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Zambia Act or statute

Zambia legislation

Privatisation Act, 1992

The Zambia Privatisation Agency is established as a body corporate with perpetual succession and a common seal, and it can sue and be sued in its own name. The Agency’s seal is kept by the Directo…

agency administrationagency compositionagency governanceagency proceduresagreementsannual auditannual reportsanti-fraudappointmentappointmentsasset capitalisationasset saleasset vestingauditingauditor feesBanking and financeboard membershipborrowingbrokeragecapital investment controlsclaims processcommittee delegationconfidential informationconfidentialityconflict of interestcorporate controlcorporate conversionCompany lawcorporate incorporationcorporate powersdisclosuredispute settlementdonationsemployee disclosureemployee participationenterprise liquidationestablishmentexecution of documentsfeesfinancial reportingBanking and financefinancial yearforeign investmentfund managementgovernment department commercialisationincorporationindustrial unrestinformation confidentialityinformation disclosureinternal governanceinvestmentinvestmentsleasesliquidationloansmeeting disclosuremeeting procedureminutesnotice publicationownershippricingprivatisationprivatisation preparationprivatizationprocurementprocurement of goods and servicesprofessional qualificationspublic administrationpublic disclosurepublic publicationpublication controlsrecord keepingrecords and accountsreportingresignationsale agreementsale negotiationsale of state-owned enterprisesales proceduresshare purchaseshare purchase restrictionshare purchase restrictionsshare saleshare sale proceedsshare salesshare transfershareholdingstaffingstate owned enterprisesstate-owned enterprise commercialisationstate-owned enterprise governancestate-owned enterprisestenurevacancyvaluation
Jurisdiction
Zambia
Structure
48 provisions
Citation
Act 21 of 1992
Dates
As at 31 Dec 1996
More statute details
Dates
As at 31 Dec 1996

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Official source

01

Purpose and legislative effect

“The Zambia Privatisation Agency is established as a body corporate with perpetual succession and a common seal, and it can sue and be sued in its own name.”

The Zambia Privatisation Agency is established as a body corporate with perpetual succession and a common seal, and it can sue and be sued in its own name. The Agency’s seal is kept by the Director, and the Agency may use a wafer or rubber stamp instead of the seal. The Agency’s members are appointed by the President, subject to scrutiny and ratification by the National Assembly. The Agency elects its Chairman and Vice-Chairman from among its members, but the two named Permanent Secretaries cannot be elected to those roles. Certain members serve a three-year term, may resign with one month’s written notice, and their office becomes vacant on specified events. A member is to be paid remuneration and allowances set by the Agency, but only with the Minister’s approval.

02

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Establishment of the Agency

The Zambia Privatisation Agency is established as a body corporate with perpetual succession and a common seal, and it can sue and be sued in its own name.

Section 3

Publication of information

The Agency must publish, in the Gazette, the names of approved State-owned enterprises to be privatised and the registered consultants, valuers, lawyers, public accountants, and merchant banks involved in the privatisation process.

Section 38

Commercialisation of State owned enterprises

The Minister may, after consulting the Ministry responsible for the Gazette, specify a Government department for commercialisation. A specified department must be incorporated under the Companies Act and may set its own rates, prices and charges, capitalise…

Section 37

Prior leases and agreements

Leases and agreements made for enterprises to be privatised under this Act, and made in anticipation of the Act starting, are nullified.

Section 50

04

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Source record from zambialii.org · As at 31 Dec 1996

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Showing 48 of 48 provisions

Provision 43Offence 3Commencement 2

Part

PART II

§ 3Establishment of the AgencyProvision

The Zambia Privatisation Agency is established as a body corporate with perpetual succession and a common seal, and it can sue and be sued in its own name.

3. There is hereby established the Zambia Privatisation Agency which shall be a body corporate with perpetual succession and a common seal capable of suing and of being sued in its corporate name, and with power, subject to the provisions of this Act, to do all such acts and things as a bcdy corporate may by law do or perform.
Section 3Verify source
§ 4Seal of AgencyProvision

The Agency’s seal is kept by the Director, and the Agency may use a wafer or rubber stamp instead of the seal.

4. (1) The seal of the Agency shall be such device as may be determined by the Agei;icy and shall be kept by the Director. Establishment of Agency Seal of Agency I ' ' k " . .; 0 f--.'• • I •. � -� � .. (2) The Agency may use a wafer or rubber stamp in lieu of the seal. ' ,.,.. (3) The amxing of the seal shall be authenti cated by the Chair­ Chairman and the Secretary or any other person ° man or the Vice authorised in !hat behalf by a resolution of the Agency. (4) Any contract or instrument which, if entered into or executed by a person not being a body corporate, would not be required to be under seal, may be entered into or executed without seal on behalf of the Agency by the Secretary or any other person generally or specifically authorised by the Agency in that behalf. (5) Any document p_urporting to be a document under t11e seal of the Agency or issued on behalf of the Agency shail be received in evidence and shall be deemed to be executed or issued, as the case may be, without furtl1cr proof, unless the contrary is proved.
Section 4Verify source
§ 5Composiuori of tl1e AgencyProvision

The Agency’s members are appointed by the President, subject to scrutiny and ratification by the National Assembly. The Agency elects its Chairman and Vice-Chairman from among its members, but the two named Permanent Secretaries cannot be elected to those roles.

