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The Patents and Companies Registration Agency (PACRA) has clarified that it was not mandatory for the Finance and National Development Minister to be a shareholder in all private companies incorporated by government agencies.
PACRA made this clarification despite the current law designating the Finance Minister as a corporation sole with the power to hold shares in any company.
The statement was issued on Wednesday by PACRA Registrar and Chief Executive Officer, Benson Mpalo, in response to stakeholder concerns regarding the Zambia National Service’s (ZNS) shareholding in Eagle Holdings Limited.
“In cases where government institutions are uncertain about who should hold shares in a newly incorporated private company, PACRA advises that the Finance Minister, as a corporation sole, can be considered an option. However, this does not make it mandatory for the Minister of Finance to be listed as a shareholder in all such companies,” Mpalo explained.
Mpalo further highlighted that the Companies Act, No. 10 of 2017, stipulates that a shareholder must be a ‘person,’ which, according to the Interpretation and General Provisions Act, Chapter 2 of the Laws of Zambia, includes any company, association, or body of persons, whether corporate or unincorporated.
“PACRA also wishes to clarify that issues related to dividends or the transfer of shares upon the vacation of office by individuals holding shares on behalf of the government can be addressed in the Articles of Association or through a Shareholders’ Agreement during the incorporation stage,” Mpalo added.
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