Development Bank of Zambia (Amendment) Act, 2005

4. Section four of the principal Act is amended- (a) by the deletion of subsection (6) and the substitution therefor of the following new subsection: ( 6) A person shall not be appointed to, or continue to hold office on, the Board of Directors unless the person satisfies the requirements for appointment as stipulated in subsection (1) of section thirty-one of the Banking and Financial Services Act; (b) in subsection (11) by the insertion of the words " in addition to the requirements of the Banking and Finance Services Act " before the words " whenever the Board "; (c) by the deletion of subsection (12); and (d) by the renumbering of subsection (13) as (12). Amendment of section 8

5. Section eight of the principal Act is amended by the deletion of subsection (3) and the substitution therefor of the following: Cap. 388 (3) Subject to the other provisions of this Act, the Board may delegate any of its powers to the Managing Director to the same extent that the Board of directors of a company incorporated under the Companies Act may confer powers on the managing director of such company: Provided that any delegation of power by the Board to. the chief executive officer shall not.diminish the responsibility ·ofthe B9ard for the management of.the Bank. A�endment .ofscction,J2,

6. · · Section twelve of the principal Act is• amehded·-· . '. (a) by the niutibering'ofthe paragraph in that.sectim,-�;: subsectio1;1 (1 ); Jb) by.the in�erti(ln in subsection (l)ofthe wo�_ds ;'Subject to: ' the prci.;,{sfons of the Banking and Finandai Sei-vites . . . : · . Act " and.a comma before· the. words " The business of · · - the Bank�;. arid -.. · · · -- .. ,·- - · · • � .. ,., .. 0 • • • -- . ,. - Cap. 387 ,. �--::·�· . ,,. ---... - - -- - . .•,., _, "' ,,·. ,,. . . . . ... ,. ··. ' ' . ' · Development Bank of [No. 24 of2005 183 Zambia (c) by the insertion immediately after subsection (1) of the -..... ' ; .. followirignew subsection: · ' i'.,',,., \., � (2) The business of the Bank shall be conducted in complianse with this Act and.with the Banking and Financial Services Act.

7. Section fifteen of the principal Act is amended by the insertion in paragraph (e) of the wm:ds " subject to section sixty­ nine of the Banking and Financial Services Act " and. a comma before the words " the payment of such dividends ". Amendment of section 15

8. Section seventeen of the principal Act is amended in subsection (3) by the insertion of the following new proviso: Amendment of section 17 Provided that the limitations on the Bank's lending as specified in paragraph (a) or (b) of this section shall be in addition to the limitation placed on the Bank by the Banking and Financial Services Act.

9.,, Section twenty-three of the principal Act is amended- (a) in subsection (2) by the insertion of a comma and the words " subject to section sixty-three of the Banking and Financial Services Act" after the words" financial year shall "; (b) in subsection (3) by the deletion of the word" Minister" and the substitution therefor of the words " Bank of Zambia." (c) in subsection ( 4) by the insertion after the words "income and expenditure of the Bank" of the words" and shall be entitled to require from the members of the Board, the chief executive officer or any person concerned in the management of the .Bank such information and explanations as th� audito_r requires to perform the auditor's duties under.this Act. "; and (d) by the insertion inunediately afler subsection (4) ,of the followingnewsubsectic;ms:. ( 5) An auditor appointed under tli.is section shall submit to. tli.e Board _a report written in accordance '·-�vit,h subsection' (2} of,.seciioil sf:,;ty-four �f the · Banking and Financial Services Act. .... , .......... . :,:!. - •---�"� .. --•�•-. a,.··-· • •-•" ..... .. • ·.•. :. .. : Cap. 387 Amendment of section 23 Cap,.387- . . -,- . J " ... , .•. ... :.:•,-·- ... ·- '·· 184 No. 24 of2005] Development Bank of Zambia -- (6) TheBoard shall, within three monthsfromthe end of e_ach financial year, submit a copy of the report of the auditor, together with a copy of the annual fmancial statement to the Bank of Zambia. Insertion of new Part VA

10. The principle Act is amended by the insertion immediately after Part V of the following new Part: Insolvency Cap. 387 Cap. 387 Effect of dissolution of Bank INSOLVENCY AND DISSOLUTION

24A. (1) In the event of the Bank becoming insolvent the Bank of Zambia may in accordance with Chapter VII of the Banking and Financial Services Act dissolve and liquidate the Bank. (2) In subsection (I) insolvency has the meaning assigned to it by section eighty-six of the Banking and Financial Services Act.

24B. Where the Bank is dissolved under section twenty­ /our A this Act shall be repealed. ,-- --· . ,;, ',:t ';· •'I_,. • .