3. In this Act, unless the context otherwise requires— Act No. 15 of 2010 Act No. 13 of 2008 “ Agency ” means the Patents and Companies Registration Agency established in accordance with the Patents and Companies Registration Act, 2010; “ accounts ” means the financial statements of a company together with accompanying notes, but does not include an auditors’ report or annual report of the company; “ accountant ” means a person qualified in the theory and practice of accountancy, audit, tax consultancy and tax advisory registered in accordance with the Accountants Act, 2008; “ accounting records ” include— (a) invoices, receipts, orders for the payment of money, bills of exchange, cheques, promissory notes, vouchers and other documents of prime entry; and (b) such working papers and other documents as are necessary to explain the methods and calculations by which accounts are made up; “ accounting period ” means the period in respect of which the financial statements of a company or other body corporate are made up, whether that period is a year or not; “ address ” means a place where an individual or company is located and in the case of the address of— (a) an individual, includes the full address of the place where that person usually lives; and (b) a company, includes its registered office or its principal place of business; “ alternate director ” means a director specified in section 97; “ amalgamated company ” means a company that comes into existence as a result of an amalgamation as specified in section 282; “ amalgamation ” means the combination of two or more companies to form a new body corporate as provided for in section 282 and the word amalgamating shall be construed accordingly; Companies [No. 10 of 2017 407 “ annual accounts ” means the annual financial statements of a company that give an accurate and correct view of the financial performance, financial position and cash flows of the company, and includes consolidated financial statements for a group which give a true and fair view of the group’s financial performance, financial position and cash flows; “ annual general meeting ” means a yearly meeting of a company convened as provided for in section 57; “ annual report ” means a report of the affairs of a company that is prepared annually as provided in this Act; “ annual return ” means a return that is prepared and lodged in accordance with section 270; “ arrangement ” means the re-organisation of the share capital of a company by the consolidation of shares of different classes, division of shares into shares of different classes or other methods intended to alter the shares; “ articles ” means the articles of association incorporating the internal governing rules of a company as provided for in section 25; “ auditor ” has the same meaning assigned to the word in the Accountants Act, 2008 and other written laws relating to the regulation of auditors and appointed to perform auditing functions for a company; “ auditor’s report ” means a report provided for in section 259; Act No. 13 of 2008 “ Bank ” means the Bank of Zambia established in accordance with the Bank of Zambia Act; Cap. 360 “ beneficial owner ” means a natural person who— (a) directly or indirectly, through any contract, arrangement, understanding, relationship or any other means ultimately owns, controls, exercises substantial interest in, or receives substantial economic benefit from a body corporate; or (b) exercises ultimate and effective control over a legal person or legal arrangement; and the terms “ beneficially own ” and “ beneficial ownership ” shall be construed accordingly; “ board of directors ” means persons appointed or nominated as directors of the company whose number is not less than the required quorum acting together as a board or, if the company has one director, that director acting alone; 408 No. 10 of 2017] Companies “ body corporate ” means an entity incorporated in accordance with any other written law, other than a corporate sole; “ book ” includes a book of accounts, deed, register, document, accounting record, and record of information, whether compiled or recorded, stored in written or printed form, or produced through electronic, photographic or other process; “ certificate of incorporation ” means a certificate issued to a company by the Registrar in accordance with section 14 or a replacement of the certificate issued in accordance with this Act; “ certificate of share capital ” means a certificate issued to a company by the Registrar in accordance with section 14 or a replacement of such a certificate issued in accordance with this Act; “ certified true copy ” means— (a) a copy or extract of a document, certified as a true copy of the original document in a manner approved by the Registrar; (b) in relation to a translation of a document in a language other than English, a document certified as a true copy of the original document in a manner approved by the Registrar; “ charge ” includes— (a) a security interest or security agreement; (b) a mortgage or an agreement to give or execute the mortgage whether on demand or otherwise; (c) a debenture; or (d) an agreement for sale and purchase of land under which the seller remains in occupation, until such time as the whole of the purchase price is paid; “ chief executive officer ” means the person who is responsible, under the immediate authority of the board, for the day to day management of the affairs of the company; “ citizen ” means a citizen of Zambia; “ class ” means a class of shares which have the same rights, privileges, limitations or conditions attached to the share; Companies [No. 10 of 2017 409 “ class meeting ” means the meeting of members of a particular class as provided for in section 60; “ company ” means an entity incorporated in accordance with this Act and section 6 of the repealed Act; Cap. 388 “ company’s book ” means a book belonging to a company; “compromise” means