Corporate Governance and the Law Governing the Management of Companies in Zimbabwe (original) (raw)
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CORPORATE GOVERNANCE IN ZIMBABWE: AN OVERVIEW OF ITS CURRENT STATE
Asian Economic and Financial Review, 2015
This article aims to provide an overview of the current state of corporate governance in Zimbabwe. Corporate governance has gained relevance and prominence in the global society since the big corporate scandals such as Enron and Worldcom. This article is qualitative in nature. Document analysis of relevant literature formulated the discussions. The findings show that Zimbabwe remains amongst a few countries that do not have a national code of corporate governance. However, corporate governance practice in Zimbabwe is regulated by the Companies Act, Zimbabwe Stock Exchange Act as well as rules of various other professional bodies. This article provides an insight into the current practice of corporate governance in Zimbabwe and will help to assist in determining future initiatives. This article primarily provides an insight of the current practice and status of corporate governance in Zimbabwe. This article will go a long way in influencing corporate governance related policies in Zimbabwe as well as triggering debates. This article is also of academic value in the field of corporate governance.
Journal of Business and Management, 2021
The research sought to examine the compliance of listed companies to the new Zimbabwe National Code of Corporate Governance (ZIMCODE) which was instituted in April 2015. Corporate governance factors such as the board composition, board evaluation, duality of roles and the issue of board committees were highlighted.The mixed-method approach was used for gathering data with the questionnaire as the major instrument that was administered to the selected 25 listed companies. The study established that of all the corporate governance factors highlighted in the study, only board evaluation had a strong correlationship with the performance of companies. All other variables such as the role of the board, duality of roles and board committees showed weak linkages to the organisational performance. The study also found out that companies were in compliance with best practices from other codes apart from ZIMCODE. The research showed that our own code was not in much use due to poor launch and promotion. It was recommended that listed companies should adoptZIMCODE, devise an implementation plan for full adoption of the code since its inception.It was also highlighted that it was important for future studies to focus on how other control variables such as political, economic, social, ecological and technological factors affect the implementation of good corporate governance practices and compliance in listed companies.
Barriers to effective corporate governance principles in state-owned enterprises in Zimbabwe
Jurnal Akuntansi dan Auditing Indonesia, 2022
The purpose of this article is to discuss the barriers to effective corporate governance principles in state-owned enterprises (SOEs) in Zimbabwe in order to have an influence on policy debates. This study used a qualitative research approach, and a case study research design was followed, in order to attain the objective of the research. Semi-structured interviews were carried to get the views of the respondents on barriers to effective corporate governance principles in SOEs in Zimbabwe. Respondents chosen were members of the audit committees (ACs), permanent secretaries (PSs), chief executive officers (CEOs), senior managers (SMs), board of directors (BoDs) and chief audit executives (CAEs). Respondents were chosen due to their ability to act on the study's findings and recommendations. Data was analysed using Atlas.ti version 8. The study revealed that there are cases of poor and mis-governance in SOEs in Zimbabwe. Egregious cases include non-adherence to corporate governance rules and laws, degenerating against the Public Finance Management Act, [Chapter 22:19] as well as paying ignore in the submission of the financial statements which are audited. The article therefore, recommends that for an emerging country like Zimbabwe to enjoy the advantages of effective corporate governance principles, reviewing the legislations which are currently there as well as strengthening the enforcement strategies of the regulatory institutions is of paramount importance. The findings are limited to a Zimbabwean case study alone. Be that as it may, great lessons can be drawn for other developing economies from the case study. Apart from classifying cases of poor or malgovernance in SOEs in Zimbabwe, the article gives recommendations for policy in-order to improve corporate governance in SOEs in Zimbabwe. There is a dearth of study on barriers to effective corporate governance principles in SOEs in Zimbabwe; therefore, there is a gap in the literature. Hence, the paper makes an original contribution to the literature. Finally, the paper advocates fruitful avenues for future research on the future of corporate governance.
An Analysis of Corporate Governance in the Banking Sector of Zimbabwe
Humanities and social sciences, 2014
The study looks at the effect of corporate governance issues in the banking sector of Zimbabwe. This study consisted of 25 respondents, from compliance departments of selected banks. From the findings it can be concluded that corporate governance plays important function in stabilizing the banking sector and well functioning of the commercial banks in Zimbabwe. The study recommends that the corporate governance board should make sure that banks should practise a culture of good corporate governance on regular basis and deal with those who fail to comply to good corporate governance.