5. (1) The Agency shall consist of the following members who slull. subject 10 scrutiny by a Select Commiuec of the National · ' ,\ss-:mbly and r:tti!ication by the National Assembly; be appoimcd by the President: (a) the Permanent Secretary in the Ministry responsible for commerce,,trade and industry: l Composition of Agency I. 11 I I . ' l l L l '· 460 No. 2 1 of 1 9921 Pri vat1sa11un (b) the Pennanent Secretary in the Ministry responsible for finance; (c) the Attorney-General; ( d) a representative of the Zambia Confederation of Chambers I of Commerce and Industry; ( e) a representative of the Zambia Congress of Trade Unions; (f) a representative of the Zambia Federal.ion of Employers; . (g) a representative of the Law Associali�n of Zambia; (h) a representative of the Zambia Institute of Certified Ac- countants; . i (i) the Dean of the School of Business 1of the Copperbclt University; _ · / (j) a representative of the churches in Zambia; 1 (k) a representative of the Bankers Asso ciation of Zambia; and (I) a rep,��entative of the farmers. (2) The Chainnan ��d the Vice-Chainnan sliall be elected by the Agency from amongst its members: Provided that the Pennanent Secretary in the Ministry responsible for finance and the Permanent Secretary responsible for commerce, trade and industry shall not be elected as Chairman or Vice- Chairman. 1
Section 5Verify source
§ 6Tenure of office and vacancyProvision

Certain members serve a three-year term, may resign with one month’s written notice, and their office becomes vacant on specified events.

6. (I) The members, except ex-offico members, referred to in section five shall hold office for a period of three years from the date of nomination and shall be eligible for further nomination upon lhe expiration of that tenn. (2) A member·, except an ex-officio member, referred to in sectionjive may resign upon giving one month's notice, in writing, to the organisation which nominated him arid to the Minister. (3) The office of a member, except an·ex-officio member, shall become vacant- . . ' , , i,._, I '°',' - ,. • • . -�- •, . ., ( · :/A . . ' _,, ��·:. � t -. , ' ' \ • ,,, !, •L , , • .' I .\. ' ' Tenure of office and vacancy ( a) upon his death; (b) if he is absent without reasonable ex.cuse from three consecutive meetings of the Agency of which he has had notice; ( c) on ceasing to be a respresentativeofthe organisation which 1 nomitcd him; or ( d) if he is an undischarged bankrupt. Remuneration and allowances of Members
Section 6Verify source
§ 7Renumeration and allowances of member�Provision

A member is to be paid remuneration and allowances set by the Agency, but only with the Minister’s approval.

7. A member shall be paid such remuneration and allowances as the Agency may, with the approval of the Minister, determine. . -- -- --------- - -�.--.-...._a-----�-- . 462 No. 21 of 1992] Privmisation Proceedings of Agency 1 Committees of Agency
Section 7Verify source
§ 9Proceedings of AgencyProvision

This section sets out how the Agency runs meetings, including timing, notice, quorum, who presides, voting, invited attendees, and minutes.

9. (1) Subject to the other provisions of this Act, the Agency . may regulate its own procedure. (2) The Agency shall meet for the transaction.of business at least once every two months at such places and at suc)l times as the Chairman may decide. (3) upon giving notice of not less than fourteen days, the meeting of the Agency may be called by the Chairman and shall be called i f not less than four members so request i n writing: Provided that if the urgency of any particular matter docs not permit the giving of such notice, a special meeting may be called upon giving a shorter notice. (4) Five members shall form a quorum at any meeting of the Agency. (5) There shall preside at any meeting of the Agency­ (a) The Chainnan; (b) in the absence of the Chairman, the Vice-Chairman; or (c) in the absence of both the Chairman and the Vice-Chair- man such member as the members present may elect for the purpose of that meeting. (6) A decision of the Agency on any question shall be by a majority of the members present and voting at the meeting and, in theeventofan equality of votes, the person presiding at the meeting shall have the casting vote in addition to his deliberative vote. (7) The Agency may invite any person, whose presence is in its opinion desirable, to attend and to participate in the deliberations of the meeting of the Agency but such person shall have no vote. (8) The validity of any proceedings or decision of the Agency shall not be affected by any vacancy in the membership of the Agency or by any defect in the appointment of any member. (9) The Agency shall cause minutes to be keptcifthe proceedings of every meeting of the Agency and of every meeting of any committee established by the Agency.
Section 9Verify source
§ 10Committees of AgencyProvision

The Agency may establish committees, delegate functions to them, appoint committee members, and set how long those members hold office.

10. (1) The Agency may for the purpose of performing its functions under this Act establish Committees and delegate to any ,such_ committee such of its functions as it considers necessary. (2) ,the Agency may appoint as members of a committee estab­ lished under subsection (1) persons who are or arc not members of the Agency and such persons shall hold office for such period as the Agency may determine. - - -- - ',' ' � . -_-______ .:.:.....--=:=--- -� � = -=: - f:;_ ,;�,_:��.��- . ' -'.1 ::� ' .. ,,,; ' , : 1 ---�==�-��-=--- -i::;,4 --:;-�---" •••f�--•�-.•,... _wi,.,\ -"';i, •<-f�.t-·.:.J,,.. .. ,,. • ;- ""�.� Privatisation 21 1992] 461 [ No. of
Section 10Verify source
§ 8Functions of AgencyCommencement

The Agency must manage Zambia’s privatisation of State-owned enterprises, and people with conflicts of interest at Agency or committee meetings must disclose them and not participate unless directed otherwise.

