BY MTHANDAZO NYONI/DUDUZILE NDLUKULWANI
BULAWAYO business community yesterday welcomed the Companies and Other Business Entities Bill and proposed that the law should, among other things, set aside sectors reserved for participation by locals.
Presenting their concerns to the Parliamentary Portfolio Committee on Justice, Legal and Parliamentary Affairs during the Companies and Other Business Entities Bill hearings held in Bulawayo, businesses also said there should be some checks on inspectorates.
“This Bill looks quite noble and positive in a way. However, I am a bit concerned about the establishment of the inspectorate. It is important that we have an inspectorate that will have a national outlook and an inspectorate that would be transparent and we have confidence in it,” Professional Business Association of Zimbabwe (Probaz) director Lucky Mlilo said.
The Bill seeks to repeal the current Companies Act [Chapter 24:03] as well the Private Business Corporation Act [Chapter 24:11]. It proposes the updating of the law relating to companies and private business corporations.
Affirmative Action Group Matabeleland Chapter president Reginald Shoko said there was need for the Bill to consider locals by ring-fencing some sectors for them.
“Inasmuch as we are saying foreigners must come and invest and we need foreign direct investment, I think we will need to ring-fence certain sectors in the industry and economy for the locals,” he said.
“What we have done is we have simply looked at what the industry thinks is the way forward, without considering the future. It is important that this Bill takes into consideration that inasmuch as companies are being registered, there are certain sectors that must be reserved for participation by locals.”
Portfolio committee chairperson Misheck Mataranyika said they were happy with the outcomes so far.
“We started in Mutare. The outcome was good. The number of people who attended was fairly good. In Masvingo, it was lower and in Bulawayo I am very pleased as people came in numbers.”
He said people had also spoken about the responsibilities of directors and the need for good corporate governance.
“It has come out clearly as well,” he said.