International Review of Management and Marketing, 2018
The study sought to evaluate the extent of compliance by listed banking institutions to the Reserve Bank of Zimbabwe corporate governance guidelines of 2004. The research sample comprised of five listed banks. Secondary data was collected through content analysis technique, thus use of financial institution’s annual report was made for period covering 2013-2015.The model developed in this research was applied to each of these banks and a compliance classification score was awarded. Results indicated that 20% of financial institutions did not comply with the RBZ corporate governance guidelines in relation to board meetings. Findings also revealed that the board composition of banks on the ZSE was in compliance with the RBZ guideline which stipulates that each banking institution shall have a minimum of five directors and the maximum of the study was five. It was concluded that there was high compliance rate in Zimbabwean banks to corporate governance principles on board composition...
2017
The nexus of political and legal dynamics in Zimbabwe's public sector generates a strain on the corporate governance that emerges in that environment, thereby making the application of the ZIMCODE in state-owned enterprises (SOEs) implausible. This perspective paper is a riposte to a writing by Chavunduka and Sikwila (2015) titled "Corporate Governance in Zimbabwe: The ZIMCODE and State Owned Enterprises Connection", where the authors sought to examine the implementation of the national corporate governance code by state-owned enterprises and develop a nested model to be used by SOEs in implementing the code. The writer contends that the ZIMCODE is not the right apparatus to produce responsible behaviour in Zimbabwe's SOEs. A qualitative approach is used. Document analysis is employed to gain insights into the corporate governance trends and challenges in Zimbabwe's state enterprises. The main sources used were government reports, conference papers, published r...
Journal of Emerging Trends in Economics and Management Sciences, 2013
The Zimbabwean banking sector has been characterised by a number of corporate governance disorders. This study aimed at analysing the corporate governance practices by multinational banks in comparison to domestic banks in Zimbabwe. It was hoped that the research would reveal the corporate governance discrepancies between multinational and domestic banks and hence assist the Reserve Bank of Zimbabwe in pursuing its supervisory role as well as bring awareness to stakeholders in the banking industry. The research adopted a cross-sectional survey research design. The target population consisted of all commercial and merchant banks in Zimbabwe. Primary data was gathered through questionnaires and interviews. Secondary data was also analysed in the research. The selection of the banks to be included in the sample employed stratified random sampling to ensure representation from each key group of banks in the sample. The study revealed that the awareness on the importance of sound corpora...
Journal of Economics and Behavioral Studies
This study, using the Ordinary Least Squares (OLS) Regression Model, investigated the extent to which good corporate governance practices can minimise or alleviate corporate failure in the Zimbabwean Financial Services Sector. The results of the study reflected that sound corporate governance has a positive effect on corporate success and can alleviate corporate failure. It is thus recommended that financial institutions continuously adhere to sound corporate governance practices to guarantee corporate success and alleviate the collapse of financial institutions as has been witnessed in the past. The findings of the study will assist policy makers, regulators and players in the financial services sector to adhere to sound corporate governance practices, given its impact on corporate success. Further research could be carried out with regards the implementation of sound corporate governance in parastatals, quasi-government institutions and private sector companies in other sectors ot...
This paper is designed to unlock the importance of Corporate Governance in the Manufacturing Small and Medium Enterprises (SMEs) in Zimbabwe. Corporates and their Executives need to account for their actions and activities. SMEs and their Executives are not exceptional to the rule. The sample size of this research paper consisted of 1 000 SMEs located in 5 out of a total of 10 Zimbabwean Provinces, namely Bulawayo Metropolitan, Harare Metropolitan, Matabeleland North, Matabeleland South and Midlands. The research instrument used was the self-administered questionnaire. Data collected was analyzed using both inferential and descriptive statistical tools. Results obtained from the study revealed that corporate governance is not applied in SME Organisations. The paper recommended the application of corporate governance in SME Organisations to separate the owners from the organisations.
CORPORATE GOVERNANCE: EFFECTIVENESS OF ZIMBABWEAN HARD LAW ON BLOCKHOLDERS' PROTECTION
VitusInterprss, 2014
The broad objective of this article is to scrutinize the effectiveness of hard law paraphernalia that are there present to protect blockholders of multilateral financial institutions in Zimbabwe. This article focused on descriptive documentary reviews of texts around financial institutions, judicial reports, and Statutory Acts. The study found and revealed that hard laws and regulations yes exist to protect blockholders but the challenge, however, was guaranteeing their enforcement making hard law highly unproductive therefore killing investor confidence in Zimbabwe. The results are quintessential for law enforcement agents, regulators of banks and mangers as they need to craft a quality effective management framework on the protection of blockholders' equity which will attract foreign direct investment and that will promote the country's economic development.