8. (I) It shall be the function of the Agency to plan, manage, implement and control the privatisation of State owned enterprises i n Zambia. Functions of Agency (2) Not withstanding the generality of subsection (I) the func­ tions of th€: Agency shall be to- ( a) (b) ( c) • (d) ( e) recommend privatisation policy guidelines to the Cabinet; implement the privatisation programme according to the .policy guidelines issued by the Cabinet; oversee all aspects of the implementatio11 of the privatisation programme in Z!mbia; monitor progress o'fthe privatisation programme in Zam­ bia; prepare the long term divestiture sequence plan and submit such plan to the Cabinet for approval; (f) recommend to the Cabinet U1e most appropriate mcUmd of sale for each State owned enterprise to be privatised; carry out or cause to be carried out a valuation of a State owned enterprise that is to be privatised: ( g) (h) set prequalification criteria for the selection of potential buyers or investors of a State owned enterprise to be privatised; (i) evaluate offers from potential buyers with regard to the'.- 1 � . "' (i) price; (ii) ability and commitment of buyers to develop the entcrpr;ise; and (iii) track record of buyers and their expertise in the type of enterprise on offfer; ensure that monopolies are not created in the process of privatisation; prepare or cause to be prepared the relevant documentation necessary to effect the privatisation of any state owned enterprise; (I) seek potential i nvestors for State owned enterprises; (m) maintain records, safeguard information and establish admi nistrative procedures to ensure confidentiality of information; maintain close liason with all relevant institutions in the . process of privatisation; publicise the activities of the privatisation programme ; and do an such things as arc necessary or incidental or condu­ cive to the better carrying out of the functions specified i n this Act. (j) (k} (n) (o) (p) .•. , l •. [No. 21 of 1992] 463 Disclosure of interest Director of Agency Privatisation · (3) Subjectto any specific or general direction of the Agency any committee established under subsection (I) may re_gulate.its own procedure. · 11. If any person is present at a meeting of the Agency or any committee of the Agency at which any matter is th_e subject of consideration and in which matter that person or his immediate family or his professional and business partners, is directly or indirectly interested in a private or professional capacity, he shall, as soon as is practicable after the commencement of the meeting disclose such interest and shall not, unless the Agency or the committee otherwise directs, take pan in any consideration or discussion of or vote on, any question touching on such matter . PART III ADMINISTRATION , . , . ;_
Section 8Verify source

Part

PART III

§ 12Director of the AgencyProvision

The Agency must appoint a Director, may appoint a Deputy Director, and the Director or Deputy Director may attend and speak at Agency meetings but may not vote.

12. (1) The Agency shall appoint, on such terms and conditions as it may determine, a Director who shall be the Chief Executive Officer of the Agency. I '(2) The Agency may appoint, on such terms and �nditions as it may determine, a Deputy Director to assist the Dire_ctor. (3) The Director or in his absence the Deputy Director, shall attend meetings of the Agency and may address such 11),eetings, but shall not vote on any matter: Provided that the person presiding at any meeting of the Agency, may for good cause, require the Director or Deputy Director.to Withdra\V from such m�cting. (4) Section shall apply, with the necessary modifications, to µie Director and the Deputy Director. eleven ' . ., �t -· ( ,.,�- , I ., i 'L . ,
Section 12Verify source
§ 13Sc-crctal)' amt other staffProvision

The Agency appoints a Secretary, and may appoint other staff. The Secretary is responsible for the day-to-day administration of the Agency under the Agency’s general supervision.

13. (1) There shall be a Secretary to the Agency who shall be appointed by the Agency on such terms and conditons as the Agency may determine. Secretary and other staff (2) The Secretary shall be responsible.for the admi�istration of the day-to-day affairs of the Agency under the general supervision of the Agency. i (3) The Agency may appoint, on such terms and conditions as it may determine, such other staff as it considers necessary for the performance ofits functions.
Section 13Verify source
§ 14Disclosure of interest by employeesProvision

Agency employees and consultants must disclose interests connected to matters relating to the privatisation programme, and the disclosure must be made to the Director.

14. (1) An employee of the Agency, or a consultant to the Agency who is, or whose spouse is, directly or indirectly interested in a private �r professional capacity, in any matter relating to the pri11atisation programme shall be required to disclose such interests. Disclosure of interest by employees r:(?';ti�:.?;'.· -1e�:�: .. ,, ,t;� . - "' • F/;::t3?·, .-(;'. ., ., , · , .. ... . ' • I _ •·, ,, l :_. • • r ! , .. . . ' ;}�··'; ,, , ' ,;,_, > J • • I.�•· " �- .,--�,;:_,t , .. ',:.: i_ ... ( 464 No. 21 of 1992] Privatisation Oath of secrecy Prohibition of publica­ tion or disclosure of information by unauthorised persons Privatisation of state owned enterprises Golden share Allotment of shores Obligations of share holders Obligations of state uwncd enterprises (2) A disclosure of interest made under this section shall be made to the Director who shall take such decision as he considers appropriate if! each casi:.
Section 14Verify source
§ 15Oath of secrecyProvision

Agency employees, consultants, Agency members, and committee members must take an oath of secrecy.

15. Toe employees of the Agency ,consultants, members of the Agency and members of a committee of the Agency shall take an oath of secrecy as prescribed under this Act. '1
Section 15Verify source
§ 16Prohibition of publication or disclosure of informationOffence

A person must not publish or disclose certain information from the Act without the Agency’s written consent, except in the course of duties.

