Related documents
- Repeals Insolvency Act
Zimbabwe
Insolvency Act, 2018
Chapter 6:07
- Published on 25 June 2018
- Commenced on 25 June 2018
- [This is the version of this document from 25 June 2018.]
Part I – Preliminary
1. Short title
This Act may be cited as the Insolvency Act [Chapter 6:07]2. Interpretation
In this Act, unless the context otherwise indicates—"account", in relation to a liquidator, means a liquidation account and plan of distribution or of contribution, or any supplementary liquidation account and plan of distribution or of contribution;"associate" means—(a)in relation to a natural person—(i)the spouse of such person; or(ii)any person who is by consanguinity related to such first-mentioned person or to his or her spouse, in the first, second or third degree of relationship as determined in accordance with the law on intestate succession; or(iii)the business partner of such person or the spouse of such partner or any person who is related to such partner or spouse in a degree contemplated in subparagraph (ii); or(iv)a beneficiary of a trust, or a trust of which such person or associate of such person is a trustee or beneficiary ; or(v)a company of which such person is a director or any juristic person of whom such person is a manager or of which he or she has control;(b)in relation to a juristic person—(i)any natural person who is a director of that juristic person or who has control of that juristic person, either alone or together with his or her associate contemplated in subparagraph (a); or(ii)any other juristic person which is controlled by the person who controls the first-mentioned juristic person;(c)in relation to another person a person who has control of an undertaking of the other person, and that person is regarded as having control of an undertaking if the person who manages the undertaking is accustomed to act in accordance with that person’s directions or instructions, unless that person gives advice in a professional capacity only;(d)a natural person or juristic person who was an associate of another natural person or juristic person at the time of the disposition in question or at the date of the liquidation of the estate or liquidation of one of the parties;"bank" means a bank as defined in section 2 of the Banking Act [Chapter 24:20];"book or" in relation to bookkeeping or the recording or storage of information, includes any electronic (including relevant passwords) or mechanical device by means of which the information in question is recorded or stored, and in relation to the production, the handing over or the attachment of any book, includes the production, the handing over or the attachment of a print-out or other written version of the information produced by means of such device and books shall be construed accordingly;"Companies Act" means the Companies Act [Chapter 24:31];"Commissioner of Police" includes Commissioner-General, Senior Assistant Commissioner and Assistant Commissioner of Police;"concurrent creditor" means a creditor to the extent that the creditor’s claim is not that of a secured creditor or a preferent creditor;"contribution" in respect of a fund or annuity means a contribution made to the fund or annuity by a debtor in respect of the debtor, less that part of the contribution which represents commission or a premium in respect of death or disability benefits and benefits paid to the debtor before the date of liquidation;"contributory" in relation to a company limited by guarantee, has the meaning assigned to it in the Companies Act [Chapter 24:31];"Court" means the High Court of Zimbabwe, and in sections 3(b), 20(1), 24,26, 27, 106 and 107 also means a magistrate’s Court which has jurisdiction in respect of the matter or offence in question;"date of liquidation" means the date of the first liquidation order or, subject to section 12 in the case of a voluntary liquidation by resolution in terms of section 9, the date on which notice is given in terms of section 9(9) or, subject to section 12 in the case of a voluntary liquidation by resolution in terms of section 10, the date of the registration or filing of the liquidation resolution;"debtor", means any person or entity that is able to incur debt whose estate has been liquidated and includes—(a)the estate of any such person or entity;(b)any such debtor or debtor’s estate before liquidation;"direct notice" means notice by fax, e-mail, or personal delivery;"disposition" means the transfer or abandonment of a right to property and includes a sale, mortgage, pledge, delivery, payment, release, compromise, donation, suretyship, security interest under the Movable Property Securities Interest Act [Chapter 14:35] or any contract therefor;"e-mail" means an electronic mail sent to an e-mail address indicated for use by the intended recipient and provided that no report is received that the electronic mail could not be delivered;"employee" means an employee defined in section 2 of the Labour Act [Chapter 28:01];"fax" means a facsimile transmission which according to a transmission report has been transmitted successfully;"financial lease" means a contract whereby a lessor leases specified movable property to a lessee at a specified rent over a specified period subject to a term of the contract that—(a)at the expiry of the contract the lessee may acquire ownership of the leased property by paying an agreed or determinable sum of