an agreement for the settlement of a real or supposed claim in which each party surrenders something in concession to the other; “ control ” means the control of a company by a person who— (a) beneficially owns more than twenty-five percent of the issued share capital of the company; (b) is entitled to vote a majority of the votes that may be cast at a general meeting of the company, or has the ability to control the voting of a majority of those votes, either directly or through a controlled entity of that person; (c) is able to appoint or to veto the appointment of a majority of the directors of the company; (d) is a holding company and the company is a subsidiary of that company as provided for in this Act; (e) in the case of a company that is a trust, has the ability to control the majority of the votes of the trustees, to appoint the majority of the trustees or to appoint or change the majority of the beneficiaries of the trust; or (f) has the ability to materially influence the management policy or affairs of the company in a manner comparable to a person who, in ordinary commercial practice, can exercise an element of control referred to in paragraphs (a) to (e); “ corporate ” means an entity, including a company or body corporate, that is separate and distinct from its owners and which is recognised as such by law and acts as a single entity; “ Court ” means the High Court for Zambia; “ creditor ” means a person entitled to claim a debt owing to that person by a company; “ current liability ” means a liability that would, in the ordinary course of events, be payable within twelve months after the end of the financial year to which the accounts or group accounts relate; 410 No. 10 of 2017] Companies “ debenture ” means a document issued by a corporate that evidences or acknowledges a debt of the corporate, whether or not it constitutes a charge on property of the corporate in respect of money that is or may be deposited with or lent to the corporate, and includes a unit of a debenture, debenture stock and bonds and any other security issued by the corporate, whether constituting a charge on the assets of the corporate or not, other than a— (a) document acknowledging a debt incurred by the corporate in respect of money that is or may be deposited with or lent to the corporate by a person in the ordinary course of business— (i) carried on by the person; and (ii) of the corporate as is not part of a business of borrowing money and providing finance; (b) document issued by a bank in the ordinary course of that evidences or its banking business acknowledges indebtedness of the bank; (c) cheque, order for the payment of money or bill of exchange; or (d) document of a kind and in the circumstances prescribed in regulations issued by the Minister; “ debenture holder ” includes a debenture stockholder; “ declaration of guarantee ” means a statement made by a member of a private company limited by guarantee as specified in section 10; “ deregistration ” means the removal, from the Register of Companies, of a dormant or wound up company; “ designating number ” means the registration number assigned to a company or foreign company by the Registrar on incorporation or where the Registrar directs that the name of an existing company be changed in accordance with this Act; “ director ” means a person appointed as a member of the board of directors and includes an alternate director, by whatever name designated; “ dividends ” means the amount of money to be divided among shareholders out of the profits arising or accumulated from the business of the company as specified in section 159; Companies [No. 10 of 2017 411 “ document ” means written, printed or electronic material that provides information, evidence or material content, and includes— (a) any writing, mark, figure, symbol or perforation on any material; (b) a book, graph or drawing; (c) information recorded or stored by electronic means or on a technological device and capable of being reproduced; “ dormant company ” means a company which is not carrying on business or is not in operation from the date of incorporation or for a prescribed period; “ entitled person ” means a member or other person recognised under the articles as enjoying a shareholder’s rights and having a shareholder’s obligations; “ equity share ” means a share classified as part of the equity share capital of a corporate; “ established place of business ” means a place of business of a foreign company in accordance with section 300; “ executive director ” means a director who is involved in the day-to-day management of a company; “executive officer” means the chief executive officer, chief financial officer or a person holding a managerial position; “existing foreign company” means a body corporate incorporated outside Zambia which immediately before the commencement of this Act was registered as a foreign company in accordance with the repealed Act; “ expert ” includes a person belonging to a profession or calling and whose statement on a subject matter is authoritative; “ extraordinary general meeting ” means a special meeting of a company as specified in section 59; “ extraordinary resolution ” means a resolution passed by a majority of not less than seventy-five percent of the votes of the members entitled to vote in person or by proxy at a meeting duly convened and held; “ fair value of shares and debentures ” means the prevailing market value of shares and debentures on an open market; 412 No. 10 of 2017] Companies Act No. 7 of 2017 “ financial assistance ” means assistance given by way of— (a) gift; (b) guarantee, security or indemnity, other than an indemnity in respect of the indemnifier’s own neglect or default, or by way of release or waiver; (c) a loan; (d) any agreement under which any of the obligations of any other party to the agreement remains unfulfilled; (e) innovation of, or the assignment of, any