16. (I) Nopersonshall, withouttheconsentinwritinggiver. �•;, or on behalf _of, the Agency, publish or disclose to any person, otherwise than in the course of his duties, the contents of any documents, comtmm1cation <ir info!Illation, which relates to, and which has comr ·� his knowledge in the course of his duties under this Act. (2) Any pei:i,on who knowingly contravenes the provisions of subsection (1) shall-be guilty of an offence and shall be liable upon conviction to a fine not exceeding one hundred thousand kwacha or to a te!Ill of imprisonment not exceeding five years, or to both. (3) -If any person having info!Illation which to his lfnowledge has been published or disclosed in contra·,,�ntion of subsection (1) unlawfully publishes or communicates any such info!Illation to any · person be shall be guilty of an offence and shall be liable ppon conviction to a fine not exceeding one hundred thousand kwacha or to a telill of imprisonment not exceeding five years, or to both, PART IV PROCEDURE FOR PRIVATISATION AND COMMERCIACISATION / I '
Section 16Verify source

Part

PART IV

§ 17A State owned enterprise shall be privatised in accordanceProvision

A state-owned enterprise must be privatised under the divestiture sequence.

17. A State owned enterprise shall be privatised in accordance with the divestiture sequence plr•,. . I ' I
Section 17Verify source
§ 18Toe Minister responsible for finance may, on the advice ofProvision

The Minister responsible for finance may, with advice from the National Assembly, retain a share in a state-owned enterprise and convert it into a golden share.

18. Toe Minister responsible for finance may, on the advice of the National Assembly, retain a share in a State owned enterprise and convert such share into a golden share. Toe shares of a Stale ownetl enterprise shall be alloted by
Section 18Verify source
§ 20OhligaL1�ms of holding con.par il'S and shart holderProvision

If the Agency asks, shareholders in a state-owned enterprise must give the Agency the information it requires.

20. The share holders in any State owned enterprise, when requested by the Agency, shall provide to the Agency such info!Illa- tion as the Agency may require. (1) A State owned enterprise scheduled for privatisation '
Section 20Verify source
§ 21Obligations of St:Hc ow11cd cntt ,prisesOffence

State owned enterprise personnel must follow Agency recommendations, keep records current, prepare plans and audited accounts on time, maintain a reconciled fixed asset register, avoid dissipation of assets, avoid unauthorized new capital investments, disclose information when asked, and avoid actions that may cause industrial unrest.

21. shall- ( a) carry out any recommendations, made by the Agency, for preparing the company for privatisation; (b) keeo up to date all business records and books ofaccouht; ( c) prepare a two to three years' investment and financing plan ' and a manpower development plan; • Priva1isa1ion [No. 21 of 1 992 465 (d) prepare statutory accounts and cause them to be audited not later than four months after each financial year; (e) maintain a fixed asset register which shall be reconciled with the financial statement; (f) not perfom1 any action or actions that would result in the aRscsts of the company being dissipated; (g) not undertake any new capital investment programmes, unless a project appraisal document approved by the AgeilC/, is prepared showing that- (i) routine plant, equipment and vehicle renewal is required; (ii) rehabilitation expenditure is essential to keep the ,_;µarations of the State owned enterprise run­ ning or to improve tl1e marketability of the enter prise; (iii) new capital investment has a pay back period of less than two years; (iv) capital investment will contribute to the promo­ tion of export-import c;ubstitution; (v) th,· State owned enterprise is not earmarked for divestiture within two years of the investment being completed; or lVi) tlle State owned enterprise demonstrates that the investment will not allow a deterioration of the company's operations; (h) cle:u � far as possible all contractual, legal and otller obligations; (i) not give any person information which might give undue advantage to that person or any potential investor; (j) pay all costs incidental to the privati�ation of an enterprise relating to-- (i) valuation fees; (!i) legal costs; (iii) advertising charges; (iv) marketing expenses; and (v) any other expense; (k) when requested by the Agency, disclose all or any informa­ tio11 �,out the enterprise; and (/) refrain from taking any action or actions which may cause industrial unrest. --- 466 No. 2 1 of 1 9921 Privatisation (2) Any person or officer of a State ovmed enterprise who knowingly contravenes subsection (1) shall be guilty of an offence and shall be liable upon conviction to a fine not exceeding one hundred thousand kw a cha or to a lenn of imprisonment not exceed­ ing five years, or to both. Modes of privatisation
Section 21Verify source
§ 22Modes of priva11sa1ionProvision

The Agency may use listed privatisation methods, and it must ensure each state-owned enterprise is sold for market value.

22. ( 1 ) The Agency may employ the following modes of privatisation: Valuation of .( Slate O�OO enterpnse ( a) public offering of shares: (b) private sale of shares through negotiated or competitive bids; (c) offer of additional shares in a State owned enlerprise to reduce Government share holding; ( d) sale of the assets and business of the Slate owned enter- prise; � ( e) reorganisation of the State owned enterprise before the sale of the whole or any part of the State owned enterprise; (f) management or employee buyouts by management or employees in that State owned enterprise; (g) lease and management contracts; or (h) any other method the Agency may consider appropriate. (2) The Agency shall ensure that each State owned enterprise is sold for its market value.
Section 22Verify source
§ 23Valuation of S1:11c owned cnlerpnscsProvision

Independent valuers must value State owned enterprises and issue a valuation certificate.

