— (a) thefactandamountofanysuchdeduction;and (b) anynon-paymentofadividendorothersumpayableinrespectofashare

resultingfromanysuchdeduction;and (c) howthemoneydeductedhasbeenapplied.

No interest on distributions

74.Thecompanymaynotpayinterestonanydividendorothersumpayableinrespectofashareunlessotherwiseprovidedby— (a) thetermsonwhichthesharewasissued;or (b) theprovisionsofanotheragreementbetweentheholderofthatshareand

the company.

Unclaimed distributions

75.(1)Alldividendsorothersumswhichare— (a) payableinrespectofshares;and (b) unclaimedafterhavingbeendeclaredorbecomepayable,

maybeinvestedorotherwisemadeuseofbythedirectorsforthebenefitofthecompanyuntil claimed.

(2)Thepaymentofanysuchdividendorothersumintoaseparateaccountdoesnotmakethecompanyatrusteeinrespectofit.

(3)If— (a) twelveyearshavepassedfromthedateonwhichadividendorothersum

becamedueforpayment;and (b) thedistributionrecipienthasnotclaimedit;thedistributionrecipientisnolongerentitledtothatdividendorothersumanditceasesto remain owing by the company.

Non-cash distributions

76.(1)Subjecttothetermsofissueoftheshareinquestion,thecompanymay,byordinaryresolutionontherecommendationofthedirectors,decidetopayallorpartof

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adividendorotherdistributionpayableinrespectofasharebytransferringnon-cashassetsofequivalentvalue(including,withoutlimitation,sharesorothersecuritiesinanycompany). (2)Ifthesharesinrespectofwhichsuchanon-cashdistributionispaidareuncertificated,anysharesinthecompanywhichareissuedasanon-cashdistributioninrespectofthemmustbeuncertificated.

(3)Forthepurposesofpayinganon-cashdistribution,thedirectorsmaymakewhateverarrangementstheythinkfit,including,whereanydifficultyarisesregardingthedistribution— (a) fixingthevalueofanyassets; (b) payingcashtoanydistributionrecipientonthebasisofthatvalueinorder

toadjusttherightsofrecipients; (c) vestinganyassetsintrustees.

Waiver of distributions

77.Distributionrecipientsmaywaive theirentitlement toadividendorotherdistributionpayableinrespectofasharebygivingthecompanynoticeinwritingtothateffect,butif— (a) thesharehasmorethanoneholder;or (b) morethanonepersonisentitledtotheshare,whetherbyreasonofthe

deathorinsolvencyofoneormorejointholders,orotherwise;thenotice isnoteffectiveunless it isexpressed tobegiven,andsigned,byall theholders or persons otherwise entitled to the share.


Authority to capitalise and appropriation of capitalised sums

78.(1)Subjecttothearticles,thedirectorsmay,iftheyaresoauthorisedbyanordinaryresolution— (a) decidetocapitaliseanyprofitsofthecompany(whetherornottheyare

availablefordistribution)whicharenotrequiredforpayingapreferentialdividend, or any sum standing to the credit of the company’s sharepremiumaccountorcapitalredemptionreserve;and

(b) appropriateanysumwhichtheysodecidetocapitalise(a“capitalisedsum”)tothepersonswhowouldhavebeenentitledtoitifitweredistributedbywayofdividend(the“personsentitled”)andinthesameproportions.

(2)Capitalisedsumsmustbeapplied— (a) onbehalfofthepersonsentitled;and (b) in thesameproportionsasadividendwouldhavebeendistributed to

them.

(3)Anycapitalisedsummaybeappliedinpayingupnewsharesofanominalamountequaltothecapitalisedsumwhicharethenallottedcreditedasfullypaidtothe persons entitled or as they may direct.

(4)A capitalised sumwhichwas appropriated from profits available fordistributionmaybeapplied— (a) inortowardspayingupanyamountsunpaidonexistingsharesheldby

thepersonsentitled;or (b) inpayingupnewdebenturesof thecompanywhichare thenallotted

credited as fully paid to the persons entitled or as they may direct.

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(5)Subjecttothearticlesthedirectorsmay— (a) applycapitalisedsumsinaccordancewithsub-articles(3)and(4)partly

inonewayandpartlyinanother;and (b) makesucharrangementsastheythinkfittodealwithsharesordebentures

becomingdistributableinfractionsunderthisarticle(includingtheissuingoffractionalcertificatesorthemakingofcashpayments);and

(c) authoriseanypersontoenter intoanagreementwiththecompanyonbehalf of all the persons entitled which is binding on them in respect of the allotment of shares and debentures to them under this article.

Part 5: miscellaneous Provisions

CommuniCations

Means of communication to be used

79.(1)Subjecttothearticles,anythingsentorsuppliedbyortothecompanyunderthearticlesmaybesentorsuppliedinanywayinwhichtheActprovidesfordocumentsorinformationwhichareauthorisedorrequiredbyanyprovisionofthatAct to be sent or supplied by or to the company.

(2)Subjecttothearticles,anynoticeordocumenttobesentorsuppliedtoadirectorinconnectionwiththetakingofdecisionsbydirectorsmayalsobesentorsuppliedbythemeansbywhichthatdirectorhasaskedtobesentorsuppliedwithsuchnotices or documents for the time being.

(3)Adirectormayagreewith thecompany thatnoticesordocumentssenttothatdirectorinaparticularwayaretobedeemedtohavebeenreceivedwithinaspecifiedtimeoftheirbeingsent,andforthespecifiedtimetobelessthan48hours.

Failure to notify contact details

80.(1)If— (a) thecompanysendstwoconsecutivedocumentstoamemberoveraperiod

ofatleast12months;and (b) eachofthosedocumentsisreturnedundelivered,orthecompanyreceives

notificationthatithasnotbeendelivered;

thatmemberceasestobeentitledtoreceivenoticesfromthecompany.

(2)Amemberwhohasceasedtobeentitledtoreceivenoticesfromthecompanybecomesentitledtoreceivesuchnoticesagainbysendingthecompany— (a) anewaddresstoberecordedintheregisterofmembers;or (b) if themember has agreed that the company should use ameans of

communication other than sending things to such an address, theinformation that the company needs to use that means of communication effectively.

aDministratiVe arrangements

Company seals

81.(1)Anycommonsealmayonlybeusedbytheauthorityofthedirectors.

(2)Thedirectorsmaydecidebywhatmeansandinwhatformanycommonseal or securities seal is to be used.

(3)Unlessotherwisedecidedbythedirectors,ifthecompanyhasacommonsealanditisaffixedtoadocument,thedocumentmustalsobesignedbyatleastoneauthorised person in the presence of a witness who attests the signature.

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(4)Forthepurposesofthisarticle,anauthorisedpersonis— (a) anydirectorofthecompany;or (b) thecompanysecretary;or (c) any person authorised by the directors for the purpose of signing

documents to which the common seal is applied.

(5)Ifthecompanyhasanofficialsealforuseabroad,itmayonlybeaffixedtoadocumentifitsuseonthatdocument,ordocumentsofaclasstowhichitbelongs,has been authorised by a decision of the directors.

(6)Ifthecompanyhasasecuritiesseal,itmayonlybeaffixedtosecuritiesbythe company secretary or a person authorised to apply it to securities by the company secretary.

(7)Forthepurposesofthearticles,referencestothesecuritiessealbeingaffixedto any document include the reproduction of the image of that seal on or in a document byanymechanicalorelectronicmeanswhichhasbeenapprovedbythedirectorsinrelation to that document or documents of a class to which it belongs.

Destruction of documents

82.(1)Thecompanyisentitledtodestroy— (a) allinstrumentsoftransferofshareswhichhavebeenregistered,andall

other documents on the basis of which any entries are made in the register ofmembers,fromsixyearsafterthedateofregistration;and

(b) alldividendmandates,variationsorcancellationsofdividendmandates,andnotificationsofchangeofaddress,fromtwoyearsaftertheyhavebeenrecorded;and

(c) allsharecertificateswhichhavebeencancelledfromoneyearafterthedateofthecancellation;and

(d) allpaiddividendwarrantsandchequesfromoneyearafterthedateofactualpayment;and

(e) allproxynoticesfromoneyearaftertheendofthemeetingtowhichtheproxy notice relates.

(2)Ifthecompanydestroysadocumentingoodfaith,inaccordancewiththearticles,andwithoutnoticeofanyclaimtowhichthatdocumentmayberelevant,itisconclusivelypresumedinfavourofthecompanythat— (a) entriesintheregisterpurportingtohavebeenmadeonthebasisofan

instrument of transfer or other document so destroyed were duly and properlymade;and

(b) anyinstrumentoftransfersodestroyedwasavalidandeffectiveinstrumentdulyandproperlyregistered;and

(c) anysharecertificatesodestroyedwasavalidandeffectivecertificatedulyandproperlycancelled;and

(d) anyotherdocumentsodestroyedwasavalidandeffectivedocumentinaccordancewithitsrecordedparticularsinthebooksorrecordsofthecompany.

(3)Thisarticledoesnotimposeonthecompanyanyliabilitywhichitwouldnototherwisehaveifitdestroysanydocumentbeforethetimeatwhichthisarticlepermits it to do so.

(4) In this article, references to thedestructionof anydocument includeareference to its being disposed of in any manner.

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No right to inspect accounts and other records

83.Except as provided by lawor authorised by the directors or an ordinaryresolution of the company, no person is entitled to inspect any of the company’saccountingorotherrecordsordocumentsmerelybyvirtueofbeingamember.

Provision for employees on cessation of business

84.Thedirectorsmaydecidetomakeprovisionforthebenefitofpersonsemployedorformerlyemployedbythecompanyoranyofitssubsidiaries(otherthanadirectororformerdirectororshadowdirector)inconnectionwiththecessationortransfertoanypersonofthewholeorpartoftheundertakingofthecompanyorthatsubsidiary.


Indemnity

85.(1)Subjecttosub-article(2),arelevantdirectorofthecompanyoranassociatedcompanymaybeindemnifiedoutofthecompany’sassetsagainst— (a) anyliabilityincurredbythatdirectorinconnectionwithanynegligence,

default,breachofdutyorbreachoftrustinrelationtothecompanyoranassociatedcompany;

(b) anyotherliabilityincurredbythatdirectorasanofficerofthecompanyoranassociatedcompany;

(2)ThisarticledoesnotauthoriseanyindemnitywhichwouldbeprohibitedorrenderedvoidbyanyprovisionoftheActorbyanyotherprovisionoflaw.

(3)Inthisarticle— (a) companiesareassociatedifoneisasubsidiaryoftheotherorbothare

subsidiariesofthesamebodycorporate;and (b) a“relevantdirector”meansanydirectororformerdirectorofthecompany

or an associated company.

Insurance

86.(1)Thedirectorsmaydecidetopurchaseandmaintaininsurance,attheexpenseofthecompany,forthebenefitofanyrelevantdirectorinrespectofanyrelevantloss.

(2)Inthisarticle— (a) a“relevantdirector”meansanydirectororformerdirectorofthecompany

oranassociatedcompany; (b) a“relevantloss”meansanylossorliabilitywhichhasbeenormaybe

incurredbyarelevantdirectorinconnectionwiththatdirector’sdutiesorpowersinrelationtothecompany,anyassociatedcompanyoranypension fund or employees’ share scheme of the company or associated company;

(c) companiesareassociatedifoneisasubsidiaryoftheotherorbotharesubsidiaries of the same body corporate.

taBle B: model articles for Private comPanies limited By shares



Articles 1. Definitions. 2. Liability of members.

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Part 2: directors


3. Directors’ general authority. 4. Shareholders’ reserve power. 5. Directors may delegate. 6. Committees.


7.Directorstotakedecisionscollectively. 8. Unanimous decisions. 9. Calling a directors’ meeting 10. Participation in directors’ meetings 11. Quorum for directors’ meetings 12. Chairing of directors’ meetings 13. Castingvote. 14. Conflictsofinterest15. Recordsofdecisionstobekept. 16. Directors’discretiontomakefurtherrules.


17. Methods of appointing directors 18. Termination of director’s appointment 19. Directors’ remuneration 20. Directors’ expenses.


shares

21. All shares to be fully paid up 22. Powers to issue different classes of share 23. Company not bound by less than absolute interests. 24. Sharecertificates. 25. Replacementsharecertificates 26. Share transfers 27. Transmission of shares 28. Exercise of transmittees’ rights 29. Transmittees bound by prior notices

DiViDenDs anD other Distributions

30. Procedure for declaring dividends 31. Payment of dividends and other distributions 32. No interest on distributions 33. Unclaimed distributions 34. Non-cash distributions 35. Waiverofdistributions

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36. Authority to capitalise and appropriation of capitalised sumsPart 4: decision-makinG By shareholders


37. Attendance and speaking at general meetings 38. Quorum for general meetings 39. Chairing general meetings 40. Attendanceandspeakingbydirectorsandnon-members 41. Adjournment.