rights arising under any such loan or agreement; or (f) any other means, given by a company which does not have net assets, or which reduces the net assets of the company to a material extent; “ financial institution ” has the meaning assigned to the words in the Banking and Financial Services Act, 2017; “ financial statement ” means a statement of financial position or income statement that summarises a company`s financial position as at that balance sheet date by reporting on the assets and liabilities of the company, together with any notes or documents relating to the statement of financial position or income statement, including a statement of accounting policies; “ financial year ” means, in relation to— (a) a company, the period, that begins on the first or subsequent accounting date, whether or not it constitutes a period of twelve months; (b) a foreign company, the financial year of the foreign company as specified in section 301; and (c) any other body corporate, the period specified in the law establishing or incorporating the body corporate; “ first accounting date ” means the date the company or foreign company was incorporated or registered, as the case may be; “ foreign company ” means— (a) a body corporate formed outside Zambia that has been registered under this Act; or (b) an existing foreign company, subject to section 297; Companies [No. 10 of 2017 413 “ group financial statements ” means a consolidated statement of financial position for a group of companies as at that statement date, together with any notes or documents relating to the statement of financial position or income statement, including a statement of accounting policies; “ group of companies ” means a holding company and its subsidiaries; “ holding company ” means a company that controls another company; “ interest group ”, means a group of shareholders— (a) whose affected rights are identical; (b) whose rights are affected by the action or proposal in the same way; and (c) subject to section 135 (1) (b), who comprise the holders of one or more classes of shares in the company; “ interests register ” means a register kept and maintained by a company in accordance with this Act, into which a declaration of interest of a director or shareholder is recorded regarding any business of a company is recorded; “ invitation to the public ” means an offer of, or an invitation to make an offer for, or the issue of any kind of application form for, shares or debentures of a company, on the condition that a person who accepts the invitation may not renounce or assign the benefit of any shares or debentures to be obtained thereunder in favour of any other person, but does not include an invitation made— (a) to not more than fifteen persons; or (b) exclusively to existing shareholders, debenture holders or employee of the company; “ legal practitioner ” has the meaning assigned to the words in the Legal Practitioners Act; Cap. 30 “ liabilities ” includes any amount retained as reasonably necessary for the purpose of providing for any liability or loss which is either likely to be incurred, or certain to be incurred but uncertain as to amount or as to the date on which it will arise; “ liquidator ” has the meaning assigned to it in the Corporate Insolvency Act, 2017; Act No. 9 of 2017 414 No. 10 of 2017] Companies “ local director ” means a director of a foreign company who is resident in Zambia and empowered and authorised to conduct and manage the affairs, property, business and other operations of the company in Zambia; “ meeting ” means an annual general meeting, extraordinary general meeting or class meeting as the case may be; “ member ” means a shareholder or stockholder of a company or a subscriber to a company limited by guarantee; “ net assets ” means the amount by which the aggregate amount of the company’s assets exceeds the aggregate amount of its liabilities taking the amount of both assets and liabilities to be stated in the company’s accounting records; “ nominee ” means a person entitled to exercise a right in accordance with instructions given by another person; “ non-executive director ” means a director who is not involved in the day-to-day management of a company; “ officer ” includes— (a) a director, company secretary or executive officer of a company; or (b) a local director; “ ordinary resolution ” means a resolution passed by more than half of the votes cast by the members entitled to vote in person or by proxy at a meeting duly convened and held; “ person concerned ” means— (a) a person who is or has been employed by a company as a director, banker, accountant, legal practitioner or the Registrar; or (b) a person who, or in relation to whom, there are reasonable grounds for suspecting that the person— (i) has, in the person’s possession, any property of a company; (ii) is indebted to a company; or (iii) is able to give information concerning the promotion, formation, management, dealings, affairs or property of a company; “ pre-emptive rights ” means a shareholder’s privilege to purchase newly issued shares before the shares are offered to the public in amounts proportionate to the shareholder’s current holdings; Companies [No. 10 of 2017 415 “ private company ” means an entity incorporated as a private company in accordance with section 6 or the repealed Act and which fulfils the requirements stipulated in section 8; “ private company limited by guarantee ” means an entity incorporated in accordance with section 6 or the repealed Act and which fulfils the requirements stipulated in section 10; “ private company limited by shares ” means an entity incorporated in accordance with section 6 and satisfying the requirements of section 9; “ private unlimited company ” means a company incorporated in accordance with section 6 and which fulfils the requirements of section 11; “ property ” means property of every kind, whether tangible or intangible, real