money to the lessor; or(b)the rent paid in terms of the contract shall at the expiry of the contract be applied in reduction of an agreed or determinable price at which the lessee may purchase the leased property from the lessor; or(c)the proceeds of the realisation of the leased property at the expiry of the lease shall accrue wholly or partly to the lessee; and includes a financial lease not covered by paragraphs (a) to (c) but which qualifies as a security interest in terms of the Movable Property Security Interests Act [Chapter 14:35];"first liquidation order" means a provisional order for the liquidation of the estate of a debtor or a final order for the liquidation of the estate of the debtor if a provisional liquidation order has not been granted;"free residue" in relation to an insolvent estate, means that portion of the estate which is not subject to any claim by a secured creditor;"good faith" in relation to the disposition of property, means the absence of any intention to prejudice creditors in obtaining payment of their claims or to prefer one creditor above the other;"immovable property" means land and every right, title and interest in and to land or minerals which is registerable in any office in Zimbabwe tasked with the registration of title to land or the right to mine;"insolvent" means a debtor whose estate is under liquidation;"insolvent estate" means an estate which is under liquidation;"liquidation order" means an order of a Court whereby the estate of a debtor is placed under liquidation and includes a provisional liquidation order when it has not been set aside;"liquidation resolution" means—(a)in the case of a trust, a resolution to liquidate the trust;(b)in the case of a company, a special resolution to liquidate the company passed by the company in accordance with the Companies Act [Chapter 24:31], excluding an external company as defined in that Act;(c)in the case of a private business corporation, a special resolution to liquidate the private business corporation in accordance with the Companies Act [Chapter 24:31];(d)in the case of a co-operative, a special resolution to liquidate the cooperative, passed by the members of that co-operative in accordance with the Co-operative Societies Act [Chapter 24:05];(e)in the case of any other debtor—(i)if such debtor has been created by legislation, a resolution to liquidate the debtor, passed by the management of such debtor in the manner provided for in the enabling legislation;(ii)if such debtor has been created by the adoption of a constitution, a resolution to liquidate the debtor, passed by the members of such debtor in terms of the provisions of such constitution;(iii)if such debtor has been created by agreement, a resolution to liquidate the debtor, passed by the members of such debtor in terms of such agreement;"liquidator’s notice" means notice or delivery by the liquidator by registered mail, fax, e-mail, or personal delivery supported by an affidavit by the liquidator with a list of the persons given notice or delivered to and the method used by the liquidator to send or deliver the notice;Provided that the liquidator may substitute another form of notice approved by the Master where the Master is satisfied that there are exceptional circumstances justifying another form of notice;"magistrate" includes an additional magistrate and an assistant magistrate;"management of a debtor" means—(a)in the case of a trust, the trustees of the trust, lawfully acting as such at the time of liquidation, or during three years before liquidation;(b)in the case of a company debtor, the directors, secretary or other officers of the company at the time of liquidation, or during 3 years before liquidation;(c)in the case of a private business corporation debtor, the members or other officers of the private business corporation at the time of liquidation, or during the three years before liquidation;(d)in the case of a co-operative society, the management committee in accordance with section 54(1) of the Co-operative Societies Act [Chapter 24:05]; or other officers of such co-operative at the time of liquidation, or during three years before liquidation;(e)in the case of another debtor other than a natural person or trust—(i)where the debtor has been created by legislation, the persons who at the time of liquidation, or during three years before liquidation were responsible for the management of the debtor in terms of the relevant legislation;(ii)where the debtor has been created by the adoption of a constitution, the persons who at the time of liquidation, or during three years before liquidation were responsible for the management of the debtor in terms of its constitution;(iii)where the debtor has been created by agreement, the persons who at the time of liquidation, or during three years before liquidation were responsible for the management of the debtor in terms of the agreement or otherwise;"Master" means the Master of the High Court and includes a Deputy Master and an Assistant Master;"member"—In relation to a company means a shareholder;In relation to a Private Business Corporation means a member of such corporation;In relation to a trust means a founder or a trustee of such a trust or any person designated as such in terms of a trust deed;In relation to a co-operative means a member of such co-operative;And members shall be construed accordingly;"Messenger of