42. Voting: general 43. Errors and disputes 44. Poll votes 45. Content of proxy notices 46. Delivery of proxy notices 47. Amendments to resolutions

Part 5: administrative arranGements

48. Means of communication to be used. 49. Company seals. 50. No right to inspect accounts and other records. 51. Provisionforemployeesoncessationofbusiness.


52. Indemnity 53. Insurance,


Definitions

1.(1)Inthearticles,unlessthecontextrequiresotherwise— “articles”meansthecompany’sarticlesofassociation; “insolvency”includesindividualinsolvencyproceedingsinajurisdictionother

thanZimbabwewhichhaveaneffectsimilartothatofinsolvency; “chairperson”hasthemeaninggiveninarticle12; “chairpersonofthemeeting”hasthemeaninggiveninarticle39; “Act”meanstheCompaniesandOtherBusinessEntitiesAct[Chapter: 24:31]; “director”meansadirectorofthecompany,andincludesanypersonoccupying

thepositionofdirector,bywhatevernamecalled; “distributionrecipient”hasthemeaninggiveninarticle31; “document”includes,unlessotherwisespecified,anydocumentsentorsupplied

inelectronicform; “fullypaid”inrelationtoashare,meansthatthenominalvalueandanypremium

tobepaidtothecompanyinrespectofthatsharehavebeenpaidtothecompany;

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“holder” in relation to shares means the person whose name is entered in the registerofmembersastheholderoftheshares;

“instrument”meansanon-electronicdocument; “ordinaryresolution”meansaresolutionotherthanaspecialresolution; “paid”meanspaidorcreditedaspaid; “participate”,inrelationtoadirectors’meeting,hasthemeaninggiveninarticle

10; “proxynotice”hasthemeaninggiveninarticle45; “shareholder”meansapersonwhoistheholderofashare; “shares”meanssharesinthecompany; “specialresolution”hasthemeaninggiveninsection175 oftheAct;; “subsidiary”hasthemeaninggiveninsection185 oftheAct; “transmittee” means a person entitled to a share by reason of the death or

insolvencyofashareholderorotherwisebyoperationoflaw; “writing”meanstherepresentationorreproductionofwords,symbolsorother




2.Theliabilityofthemembersislimitedtotheamount,ifany,unpaidontheshares held by them.

Part 2: directors

DIRECTORS’POWERSANDRESPONSIBILITIES


3.Subject to thearticles, thedirectorsareresponsiblefor themanagementofthecompany’sbusiness,forwhichpurposetheymayexerciseallthepowersofthecompany.

Shareholders’ reserve power 4.(1)Theshareholdersmay,byspecialresolution,directthedirectorstotake,orrefrainfromtaking,specifiedaction. (2)Nosuchspecialresolutioninvalidatesanythingwhichthedirectorshavedone before the passing of the resolution.


5.(1)Subjecttothearticles,thedirectorsmaydelegateanyofthepowerswhichareconferredonthemunderthearticles— (a) tosuchpersonorcommittee;and (b) bysuchmeans(includingbypowerofattorney);and (c) tosuchanextent;and (d) inrelationtosuchmattersorterritories;and (e) onsuchtermsandconditions;

astheythinkfit.

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Committees

6.(1)Committeestowhichthedirectorsdelegateanyoftheirpowersmustfollowprocedureswhicharebasedasfarastheyareapplicableonthoseprovisionsofthearticleswhichgovernthetakingofdecisionsbydirectors.


decision-makinG By directors


7.(1)Thegeneralruleaboutdecision-makingbydirectorsisthatanydecisionofthedirectorsmustbeeitheramajoritydecisionatameetingoradecisiontakeninaccordance with article 8.

(2)If— (a) thecompanyonlyhasonedirector;and (b) noprovisionofthearticlesrequiresittohavemorethanonedirector,

thegeneralruledoesnotapply,andthedirectormaytakedecisionswithoutregardtoanyoftheprovisionsofthearticlesrelatingtodirectors’decision-making.

Unanimous decisions 8.(1)Adecisionofthedirectorsistakeninaccordancewiththisarticlewhenalleligibledirectorsindicatetoeachotherbyanymeansthattheyshareacommonviewon a matter. (2)Suchadecisionmaytaketheformofaresolutioninwriting,copiesofwhichhavebeensignedbyeacheligibledirectorortowhicheacheligibledirectorhasotherwise indicated agreement in writing. (3)Referencesinthisarticletoeligibledirectorsaretodirectorswhowouldhavebeenentitledtovoteonthematterhaditbeenproposedasaresolutionatadirectors’meeting. (4)Adecisionmaynotbetakeninaccordancewiththisarticleiftheeligibledirectorswouldnothaveformedaquorumatsuchameeting.


9.(1)Anydirectormaycalladirectors’meetingbygivingnoticeofthemeetingtothedirectorsorbyauthorisingthecompanysecretary(ifany)togivesuchnotice.



(3)Noticeofadirectors’meetingmustbegiventoeachdirector,butneednotbe in writing.

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(4)Noticeofadirectors’meetingneednotbegiventodirectorswhowaivetheirentitlementtonoticeofthatmeeting,bygivingnoticetothateffecttothecompanynot more than 7 days after the date on which the meeting is held. Where such notice is givenafterthemeetinghasbeenheld,thatdoesnotaffectthevalidityofthemeeting,or of any business conducted at it.







Quorum for directors’ meetings 11.(1)Atadirectors’meeting,unlessaquorumisparticipating,noproposalistobevotedon,exceptaproposaltocallanothermeeting. (2)Thequorumfordirectors’meetingsmaybefixedfromtimetotimebyadecisionofthedirectors,butitmustneverbelessthantwo,andunlessotherwisefixedit is two. (3)Ifthetotalnumberofdirectorsforthetimebeingislessthanthequorumrequired,thedirectorsmustnottakeanydecisionotherthanadecision— (a) toappointfurtherdirectors;or (b) tocallageneralmeetingsoastoenabletheshareholderstoappointfurther

directors.

Chairing of directors’ meetings


(2)Thepersonsoappointedforthetimebeingisknownasthechairperson.

(3)Thedirectorsmayterminatethechairperson’sappointmentatanytime.

(4)If thechairpersonisnotparticipatinginadirectors’meetingwithintenminutesofthetimeatwhichitwastostart,theparticipatingdirectorsmustappointoneofthemselvestochairit.

Casting vote

13.(1)Ifthenumbersofvotesforandagainstaproposalareequal,thechairpersonorotherdirectorchairingthemeetinghasacastingvote.

(2)Butthisdoesnotapplyif,inaccordancewiththearticles,thechairpersonorotherdirectorisnottobecountedasparticipatinginthedecision-makingprocessforquorumorvotingpurposes.

Conflicts of interest

14. (1) If aproposeddecisionof thedirectors is concernedwithanactualorproposedtransactionorarrangementwiththecompanyinwhichadirectorisinterested,thatdirectorisnottobecountedasparticipatinginthedecision-makingprocessforquorumorvotingpurposes.

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(2)Butifsub-article(3)applies,adirectorwhoisinterestedinanactualorproposed transaction or arrangement with the company is to be counted as participating inthedecision-makingprocessforquorumandvotingpurposes.

(3)Thissub-articleapplieswhen— (a) the company by ordinary resolution disapplies the provision of the

articleswhichwouldotherwisepreventadirectorfrombeingcountedasparticipatinginthedecision-makingprocess;or


(c) thedirector’sconflictofinterestarisesfromapermittedcause. (4)Forthepurposesofthisarticle,thefollowingarepermittedcauses— (a) a guarantee given, or to be given, by or to a director in respect of

an obligation incurred by or on behalf of the company or any of its subsidiaries;and

(b) subscription,oranagreementtosubscribe,forsharesorothersecuritiesofthecompanyoranyofitssubsidiaries,ortounderwrite,sub-underwrite,orguaranteesubscriptionforanysuchsharesorsecurities;and


(5)Forthepurposesofthisarticle,referencestoproposeddecisionsanddecision-makingprocessesincludeanydirectors’meetingorpartofadirectors’meeting. (6)Subjecttosub-article(7),ifaquestionarisesatameetingofdirectorsorof a committee of directors as to the right of a director to participate in the meeting (orpartofthemeeting)forvotingorquorumpurposes,thequestionmay,beforetheconclusionofthemeeting,bereferredtothechairpersonwhoserulinginrelationtoanydirectorotherthanthechairpersonistobefinalandconclusive. (7)Ifanyquestionastotherighttoparticipateinthemeeting(orpartofthemeeting)shouldariseinrespectofthechairperson,thequestionistobedecidedbyadecisionofthedirectorsatthatmeeting,forwhichpurposethechairpersonisnottobecountedasparticipatinginthemeeting(orthatpartofthemeeting)forvotingorquorumpurposes.

Records of decisions to be kept

15.Thedirectorsmustensurethatthecompanykeepsarecord,inwriting,foratleast8yearsfromthedateofthedecisionrecorded,ofeveryunanimousormajoritydecisiontakenbythedirectors.

Directors’ discretion to make further rules

16.Subject to thearticles, thedirectorsmaymakeany rulewhich they thinkfit abouthow they takedecisions, andabouthowsuch rulesare tobe recordedorcommunicated to directors.



17.(1)Anypersonwhoiswillingtoactasadirector,andispermittedbylawtodoso,maybeappointedtobeadirector— (a) byordinaryresolution;or (b) byadecisionofthedirectors.

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(2)Inanycasewhere,asaresultofdeath,thecompanyhasnoshareholdersandnodirectors,thepersonalrepresentativesofthelastshareholdertohavediedhavetheright,bynoticeinwriting,toappointapersontobeadirector.

(3)Forthepurposesofsub-article(2),where2ormoreshareholdersdieincircumstancesrenderingituncertainwhowasthelasttodie,ayoungershareholderisdeemedtohavesurvivedanoldershareholder.



orisprohibitedfrombeingadirectorbylaw;or (b) onthedayonwhichthepersonisdeclaredtobeinsolventbyacourt;or (c) acompositionismadewiththatperson’screditorsgenerallyinsatisfaction

ofthatperson’sdebts;or (d) aregisteredmedicalpractitionerwhoistreatingthatpersongivesawritten

opinion to the company stating that the person has become physically or mentally incapable of acting as a director and may remain so for more thanthreemonths;or

(e) byreasonofthatperson’smentalhealth,acourtmakesanorderwhichwholly or partly prevents that person frompersonally exercising anypowersorrightswhichthatpersonwouldotherwisehave;or

(f) notificationisreceivedbythecompanyfromthedirectorthatthedirectorisresigningfromoffice,andsuchresignationhastakeneffectinaccordancewith its terms.



(2)Directorsareentitledtosuchremunerationasthedirectorsdetermine— (a) fortheirservicestothecompanyasdirectors;and (b) foranyotherservicewhichtheyundertakeforthecompany. (3)Subjecttothearticles,adirector’sremunerationmay— (a) takeanyform;and (b) includeanyarrangementsinconnectionwiththepaymentofapension,





20. The company may pay any reasonable expenses which the directors properly incurinconnectionwiththeirattendanceat— (a) meetingsofdirectorsorcommitteesofdirectors; (b) generalmeetings,or

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(c) separatemeetingsoftheholdersofanyclassofsharesorofdebenturesofthecompany,orotherwiseinconnectionwiththeexerciseoftheirpowersand the discharge of their responsibilities in relation to the company.


SHARES

All shares to be fully paid up

21.(1)Noshareistobeissuedforlessthantheaggregateofitsnominalvalueand any premium to be paid to the company in consideration for its issue.

(2)Thisdoesnotapplytosharestakenontheformationofthecompanybythe subscribers to the company’s memorandum.

Powers to issue different classes of share

22.(1)Subjecttothearticles,butwithoutprejudicetotherightsattachedtoanyexistingshare,thecompanymayissueshareswithsuchrightsorrestrictionsasmaybe determined by ordinary resolution.

(2)Thecompanymayissueshareswhicharetoberedeemed,orareliabletoberedeemedattheoptionofthecompanyortheholder,andthedirectorsmaydeterminetheterms,conditionsandmannerofredemptionofanysuchshares.

Company not bound by less than absolute interests

23.Exceptasrequiredbylaw,nopersonis toberecognisedbythecompanyasholdinganyshareuponanytrust,andexceptasotherwiserequiredbylaworthearticles,thecompanyisnotinanywaytobeboundbyorrecogniseanyinterestinashare other than the holder’s absolute ownership of it and all the rights attaching to it.

Share certificates

24.(1)Thecompanymustissueeachshareholder,freeofcharge,withoneormorecertificatesinrespectoftheshareswhichthatshareholderholds.