or personal, corporeal or incorporeal, and includes all rights to property, whatever their nature; “ prospectus ” means a notice, circular, brochure, advertisement, publication or request issued in a document inviting applications or offers from the public to subscribe for, or purchase of, a share in, or debenture of, a company or proposed company, and includes a statement attached to or intended to be read with the prospectus; “ public company ” means an entity incorporated as a public company in accordance with section 6 and which fulfils the requirements stipulated in section 7; “ receiver ” has the meaning assigned to it in the Corporate Insolvency Act, 2017; “ religious activity ” means an activity which primarily promotes or manifests a particular belief in, and reverence for, God or a deity, or which proclaims a particular belief; “ registered accountant ” means an accountant registered in accordance with the Accountants Act, 2008; “ registered ” means entered in a register; “ Register of Beneficial Owners ” means the Register of Beneficial Owners kept and maintained at the Agency in accordance with this Act; “ Register of Companies ” means the Register of Companies kept and maintained at the Agency in accordance with this Act; “ register of members ” means a register of members and kept and maintained by a company in accordance with this Act; Act No. 9 of 2017 Act No. 13 of 2008 416 No. 10 of 2017] Companies Act No. 15 of 2010 “ registered office ” means, in relation to a— (a) company, the registered office of the company as provided in section 28; and (b) foreign company, the established place of business of the company as provided in section 300; “ Registrar ” means the person appointed as Registrar in accordance with the Patents and Companies Registration Agency Act, 2010; “ related company ” means any one of two companies— (a) which is a subsidiary of the other; (b) which is a holding company of the other; or (c) both of which are subsidiaries of another company; Cap. 388 Act No. 26 of 1994 “ repealed Act ” means the Companies Act,1994: “ seal ” means the common seal of a company or other Act No. 9 of 2017 Act No. 3 of 2016 Act No. 3 of 2016 corporate; “ secretary ” means in relation to a— (a) company, a person appointed as the secretary in accordance with section 82; or (b) corporate, other than a company, a person occupying the position of secretary, by whatever name called; “ secured creditor ” has the meaning assigned to the words in the Corporate Insolvency Act; “ security agreement ” has the meaning assigned to the word in the Movable Property (Security Interest) Act, 2016; “ security interest ” has the meaning assigned to the words in the Movable Property (Security Interest) Act, 2016; “ shareholder ” means a person whose name— (a) is entered in the share register as the holder of one or more shares in a company; (b) appears in the application for incorporation as a promoter of a private company; or (c) appears in an amalgamation proposal and is entitled to have the name entered in the share register of the amalgamated company; “ share ” includes stock; “ share and beneficial ownership register ” means the register of shares and beneficial ownership of a company as provided in section 195; Companies [No. 10 of 2017 417 “ small private company ” means any business enterprise whose total investment, excluding land and buildings, annual turnover and the number of persons employed by the enterprise, does not exceed the prescribed numerical value; “ solvency test ” means a test to determine that— (a) a company is able to pay its debts as they become due in the normal course of business; and (b) the value of the company’s assets is greater than the value of its liabilities, including contingent liabilities; “ special resolution ” means a resolution passed by not less than seventy-five per cent of the votes of members of a company, entitled to vote in person or by proxy at a meeting duly convened and held at which the resolution is moved as a special resolution, or such higher majority percentage as the articles of association may require; “ Standard Articles ” means the recommended articles set out in the First and Second Schedules; “ subsidiary ” means a corporate that is a subsidiary of another corporate as provided by section 185 and includes a— (a) company in which the holding company holds more than half in value of the equity share capital, whether the company is incorporated in a jurisdiction that has or does not have nominal value for share capital; (b) company of which the holding company is a member, and whose composition of board of directors is controlled by the holding company; and (c) subsidiary of a company which is itself a subsidiary of a holding company in accordance with paragraph (a) or (b); “ subsequent accounting date ” means the— (a) dates specified, in that application for incorporation of the company as the financial year of the company and the anniversaries of the dates of the financial year specified in the application; or (b) anniversaries of the first accounting date, specified in the application for incorporation; “ substantial risk of serious loss ” means a risk of such a nature or degree that if disregarded will constitute a gross deviation from the standard of care that a reasonable person would exercise; 418 No. 10 of 2017] Companies “ waiting period ” means the period of seven days after the first publication of a prospectus which has been registered, or such longer period after that date as may be stated in the prospectus as the period before which the expiration of applications, offers, or acceptances in response to the prospectus shall not be accepted or treated as binding; and “ wholly owned subsidiary ” means a company with no members other than— (a) the holding company and its nominees; or (b) companies which are themselves wholly owned subsidiaries of the holding company or their nominees.