23. (1) The valuation of State owned enterprises shall be per­ fom1cd by independent valuers who shall issue a certificate of valuation. (2) The valuation of a State owned enterprise shall be done in accordance with the following: (a) the valuation shall be based on the current value of the Slate owned enterprise: (b) where the enterprise is not operational or the assets do not fonn part of a core of the business, the valuation shall be based on the net asset value of the State owned enter­ prise; or (c) any other prudent and acceptable valuation method. (3) The net asset value shall be based on the- ( a) valuation certificate of the market value of the real prop­ cny valued by a real estate valuer; (b) valuation certificate of the depreciated replacement value of tangible assests other than real property; or (c) a fair value of other assets and liabilities valued by a consultant ,, I I I I I I I t \ - I . I , I I I 468 No. 21 of 1992] Privati.wlli,),n -� ., )�;� ;_; . ... . , , Mmk· l,f paynll.'nl for .�lmres Nc-gtHiatiuns for uffrr of iiale C,mvt•rsion of pri\'alL· L'ompanit•s to puhliL· n,111panit·s Cap. 686 Tradirig in shares Liquid.itill()n 3 1 . Subject 10 provisions of section twenty-nine or any other wrillen law, 1he shares ora Stale owned enterprise shall not be sold on credil.
Section 23Verify source
§ 32Negotiations for offer of saleProvision

The Agency must appoint an independent negotiating team for each sale, and appointed team members must meet qualification and integrity requirements.

32. ( I ) The Agency shall appoint an independent negotiating team for each sale. (2) A person appoimed on the negOliating team shall- (a/ have proper professional quali lica1ions, experience and good business standing; (h) take an oath or secrecy; and (c) disclose any personal or professional in1ercs1 before ac- I cepting lhe appoiritmenl.
Section 32Verify source
§ 33Conversion of private companies to public companiesProvision

The Agency may convert certain non-public state-owned enterprises scheduled for privatisation into public companies, and banks or financial institutions may act as stock brokers or dealers for this Act.

33. The Agency may convert a Slat¢ owned enterprise sched­ uled for privatisation, which is not a public company, inlo a public company in accordance wiU1 the provisic\ns of the Companies Acl. _ . J.J. Not withstanding any provision in'any oll1erwri11en law and f'or purposes or 1his Acl, a bank or linancial ins1i1U1ibn may carry on the business or a stock broker or a dealer in stocks and shares. .
Section 33Verify source
§ 35LiquidationProvision

The Agency may liquidate a Slate owned enterprise, but only in accordance with the Companies Act.

35. The Agency may liquidate a Slate owned enterprise in 1 ·, ' ' Cap. 6�6 accordance with the provisions or the Companies Acl. Consuntnta· tion.of sale
Section 35Verify source
§ 36Consummation of saleProvision

The Minister responsible for finance must sign the final sales agreement for the share transfer to the selected bidder, and the transfer must follow the Companies Act.

36. ( I ) . The Minister responsible for finance shall sign the final Sales Agreement to transfer shares 10 the selected bidder. Cap. 68� Co01mcrcia). isation of specified Government departments Cap. 686 Publication or information (2) The transfer or shares shall be in accordance with the provisions of the Companies Acl. ' 1
Section 36Verify source
§ 37Commercialisation of State owned enterprisesProvision

The Minister may designate a Government department for commercialisation, and a designated department must be incorporated under the Companies Act. The designated department may also set its own charges, capitalise assets, and borrow debenture stock.

37. ( 1 ) The Minister, in consultation wi th ther Ministry respon­ sible for the departrnem 10 be commercialised, may specify, by notice in the Gazeue, any Government department for purposes of commercialisation under !his Acl. (2) A specilied Government department shall be incorporated under 1he Companies Acl. I (3) A Government department spccilied underlhis section may- ( a) fix its own rates, prices and charges.for goods and services \ provided; (b) eapilalise assets; and (c) borrow debenture stocks.
Section 37Verify source
§ 38Publication of informationProvision

The Agency must publish, in the Gazette, the names of approved State-owned enterprises to be privatised and the registered consultants, valuers, lawyers, public accountants, and merchant banks involved in the privatisation process.

38. ( 1 ) The Agency shall publish by no1;,ce in lhe Gazelle- (a) t11e names of the approved SlalC owned enlcrpriscs lo be privatised; (b) lhe regislcred consultanL�, valuers, lawyers, public ac­ counlanls and merchant banks dealing w i th the privatisation process; , . . ' Privatisation ; [No. 21 of 1992 467
Section 38Verify source
§ 24Eligible buyerProvision

Certain committee members, Agency staff, and close associates must not buy shares unless the sale is by public offer.

24. The shares in a Stale owned enterprise shall be sold 10 a citizen of Zambia or a �rson who is not a citizen of Zambia. 25. No memberormembcrs ofa comminee or any employee or consultant of the Agency or the spouse, child, mother, faUicr, brother, sisleror a professional business panncr as the case may be, oflhe employee or consultant shall purchase shares unless the s'ale is by public offer of shares.
Section 24Verify source
§ 26Political leadersProvision

Political leaders and public officers must publicly disclose their intention to bid for shares in a state-owned enterprise.

26. Political leaders and public officers shall publicly discl9sc their intention to bid for the purchase of shares in a State owned enterprise. Eligihlc huycr Sale of shares Lo cmplnyccs and consulLanl� Political lcadcrrs
Section 26Verify source
§ 27Declaration by a potential investorProvision

A potential investor must disclose a bid in a state-owned enterprise and any direct or indirect interest in it.