(2)Everycertificatemustspecify— (a) inrespectofhowmanyshares,ofwhatclass,itisissued;and (b) thenominalvalueofthoseshares;and (c) thatthesharesarefullypaid;and (d) anydistinguishingnumbersassignedtothem.

(3)Nocertificatemaybeissuedinrespectofsharesofmorethanoneclass.

(4)Ifmorethanonepersonholdsashare,onlyonecertificatemaybeissuedin respect of it.

(5)Certificatesmust— (a) haveaffixedtothemthecompany’scommonseal;or (b) beotherwiseexecutedinaccordancewiththeAct.

[If a company is a registered user of the electronic registry, it may issue uncertificated shares, that is to say, shares in dematerialised form, subject to the conditions of the issuance of such shares in section 153 of the Act.]

Replacement share certificates

25.(1)Ifacertificateissuedinrespectofashareholder’ssharesis— (a) damagedordefaced;or (b) saidtobelost,stolenordestroyed;

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thatshareholderisentitledtobeissuedwithareplacementcertificateinrespectofthesame shares.

(2)Ashareholderexercisingtherighttobeissuedwithsuchareplacementcertificate— (a) mayatthesametimeexercisetherighttobeissuedwithasinglecertificate

orseparatecertificates;and (b) mustreturnthecertificatewhichistobereplacedtothecompanyifitis

damagedordefaced;and (c) mustpayafeeof25UnitedStatescentspercertificate;and (d) mustcomplywithsuchconditionsastoevidenceandindemnityasthe

directors may determine.

[If a company is a registered user of the electronic registry, it may issue replacement uncertificated shares, that is to say, shares in dematerialised form, subject to the conditions of the issuance of such shares in section 153 of the Act.]

Share transfers

26.(1)Sharesmaybetransferredbymeansofaninstrumentoftransferinanyusualformoranyotherformapprovedbythedirectors,whichisexecutedbyoronbehalf of the transferor.

(2)Nofeemaybechargedforregisteringanyinstrumentoftransferorotherdocument relating to or affecting the title to any share.

(3)Thecompanymayretainanyinstrumentoftransferwhichisregistered.

(4)Thetransferorremainstheholderofashareuntilthetransferee’snameisentered in the register of members as holder of it.

(5)Thedirectorsmayrefusetoregisterthetransferofashare,andiftheydoso,the instrument of transfer must be returned to the transferee with the notice of refusal unless they suspect that the proposed transfer may be fraudulent.

[If a company is a registered user of the electronic registry, it may transfer uncertificated shares, otherwise than by instrument, subject to the conditions of the transfer of such shares in section 153 of the Act.]

Transmission of shares

27.(1)Iftitletoasharepassestoatransmittee,thecompanymayonlyrecognisethetransmitteeashavinganytitletothatshare.

(2)Atransmitteewhoproducessuchevidenceofentitlementtosharesasthedirectorsmayproperlyrequire— (a) may,subjecttothearticles,chooseeithertobecometheholderofthose

sharesortohavethemtransferredtoanotherperson;and (b) subjecttothearticles,andpendinganytransferofthesharestoanother

person,hasthesamerightsastheholderhad.

(3)Buttransmitteesdonothavetherighttoattendorvoteatageneralmeeting,oragreetoaproposedwrittenresolution,inrespectofsharestowhichtheyareentitled,byreasonoftheholder’sdeathorinsolvencyorotherwise,unlesstheybecometheholders of those shares.

Exercise of transmittees’ rights

28.(1)Transmitteeswhowishtobecometheholdersofsharestowhichtheyhavebecome entitled must notify the company in writing of that wish.

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(2)Ifthetransmitteewishestohaveasharetransferredtoanotherperson,thetransmittee must execute an instrument of transfer in respect of it.

(3)Anytransfermadeorexecutedunderthisarticleistobetreatedasifitweremadeorexecutedbythepersonfromwhomthetransmitteehasderivedrightsinrespectoftheshare,andasiftheeventwhichgaverisetothetransmissionhadnotoccurred.

Transmittees bound by prior notices

29.Ifanoticeisgiventoashareholderinrespectofsharesandatransmitteeisentitledtothoseshares,thetransmitteeisboundbythenoticeifitwasgiventotheshareholder before the transmittee’s name has been entered in the register of members.

DiViDenDs anD other Distributions

Procedure for declaring dividends

30. (1)The companymayby ordinary resolution declare dividends, and thedirectorsmaydecidetopayinterimdividends.

(2)A dividendmust not be declared unless the directors havemade arecommendation as to its amount. Such a dividendmust not exceed the amountrecommended by the directors.

(3)No dividendmay be declared or paid unless it is in accordancewithshareholders’respectiverights.

(4)Unlesstheshareholders’resolutiontodeclareordirectors’decisiontopayadividend,orthetermsonwhichsharesareissued,specifyotherwise,itmustbepaidby reference to each shareholder’s holding of shares on the date of the resolution or decision to declare or pay it.

(5)Ifthecompany’ssharecapitalisdividedintodifferentclasses,nointerimdividendmaybepaidonsharescarryingdeferredornon-preferredrightsif,atthetimeofpayment,anypreferentialdividendisinarrear.

(6)Thedirectorsmaypayatintervalsanydividendpayableatafixedrateifitappearstothemthattheprofitsavailablefordistributionjustifythepayment.

(7)Ifthedirectorsactingoodfaith,theydonotincuranyliabilitytotheholdersof shares conferring preferred rights for any loss they may suffer by the lawful payment ofaninterimdividendonshareswithdeferredornon-preferredrights.

Payment of dividends and other distributions

31.(1)Whereadividendorothersumwhichisadistributionispayableinrespectofashare,itmustbepaidbyoneormoreofthefollowingmeans— (a) transfertoabankorbuildingsocietyaccountspecifiedbythedistribution

recipienteitherinwritingorasthedirectorsmayotherwisedecide; (b) sendingachequemadepayabletothedistributionrecipientbyposttothe

distributionrecipientatthedistributionrecipient’sregisteredaddress(ifthedistributionrecipientisaholderoftheshare),or(inanyothercase)toanaddressspecifiedbythedistributionrecipienteitherinwritingorasthedirectorsmayotherwisedecide;

(c) sendingachequemadepayabletosuchpersonbyposttosuchpersonatsuchaddressasthedistributionrecipienthasspecifiedeitherinwritingorasthedirectorsmayotherwisedecide;or

(d) anyothermeansofpaymentasthedirectorsagreewiththedistributionrecipient either in writing or by such other means as the directors decide.

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(2)Inthearticles,“thedistributionrecipient”means,inrespectofashareforwhichadividendorothersumispayable— (a) theholderoftheshare;or (b) ifthesharehastwoormorejointholders,whicheverofthemisnamed

firstintheregisterofmembers;or (c) if the holder is no longer entitled to the share by reasonof death or

insolvency,orotherwisebyoperationoflaw,thetransmittee.

No interest on distributions

32.Thecompanymaynotpayinterestonanydividendorothersumpayableinrespectofashareunlessotherwiseprovidedby— (a) thetermsonwhichthesharewasissued,or (b) theprovisionsofanotheragreementbetweentheholderofthatshareand

the company.

Unclaimed distributions

33.(1)Alldividendsorothersumswhichare— (a) payableinrespectofshares;and (b) unclaimedafterhavingbeendeclaredorbecomepayable;

maybeinvestedorotherwisemadeuseofbythedirectorsforthebenefitofthecompanyuntil claimed.

(2)Thepaymentofanysuchdividendorothersumintoaseparateaccountdoesnotmakethecompanyatrusteeinrespectofit.

(3)If— (a) eightyearshavepassedfromthedateonwhichadividendorothersum

becamedueforpayment;and (b) thedistributionrecipienthasnotclaimedit;

thedistributionrecipientisnolongerentitledtothatdividendorothersumanditceasesto remain owing by the company.

Non-cash distributions 34.(1)Subjecttothetermsofissueoftheshareinquestion,thecompanymay,byordinaryresolutionontherecommendationofthedirectors,decidetopayallorpartofadividendorotherdistributionpayableinrespectofasharebytransferringnon-cashassetsofequivalentvalue(including,withoutlimitation,sharesorothersecuritiesinanycompany).

(2)Forthepurposesofpayinganon-cashdistribution,thedirectorsmaymakewhateverarrangementstheythinkfit,including,whereanydifficultyarisesregardingthedistribution— (a) fixingthevalueofanyassets;and (b) payingcashtoanydistributionrecipientonthebasisofthatvalueinorder

toadjusttherightsofrecipients;and (c) vestinganyassetsintrustees.

Waiver of distributions

35.Distributionrecipientsmaywaive theirentitlement toadividendorotherdistributionpayableinrespectofasharebygivingthecompanynoticeinwritingtothateffect,butif— (a) thesharehasmorethanoneholder;or

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(b) morethanonepersonisentitledtotheshare,whetherbyreasonofthedeathorinsolvencyofoneormorejointholders,orotherwise;

thenotice isnoteffectiveunless it isexpressed tobegiven,andsigned,byall theholders or persons otherwise entitled to the share.


Authority to capitalise and appropriation of capitalised sums 36.(1)Subjecttothearticles,thedirectorsmay,iftheyaresoauthorisedbyanordinaryresolution— (a) decidetocapitaliseanyprofitsofthecompany(whetherornottheyare

availablefordistribution)whicharenotrequiredforpayingapreferentialdividend, or any sum standing to the credit of the company’s sharepremiumaccountorcapitalredemptionreserve;and

(b) appropriateanysumwhichtheysodecidetocapitalise(a“capitalisedsum”)tothepersonswhowouldhavebeenentitledtoitifitweredistributedbywayofdividend(the“personsentitled”)andinthesameproportions.

(2)Capitalisedsumsmustbeapplied— (a) onbehalfofthepersonsentitled;and (b) in thesameproportionsasadividendwouldhavebeendistributed to

them. (3)Anycapitalisedsummaybeappliedinpayingupnewsharesofanominalamountequaltothecapitalisedsumwhicharethenallottedcreditedasfullypaidtothe persons entitled or as they may direct. (4)A capitalised sumwhichwas appropriated from profits available fordistribution may be applied in paying up new debentures of the company which are then allotted credited as fully paid to the persons entitled or as they may direct.

(5)Subjecttothearticlesthedirectorsmay— (a) applycapitalisedsumsinaccordancewithsub-articles(3)and(4)partly

inonewayandpartlyinanother;and (b) makesucharrangementsastheythinkfittodealwithsharesordebentures

becomingdistributableinfractionsunderthisarticle(includingtheissuingoffractionalcertificatesorthemakingofcashpayments);and

(c) authoriseanypersontoenter intoanagreementwiththecompanyonbehalf of all the persons entitled which is binding on them in respect of the allotment of shares and debentures to them under this article.

Part 4: decision-makinG By shareholders

ORGANISATION OF GENERAL MEETINGS

Attendance and speaking at general meetings 37.(1)Apersonisabletoexercisetherighttospeakatageneralmeetingwhenthatpersonisinapositiontocommunicatetoallthoseattendingthemeeting,duringthemeeting,anyinformationoropinionswhichthatpersonhasonthebusinessofthemeeting.

(2)Apersonisabletoexercisetherighttovoteatageneralmeetingwhen— (a) thatpersonisabletovote,duringthemeeting,onresolutionsputtothe

voteatthemeeting,and (b) thatperson’svotecanbetakenintoaccountindeterminingwhetheror

notsuchresolutionsarepassedatthesametimeasthevotesofalltheother persons attending the meeting.

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(3)Thedirectorsmaymakewhateverarrangementstheyconsiderappropriatetoenablethoseattendingageneralmeetingtoexercisetheirrightstospeakorvoteatit.

(4)Indeterminingattendanceatageneralmeeting,itisimmaterialwhetherany two or more members attending it are in the same place as each other.

(5)Twoormorepersonswhoarenotinthesameplaceaseachotherattendageneralmeetingiftheircircumstancesaresuchthatiftheyhave(orweretohave)rightstospeakandvoteatthatmeeting,theyare(orwouldbe)abletoexercisethem.


38. No business other than the appointment of the chairperson of the meeting is to be transacted at a general meeting if the persons attending it do not constitute a quorum.



(2)Ifthedirectorshavenotappointedachairperson,orifthechairpersonisunwilling to chair the meeting or is not present within ten minutes of the time at which ameetingwasduetostart— (a) thedirectorspresent;or (b) (ifnodirectorsarepresent),themeeting;

mustappointadirectororshareholdertochairthemeeting,andtheappointmentofthechairpersonofthemeetingmustbethefirstbusinessofthemeeting.



40.(1)Directorsmayattendandspeakatgeneralmeetings,whetherornottheyare shareholders.