court" means the messenger of the Magistrate’s Court and assistants to the messenger of the Magistrate’s Court;"Minister" means the Minister responsible for the administration of Justice;"movable properly" means every kind of property and every right or interest in property which is not immovable property;"preferent creditor" means a creditor whose claim enjoys preference in terms of section 89 or a provision in terms of any other Act to pay a creditor who has no preference in respect of particular assets before concurrent creditors;"prescribed" means prescribed by regulation under this Act;"property" means movable or immovable property wherever situated and includes a right of interest in property;"registrar of court" means Registrar of High Court established in terms of section 55 of the High Court Act [Chapter 7:06];"reservation of ownership contract" means a sale of corporeal or incorporeal movable property in terms of which all or part of the price is deferred and is to be paid by periodic payments, possession and use of the property is transferred to the purchaser, and the contract provides for ownership of the property to pass to the purchaser only when the contract is fully complied with, with effect provided for under the Movable Property Security Interests Act [Chapter 14:35];"rule nisi" means a provisional order issued by the High Court in the appropriate form prescribed in rules of court;"secured creditor" means a creditor of an insolvent estate to the extent that such creditor holds security for his or her claim against the estate;"security" in relation to the claim of a creditor of an insolvent estate, means property of the insolvent estate over which the creditor has a preferent right by virtue of a special bond, landlord’s legal hypothec, pledge, including a cession of rights to secure a debt, right of retention, reservation of ownership, financial (ease, or any such equivalent right over property in terms of the Movable Property Security Interests Act [Chapter 14:35], or any such right over property in terms of any other Act;"sheriff" means the sheriff of the High Court referred to in section 2 of the High Court Act [Chapter 7:06];"social benefit" means the pension, allowance or benefits payable to a person in terms of the relevant legislation that applies in Zimbabwe;"special bond" means a mortgage bond hypothecating any immovable property, but excludes any other mortgage bond purporting to hypothecate movable property or any other rights in land;"spouse" means a wife or husband by virtue of a marriage according to any law or custom and a woman living with a man as his wife or a man living with a woman as her husband although not married to one another, but does not include a wife or husband of an insolvent who is living apart from the insolvent under an order of judicial separation;"standard notice" means notice by registered mail, fax, e-mail or personal delivery.3. Debtor unable to pay debts
Part II – Manners in which debtor may be liquidated
4. Application by debtor for liquidation of estate of natural person or partnership
5. Application by debtor for liquidation of trust, company, private business corporation, co-operative or other debtor other than a natural person or partnership
6. Application by creditor for liquidation of debtor’s estate
7. Liquidation of partnership estate
8. Abuse of Court’s procedures or malicious or vexatious application for liquidation
Whenever the Court is satisfied that an application for the liquidation of a debtor’s estate is an abuse of the Court’s procedures or is malicious or vexatious, the Court may allow the debtor forthwith to prove any damages which he or she may have sustained by reason of the application, and award him or her such compensation as it considers appropriate.9. Voluntary liquidation of insolvent debtor by resolution
10. Voluntary liquidation of solvent company
11. Investigation into winding up of company
12. Commencement of voluntary liquidation of a company
The voluntary liquidation of a company under section 9 or 10 shall be deemed to commence—Part III – Act has limited application to certain types of debtor
13. Act has limited application to certain types of debtor
Part IV – Liquidation orders and commencement of liquidation
14. Provisional liquidation order
15. Final liquidation order
16. Separate meetings of shareholders or members
17. Obligations of creditor upon whose application a liquidation order is made
18. Notice of liquidation
Part V – Effect of liquidation
19. Effect of liquidation on debtor and his or her property
20. The effect of liquidation on civil proceedings by or against the debtor
Part VI – Rights and obligations of debtor during insolvency
21. Rights and obligations of debtor during insolvency
Part VII – Impeachable dispositions
22. Alienation by debtor of property to third party who is in good faith
If a debtor, without the consent of the liquidator of his or her estate, alienates for value any property which he or she acquired after the date of liquidation of his or her estate and which forms part of his or her insolvent estate, or any right to such property, to a person who proves that he or she was not aware and had no reason to suspect that the estate of the debtor was under liquidation, the alienation is nevertheless valid.23. Presumptions relating to property in possession of debtor
24. Disposition without value
25. Antenuptial contracts