27. A.potcniial investor shali disclose his bid in a State owned enterprise, his direct personal interest and his indirect interest, eitherthrough share holdings or through a no.mince orotherwisc: in a $tat.e own,ed enterprise.
Section 27Verify source
§ 2829. Purchase of shares by citizens of ZambiaProvision

An established fund may buy shares in a state-owned enterprise for its contributors if the contributors consent.

28. An established fund'may, with aconscntoflhecontributors, purchase shares in a State owned enterprise on behalf of the contributors. .
Section 28Verify source
§ 29Purchase of shares by citizens of ZambiaProvision

The Minister responsible for finance must establish a Privatisation Trust Fund, and the Government must hold shares in trust for citizens of Zambia after a state-owned enterprise is privatised.

29. ( l ) The Minister responsible for finance shall establis� a Privatisation Trust Fund in which the Government shall hold shares in trust for citizens of Zambia for divcsture after a State owned enterprise has been privatised. ': Dcclaraticin by potential-. investor Estahlishcd fund Purchase of shares by citi:t.cns ,,r Zambia (2) The �ollowing shall apply 10 citi:t.cns of Zambia- (aJ shares may be offered at a discount 10 persons who pur_giase a small number or'shares; (b) a share bonus shall be given al the end of a prescribed period 10 small shareholders who hold onto shares; 1 (c) individuals, management and employees of the Stale owned enterprise may pay for shares in instalmenL�; or (d) individuals may panicipate in the acquisition of shares which have been transferred in a State owned enterprise to a Privatisation Trust Fund which shall be established under this Act.
Section 29Verify source
§ 30Foreign investorsProvision

Foreign investors may qualify for Investment Act incentives when they acquire shares in a state-owned enterprise, subject to stated conditions. Shares of a state-owned enterprise must not be sold on credit, subject to section 11 or other written law.

30. Foreign investors shall be entitled to incentives under the Investment Act if such investor acquires shares .in a State owned. enterprise wherc-- Foreign investors Acl No. 19 of 1991 ( a) expenise is needed.,to upgrade efficiency of that State owned enterprise; .I · (b) participation is necessary to promote the expon market; ( c) the i;iature of business requires global linkages and interna­ tional exposure; or ' . ( d) capital investment or foreign technology is required to expand the capacity of the business operations. . •':/ � . •.-: ... ,, . �I,' '�·)i · ' ' • - j . ,�"' . . ,, ., l ' ,., I ' ., . 11': :, ' i \ ,1 / j , l \ .. ��=�;;;;�;;;;;;;�=,;;;��� :::;;:===·=--=-=-:;-=!=-=-=· ======-' , I " \ ' 461! . Mmk of p;1ymcnl for sh:irl'S Nt.•�otia1iuns foroff1.•r of iialc i o C'llnvcrsion of pri\'al1: C<llllpanics / puhlic <.·,nl1pani�7' C'ap. 686 / g1m . Tra_tli shares / ' I I ' l} ' Liquida1iu,m ' Cap.:6X6 J C'(msunun.1- 1ion' of sale f I I - Cap. 686 ' C(immcrcial- I I ·'-" i/ation. of specified <hovcmmcnt departments / i �ap. 686 I I \ \,.-· Publication of information - P . . . \ rl\,'U/ISllll()n · · ' I /,s b . . \ :' · / u �ect 10 prov,smns o secuon 11 o r any other wn110n law. lhe slmres or a State owned cnterpnsc shall not 11c sold on cfadil. lz. Mcn1_1·-mnc \ I ) The Agency shall appoint �n indepcndem negotiating f 1dm for each sale. I ·· (2) A person appointed on the ncg�liating team shall- /a) (hi (cl have proper professional qualifications, experience and good business standing:! I take an o:uh or secrecy; and disclose any personal of professional interest ilcfore ac- cepting the appointment. ',
Section 30Verify source
§ 33Conversion of private companies to public companiesProvision

The Agency may convert a state-owned enterprise scheduled for privatisation into a public company, if it is not already a public company and the conversion follows the Companies Act.

33. The Agency may confcrt a Stat4 owned enterprise sched­ uled for privatisation, which /� not a public company, into a public ancc v c ·companics Act. company in acconl r _ � io ns of \ (u1e p � 7 1
Section 33Verify source
§ 34Trading in sharesProvision

A bank or financial institution may act as a stock broker or dealer in stocks and shares for purposes of this Act, despite any other written law.

34. Not witl1standing any provision i�anyothcrwrittcn law and for purposes of this Ac\fa hank or financial institution may carry on the business or a stocf broker or a dealcr,in stocks and shares.
Section 34Verify source
§ 35LiquidationProvision

The Agency may liquidate a state-owned enterprise under the Companies Act.

35. The Agency may liquidate a State owned enterprise in �. ' . accordance with U1{ provisions of the Companies Act. / I
Section 35Verify source
§ 36Consummation of saleProvision

The Minister responsible for finance must sign the final Sales Agreement to transfer shares to the selected bidder.

36. ( I ) The �/nister responsible for finance shall sign the final Sales Agreement to transfer shares lo the selected bidder. provisions of ,tile Companies Act. (2) The trarlrcr of shares shall be i� accordance with the .J 1
Section 36Verify source
§ 37Commercialisation of State owned enterprisesProvision

The Minister may, after consulting the Ministry responsible for the Gazette, specify a Government department for commercialisation. A specified department must be incorporated under the Companies Act and may set its own rates, prices and charges, capitalise assets, and borrow debenture stock.

