Government has announced that it is in the process of reviewing the Companies Act to make it more responsive to the country’s economic development.
Minister of Commerce Trade and Industry Robert Sichinga says there is need for the Companies Act to be revised if it is to effectively respond to the country’s present day needs.
ZANIS reports that Mr. Sichinga was speaking in Lusaka today when he officiated at the 1st Annual CEO/CFO convention under the theme: ‘Enhancing public value and economic development through effective corporate governance practices.’
Mr. Sichinga explained that good corporate governance practices can only be achieved if there are specific laws that define the legal framework in which the country’s corporate organizations operate.
He added that in the case of Zambia, private companies and corporate organisations are still governed by the companies’ Act of 1964.
He said in the last ten years Zambia has recorded tremendous change in its economic development hence the need to have an Act that will respond to the changing environment and global fundamentals.
The Minister stated that changes in the global investment have led to increased demand in countries such as Zambia which are resource rich.
Mr. Sichinga pointed that as his ministry which is responsible for investment promotion management will find appropriate responses to the changes in global demands.
He said as the investment opportunities avail themselves, the issues of quality corporate governance will emerge therefore there is need to review and modernize the legal framework.
And ACCA global president Dean Westcott said professional accountants have a key role to play in promoting transparency and accountability in any organization as long as there is an effective legal structure to follow.
Mr. Westcott disclosed that the recent global financial crisis in which poor corporate governance played a leading role has brought about unprecedented challenges for accountancy and financial
professionals.
He further added that this is why it is important to have ethical and professional training for financial workers especially accountants as they are suited to the task of constructing ethical cultures within their organizations.
ZANIS
The companies act in use presently is frm 1994 & not 1964.
Bob why don’t you tell us what exactly you want to change? What is wrong with the current company act? Too much air Mr Robert!
The Companies Act we are following is complicated. Half of the things do not apply and are not even in use in the UK. Just to change anythingin your company is a headache and you ahve to fill out unneccessary forms which cost a lot of money when added up. There a lot of things that need to be simplified for the individual businessman/woman.
I was also amazed to read the companies act we are following as that of 1964 instead of 1994.
Tee-hee, Bob has been reading the wrong document!
….or perhaps he was “misquoted”….. by the National Information Service?
I have the Zambian Companies Act 1994 right in front of me. What is Bob talking about? As an accountant he should know that. Maweee!!!! This man is becoming a let down everytime he talks.
They now want to change it because they are frustrated by the Mutembo/ Mmembe saga. They will put a cluase which protects company directors from not being liable to defaulted loans. Very stupid characters!
Mr 3 trillion! how is the 1964 Company act detrimental to the current global fundamentals? Dont just use senseless words to sound intelligent.We are still waiting for the 3 trillion you claimed MMD printed,where is it sir?
Disappointing that Minister charged inter alia with ensuring compliance with Companies Act is not even aware that Co Act 1994 is the extant Act!
As previously alluded to; unless Minister is referring to 1964 Act I do not see anything wrong with current Act
Evening,in your opinion,do you think the amended companies Act is efficacious in relation to section 6 of the Act and how has it impacted Company law in Zambia? Thankyou.
I was reading intently to hear what is wrong with the current Act, awe, nabwilapo chabe…D+. Kwati umufyashi is just good in oppostion. Remember, it was Bob who said debasing the kwacha would stabilise it or something to that effect, openning the flood gates of critism from economists.
For this one though, the one who wrote the speech for him is in soup for writting 1964 instead of 1994, these guys just parrot, its the technocrats that write speeches…
From 3.1 trillion kwacha to debasing the kwacha to Campanies Act of 1964. Mistakes all the way. Please, someone to show him the Companies Act of 1994 and maybe he can think of things to change there too.
I am PF but if there is one mistake the President has made is Bob….. this guy despite his education has run out of steam….. this is man being a passager going nowhere slowly…he is a let down in the strongest words of it… oh Felix Mutati where art thou….. Believe you me…this man is going very soon…. Bob go to Isoka and just be an MP… not in government…. he is like a dog with no teeth…..shame
PF ministers kaka mebo bob that act was repealed we are using 1994 act some secretary or office orderly for bob sichinga should clean and update the minister book shelf
Kenneth Konga, Former Minister of Energy has collapsed during interogation by the task force on Corruption. he he he. They want to grab the Hotel he has been building as suspected to be Proceeds of crime. lelo. he is losing it same with RB’s son Andrew to lose the house as that is where the corrupt signing of the 2% extortion case took place. Ala case ya Proceed of Crime yalatupwisha.
@# 13, Mpangula Mputyu , Naikosa!!! Manje anything to sign should be done from a public play ground/park if we still have any! Or else, you risk losing your house!
Uyu nankwe, once he opens his mouth, words just come out uncontrollably making a lot of factual mistakes. Surely, are we using a 1964 Companies Act, and he calls himself a seasoned accountant from Harvard? This bunch of guys awe mwandi.
You are disappointing me Bob, why can’t you take time to just see some sense before you let it out of your mouth. remember, this is your second time on such mistakes.So you may just end up misleading the country. Do you know the cost of such? calculate.