New Corporate Governance Code for Zimbabwe

ZIMBABWE is this month expected to begin using a new Corporate Code of Conduct which will replace the current one that is now considered outdated.

The new corporate code was designed by prominent lawyer, Canaan Dube, a Senior Partner at commercial law firm, Dube, Manikai and Hwacha Legal Practitioners, with help from several local top lawyers.

Dube, Manikai and Hwacha law firm handles most corporate law cases in Zimbabwe.

"As you all know the (current code is now) out-dated and we tended to follow the Mervyn King II Code but now there is the Mervyn King III Code on Corporate Governance which is being used in South Africa," Dube told investors recently in Harare.

"We must try to have a much better code than that being used by South Africa because we are combining what they have and trying others from abroad," he added.

Dube, former Chairman of the Cold Storage Commission (CSC), said he held meetings with Mervyn King and discussed the code that Zimbabwe is using as a reference point during a recent visit to South Africa.

He said some of the issues that would be dealt with in the new code included the term of office of the Chairman, Non Executive Directors, and board members of companies, some of whom sit on too many boards and get money for doing absolutely nothing.

The new corporate governance blueprint is also expected to come up with new packages for CEOs, Executives as well as Non Executive Directors sitting on boars listed on the Zimbabwe Stock Exchange (ZSE).

"They must add value to the company," Dube said. "They must not be paid for just sitting on the board and yet do not contribute anything to the operations of the company. Some of them sit on too many Boards."

Dube, Hwacha and Manikai has handled high profile cases that include Phillip Chiyangwa’s treason trial several years ago and William Nyemba when his Trust Financial Holdings Limited (Trust) firm was booted out of the Zimbabwe Stock Exchange (ZSE).

The firm has also represented Nigel Chanakira in his battle against Meikles Africa Limited (MAL) boss, John Moxon, and Henrietta Rushwaya, former Zifa chief executive, in the Asiagate football case.

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