26. Voidable preferences
27. Collusive dealings for prejudicial disposition of property
28. Application of sections 22, 24 and 25 to certain debtors
29. Attachment of property in possession of associate
30. Certain rights not affected by improper disposition
31. Set-off
Where—32. Payment of debt to debtor after liquidation
If on or after the date of liquidation of a debtor’s estate a debtor of the insolvent pays to the insolvent a debt that was due before the date of liquidation, or otherwise fulfils any obligation towards the insolvent the cause of which arose before the date of liquidation, such payment or such fulfillment is of no force or effect, unless the debtor proves that it was made or done in good faith without knowledge on his or her part of the liquidation.33. Institution of proceedings on behalf of insolvent estate
Part VIII – Effect of liquidation upon certain contracts
34. Uncompleted acquisition of immovable property by debtor
35. Securities market transactions
36. Agreements providing for termination and netting
37. Effect of liquidation of estate of seller under reservation of ownership contract
The liquidation of the estate of a seller under a reservation of ownership contract does not give a right to the liquidator of the estate to reclaim property sold under the contract.38. Goods purchased not on credit but not paid for
39. Effect of liquidation upon lease
40. Effect of liquidation on contract of service
Part IX – Appointment of liquidator
41. Appointment of liquidator
Part X – Powers and duties of liquidators
42. Liquidator to serve first liquidation order on debtor and attach property belonging to insolvent estate
43. Debtor to hand over books to liquidator and submit statement of affairs to Master and liquidator
44. Liquidator may obtain search warrant
45. Registration of name and address with liquidator
46. Liquidator’s report
47. Recovery of debts due to estate
48. Remuneration of liquidator
49. General duties and powers of liquidator
Part XI – Meetings and examination of debtor and other persons
50. First meeting of creditors
51. Special meeting of creditors
52. Creditors’ committee
53. General provisions relating to meetings of creditors
54. Voting at meeting of creditors
55. Debtor and other persons to attend meetings of creditors
A debtor who is a natural person, a partner of a partnership, or part of the management of another debtor must attend all meetings of creditors of the insolvent estate in question of which he or she is notified by the liquidator by standard notice, or an adjourned meeting which he or she is directed by the presiding officer to attend, unless he or she is excused in writing by the liquidator, the Master or the person who is to preside at such meeting.56. Summons to attend meeting of creditors and notice to produce document
57. Examination of debtor and other persons
58. Examination by commissioner
59. Liquidator may put written questions or call for accounts, books, documents, records or information
60. Examination by or on behalf of the Master
61. Enforcing summons and giving of evidence
62. Suspected commission of offence must be reported to Commissioner of Police
63. Proof of record of proceedings of meetings of creditors
Part XII – Claims
64. Claim by partnership creditor against estate of insolvent partner
When the estate of a partner is liquidated without the partnership being placed in liquidation—65. Claims against partnerships
When the estate of a partnership and the estates of the partners are under liquidation—66. Proof of claims
67. Liquidator shall examine claims
68. Late proof of claims
69. Conditional claims
70. Arrear interest and debt due after liquidation
71. Withdrawal of claim
72. Creditor may not recover debt from insolvent estate which is recovered from another source
Part XIII – Election, appointment and disqualification of liquidators
73. Election of liquidator
74. Persons disqualified from being liquidators
A person is disqualified from being elected or appointed as a liquidator if he or she—75. Master may refuse to appoint elected liquidator
76. Appointment of liquidator and security
77. Joint liquidators to act jointly
78. Vacation of office by liquidator
79. Removal of liquidator from office by Master
80. Court may declare liquidator disqualified or remove liquidator
If it is in the interests of the proper administration of an insolvent estate, the Court may, on the application of the Master or any other interested party—81. Election of new liquidator
Part XIV – Rights and duties of creditors
82. Realisation of security
83. Attachment of property upon failure to deliver to liquidator
84. Application of proceeds of security
85. Security in respect of reserved ownership or financial lease
86. Security in respect of landlord’s hypothec
87. Certain mortgages afford no security or preference