(2)Thechairpersonofthemeetingmaypermitotherpersonswhoarenot— (a) shareholdersofthecompany;or (b) otherwise entitled to exercise the rightsof shareholders in relation to

generalmeetings;

toattendandspeakatageneralmeeting.

Adjournment

41.(1)Ifthepersonsattendingageneralmeetingwithinhalfanhourofthetimeatwhichthemeetingwasduetostartdonotconstituteaquorum,orifduringameetingaquorumceasestobepresent,thechairperson of the meeting must adjourn it.

(2)Thechairpersonofthemeetingmayadjournageneralmeetingatwhichaquorumispresentif— (a) themeetingconsentstoanadjournment;or (b) it appears to the chairperson of the meeting that an adjournment is

necessary to protect the safety of any person attending the meeting or ensure that the business of the meeting is conducted in an orderly manner.

(3)Thechairpersonofthemeetingmustadjournageneralmeetingifdirectedto do so by the meeting.

(4)Whenadjourningageneralmeeting,thechairpersonofthemeetingmust—


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(a) eitherspecifythetimeandplacetowhichitisadjournedorstatethatitistocontinueatatimeandplacetobefixedbythedirectors;and

(b) haveregardtoanydirectionsastothetimeandplaceofanyadjournmentwhichhavebeengivenbythemeeting.



(6)Nobusinessmaybetransactedatanadjournedgeneralmeetingwhichcouldnotproperlyhavebeentransactedatthemeetingiftheadjournmenthadnottakenplace.


Voting: general


Errors and disputes

43.(1)Noobjectionmayberaisedtothequalificationofanypersonvotingatageneralmeetingexceptatthemeetingoradjournedmeetingatwhichthevoteobjectedtoistendered,andeveryvotenotdisallowedatthemeetingisvalid.

(2)Anysuchobjectionmustbereferred to thechairpersonof themeeting,whosedecisionisfinal.

Poll votes

44.(1)Apollonaresolutionmaybedemanded— (a) inadvanceofthegeneralmeetingwhereitistobeputtothevote,or (b) atageneralmeeting,eitherbeforeashowofhandsonthatresolution



rightsofalltheshareholdershavingtherighttovoteontheresolution.

(3)Ademandforapollmaybewithdrawnif— (a) thepollhasnotyetbeentaken;and (b) thechairperson of the meeting consents to the withdrawal.

(4)Pollsmustbetakenimmediatelyandinsuchmannerasthechairpersonofthe meeting directs.


45.(1)Proxiesmayonlyvalidlybeappointedbyanoticeinwriting(a“proxynotice”)which—


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(a) statesthenameandaddressoftheshareholderappointingtheproxy;and (b) identifies thepersonappointed tobe thatshareholder’sproxyand the

generalmeetinginrelationtowhichthatpersonisappointed;and (c) issignedbyoronbehalfoftheshareholderappointingtheproxy,oris



(2)Thecompanymayrequireproxynotices tobedelivered inaparticularform,andmayspecifydifferentformsfordifferentpurposes.



voteonanyancillaryorproceduralresolutionsputtothemeeting,and (b) appointingthatpersonasaproxyinrelationtoanyadjournmentofthe



46.(1)Apersonwhoisentitledtoattend,speakorvote(eitheronashowofhandsoronapoll)atageneralmeetingremainssoentitledinrespectofthatmeetingoranyadjournmentofit,eventhoughavalidproxynoticehasbeendeliveredtothecompanyby or on behalf of that person.

(2)Anappointmentunderaproxynoticemayberevokedbydeliveringtothecompanyanoticeinwritinggivenbyoronbehalfofthepersonbywhomoronwhosebehalftheproxynoticewasgiven.

(3)Anoticerevokingaproxyappointmentonlytakeseffectifitisdeliveredbefore the start of the meeting or adjourned meeting to which it relates.

(4)Ifaproxynoticeisnotexecutedbythepersonappointingtheproxy,itmustbeaccompaniedbywrittenevidenceoftheauthorityofthepersonwhoexecutedit to execute it on the appointor’s behalf.


47.(1)Anordinaryresolutiontobeproposedatageneralmeetingmaybeamendedbyordinaryresolutionif— (a) noticeoftheproposedamendmentisgiventothecompanyinwriting

byapersonentitledtovoteatthegeneralmeetingatwhichitistobeproposednotlessthan48hoursbeforethemeetingistotakeplace(orsuch later time as the chairpersonofthemeetingmaydetermine);and


(2)Aspecialresolutiontobeproposedatageneralmeetingmaybeamendedbyordinaryresolution,if— (a) thechairperson of the meeting proposes the amendment at the general

meetingatwhichtheresolutionistobeproposed;and (b) the amendment does not go beyondwhat is necessary to correct a



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Company seals


(2)Thedirectorsmaydecidebywhatmeansandinwhatformanycommonseal is to be used.


(4)Forthepurposesofthisarticle,anauthorisedpersonis— (a) anydirectorofthecompany; (b) thecompanysecretary(ifany);or (c) any person authorised by the directors for the purpose of signing



50.Except as provided by lawor authorised by the directors or an ordinaryresolution of the company, no person is entitled to inspect any of the company’saccountingorotherrecordsordocumentsmerelybyvirtueofbeingashareholder.


51.Thedirectorsmaydecidetomakeprovisionforthebenefitofpersonsemployedorformerlyemployedbythecompanyoranyofitssubsidiaries(otherthanadirectororformerdirectororshadowdirector)inconnectionwiththecessationortransfertoanypersonofthewholeorpartoftheundertakingofthecompanyorthatsubsidiary.


Indemnity


default,breachofdutyorbreachoftrustinrelationtothecompanyoranassociatedcompany;


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(b) anyliabilityincurredbythatdirectorinconnectionwiththeactivitiesofthe company or an associated company in its capacity as a trustee of a pensionscheme(asdefinedinsection84(6)oftheAct),

(c) anyotherliabilityincurredbythatdirectorasanofficerofthecompanyor an associated company.





Insurance




incurredbyarelevantdirectorinconnectionwiththatdirector’sdutiesorpowersinrelationtothecompany,anyassociatedcompanyoranypension fund or employees’ share scheme of the company or associated company;and


taBle c: model articles for Private comPanies limited By Guarantee



Articles 1. Definitions. 2. Liability of members.

Part 2: directors


3. Directors’ general authority. 4. Members’ reserve power. 5. Directors may delegate. 6. Committees.


7. Directors to take decisions collectively. 8. Unanimous decisions. 9. Calling a directors’ meeting 10. Participation in directors’ meetings 11. Quorum for directors’ meetings


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12. Chairing of directors’ meetings 13. Castingvote. 14. Conflictsofinterest15. Recordsofdecisionstobekept. 16. Directors’discretiontomakefurtherrules.


17. Methods of appointing directors 18. Termination of director’s appointment 19. Directors’ remuneration 20. Directors’ expenses.

Part 3: memBers

beComing anD Ceasing to be a member

21. Applications for membership 22. Termination of membership


23. Attendance and speaking at general meetings 24. Quorum for general meetings 25. Chairing general meetings 26. Attendance and speaking by directors and non-members 27. Adjournment.

votinG at General meetinGs

28. Voting: general 29. Errors and disputes 30. Pollvotes 31. Content of proxy notices 32. Deliveryofproxynotices 33. Amendments to resolutions


34. Means of communication to be used. 35. Company seals. 36. No right to inspect accounts and other records. 37. Provisionforemployeesoncessationofbusiness.


38. Indemnity 39. Insurance,


Definitions

1.(1)Inthearticles,unlessthecontextrequiresotherwise—

Articles


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“articles”meansthecompany’sarticlesofassociation; “chairperson”hasthemeaninggiveninarticle12; “chairpersonofthemeeting”hasthemeaninggiveninarticle25; “Act”meanstheCompaniesandOtherBusinessEntitiesAct[Chapter 24:31]; “director”meansadirectorofthecompany,andincludesanypersonoccupying

thepositionofdirector,bywhatevernamecalled; “document”includes,unlessotherwisespecified,anydocumentsentorsupplied

inelectronicform; “insolvency”includesindividualinsolvencyproceedingsinajurisdictionother

thanZimbabwewhichhaveaneffectsimilartothatofinsolvency; “member”hasthemeaninggiveninsection76(b)oftheAct; “ordinaryresolution”hasthemeaninggiveninsection175(4)oftheAct; “participate”,inrelationtoadirectors’meeting,hasthemeaninggiveninarticle10; “proxynotice”hasthemeaninggiveninarticle31; “specialresolution”hasthemeaninggiveninsection175oftheAct; “subsidiary”hasthemeaninggiveninsection185oftheAct;and “writing”meanstherepresentationorreproductionofwords,symbolsorother




2.Theliabilityofeachmemberislimitedto$1,00,beingtheamountthateachmemberundertakestocontributetotheassetsofthecompanyintheeventofitsbeingwoundupwhileheisamemberorwithinoneyearafterheceasestobeamember,for— (a) paymentofthecompany’sdebtsandliabilitiescontractedbeforeheceases

tobeamember;and (b) paymentofthecosts,chargesandexpensesofwindingup,and (c) adjustmentoftherightsofthecontributoriesamongthemselves.

PART 2

DIRECTORS

directors’ PoWers and ResPonsiBilities


3.Subjecttothearticles,thedirectorsareresponsibleforthemanagementofthecompany’sbusiness,forwhichpurposetheymayexerciseallthepowersofthecompany.

Members’ reserve power

4.(1)Themembersmay,byspecialresolution,directthedirectorstotake,orrefrainfromtaking,specifiedaction.

(2)Nosuchspecialresolutioninvalidatesanythingwhichthedirectorshavedone before the passing of the resolution.


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Cap. 24:31 No. 4/2019


5.(1)Subjecttothearticles,thedirectorsmaydelegateanyofthepowerswhichareconferredonthemunderthearticles— (a) tosuchpersonorcommittee; (b) bysuchmeans(includingbypowerofattorney); (c) tosuchanextent; (d) inrelationtosuchmattersorterritories;and (e) onsuchtermsandconditions;

astheythinkfit.



Committees

6.(1)Committeestowhichthedirectorsdelegateanyoftheirpowersmustfollowprocedureswhicharebasedasfarastheyareapplicableonthoseprovisionsofthearticleswhichgovernthetakingofdecisionsbydirectors.


DECISION-MAKINGBYDIRECTORS


7.(1)Thegeneralruleaboutdecision-makingbydirectorsisthatanydecisionofthedirectorsmustbeeitheramajoritydecisionatameetingoradecisiontakeninaccordance with article 8.

(2)If— (a) thecompanyonlyhasonedirector,and (b) noprovisionofthearticlesrequiresittohavemorethanonedirector,

thegeneralruledoesnotapply,andthedirectormaytakedecisionswithoutregardtoanyoftheprovisionsofthearticlesrelatingtodirectors’decision-making.

Unanimous decisions 8.(1)Adecisionofthedirectorsistakeninaccordancewiththisarticlewhenalleligibledirectorsindicatetoeachotherbyanymeansthattheyshareacommonviewon a matter. (2)Suchadecisionmaytaketheformofaresolutioninwriting,copiesofwhichhavebeensignedbyeacheligibledirectorortowhicheacheligibledirectorhasotherwise indicated agreement in writing. (3)Referencesinthisarticletoeligibledirectorsaretodirectorswhowouldhavebeenentitledtovoteonthematterhaditbeenproposedasaresolutionatadirectors’meeting.

(4)Adecisionmaynotbetakeninaccordancewiththisarticleiftheeligibledirectorswouldnothaveformedaquorumatsuchameeting.


9.(1)Anydirectormaycalladirectors’meetingbygivingnoticeofthemeetingtothedirectorsorbyauthorisingthecompanysecretary(ifany)togivesuchnotice.


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(3)Noticeofadirectors’meetingmustbegiventoeachdirector,butneednotbe in writing. (4)Noticeofadirectors’meetingneednotbegiventodirectorswhowaivetheirentitlementtonoticeofthatmeeting,bygivingnoticetothateffecttothecompanynot more than 7 days after the date on which the meeting is held. Where such notice is givenafterthemeetinghasbeenheld,thatdoesnotaffectthevalidityofthemeeting,or of any business conducted at it.







Quorum for directors’ meetings

11.(1)Atadirectors’meeting,unlessaquorumisparticipating,noproposalistobevotedon,exceptaproposaltocallanothermeeting.

(2)Thequorumfordirectors’meetingsmaybefixedfromtimetotimebyadecisionofthedirectors,butitmustneverbelessthantwo,andunlessotherwisefixedit is two.