37. ( I ) Tile Minister, in consultation wi th ther Ministry respon­ dcpanmenl to be commercialised, may specify, by sible for thc Gazelle, any Government department for purposes or notice in th6 commerci/!isation under this Act. ·! , (2) A specified Government department shall be incorporated 0 under the' Companies AcL ·, (3) / Government department specified u�derlhis section may­ (h) fix its own rates, prices and charges for goods and services 1 /h) (c) provided; \ i\ capitalise assets; and borrow debenture stocks.
Section 37Verify source
§ 38Publication of informationProvision

The Agency must publish a notice in the Gazette with specified privatisation information, and interested persons must make claims to the Agency within 30 days after that notice.

38. (1) The Agency shall publish by notice in the , Gazelle­ ( a) the names of the approved State owned enterprises to be (b) privatised; : the registered consultants, valuers, lawyers, public ac­ countants and merchant banks dealing with the privatisation process: -----------------....c...------ [No. 21 of 1992 Privatisation 469 t (c) the bidders and bid prices; ( d) the successful bidders and the reason for selecting such bidders; ( e) the price of shares and any other special conditio!ls of the sale of shares; and (f) any other mallers deemed appropriate. I (2) Any person with an interest in a State owned enterprise to be privatised, shall make a claim to the Agency within a period of tl1iny days after the notice referred to in subsection'(]) is published. I . (3) Any person having an interest in a State owned enterprise and who docs not make a claim within fourteen days of the notice rc.frrrcd to in subsection (I} shall be deemed to have relinquished ·•· .. ',,,�:: :1::::: �;.::::��:::'"'"� ' . • � .! • • ,. • ! ' ·. . . ·391 (I)' Any'proceeds from completed salcs ofshares and assets Use "r :shall 'be paid into a Privatisation Revenue Account established by proceeds . . , .,.. I .:· ''. · ··,, i_'. .· ' : · .. ,, ·•!he !vlinislerresponsible for finance and held at the Bank ofZambia. · . · , · · ·:(2), With the prior approval of the Minister responsible for finance the proceeds of sale referred to in subsection (I) may be used for- 1 (a) funding the cost of privatisation and the Privatisation Trust Fund; A . , . ' . ��- � c.f . <'I;- , •� ;\ . ' _;� •• - > l l j .;.I (b) initial financing of mutual funds; (c).expanding existing productive capacities; ( d) financing crcdil crea1ion by the Government for Zambian investors; ( e) rehabilitating existing plants; (f) s11ppo11i11g Jll"W rnpiliil illYPSJIJll!fll�i (g; fun�ing rhc restructuring of Stare owned enterprises lo be _ pnva11scd; 1 (!i) sup�orting rcdunctancy payment schemes in consul1:11ioii (i) surp�ning alternative income generating ;rojects: or (J) fu�dmg of any social project that will be in the public : mtcrcsl. wllh the Minislry responsible for labour· 1
Section 38Verify source
§ 40Funds of AgencyProvision

The Agency’s funds may come from appropriations, grants or donations, retained sale proceeds, and money that vests in or accrues to it; the Agency may also raise loans, charge fees, and invest unused funds.

40. (I) Subject lo section rhiny-nine the lunds of th , A • c9ns1st o such moneys as may- f Sh·tll . · · . c gency (�) be appropriated by Parliament, for the purposes: of the . ' . Agency· i i .. F,,n,I•. ,,r Agency I • • I LJ (, J I I ' . I \! • ; I 1: I i ' ,\ i ! I I ' 470 No, .21 of 1992] Privatisation (b) be paid to the Agency by way of grants or donations; ( c) be retained by the Agency from the proceeds of sale as may . . be approved by the Minister responsible for finance; and ( d) vest in or accrue to the Agency. (2) The Agency may- [ ( a) accept money by way of gtallts or donations from any source in Zambia; (b) raise money by way of loans from any source in Zambia . and, subject to the approval of the Minister, from any source outside Zambia, such moneys as it may require for the discharge of its functions; and (c) charge and collect fees in respectofprogramm�s. publica­ tions, seminars, documents, consultancy seivices and other seivices provided by the Agency. (3) There shall be paid from the funds of the Agency- ' . ( a) the salaries and allowances of the staff of the Agency; ib) such loans to members of staff as may be approved by the · Agency; ! ( c) such reasonable travelling, transport and other allowances for the members of the Agency or a committee of the Agency when engaged on the business of the Agency at such rates as the Agency may, with the approval of the Minister, determine; and j ( d) any other expenses incurred liy the Agency in the perfor- , ., mance of iL� functions. (4) The Agency may invest in such,mannePas it thinks fit such of its funds as it docs not immediately require for the performance of its functions. · · j · · Financial year Accounts
Section 40Verify source
§ 41The financial year of the Agency shall. be the period ofProvision

The Agency’s financial year is 12 months ending on 31 December each year.

41. The financial year of the Agency shall. be the period of I twelve months ending 31st December, in each year. I
Section 41Verify source
§ 42AccountsProvision

The Agency must keep proper books and records, have its accounts audited every year by independent auditors it appoints, and pay the auditors’ fees.

42. (1) The Agency shall'cause to be kept proper books of account and other records relating to its accounts. (2) The accounts of the Agency shall be audited annually by · independent auditors appointed by the Agency.' (3) The auditors' fees shall be paid by the Agency._
Section 42Verify source
§ 43Annual ReportProvision

The Agency must give the Minister an annual report within six months after the financial year ends, and the Minister must table it in the National Assembly within seven days after the next sitting. The report must include audited financial statements and other appropriate information, and it must be published for sale to the public.

