HARARE, April 9 (The Source) – Zimbabwe’s acting President Emmerson Mnangagwa on Thursday launched a national code of corporate governance for both the private and state owned enterprises pending enactment of a new Companies Act.
The code comes in the wake of widespread corruption in parastatals and company closures blamed on weak corporate governance structures.
“One of the many motivations far crafting the ZimCode was to deal with the inadequacies of the corporate legal framework. Our law on this subject, the Companies Act requires revision because it is outdated in many important respects,” said Mnangagwa at the launch.
“ZimCode deals with some of the inadequacies of the Act and anticipates an immediate revision of the legal framework on corporate governance, starting with the Companies Act.”
The code will give guidelines on directors’ term limits, board appointments, corporate conflict resolution and settlement.
It will also address the concentration of ownership and control.
It proposes that in cases where there the director must own, manage and control a business, shareholders must pass a 75 percent vote in favour of such a move.