(3)Ifthetotalnumberofdirectorsforthetimebeingislessthanthequorumrequired,thedirectorsmustnottakeanydecisionotherthanadecision— (a) toappointfurtherdirectors;or (b) tocallageneralmeetingsoastoenablethememberstoappointfurther

directors.

Chairing of directors’ meetings


(2)Thepersonsoappointedforthetimebeingisknownasthechairperson. (3)Thedirectorsmayterminatethechairperson’s appointment at any time. (4)If thechairperson is not participating in a directors’ meeting within ten minutesofthetimeatwhichitwastostart,theparticipatingdirectorsmustappointoneofthemselvestochairit.

Casting vote

13.(1)Ifthenumbersofvotesforandagainstaproposalareequal,thechairperson orotherdirectorchairingthemeetinghasacastingvote.


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(2)Butthisdoesnotapplyif,inaccordancewiththearticles,thechairperson orotherdirectorisnottobecountedasparticipatinginthedecision-makingprocessforquorumorvotingpurposes.

Conflicts of interest 14. (1) If aproposeddecisionof thedirectors is concernedwithanactualorproposed transactionorarrangementwiththecompanyinwhichadirectorisinterested,thatdirectorisnottobecountedasparticipatinginthedecision-makingprocessforquorumorvotingpurposes. (2)Butifsub-article(3)applies,adirectorwhoisinterestedinanactualorproposed transaction or arrangement with the company is to be counted as participating inthedecision-makingprocessforquorumandvotingpurposes.

(3)Thisparagraphapplieswhen— (a) the company by ordinary resolution disapplies the provision of the

articleswhichwouldotherwisepreventadirectorfrombeingcountedasparticipatinginthedecision-makingprocess;or


(c) thedirector’sconflictofinterestarisesfromapermittedcause.

(4)Forthepurposesofthisarticle,thefollowingarepermittedcauses— (a) a guarantee given, or to be given, by or to a director in respect of

an obligation incurred by or on behalf of the company or any of its subsidiaries;

(b) subscription,oranagreementtosubscribe,forsecuritiesofthecompanyoranyofitssubsidiaries,ortounderwrite,sub-underwrite,orguaranteesubscriptionforanysuchsecurities;


(5) For the purposes of this article, references to proposed decisions anddecision-makingprocessesincludeanydirectors’meetingorpartofadirectors’meeting. (6)Subjecttosub-article(7),ifaquestionarisesatameetingofdirectorsorof a committee of directors as to the right of a director to participate in the meeting (orpartofthemeeting)forvotingorquorumpurposes,thequestionmay,beforetheconclusionofthemeeting,bereferredtothechairpersonwhoserulinginrelationtoanydirectorotherthanthechairpersonistobefinalandconclusive. (7)Ifanyquestionastotherighttoparticipateinthemeeting(orpartofthemeeting)shouldariseinrespectofthechairperson,thequestionistobedecidedbyadecisionofthedirectorsatthatmeeting,forwhichpurposethechairpersonisnottobecountedasparticipatinginthemeeting(orthatpartofthemeeting)forvotingorquorumpurposes.

Records of decisions to be kept

15.Thedirectorsmustensurethatthecompanykeepsarecord,inwriting,foratleast10yearsfromthedateofthedecisionrecorded,ofeveryunanimousormajoritydecisiontakenbythedirectors.

Directors’ discretion to make further rules 16.Subject to thearticles, thedirectorsmaymakeany rulewhich they thinkfit abouthow they takedecisions, andabouthowsuch rulesare tobe recordedorcommunicated to directors.


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aPPointment of Directors


17.(1Anypersonwhoiswillingtoactasadirector,andispermittedbylawtodoso,maybeappointedtobeadirector— (a) byordinaryresolution;or (b) byadecisionofthedirectors.

(2)Inanycasewhere,asaresultofdeath,thecompanyhasnomembersandnodirectors,thepersonalrepresentativesofthelastmembertohavediedhavetheright,bynoticeinwriting,toappointapersontobeadirector.

(3) For the purposes of paragraph (2),where 2 ormoremembers die incircumstancesrenderingituncertainwhowasthelast todie,ayoungermemberisdeemedtohavesurvivedanoldermember.



orisprohibitedfrombeingadirectorbylaw;or (b) aliquidationorderismadeagainstthatperson;or (c) acompositionismadewiththatperson’screditorsgenerallyinsatisfaction

ofthatperson’sdebts;or (d) aregisteredmedicalpractitionerwhoistreatingthatpersongivesawritten

opinion to the company stating that that person has become physically or mentally incapable of acting as a director and may remain so for more thanthreemonths;or

(e) byreasonofthatperson’smentalhealth,acourtmakesanorderwhichwholly or partly prevents that person frompersonally exercising anypowersorrightswhichthatpersonwouldotherwisehave;or

(f) notificationisreceivedbythecompanyfromthedirectorthatthedirectorisresigningfromoffice,andsuchresignationhastakeneffectinaccordancewith its terms.



(2)Directorsareentitledtosuchremunerationasthedirectorsdetermine— (a) fortheirservicestothecompanyasdirectors;and (b) foranyotherservicewhichtheyundertakeforthecompany.

(3)Subjecttothearticles,adirector’sremunerationmay— (a) takeanyform;and (b) includeanyarrangementsinconnectionwiththepaymentofapension,





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20. The company may pay any reasonable expenses which the directors properly incurinconnectionwiththeirattendanceat— (a) meetingsofdirectorsorcommitteesofdirectors;or (b) generalmeetings;or (c) separatemeetingsoftheholdersofdebenturesofthecompany;

or otherwise in connection with the exercise of their powers and the discharge of their responsibilities in relation to the company.

PART 3

MEMBERS

BECOMINGANDCEASINGTOBEAMEMBER

Applications for membership

21.Nopersonshallbecomeamemberofthecompanyunless— (a) that personhas completed an application formembership in a form

approvedbythedirectors;and (b) thedirectorshaveapprovedtheapplication.

Termination of membership

22.(1)Amembermaywithdrawfrommembershipofthecompanybygiving7days’ notice to the company in writing.

(2Membershipisnottransferable.

(3)Aperson’smembershipterminateswhenthatpersondiesorceasestoexist.

ORGANISATION OF GENERAL MEETINGS

Attendance and speaking at general meetings 23.(1)Apersonisabletoexercisetherighttospeakatageneralmeetingwhenthatpersonisinapositiontocommunicatetoallthoseattendingthemeeting,duringthemeeting,anyinformationoropinionswhichthatpersonhasonthebusinessofthemeeting. (2)Apersonisabletoexercisetherighttovoteatageneralmeetingwhen— (a) thatpersonisabletovote,duringthemeeting,onresolutionsputtothe

voteatthemeeting;and (b) thatperson’svotecanbetakenintoaccountindeterminingwhetheror

notsuchresolutionsarepassedatthesametimeasthevotesofalltheother persons attending the meeting.

(3)Thedirectorsmaymakewhateverarrangementstheyconsiderappropriatetoenablethoseattendingageneralmeetingtoexercisetheirrightstospeakorvoteatit. (4)Indeterminingattendanceatageneralmeeting,itisimmaterialwhetherany two or more members attending it are in the same place as each other. (5)Twoormorepersonswhoarenotinthesameplaceaseachotherattendageneralmeetingiftheircircumstancesaresuchthatiftheyhave(orweretohave)rightstospeakandvoteatthatmeeting,theyare(orwouldbe)abletoexercisethem.


24. No business other than the appointment of the chairman of the meeting is to be transactedatageneralmeetingifthepersonsattendingitdonotconstituteaquorum.


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(2)Ifthedirectorshavenotappointedachairperson,orifthechairperson is unwilling to chair the meeting or is not present within ten minutes of the time at which ameetingwasduetostart— (a) thedirectorspresent;or (b) (ifnodirectorsarepresent),themeeting;

mustappointadirectorormembertochairthemeeting,andtheappointmentofthechairpersonofthemeetingmustbethefirstbusinessofthemeeting.



26.(1)Directorsmayattendandspeakatgeneralmeetings,whetherornottheyare members.

(2)Thechairperson of the meeting may permit other persons who are not membersofthecompanytoattendandspeakatageneralmeeting.

Adjournment

27.(1)Ifthepersonsattendingageneralmeetingwithinhalfanhourofthetimeatwhichthemeetingwasduetostartdonotconstituteaquorum,orifduringameetingaquorumceasestobepresent,thechairperson of the meeting must adjourn it.

(2)Thechairperson of the meeting may adjourn a general meeting at which a quorumispresentif— (a) themeetingconsentstoanadjournment;or

(b) it appears to the chairperson of the meeting that an adjournment is necessary to protect the safety of any person attending the meeting or ensure that the business of the meeting is conducted in an orderly manner.

(3)Thechairperson of the meeting must adjourn a general meeting if directed to do so by the meeting.

(4)Whenadjourningageneralmeeting,thechairpersonofthemeetingmust— (a) eitherspecifythetimeandplacetowhichitisadjournedorstatethatit

istocontinueatatimeandplacetobefixedbythedirectors;and (b) haveregardtoanydirectionsastothetimeandplaceofanyadjournment

whichhavebeengivenbythemeeting.



(6)Nobusinessmaybetransactedatanadjournedgeneralmeetingwhichcouldnotproperlyhavebeentransactedatthemeetingiftheadjournmenthadnottakenplace.


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VOTING AT GENERAL MEETINGS

Voting: general


Errors and disputes

29.(1)Noobjectionmayberaisedtothequalificationofanypersonvotingatageneralmeetingexceptatthemeetingoradjournedmeetingatwhichthevoteobjectedtoistendered,andeveryvotenotdisallowedatthemeetingisvalid.

(2)Any suchobjectionmustbe referred to thechairpersonof themeetingwhosedecisionisfinal.

Poll votes

30.(1)Apollonaresolutionmaybedemanded— (a) inadvanceofthegeneralmeetingwhereitistobeputtothevote;or (b) atageneralmeeting,eitherbeforeashowofhandsonthatresolution



rightsofallthemembershavingtherighttovoteontheresolution.

(3)Ademandforapollmaybewithdrawnif— (a) thepollhasnotyetbeentaken;and (b) thechairpersonofthemeetingconsentstothewithdrawal.

(4)Pollsmustbetakenimmediatelyandinsuchmannerasthechairpersonofthe meeting directs.


31.(1)Proxiesmayonlyvalidlybeappointedbyanoticeinwriting(a“proxynotice”)which— (a) statesthenameandaddressofthememberappointingtheproxy;and (b) identifiesthepersonappointedtobethatmember’sproxyandthegeneral

meetinginrelationtowhichthatpersonisappointed;and (c) is signed by or on behalf of themember appointing the proxy, or is



(2)Thecompanymayrequireproxynotices tobedelivered inaparticularform,andmayspecifydifferentformsfordifferentpurposes.



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voteonanyancillaryorproceduralresolutionsputtothemeeting;and (b) appointingthatpersonasaproxyinrelationtoanyadjournmentofthe



32.(1)Apersonwhoisentitledtoattend,speakorvote(eitheronashowofhandsoronapoll)atageneralmeetingremainssoentitledinrespectofthatmeetingoranyadjournmentofit,eventhoughavalidproxynoticehasbeendeliveredtothecompanyby or on behalf of that person. (2)Anappointmentunderaproxynoticemayberevokedbydeliveringtothecompanyanoticeinwritinggivenbyoronbehalfofthepersonbywhomoronwhosebehalftheproxynoticewasgiven. (3)Anoticerevokingaproxyappointmentonlytakeseffectifitisdeliveredbefore the start of the meeting or adjourned meeting to which it relates. (4)Ifaproxynoticeisnotexecutedbythepersonappointingtheproxy,itmustbeaccompaniedbywrittenevidenceoftheauthorityofthepersonwhoexecutedittoexecute it on the appointor’s behalf.


33.(1)Anordinaryresolutiontobeproposedatageneralmeetingmaybeamendedbyordinaryresolutionif— (a) noticeoftheproposedamendmentisgiventothecompanyinwriting

byapersonentitledtovoteatthegeneralmeetingatwhichitistobeproposednotlessthan48hoursbeforethemeetingistotakeplace(orsuchlatertimeasthechairpersonofthemeetingmaydetermine),and


(2)Aspecialresolutiontobeproposedatageneralmeetingmaybeamendedbyordinaryresolution,if— (a) thechairpersonofthemeetingproposestheamendmentatthegeneral

meetingatwhichtheresolutionistobeproposed;and (b) the amendment does not go beyondwhat is necessary to correct a



PART 4

ADMINISTRATIVE ARRANGEMENTS




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Company seals


(2)Thedirectorsmaydecidebywhatmeansandinwhatformanycommonseal is to be used.


