Title: The corporate governance perils of Zimbabwe's Indigenisation Economic Empowerment Act 17 of 2007
Authors: Aubrey Sibanda
Addresses: Tswane University of Technology, Private Bag X680, Pretoria 0001, South Africa
Abstract: Zimbabwe's Indigenisation Economic Empowerment Act 17 of 2007 was gazetted on the 8th of March 2008 and came into effect on the 17th of April 2008. The key objective of the law is for all companies with a share capital above U$500,000 operating in Zimbabwe to arrange for a compulsory surrender of 51% of their shares or interests therein to indigenous Zimbabweans within a period of five years from the promulgation of the Act. The passing of the Act was a subject of contention in the business fraternity with analysts arguing that the legislation will stall the flow of investors into the country. Given the furor generated by the passing of the Act, this paper argues that whilst the economic empowerment of the indigenous population is a noble initiative, the modus operandi to implement the process as defined by the legislation poses a grave threat to the principles that define responsible corporate governance.
Keywords: Zimbabwe; economic empowerment; shares; corporate governance; Indigenisation Economic Empowerment Act 17; indigenous people; share capital.
International Journal of Public Law and Policy, 2014 Vol.4 No.1, pp.24 - 36
Received: 08 May 2021
Accepted: 12 May 2021
Published online: 15 Oct 2013 *