Law-Zim

  Introduction   One of the most troublesome of questions in company law is how company law should try to balance the legitimate main concern of shareholders, that they will be able to realise a return on their investment, with the chief concern of the creditors, that the board of directors, elected by the shareholders, will, especially if the directors see the company in trouble, drain it of funds and other assets, through dividends, share repurchases or otherwise, leaving insufficient assets to pay the creditors debts.  The pre vious  regime , as provided for in the old Companies Act ,  (Capital Maintenance Regime) was initially developed by the courts and the general principle established by the cases may be stated as requiring that a company with a share capital is bound to obtain a proper consideration for the shares which it issues and refrain from handing back any or all of the fund so acquired to its members except by a lawful distribution of profits or a lawful reduction of ca

Author: BLESSED MUPATSI with MBONISI SIZIBA. On my last article l tried to unpack Vision 2030 using precedent on the events that led to the 2008 hyperinflation. I highlighted on the need for implementation of reforms. Zimbabwe’s problems are a complex combination of multifaceted issues that are politically driven. Zimbabwe is a beautiful country with rich natural resources, it houses a world wonder (Victoria Falls), one of the most educated and hardworking population in the continent. Some of the problems that the Southern African country is currently facing include 90% unemployment rate, six million people leaving in the diaspora, human rights violation, poverty (approximately eight million people living on hand to mouth), inflation. These problems are deep rooted they go beyond natural disaster experiences (series of drought and cyclone).  One of the problems that has affected Zimbabwe for decades is rigging of elections. An election is a procedure where people or citizens choose hol