(4)Forthepurposesofthisarticle,anauthorisedpersonis— (a) anydirectorofthecompany;or (b) thecompanysecretary(ifany);or (c) any person authorised by the directors for the purpose of signing



36.Except as provided by lawor authorised by the directors or an ordinaryresolution of the company, no person is entitled to inspect any of the company’saccountingorotherrecordsordocumentsmerelybyvirtueofbeingamember.


37.The directorsmay decide tomake provision for the benefit of personsemployedorformerlyemployedbythecompanyoranyofitssubsidiaries(otherthanadirectororformerdirectororshadowdirector)inconnectionwiththecessationortransfertoanypersonofthewholeorpartoftheundertakingofthecompanyorthatsubsidiary.

DIRECTORS’ INDEMNITY AND INSURANCE

Indemnity


default,breachofdutyorbreachoftrustinrelationtothecompanyoranassociatedcompany,

(b) anyliabilityincurredbythatdirectorinconnectionwiththeactivitiesofthe company or an associated company in its capacity as a trustee of a pensionscheme(asdefinedinsection84(6)oftheAct),

(c) anyotherliabilityincurredbythatdirectorasanofficerofthecompanyor an associated company.



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Insurance




incurredbyarelevantdirectorinconnectionwiththatdirector’sdutiesorpowersinrelationtothecompany,anyassociatedcompanyoranypension fund or employees’ share scheme of the company or associated company;


taBle d: model By-laWs for Private Business corPorations

index to the By-laWs

By-laws 1. MembersofPBC. 2. PrincipalplaceofbusinessofPBC. 3.PurposeandpowersofPBC. 4. Members’ percentage interests and admission of new members. 5.Members’contributionstoPBC’scapital. 6.Members’votinganddecisions. 7.ManagersandagentsofPBC. 8. Distributions. 9. Sale or other transfer of member’s interest 10.Accountingandfinancialmatters 11. Termination of membership.

ThepersonslistedinBy-Law1below(the“Members”)adoptthisagreementastheby-lawsof____________________________,aprivatebusinesscorporation(“PBC”)registeredundertheCompaniesandOtherBusinessEntitiesAct(the“Act”).

Members of PBC

1.ThefollowingpersonsarealloftheMembersofthe-------------PBCregisteredon the ----------:

[State below the full name of each Member and the member’s identity particulars] _____________________________________________________________________________________________________________________________________________________________________________________________________________

……….more or fewer lines as needed]


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Principal place of business of PBC

2.ThePBC’sprincipalplaceofbusinessis:____________________________________________________________________

Purpose and powers of PBC

3.ThebusinesspurposeofthePBCis:

__________________________________________________________________etc.

[state this to the extent desired]

andtocarryonanyotherlawfulbusinessoractivityrelatingtotheforegoing.ThePBCshallhavethepowertodoactsnecessaryorproperforthatpurpose.

Members’ percentage interests and admission of new members

4.(1)ThepercentageinterestofeachMemberinthePBCis:

Name: _________________________________________________________: ____%

Name:_________________________________________________________: ____%

Name: _________________________________________________________: ____%

[.more or fewer lines as needed]

(2)Eachmember’s interestatany timewillbe thatmember’s then-currentpercentageofthetotalamountswhichallmembershavepaidintothePBC’scapitalin exchange for an interest.

(3)ApersonshallbeadmittedasamemberofthePBCafteritsformationonly— (a) withtheunanimousconsentofthemembers;or (b) afterthedeathofamember,asaresultofthenominationbythatmember

of a person to be his or her successor to his or her interest.

Members’ contributions to PBC’s capital

5.(1)Amember’spaymentintothePBCforthemember’sinterestmaybeinmoney,inothertangibleorintangibleproperty,inservicesalreadyperformedforthePBC,orinabindingobligationtocontributemoneyorproperty.

(2)The percentage interest to be issued to amember for non-monetarycontributions shall be determined by agreement of the members.

(3)Ifamember’scontributionisotherthaninmoney,anagreeddollarvalueof that contribution may be stated.

Members’ voting and decisions

6.(1)Membersofaprivatebusinesscorporationshall(inadditiontothemeetingstheyareobligedtoholdundertheAct)holdatleastoneregularmeetingeachyear,nolaterthansixmonthsaftertheendofthePBC’sfinancialyear.

(2)AnymemberofthePBCmayatanytimeconveneaspecialmeetingbygivingallmembersreasonablenotice,notnecessarilyinwriting,ofthetimeandplaceand purpose of the meeting:

Providedthat thetimeofthemeetingshallbeat leastsevendaysfromthedatewhenthemeetingisnotifiedtoallmembers.andtheplaceofthemeetingshallbereasonablyconvenientfortheattendanceofmembers.

(3)AtanymeetingofmembersofthePBC—


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(a) toconstituteaquorum,thereshallbepresentinpersonorbyproxy,notnecessarilyinwriting,memberswhoseinterestsexceedfiftyper centum ofthetotalmembers’interests;

(b) thechairpersonofthemeetingshallbethememberelectedaschairpersonofthePBCor,ifnomemberhasbeensoelectedorheorsheisnotpresent,themeetingshallelectitsownchairperson;

(c) thechairpersonshallnothaveacastingvote; (d) eachmembershallhaveavotecorrespondingwiththepercentageofhis

or her interest.

(4)Thesecretaryateverymeetingof thePBC(whomayormaynotbeamember)shalltaketheminutesofallproceedingsofthemeeting,andanysuchminutes,if purporting to be signed by the chairperson of the meeting or of the next succeeding meeting, shall be evidence of the proceedings and evidence that themeetingwasproperlyconvenedandconducted.

(5)Theminutesneednotbeaverbatimreportoftheproceedingsbutmustspecifywhichmemberswereinattendanceatthemeetingconcerned,theissuesvotedonandtheresultsofeachvote.

(6)Aresolutioninwritingsignedbyallthemembersforthetimebeingentitledtoreceivenoticeofandtoattendandvoteatmeetingsofmembersshall,witheffectfromthedateofthelastsignature,whichdateshallberecordedonthesigneddocument,beasvalidandeffectiveasifithadbeenpassedatameetingofmembersdulyconvenedand held in terms of this by-law.

Managers and agents of PBC

7.(1)Subjecttosubsection(2),allmembersofthePBCshallbetheagentsandmanagersofthePBC.

(2)ThemembersmayagreetoappointoneormoremanagersandagentsofthePBC,whosefunctionsandpowerswillbeembodiedinawrittenagreementbetweenthePBCandthemanagersandagentsconcerned.

Distributions

8.(1)APBCmaymakedistributionstoitsmembersatanytimewiththeconsentofmemberswhoseinterestsexceedfiftyper centum of the total members’ interests

(2)Anydistributionstomembersshallbemadetotheminproportiontotheirpercentage interests.

(3)Whenamemberbecomesentitledtoreceiveadistribution,thatmemberbecomesacreditorofthePBCwithrespecttothedistribution

Sale or other transfer of member’s interest

9.(1)ExceptbywayofsuccessioncontemplatedunderBy-Law4(3)(b),amembermaynotsellortransferhisorherinterestunless— (a) theinteresthasfirstbeenofferedtothePBCortoothermembers;and (b) ifthePBCoritsmembersdonotbuytheinterest,theothermembers

unanimously agree to its transfer to another person.

(2)AtransferofaninterestdoesnotbyitselfcausethetransfereetobecomeamemberofthePBC.Ifatransfereedoesnotbecomeamemberinaccordancewith By-Law4, the transfer shall be an assignment only of the transferor’s rights todistributionsfromthePBC,andthetransferorshallcontinuetobeamemberwiththeother rights of a member and all duties and obligations of a member.


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Accounting and financial matters

10.(1)ThePBCshallkeepaccountingrecordswhicharenecessaryandsufficienttopresentfairlyitsbusiness,stateofaffairs,transactionsandfinancialposition.Thisshallincluderecordswhichshow— (a) thePBC’sassetsandliabilities,income,undistributedincome,andany

revaluationsoffixedassets;and (b) cashreceivedandpaidoutinsufficientdetailtoenablethenatureofthe

transactionsand,exceptinthecaseofcashsales,thenamesofthepartiestothetransactions,tobeidentified;and

(c) goodspurchasedandsoldoncreditandservicesreceivedandrenderedoncredit,insufficientdetailtoenablethenatureofthosegoodsorservicesandthepartiestothetransactionstobeidentified;and

(d) all contributions bymembers, distributions tomembers, any loans toorfrommembersandpaymentsmadethereunder,andallpaymentstomembers for any reason.

(2)AccountingrecordsshallbekeptattheprincipalplaceofbusinessortheregisteredofficeofthePBC;shallbekeptinsuchamannerastoprovideadequateprecautionsagainstfalsificationandtofacilitatethediscoveryofanyfalsification;andshallbeopenandavailableatallreasonabletimesforinspectionbyanymember.

(3)Inadditiontothefinancialaccountsstatedabove,thePBCshallcomplywiththerequirementsofanybankorotherfinancialinstitution,andwithallotherlawsandregulationsincludingsuchofthefinancialaccountingandreportingrequirementsandstandardsofthePublicAccountantsandAuditorsBoardunderthePublicAccountantsandAuditorsActasmaybeapplicablewithrespecttothatPBCoritsfinancialaccountsand reporting.

Termination of membership

11.(1)ApersonshallceasetobeamemberofthePBCuponanyofthefollowingevents— (a) deathorinsolvencyasprovidedforintheAct;or (b) voluntarywithdrawalasprovidedforinsubsection(2);or (c) expulsionasprovidedforinsubsection(4); (d) transferofalloftheperson’sinteresttoanotherpersonwhobecomesa

memberasprovidedforintheseBy-Laws,ortoanotherexistingmember,ortothePBCasprovidedforintheseBy-Laws.

(2)AmemberofthePBChastherighttowithdrawasamemberatanytimebygivingwrittennoticeofhisorherwithdrawaltothePBCatitsregisteredofficewithcopiessenttoallothermembers.ThewithdrawalshallbeeffectiveonthePBC’sreceipt of the notice or on such later date as may be stated in the notice. (3)AmemberingoodstandingwiththePBCwhowithdrawsisentitledtoreceivefromthePBC,withinareasonabletimeafterceasingtobeamember,thefairvalueofhisorherinterestasofthedateofceasingtobeamember.Anysuchpaymentshall be considered a distribution subject to the restrictions on distributions stated in By-Law8. (4)AmembermaybeexpelledbytheunanimousvoteoftheothermembersifthememberwrongfullydamagedthePBCorothermembers,wilfullyorpersistentlyviolatedthePBC’sIncorporationStatementorBy-Lawsordutiesofthemember,orengagedinconductthatmakesitimpossibletocarryonthePBC’sbusinesswiththemember.


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(5)AmemberwhoisexpelledfromthePBCisentitledtoreceivefromthePBC,withinareasonabletimeafterceasingtobeamember,thefairvalueofhisorherinterestasofthedateofceasingtobeamember,minusthevalueofanyassesseddamagesthatmembermayhavecausedthePBC.AnysuchpaymentshallbeconsideredadistributionsubjecttotherestrictionsondistributionsstatedinBy-Law8.Anydisputeas to whether damages are payable or their extent shall be determined by arbitration in accordance with the Arbitration Act.

SEVENTH SCHEDULE(Section 282)

user aGreement

Scope and Purpose of User Agreement 1.(1).ThisUserAgreement(“Agreement”)enablestheuserto(tick applicable): (a) haveaccesstotheelectronicregistryasaresearcher ; (b) toengageincompanyregistrationworkand/ornotarialpractice ; (c) toengageincompanyregistrationworkasaself-actor ;

(2)ThisAgreementgovernsaccessto,andtheuseanddisclosureofdatain,the electronic registry.

Interpretation

2. Unless the context otherwise requires, anyword or phrase used in thisAgreementwhichhasbeendefinedintheCompaniesandotherBusinessEntitiesAct(“theAct”)shallbearthesamemeaningwhenusedinthisAgreement.

Electronic Registry User Agreement Training Course

3.TheRegisteredUseragrees(ifheorshehasnotalreadycompletedsuchcourse)to complete at his or her own expense the Electronic Registry User Agreement Training CourseprescribedbytheRegistrarasaconditionforthecontinuanceofthisAgreement,and such additional courses in connection with the use of the electronic registry as the Registrar may from time to time prescribe.