A special bond or a general bond over movables other than a kustingsbrief, or a general clause in a special bond over movables or a security interest over movables in terms of the Movable Property Security Interests Act [Chapter 14:35], passed or taken for the purpose of securing the payment of an existing unsecured debt or obtaining a preference for an existing concurrent debt which was incurred more than two months prior to the lodging of the bond with the registrar of deeds, or with the Collateral Registry created under Movable Property Security Interests Act [Chapter 14:35], in question for registration, or for the purpose of securing the payment of a debt or obtaining a preference for a debt incurred in novation of or substitution for any such first-mentioned debt, does not confer any security or preference if the application for the liquidation of the estate of the debtor is lodged with the Registrar within nine months after such lodging of the said bond with the registrar of lands or with the Collateral Registry:Provided that a bond or security interest shall be deemed not to have been lodged as aforesaid if it was withdrawn from registration.Part XV – Costs of liquidation and application of free residue
88. Costs of liquidation
89. Application of free residue
90. Costs incurred in respect of legal services and forensic investigation
Part XVI – Special provisions relating to sale of property belonging to insolvent estate
91. Non-compliance with provisions of Act in sale of property of insolvent estate
92. Bona fide sale of property in possession of debtor
93. Persons incompetent to acquire property from insolvent estate
The liquidator or an auctioneer employed to sell property of the insolvent estate in question or an employer, employee or associate of such liquidator or auctioneer may not acquire any property of the insolvent estate unless the acquisition is authorised by an order of the Court.Part XVII – Banking accounts, investments and moneys belonging to insolvent estate
94. Banking accounts and investments
95. Recording of receipts by liquidator
96. Unlawful retention of moneys or use of property by liquidator
Part XVIII – Estate Accounts, distribution and contribution
97. Estate Accounts
98. Copies of liquidator’s accounts to be open for inspection
99. Objections to liquidator’s account
100. Confirmation of liquidator’s accounts
When a liquidator’s account has been open to inspection as prescribed by this Act and—101. Distribution of estate and collection of contributions
102. Liquidator to produce acquittances for dividends or pay over unpaid dividends to Master
103. Surplus to be paid into Guardian’s Fund
104. Contribution by creditors towards cost of liquidation
105. Enforcing payment of contribution
Part XIX – Rehabilitation of natural persons
106. Rehabilitation
107. Opposition to rehabilitation or refusal of rehabilitation by Court
108. Rehabilitation by effluxion of time
109. Effect of rehabilitation
110. Penalties for unlawful inducement to accept compromise or in connection with rehabilitation
Part XX – Special provisions relating to trusts, companies and other debtors in liquidation other than natural persons or partnerships
111. Provisions relating to contributories in case of company limited by guarantee or a non-profit company
112. The Prosecutor-General may make application to Court for disqualification of director
In the circumstance contemplated in the relevant provisions of the Companies Act [Chapter 24:03], the Prosecutor-General must consider an application for an order declaring a person delinquent in terms of that Act.113. Registrar of Companies to keep register of directors of dissolved companies and members of other bodies corporate
114. Change of address by directors and secretaries and certain former directors and secretaries
115. Restoration of property and payment of compensation
Where in the course of the liquidation of a company or of a private business corporation incorporated in terms of the Companies Act [Chapter 24:31], it appears that a person who has taken part in the formation or promotion of the company, or any past or present director or a officer of the company, or past or present member or officer of the private business corporation, has misapplied or retained or become liable or accountable for any money or property of the company or private business corporation, or has been guilty of any breach of faith or trust in relation to the company or private business corporation, the Court may, on the application of the Master or of the liquidator or of any creditor or shareholder or member or contributory of the company or private business corporation, enquire into the conduct of the promoter, director, member or officer in question, and may order him or her to repay or restore the money or property or any part thereof, with interest at a rate determined by the Court, or to contribute such sum to the assets of the company or private business corporation by way of compensation in respect of the misapplication, retention, breach of faith or trust as the Court considers appropriate.116. Private prosecution of directors and others
Part XXI – Personal liability for fraudulent, reckless or insolvent trading
117. Liability for fraudulent or reckless conduct of business
When a debtor is liquidated and it appears that any business of the debtor was or is being carried on recklessly or with intent to defraud creditors of the debtor or creditors of any other person or for any fraudulent purpose, the Court may, on the application of the Master, the liquidator, any creditor, shareholder, member or contributory of the debtor, declare that any person who was knowingly a party to the carrying on of the business in the manner aforesaid, is responsible, without any limitation of liability, for such of the debts or other liabilities of the debtor as the Court may direct irrespective of whether the debtor can pay the debts or other liabilities.118. Insolvent trading
