The enhancement of corporate governance in Zambia through company law reform
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Date
2016
Authors
Banda, Kadidja
Journal Title
Journal ISSN
Volume Title
Publisher
University of Zambia
Abstract
Corporate Governance is the term used to describe -the way in which companies are controlled and directed. The legal basis for Corporate Governance in Zambia lies with the Companies Act, Cap. 388 of the Laws of Zambia. The importance of Corporate Governance has increased and been pressed globally following a number of corporate scandals that shook the corporate world (i.e. Enron and Parmalat) and the Zambian corporate market (i.e. Meridian BIAO).
This research seeks to establish whether the current law on companies is adequate particularly in respect of Corporate Governance. Once complete, this paper should give a clear picture on the state of company law and corporate governance in Zambia. This paper will also put forward company law reforms that will bring the Companies Act up to the standard of the trends obtaining in the same area around the globe.
This research finds that the law on companies has become out-dated and does not adequately provide for Corporate Governance. The research goes on to propose reform of the Companies Act. The research proposes a statutory statement of directors' duties as well as the introduction of provisions on disclosure and transparency, particularly in respect of financial reporting.
It is important that legislation on the manner in which directors conduct the affairs of companies and themselves be clear and easy to understand as it shall promote good Corporate Governance practices and in hindsight help prevent the collapse of other corporate entities.
Description
A obligatory report submitted to the school of Law at the University of Zambia
Keywords
Corporate Governance--Zambia , Investment--Zambia , Corporation law--Zambia , Political and economic planning--Zambia