Interconnectivity requirements

4. The Registered Usershall— (a) usethecomputerequipmentandfacilitiesofaclassorkindspecifiedin

regulations made in terms of section 301 of the Act or of the description specifiedintheannexurehereto;

(b) affixadigitalsignaturethatiscompliantwiththerequirementsofsection 284(1)oftheActtoanyelectroniccommunicationorrecordinsuchamanner as may be directed by the Registrar

(c) allowreasonableaccesstothecomputersystemoftheRegistered User bytheRegistrarforsuchverificationandauditpurposesasbytheActandthisAgreementmayberequiredorexpedient;

(d) keepsuchelectronicrecordsinthemannerandforsuchperiodasbythedirectionandintheopinionoftheRegistrararenecessaryorconvenienttobekept inconnectionwith theproperfunctioningof theelectronicRegistry

Confidentiality and security

5.(1)ThisAgreementprohibitstheRegisteredUserfromreleasing,disclosing,publishing,orpresentinganyindividuallyidentifyinginformationobtainedunderitstermsexcept—


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(a) inthenormalcourseofcompanyregistrationworkornotarialpractice;or

(b) withtheconsentoftheindividualconcerned;or (c) tosuchextentasmaybeprescribedunderregulationsmadeintermsof

section 301 of the Act.

(2)NopersonotherthantheRegisteredUserorhisorherauthorisedagents(whosenamesandotherrelevantparticularsshallbenotifiedinadvancetotheRegistrar)shalluseorhaveaccesstotheelectronicregistry.

(3)TheRegisteredUserherebyacknowledgesthatheorsheisawareoftheprovisionsofsection 291(“Restrictionsondisclosureofinformation”)oftheAct.

Integrity of electronic registry data 6. (1) TheRegisteredUserorhisorherauthorisedagentsundertake that, inaccessingorobtaininganyrecordsbymeansoftheelectronicregistry,everyprecautionshallbetakentoensuretheintegrityofsuchrecordsagainstunauthorisedalterationordamage or unauthorised access by persons who are not registered users. (2)TheRegisteredUserherebyacknowledgesthatheorsheisawareoftheprovisionsofsection 290(“Unlawfulusesofcomputersystems”)oftheAct.

Electronic signatures and passwords 7.(1)IfortotheextentthattheRegistrardoesnotallocatetotheRegisteredUseranydigitalsignatureorpasswordforaccessingandusingtheelectronicregistry,theRegistered UsershallwithoutdelaygivenoticetotheRegistrarofeveryelectronicsignature and password to be used by the registered user for the purpose of accessing and usingtheelectronicregistry,andtheregistereduserundertakesthatnootherelectronicsignature and password than the ones referred to in this clause shall be used by him or her for that purpose. (2)TheRegisteredUserundertakes thateveryprecautionshallbe taken toensurethateveryelectronicsignatureandpasswordreferredtoinsub-clause(1) isprotected against unauthorised access by or disclosure to persons who are not his or her authorised agents. (3)TheRegisteredUserherebyacknowledgesthatheorsheisawareoftheprovisionsofsection 287(“Obligations,indemnitiesandpresumptionswithrespecttodigitalsignatures”)oftheAct.

Use of electronic registry data for gain

8.ThisAgreement prohibits aRegisteredUser from releasing, disclosing,publishing,orpresentinganyinformationobtainedfrom the electronic registry for gainexcept— (a) inthenormalcourseofcompanyregistrationworkornotarialpractice;

or (b) tosuchextentandundersuchconditionsasmaybeprescribedunder

regulations made in terms of section 301 of the Act

Commencement, Term and Renewal of Agreement

9.(1)Anon-refundableapplicationfeeofsuchamountasshallbeprescribedunderregulations made in terms of section 301 of the Act must be paid before the registered user may access the electronic registry. (2)This agreement expires on the 31stDecember of every year but isautomaticallyrenewable(subjecttopreviouscompliancewithitsterms)uponpaymentof a non-refundable renewal fee of such amount as shall be prescribed under regulations made in terms of section 301 of the Act.


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Breach and termination of Agreement 10.(1)AnyviolationofthetermsofthisAgreement,orthehappeningofeventspecifiedinsection 283(4)oftheAct,shallbegroundsfortheimmediateterminationof this Agreement.

(2)TheRegistrarshalldetermine,onreasonablegrounds— (a) whetheraregistereduserhasviolatedanytermoftheAgreement; (b) whatactions,ifany,arenecessarytoremedyaviolationofthisAgreement,

and the Registered User shall comply with pertinent instructions from Registrar

(3)ActionstakenbyRegistrarmayincludebutnotbelimitedto— (a) theimpositionofacivilpenaltypayabletoandformingpastofthefunds

oftheRegistrynotexceedingfiveUnitedStatesdollarsforeverydaythatthe registered user fails to comply with an instruction of the Registrar after beingnotifiedofit(providedthattheamountofsuchpenaltyshallnotaccumulatesoastoexceedninehundredUnitedStatesdollars,atwhichpointtheRegistrarmustterminatethisAgreementortakeotheractiontoenforce this Agreement);

(b) providingnoticeof the terminationorviolation to affectedparties andprohibiting Registered User from accessing the electronic registry in the future

Material changes

11. Any material changes to the particulars furnished by a registered user in his or her application to become a registered user or in the particulars furnished below shallbepromptlynotifiedtheRegistrar,andinanyeventwithinsevendaysfromthechangehavingoccurredorbeenmade.

Signed: ..........................................................................................................................

Date: ..............................................................................................................................

Print or Type Name: ......................................................................................................

Title: ..............................................................................................................................

Organization: .................................................................................................................

Address: ........................................................................................................................

Address: ........................................................................................................................

Phone(landand/orcell): ........................................ Fax: ...............................................

E-mail: ...........................................................................................................................

EIGHTH SCHEDULE(Section 104)matters to Be sPecified in ProsPectus and rePorts to Be set out therein

PART I

matters to Be SPecified

1. Exceptwheretheprospectusisissuedpriortotheincorporationofthecompany,thedateofincorporationofthecompanyandtheaddressofitsregisteredoffice. 2. Thenumberofshares, ifany,fixedbythearticlesasthequalificationofadirector,andanyprovisionsastotheremunerationofthedirectorswhetherfortheirservicestothecompanyasdirectors,managingdirectorsorotherwise,whetherunderthe articles or under contract or otherwise.


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3. (1)Thenames,occupationsandaddressesofthedirectorsorproposeddirectors.

(2)Thenameandaddressoftheauditor,ifany.

(3)Thetermforwhichanypresentdirectorandmanagingdirectorholdofficeand the manner in and term for which any future director and managing director will beappointed,includinginformationastoanyexclusiveorspecialrightheldinrespectof the appointment of any director and managing director.

4. Wheresharesareofferedtothepublicforsubscription,particularsasto— (a) theminimumamountwhich,intheopinionofthedirectors,mustberaised

bytheissueofthosesharesinordertoprovidethesums,or,ifanypartthereofistobedefrayedinanyothermanner,thebalanceofthesums,requiredtobeprovidedinrespectofeachofthefollowingmatters—

(i) the purchase price of any property, including goodwill, if any,purchased or to be purchased which is to be defrayed in whole or inpartoutoftheproceedsoftheissue;

(ii) any preliminary expenses payable by the company, and anycommission so payable to any person in consideration of his or her agreeingtosubscribefor,orofhisorherprocuringoragreeingtoprocuresubscriptionsfor,anysharesinthecompany;

(iii) therepaymentofanymoneysborrowedbythecompanyinrespectofanyoftheforegoingmatters;

(iv) workingcapital; (v) anyotherexpenditure,statingthenatureandpurposethereofand

theestimatedamountineachcase; and (b) theamountstobeprovidedinrespectofthemattersaforesaidotherwise

than out of the proceeds of the issue and the sources out of which those amountsaretobeprovided.

5. The time of the opening of the subscription lists.

6. (1)Theamountpayableonapplicationandallotmentoneachshare,and,inthecaseofasecondorsubsequentofferofshares,theamountofferedforsubscriptiononeachpreviousallotmentmadewithinthetwoprecedingyears,theamountactuallyallottedandtheamount,ifany,paidonthesharessoallotted. (2)Theamountpayablebywayofpremium,ifany,oneachsharewhichhasbeenoristobeissuedstatingthedatesofissue,thereasonsforanysuchpremium,and,wheresomeshareshavebeenoraretobeissuedatapremiumandothersharesatparoratalowerpremium,alsothereasonsforthedifferentiation,andhowanypremiumhas been or is to be disposed of.

7. The substance of any contract or arrangement or proposed contract or arrangement,whereby any option or preferential right of any kind has been or isproposedtobegiventoanypersontosubscribeforanysharesinordebenturesofacompany;givingthenumber,descriptionandamountofanysuchsharesordebenturesandincludingthefollowingparticularsoftheoptionorright— (a) theperiodduringwhichitisexercisable; (b) thepricetobepaidforsharesordebenturessubscribedforunderit; (c) theconsideration,ifany,givenortobegivenforitorfortherighttoit; (d) thenamesandaddressesofthepersonstowhomitortherighttoitwas

givenor,ifgiventoexistingmembersordebentureholdersassuch,therelevantsharesordebentures;


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(e) anyothermaterialfactorcircumstancerelevanttothegrantofsuchoptionor right.

Subscribingforsharesordebenturesshall,forthepurposeofthisparagraph,includeacquiringthemfromapersontowhomtheyhavebeenallottedoragreedtobeallottedwithaviewtohisorherofferingthemforsale.

8. The number and amount of shares and debentures which within the two precedingyearshavebeenissued,oragreedtobeissued,asfullyorpartlypaidupotherwisethanincash,andinthelattercasetheextenttowhichtheyaresopaidup,andineithercasetheconsiderationforwhichthosesharesordebentureshavebeenissued or are proposed or intended to be issued.

9.(1)Asrespectsanypropertytowhichthisparagraphapplies— (a) thenamesandaddressesofthevendors; (b) theamountpayableincash,sharesordebenturestothevendorand,where

thereismorethanoneseparatevendor,orthecompanyisasub-purchaser,theamountsopayabletoeachvendor;

(c) shortparticularsofany transaction relating to thepropertycompletedwithintheprecedingtwoyearsinwhichanyvendorsofthepropertytothecompany,oranypersonwhoisorwas,atthetimeofthetransaction,apromoteroradirectororproposeddirectorofthecompany,hadanyinterest, direct or indirect.When the vendors, or any of them, are apartnership,themembersofthepartnershipshallnotbetreatedasseparatevendors.

(2) Theproperty towhich thisparagraphapplies ispropertypurchasedoracquiredbythecompanyorproposedsotobepurchasedoracquired,whichistobepaid for wholly or partly out of the proceeds of the issue offered for subscription by theprospectusorthepurchaseoracquisitionofwhichhasnotbeencompletedatthedate of the issue of the prospectus,otherthanproperty— (a) thecontractforthepurchaseoracquisitionwhereofwasenteredintoin

theordinarycourseof thecompany’sbusiness, thecontractnotbeingmadeincontemplationoftheissuenortheissueinconsequenceofthecontract;or

(b) asrespectswhichtheamountofthepurchasemoneyisnotmaterial.

10.Theamount, ifany,paidorpayableaspurchasemoneyincash,sharesordebenturesforanypropertytowhichthelastforegoingparagraphapplies,specifyingtheamount,ifany,payableforgoodwill. 11.The amount, if any, and the nature and extent of any consideration, paidwithinthetwoprecedingyears,orpayableascommissiontoanyperson,includingcommissionsopaidorpayabletoanysub-underwriter,whoisapromoterordirectoror other officer of the companybut excluding commission so paid or payable toanyothersub-underwriter,forsubscribingoragreeingtosubscribe,orprocuringoragreeingtoprocuresubscriptionsforanysharesinordebenturesofthecompany,thename,occupationandaddressofeachperson,particularsoftheamountswhicheachhasunderwrittenorsub-underwritten,oftherateofthecommissionpayabletosuchunderwriting or sub-underwriting, and anyothermaterial termor conditionof theunderwritingorsub-underwritingcontractwithsuchperson;andwhensuchpersonisacompany,thenameofthedirectorsofsuchcompanyandthenatureandextentofanyinterest,directorindirect,insuchcompanyofanypromoter,directororotherofficerof the company in respect of which the prospectus is issued.

12. The amount or estimated amount of preliminary expenses and the persons by whomanyofthoseexpenseshavebeenpaidorarepayable,andtheamountorestimatedamount of the expenses of the issue and the persons by whom any of those expenses havebeenpaidorarepayable.


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13.Any amount or benefit paid or givenwithin the two preceding years orintendedtobepaidorgiventoanypromoterwithhisorhernameandaddress,ortoanypartnership,syndicateorotherassociationofwhichheorsheisorwasatanymaterialtimeamember,andtheconsiderationforsuchpaymentorthegivingofsuchbenefit.

14.Thedatesof,partiestoandgeneralnatureofeverymaterialcontractnotbeinga contract entered into in the ordinary course of the business carried on or intended to be carried on by the company or a contract entered into more than two years before the date of issue of the prospectus and a reasonable time and place at which any such contract or a copy thereof may be inspected.