Part XXII – Compositions
119. Pre-liquidation composition with creditors
120. Post-liquidation composition
Part XXIII – Corporate Rescue
Sub-Part A—Corporate rescue proceedings
121. Application
122. Company resolution to commence corporate rescue proceedings
123. Objections to company resolution
124. Court order to commence corporate rescue proceedings
125. Duration of corporate rescue proceedings
126. General moratorium on legal proceedings against company
127. Protection of property interests
128. Post-commencement finance
129. Effect of corporate rescue on employees and contracts
130. Effect on shareholders and directors
Sub-Part B—Corporate rescue practitioner’s functions and terms of appointment
131. Qualifications of practitioners
132. Removal and replacement of practitioner
133. General powers and duties of practitioners
134. Investigation of affairs of company
135. Directors of company to co-operate with and assist practitioner
136. Remuneration of practitioner
Sub-Part C—Rights of affected persons during corporate rescue proceedings
137. Rights of employees
138. Participation by creditors
139. Participation by holders of company’s securities
During a company’s corporate rescue proceedings, each holder of any issued security of the company is entitled to—140. First meeting of creditors
141. Functions, duties and membership of committees of affected persons
Sub-Part D—Development and approval of corporate rescue plan
142. Proposal of corporate rescue plan
143. Meeting to determine future of company
144. Consideration of corporate rescue plan
145. Failure to adopt corporate rescue plan
146. Discharge of debts and claims
Sub-Part E—Compromise with creditors
147. Compromise between company and creditors
Sub-Part F—Application of Part to debtors other than companies
148. Application of Part XXIII to debtors other than companies
Part XXIV – Offences
149. Offences
Part XXV – Cross-border insolvencies
Sub-Part 1—Interpretation and fundamental principles
150. Interpretation
For the purposes of this Part—"Court" means a High Court referred to in section 154;"curator of an institution" means a curator appointed in terms of the Banking Act [Chapter 24:20];"establishment" means any place of operations where the debtor carries out a non transitory economic activity with human means and goods or services;"foreign Court" means a judicial or other authority competent to control or supervise foreign proceedings;"foreign main proceedings" means foreign proceedings taking place in the State where the debtor has the centre of its main interests;"foreign non main proceedings" means foreign proceedings, other than foreign main proceedings, taking place in a State where the debtor has an establishment;"foreign proceedings" means collective judicial or administrative proceedings in a foreign State, including interim proceedings, pursuant to a law relating to insolvency in which proceedings the assets and affairs of the debtor are subject to control or supervision by a foreign Court, for the purpose of reorganisation or liquidation;"foreign representative" means a person or body, including one appointed on an interim basis, authorised in foreign proceedings to administer the reorganisation or the liquidation of the debtor’s assets or affairs or to act as a representative of the foreign proceedings;"foreign State" means a State not designated under section 152(2);"Minister" means the Cabinet member responsible for the administration of justice;"receiver" means a receiver or other person appointed to administer a compromise or arrangement sanctioned by a Court.151. Purpose of Part
The purpose of this Part is to provide effective mechanisms for dealing with cases of cross border insolvency so as to promote—152. Scope of application
153. International obligations of Republic of Zimbabwe
To the extent that this Part conflicts with an obligation of Zimbabwe arising out of any treaty or other form of agreement to which Zimbabwe is a party with one or more other States and which treaty or agreement has been enacted into law, the requirements of the treaty or agreement prevail.154. Competent Court
The functions referred to in this Part relating to recognition of foreign proceedings and cooperation with foreign Courts must be performed by the High Court of Zimbabwe.155. Authorisation of trustee, liquidator, corporate rescue practitioner, curator, or receiver to act in foreign State
A trustee, liquidator, corporate rescue practitioner, curator of an institution, or receiver is authorised to act in a foreign State in respect of proceedings under the laws of Zimbabwe relating to insolvency, to the extent and in the manner permitted by the applicable foreign law.156. Public policy exception
This Part must not be construed as obliging a Court to take any action which would be manifestly contrary to the public policy of Zimbabwe.157. Additional assistance under other laws
Nothing in this Part limits the power of a Court or a trustee, liquidator, corporate rescue practitioner, curator of an institution, or receiver to provide additional assistance to a foreign representative under other laws of Zimbabwe.158. Interpretation of this part
In the interpretation of this Part, regard must be had to its international origin, to the need to promote uniformity in its application and the observance of good faith.Sub-Part 2—Access of foreign representatives and creditors to Courts in Zimbabwe
