05/06/2024
PACRA SETS RECORD STRAIGHT ON ZNS SHAREHOLDING IN EAGLES HOLDINGS LTD
By KTV Reporter
The Patents and Companies Registration Agency (PACRA) says it is not mandatory for the Minister of Finance to be registered as a shareholder in private companies incorporated by government agencies.
PACRA Registrar and Chief Executive Officer Benson Mpalo says whilst the law provides for the Minister of Finance to hold shares on behalf of government, any other person is also allowed.
“Whilst Section 3 of the Minister of Finance (Incorporation) Act, Chapter 349 of the Laws of Zambia declares the Minister of Finance as a corporation sole with power to hold shares in any company, the provision does not make it mandatory for the Minister to be a shareholder in all private companies incorporated by Government Agencies,’ says Mr. Mpalo.
He says PACRA has received a number of queries on the shareholding of the Zambia National Service (ZNS) in Eagles Holdings Limited.
Mr. Mpalo has told KTV News that PACRA has always guided Government institutions seeking to incorporate a private company but are in doubt of who must hold shares, to consider the Minister of Finance being a corporation sole an option.
He however says it is not mandatory for the Minister of Finance to be listed as a shareholder in all companies registered by a Government institutions.
Mr. Mpalo adds that Articles of Associations and Shareholders’ Agreements can help address concerns on matters of dividends and transfer of shares in an event that an office bearer leaves the office.
“PACRA would like to clarify further that concerns relating to such matters as dividends or transfer of shares upon vacation of office by individuals holding shares in a company where Government has an interest can be addressed in the Articles of Association or through a Shareholders’ Agreement at the incorporation stage,” he noted.
Recently Social media was awash with concerns from various stakeholders on ZNS Commander Maliti Solochi and his Deputy Reuben Mwewa who were registered as shareholders in Eagles Holdings Limited a private company incorporated by the service.
Lusaka lawyer Dickson Jere in his Facebook posting questioned why ZNS did not put the Minister of Finance who by law holds shares in trust of Zambians pursuant to The Minister of Finance (Incorporation) Act, Chapter 439 of the Laws of Zambia.