15.Fullparticularsofthenatureandextentoftheinterest,ifany,ofeverydirectororpromoterinthepromotionof,orinthepropertyacquiredwithintwoyearsofthedateoftheprospectusorproposedtobeacquiredby,thecompanyor,wheretheinterestofsuchdirectororpromoterconsistsinbeingamemberofapartnership,company,syndicateorotherassociationofpersons,thenatureandextentoftheinterestofsuchpartnership, company, syndicate or other association and the nature and extent ofsuchdirector’sorpromoter’sinterestinthepartnership,company,syndicateorotherassociation,withastatementofallsumspaidoragreedtobepaidtohimorherortoitincashorsharesorotherwisebyanypersoneithertoinducehimorhertobecome,ortoqualifyhimas,adirectororotherwiseforservicesrenderedbyhimorherorbyit in connection with the promotion or formation of the company.

16.(1)Thenumberoffounders’andmanagementordeferredshares,ifany,andanyspecialrightsattachingthereto,andthenatureandextentoftheinterestoftheholdersinthepropertyandprofitsofthecompany

(2)Particularsofthesharecapital,nominal,issued,paidupandheldinreserve;thenumberandclassesofsharesandthenominalvaluethereof,andiftheprospectusinvitesthepublictosubscribeforsharesinthecompany,adescriptionoftherespectivevotingrights,preference,conversionandexchangerights,rightstodividends,profitsorcapitalofeachclass,includingredemptionrightsandrightsonliquidationordistributionof capital assets.

17.Inthecaseofacompanywhichhasbeencarryingonbusiness,orofabusinesswhichhasbeencarriedon,forlessthanfiveyears,thelengthoftimeduringwhichthebusinessofthecompanyorthebusinesstobeacquired,asthecasemaybe,hasbeencarried on.

PART II

rePorts to Be Set Out

18.(1)Areportbytheauditorsofthecompanywithrespectto— (a) profits and losses and assets and liabilities, in accordance with

subparagraph(2)or(3),asthecaserequires;and (b) theratesofthedividends,ifany,paidbythecompanyinrespectofeach

classofsharesinthecompanyinrespectofeachofthefivefinancialyearsimmediatelyprecedingtheissueoftheprospectus,givingparticularsofeachsuchclassofsharesonwhichsuchdividendshavebeenpaidandparticularsofthecasesinwhichnodividendshavebeenpaidinrespectofanyclassofsharesinrespectofanyofthoseyears;

and, ifnoaccountshavebeenmadeup inrespectofanypartof theperiodoffiveyearsendingonadatethreemonthsbeforetheissueoftheprospectus,containingastatement of that fact.

(2)Ifthecompanyhasnosubsidiaries,thereportshall—


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(a) so far as regardsprofits and losses, dealwith theprofits or losses ofthecompanyinrespectofeachofthefivefinancialyearsimmediatelyprecedingtheissueoftheprospectus;and

(b) sofarasregardsassetsandliabilities,dealwiththeassetsandliabilitiesof the company at the last date to which the accounts of the company were made up.

(3)Ifthecompanyhassubsidiaries,thereportshall— (a) sofarasregardsprofitsandlosses,dealseparatelywiththecompany’s

profitsorlossesasprovidedbysubparagraph(2),andinaddition,deal— (i) asawholewiththecombinedprofitsorlossesofitssubsidiaries,

sofarastheyconcernmembersofthecompany;or (ii) individuallywiththeprofitsorlossesofeachsubsidiary,sofaras

theyconcernmembersofthecompany; or,insteadofdealingseparatelywiththecompany’sprofitsorlosses,deal

asawholewiththeprofitsorlossesofthecompanyand,sofarastheyconcernmembersofthecompany,withthecombinedprofitsorlossesofitssubsidiaries;and

(b) sofarasregardsassetsandliabilities,dealseparatelywiththecompany’sassetsandliabilitiesasprovidedbysubparagraph(2)and,inaddition,dealeither—

(i) asawholewiththecombinedassetsandliabilitiesofitssubsidiaries,withorliabilities;or

(ii) individuallywiththeassetsandliabilitiesofeachsubsidiary; and shall indicate as respects the assets and liabilities of the subsidiaries

the adjustment to be made for persons other than members of the company.

19.If the proceeds, or anypart of the proceeds, of the issueof the shares ordebenturesareoristobeapplieddirectlyorindirectlyinthepurchaseofanybusiness,areportmadebyaccountants,whoshallbenamedintheprospectus,upon— (a) theprofitsorlossesofthebusinessinrespectofeachofthefivefinancial

yearsimmediatelyprecedingtheissueoftheprospectus;and (b) the assets and liabilities of the business at the last date towhich the

accounts of the business were made up.

20.(1)If— (a) theproceeds,oranypartoftheproceeds,oftheissueoftheshares

or debentures are or is to be applied directly or indirectly in any mannerresultingintheacquisitionbythecompanyofsharesinanyotherbodycorporate;and

(b) byreasonofthatacquisitionoranythingtobedoneinconsequencethereof or in connection therewith that body corporate will become asubsidiaryofthecompany;

areportmadebyaccountants,whoshallbenamedintheprospectus,upon— (i) theprofitsorlossesoftheotherbodycorporateinrespectofeach

ofthefivefinancialyearsimmediatelyprecedingtheissueoftheprospectus;and

(ii) theassetsandliabilitiesoftheotherbodycorporateatthelastdateto which the accounts of the body corporate were made up.


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(2)Thesaidreportshall— (a) indicatehowtheprofitsorlossesoftheotherbodycorporatedealtwithby

thereportwould,inrespectofthesharestobeacquired,haveconcernedmembersofthecompanyand,forholdersofothershares,whatallowancewould have fallen to bemade, in relation to assets and liabilities sodealtwith,ifthecompanyhadatallmaterialtimesheldthesharestobeacquired;and

(b) where theotherbodycorporatehas subsidiaries,dealwith theprofitsor losses and the assets and liabilities of the body corporate and its subsidiariesinthemannerprovidedbyparagraph18(3)ofthisSchedulein relation to the company and its subsidiaries.

PART III

Provisions aPPlyinG to Parts i and II of schedule

21.Paragraph2andparagraph12,sofarasitrelatestopreliminaryexpenses,andparagraph 15 of this Schedule shall not apply in the case of a prospectus issued more than three years after the date at which the company is entitled to commence business.

22.Everypersonshall,forthepurposeofthisSchedule,bedeemedtobeavendorwhohasenteredintoanycontract,absoluteorconditional,forthesaleorpurchase,orforanyoptionofpurchase,ofanypropertytobeacquiredbythecompany,inanycasewhere— (a) the purchasemoney is not fully paid at the date of the issue of the

prospectus;or (b) thepurchasemoneyistobepaidorsatisfiedwhollyorinpartoutofthe

proceedsoftheissueofferedforsubscriptionbytheprospectus;or (c) thecontractdependsfor itsvalidityor fulfilmenton theresultof that

issue.

23.Whereanypropertytobeacquiredbythecompanyistobetakenonlease,thisScheduleshallhaveeffectasiftheexpression“vendor”includedthelessor,andtheexpression“purchasemoney” included theconsideration for the lease, and theexpression “sub-purchase” included a sub-lessee.

24. If in thecaseofacompanywhichhasbeencarryingonbusiness,orofabusinesswhichhasbeencarriedonforlessthanfiveyears,theaccountsofthecompanyorbusinesshaveonlybeenmadeupinrespectoffouryears,threeyears,twoyearsoroneyear,PartIIofthisScheduleshallhaveeffectasifreferencestofouryears,threeyears,twoyearsoroneyear,asthecasemaybe,weresubstitutedforreferencestofiveyears.

25.Theexpression“financialyear”inPartIIofthisSchedulemeanstheyearinrespectofwhichtheaccountsofthecompanyorofthebusiness,asthecasemaybe,aremadeup,andwherebyreasonofanyalterationofthedateonwhichthefinancialyear of the company or business terminates the accounts of the company or business havebeenmadeupforaperiodgreaterorlessthanayear,thatgreaterorlessperiodshallforthepurposeofthatPartofthisSchedulebedeemedtobeafinancialyear.

26.AnyreportrequiredbyPartIIofthisScheduleshalleitherindicatebywayofnoteanyadjustmentsasrespectsthefiguresofanyprofitsorlossesorassetsandliabilities dealtwith by the reportwhich appear to the personsmaking the reportnecessaryorshallmakethoseadjustmentsandindicatethatadjustmentshavebeenmade.

27.AnyreportbyaccountantsrequiredbyPartIIofthisScheduleshallnotbemadebyanyaccountantwhoisanofficerorservant,orapartneroremployeroforintheemploymentofanofficerorservant,ofthecompanyorofthecompany’ssubsidiary


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orholdingcompanyorofasubsidiaryofthecompany’sholdingcompany;andforthepurposesofthisparagraphtheexpression“officer”shallincludeaproposeddirectorbut not an auditor

NINTH SCHEDULE(Section 18 (4) and (5))Penalties for late suBmissions of documents or notices

If the document or notice be lodged within the under-mentioned periods after the date when the act in respect of which the document is to be furnished or notice given took place

Penalty to be paid

(a) Three months Twice the prescribed fee (b) Six months Three times the prescribed fee (c) Twelve months Four times the prescribed fee (d) More than twelve months Five times the prescribed fee

TENTH SCHEDULE (Section 303 (a))Form For re-registration oF Companies and pBCs

ApplicationforreregistrationofacompanyorPBC

Document No:

(forofficeuseonly)

Please note that the information in this form must be either typewritten or printed. It must not be handwritten. If there is insufficient space on the form to supply the information required, attach a separate sheet containing the information set out in the prescribed format.

1. Accordingtosection303(a)ofthenewCompaniesandOtherBusinessEntitiesActeveryexistingCompanyorPBCmustre-registerwithin12monthsofthedateof commencement of the Act ending on …... The effect of failing to re-register isthattheexistingcompanyorPBCwillbestruckofftheregisterwitheffectfrom……,inaccordancewithsection303(a)ofthenewAct,andwillnolongerbe able to carry on business as a company unless it registers as a new company orPBCunderthenewActafterthatdate.

2. AcompanyorPBCmustre-registerunderitsoriginalnamewithoutprejudicetoits right after re-registration to change their name if they so wish under section 26 of the new Act.

3. Togetherwiththisformafeeof$20mustbepaidwhichwillalsocoverthefeefor the annual return referred to in paragraph 6.

4. Particulars of existing company and directors

Typeofcompany(ifnotaPBC):

(Public,private,cooperative,Limitedbyguaranteeorforeign)

CompanynameorPBCname:

CompanyorPBCNo.:

Addressofexistingregisteredoffice:

Postal address and email address to which communications from the Registrar may be sent:


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Directors(orMembersinthecaseofPBC) NameandDateofBirth* *Please give surname in BLOCK letters followed by first name(s). ID Number/Passport Number Residential address and Email Shares(orpercentageInterestsinthecaseofPBC) Thetotalnumberofsharesinthecompanyis:[enter nil, if the company does not

have a share capital]orpercentageinterestsheldbyeachPBCmember Therights,privileges,limitationsandconditionsthatwillattachtothesharesof

the company on reregistration are:

5. Memorandum and Articles of Association/Incorporation Statement You must lodge a new Memorandum of association and new Articles of associa-

tion (or Incorporation Statement) in conformity with the new Act together with this form. Doing so does not mean that there is any break in that continuity of your company or PBC from the time of its original incorporation or registration.

If you do not wish to lodge new articles of association or incorporation on state-ment please indicate in the space below which table of the model articles or by-laws in the fifth schedule do you proposes to adopt for your company or PBC

Placeatick in the appropriate box Table A Model Articles for Public Companies TableBModelArticlesforPrivatecompanieslimitedbyshares TableCModelArticlesforPrivateCompanieslimitedbyguarantee TableDModelBy-lawsforPBC.

6. Annual Return Together with this re-registration form you must lodge a new annual return form

in accordance with the Fourth Schedule. The date of lodgement will be the date everyyearbywhichyoumustlodgefutureannualreturns.

7. Object of re-registration Theobjectofre-registrationundersection303(9)isto establish a new and up-

datedregisterofcompaniesandprivatebusinesscorporations;andtoexpungeapparently defunct business entities from the register.

Nocompanyorprivatebusinesscorporationmaychangeitsname,address,reg-isteredoffice,directorshiporitssharestructureordoanyotherthingaffectingitsrightsandliabilitiesandthoseofitsmembersundertheguiseofre-registration,withoutprejudicehowevertoitsrighttomakesuchchangesinaccordancewiththeformalitiesprescribedinthisAct,before,afterortogetherwithre-registration.

Signature of Company Secretary: Nameofaboveperson(s)(in full): Date: Telephone(if different from given above): E-mailAddressoftheCompanySecretary(if different from given above):


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