159. Right of direct access
A foreign representative may apply directly to a Court in Zimbabwe for relief.160. Limited jurisdiction
An application made to a court in Zimbabwe by a foreign representative does not subject the foreign representative or the foreign assets and affairs of the debtor to the jurisdiction of the Courts of Zimbabwe for any purpose other than the application.161. Application by foreign representative to commence proceedings under laws of Republic of Zimbabwe relating to insolvency
A foreign representative may apply to commence proceedings under the laws of Zimbabwe relating to insolvency if the conditions for commencing such proceedings are otherwise met.162. Participation of foreign representative in proceedings under laws of Republic of Zimbabwe relating to insolvency
Upon recognition of foreign proceedings, the foreign representative may participate in proceedings regarding the debtor under the laws of the Zimbabwe relating to insolvency.163. Access of foreign creditors to proceedings under laws of Republic of Zimbabwe relating to insolvency
164. Notification to foreign creditors of proceedings under laws of Republic of Zimbabwe relating to insolvency
Sub-Part 3—Recognition of foreign proceedings and relief
165. Application for recognition of foreign proceedings
166. Presumptions concerning recognition
167. Decision to recognise foreign proceedings
168. Subsequent information
From the time of filing the application for recognition of the foreign proceedings, the foreign representative must inform the Court promptly of—169. Relief that may be granted upon application for recognition of foreign proceedings
170. Effects of recognition of foreign main proceedings
171. Relief that may be granted upon recognition of foreign proceedings
172. Protection of creditors and other interested persons
173. Actions to avoid acts detrimental to creditors
174. Intervention by foreign representative in proceedings in Zimbabwe
Upon recognition of foreign proceedings, the foreign representative may intervene in any proceedings in which the debtor is a party provided the requirements of the law of Zimbabwe are met.Sub-Part 4—Cooperation with foreign Courts and foreign Representatives
175. Cooperation and direct communication between Court of Zimbabwe and foreign Courts or foreign representatives
176. Cooperation and direct communication between the trustee, liquidator, corporate rescue practitioner, curator, or receiver and foreign Courts or foreign representatives
177. Forms of cooperation
Cooperation referred to in sections 165 and 166 may be implemented by any appropriate means, including—Sub-Part 5—Concurrent proceedings
178. Commencement of proceedings under laws of Zimbabwe relating to insolvency after recognition of foreign main proceedings
179. Coordination of proceedings under laws of Republic of Zimbabwe relating to insolvency and foreign proceedings
180. Coordination of foreign proceedings
In matters referred to in section 141(1), in respect of more than one set of foreign proceedings regarding the same debtor, the Court must seek cooperation and coordination under sections 165, 166 and 167, and—181. Presumption of insolvency based on recognition of foreign main proceedings
In the absence of sufficient evidence to the contrary, recognition of foreign main proceedings are, for the purpose of commencing proceedings under the laws of Zimbabwe relating to insolvency, proof that the debtor is insolvent.182. Rule of payment in concurrent proceedings
Without prejudice to secured claims or rights in rem, a creditor who has received part payment in respect of his or her claim in proceedings in terms of a law relating to insolvency in a foreign State may not receive a payment for the same claim in proceedings under the laws of Zimbabwe relating to insolvency regarding the same debtor, so long as the payment to the other creditors of the same class is proportionately less than the payment that the creditor has already received.Part XXVI – General provisions
183. Court may stay or set aside liquidation
184. Meetings to ascertain wishes of creditors and others
185. Dispositions and share transfers, or transfer of shareholders’ after liquidation void
186. Inspection of records of debtor being liquidated
187. Giving of evidence after conviction for failure to testify
188. Criminal liability of partners, administrators, servants or agents
189. Jurisdiction of Court
190. Appeals
191. Review
192. Master’s fees
The Master must in respect of the matters mentioned in Tariff B of the Second Schedule, ensure that the fees specified therein are recovered in the manner prescribed in the Schedule.193. Custody and destruction of documents
194. Insurer’s liability in respect of indemnification of debtor
Whenever any person (herein referred to as the insurer) is obliged to indemnify another person (herein referred to as the insured) in respect of any liability incurred by the insured towards a third party, such third party is, on the liquidation of the estate of the insured, entitled to recover from the insurer the amount of the insured’s liability towards the third party, but not exceeding the maximum amount for which the insurer is bound in terms of the indemnity.195. Non-compliance with directives
196. Regulations, policy and other powers of Minister
197. Repeals
History of this document
25 June 2018 this version
Commenced