THE REGULATION AND PROTECTION OF STAKEHOLDER INTERESTS UNDER ZIMBABWE’S NEW CORPORATE RESCUE REGIME A COMPARATIVE STUDY

Abstract

Corporate insolvency law has been the major debate internationally due to its impact on companies and other business entities. Zimbabwe recently introduced two new corporate rescue procedures and measures which seek to rescue companies which have fallen into financial distress. These measures are, corporate rescue and compromise with creditors, following the enactment of the Insolvency Act [Chapter 6:07]. This legislative intervention by way of corporate rescue gives a clear path for the corporate rescue practitioner to follow to save a corporate from financial ruin. The practitioner and those who are affected will be able to decide whether it is feasible to develop a strategy that well benefit the corporate entity and rescue it from financial doldrums. The paper compares the Zimbabwean Act with that of UK, Australia and South Africa. The Zimbabwean Insolvency Act has some interesting provisions similar to the business rescue provisions of South Africa which includes the regulation of insolvency practitioners, the rights of creditors, the position of employees and shareholders. One may argue that the Insolvency legislation provisions on corporate rescue are poised to be the leeway for an effective corporate insolvency regime in Zimbabwe. Undoubtedly, the reforms to the Insolvency Act of Zimbabwe have brought about far-reaching changes to corporate rescue laws in the country.