admin
Sharon Chigeza Mutare Correspondent
The Mutare business community has called for laws protecting both public and private businesses, as well as employees, against criminal penalties regarding company registration and other obligations.
Presenting their concerns to the Parliamentary Portfolio Committee on Justice, Legal and Parliamentary Affairs during a meeting in held in Mutare recently, the Mutare community stressed that laws must treat Government operators and private business entities equally.
“When I owe money to Zimra as a company, it is regarded a criminal offence, but when it is the other way round and Zimra is owing the company, it is regarded as a civil matter which takes time to settle and affects business operations,” said businessman Mr Walter Nyaupa.
The committee led by Harare West Member of Parliament Ms Jessie Fungayi Majome said company law had been amended from time to time to keep up with modern trends and technology, contributing to the ease of doing business.
The committee said the draft Companies and Other Business Entities Bill had been crafted to address concerns about criminal penalties that have been set around company operations.
“The Bill has proposed the removal of criminal penalties for the violation of company registration law as well as other company reporting obligations,” said Ms Majome. “These cases will henceforth be considered as civil cases where individuals are to settle their scores in civil courts without State interference.”
In addition to the decriminalisation of the Companies Act violations, the Companies and Other Entities Bill is expected to implement a ground-breaking on-line registry system for the establishment of local and foreign companies by end of July.
The new Bill seeks to replace and update the law on companies and private business corporations.
The current Companies Act was passed in 1951 and is not in sync with the modern business trends and initiatives.
This has seen the country lagging behind in terms of investment and development.
Online Reporter