43. (I) As soon as practicable, out not later than six months after the expiry of the financial year, the Agency shall submit Lo the Minister a report concerning its activities.during.the financial.year. 0 Annual rcpcirts ' ' l" . ®'l t s (. l' , i ·'· ' .,. (2) the report referred lei in subsecticin (!)'shall include l/lforma- affairs of the Agency and there shall be . tion on the financial appended to the report- i \ i Privatl<ation i [No. 21 of 1992 471 ( a)_ an audited balance sheet; (b) an audited statement of income and expenditure; and ( c) such other information as the Agency may cqnsider appro- priate. (3) The Minister shall, not later than seven days after the' first sitting of the National Assembly next, after receipt of the report referred to in subsection (1), lay it before the National Assembly. (4) Th<;: report shall be published for sale to the public.
Section 43Verify source
§ 44Progress ReportProvision

The Agency must send activity reports to the Minister twice a year, publish the report for sale, and the Minister must lay the report before the National Assembly within 7 days of its next sitting after receipt.

44. (1) The Agency shall submit a report, at the end of June and at the end of December of each year, on its activities to the Minister giving details of bids received and reasons for preferring the successful bid. (2) The Agency shall publish the report for sale to the public. (3) The Minister shall, not later thali seven days after the first sitting of the National Assembly next, after receipt of the report referred to in subsection (!), Jay it before the National Assembly.
Section 44Verify source
§ 45Vesting of property in AgencyCommencement

Property acquired for the privatisation programme vests in the Agency after the Act commences.

45. Any property, real or personal procured or acquired for the purposes of the privatisation programme shall, after the commence­ ment of this Act, vest in the Agency.
Section 45Verify source
§ 46Procurement of goods and servicesProvision

The Agency’s procurement is not subject to two named Acts, but higher-value purchases need committee approval and lower-value purchases need management tender committee approval.

46. (1) The procurement of goods and services of the Agency shall not be subject to the provisions of the Zambia National Audit Corporation Act and U1e Zambia Natiqpal Tender Board Act: Provided that the procurement of goods and services above lwo million kwacha or ten thousand United States Dollars shall be approved by a committee of the Agency and the procurement of goods and services below two million kwacha or ten thousand United States Dollars shall be approved by a management tender committee of the Agency. ' i (2) The' Agency shall, in procuring the goods and services, approve increases to the kwacha amount based on the percentage of the official rate of inflation. '
Section 46Verify source
§ 47ArbitrationProvision

Disputes arising from the U1e privatisation process must be settled by arbitration.

47. Any dispute arising from U1e privatisation process shall be settled by arbitration in accordance with the Arbitration Act.
Section 47Verify source
§ 43Annual ReportOffence

A person who knowingly falsifies information, withholds material facts, or solicits confidential information about the privatisation of a State owned enterprise commits an offence.

43. (I) A person who knowingly falsifies any information or knowingly docs not disclose any material facts or solicits for his own use or as agent of any other person any confidential information relating to the privatisation of a State owned enterprise shall be guilty of an offence and shall be liable on conviction to a fine not exceeding two hundred and fifty thousand kwacha or to imprison­ ment for a term not exceeding five years, or to both. Progress report Vesting of the propeny of Agency Procurement of goods and services Act No. 32 of 1982 Act No. 30 of 1982 Arbitration Cap. 180 Penalties for falsification of information i • > 472 No. 21 of 1992] Privatisation (2) A person foW1d guilty under subsection (1) shall not thereafter participate in the 2urchase of shares in any State owned enterprise. I ' .1 Regulations
Section 43Verify source
§ 49RegulationsProvision

The Minister may, on the Agency’s advice, make rules by Statutory Instrument on sale and tender procedures, forms, fees, and related matters.

49. The Minister, on the advice of the Agency, may by Statutory Instrument prescribe the-- sale tender procedures; ( a) (b) public flotation procedures; (c) pre-qualification and registration of bidders procedures; (d) public announcement requirements; ( e) tender evaluation procedures; (f) tender selection procedures; (g) negotiation guidelines; (h) final sale monitoring guidelines; (i) pre and post sale audit requirements; U) any forms for the purpose of this Act; (k) any fees payable in respect of any service provided by the Agency; and ' (/) such other matters as are necessary or conducive to the Prior leases and agreements better carrying out of the purposes of this Act.
Section 49Verify source
§ 50Prior leases and agreementsProvision

Leases and agreements made for enterprises to be privatised under this Act, and made in anticipation of the Act starting, are nullified.

50. All leases and agreements entered into in relation to enter­ prises to be privatised under this Act and in anticipation of the coming into force of this Act are hereby nullified. i'' I I tJ I ! I ' ; ' I , i ,' :I ,, ! •
Section 50Verify source

Legislative relationships

4 referenced instruments

Names are derived from the stored provision headings and citation-enrichment layer. Treat this as a research index and verify each relationship against the source text.

A–F

4 instruments

  • Agency and members of a committee of the Agency shall take an oath of secrecy as prescribed under this Act

    Section 15

  • Agency Procurement of goods and services Act

    Section 43

  • Agency shall not be subject to the provisions of the Zambia National Audit Corporation Act

    Section 46

  • Companies Act

    Section 35

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  • 31 Dec 1996 · currentEnglish

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Statute information is organised from identified legislative sources for professional research. Corrections can be reported to hello@esheria.ai.