Democratisation of Business: Zimbabwe’s Newest Business Entity

Abstract

This article looks at the provisions of the Private Business Corporations Act [Chapter 24:111 of Zimbabwe (Hereinafter referred to as the PBCA). One of the criticisms of the companies legislation as it exists is that it is lengthy and too complex to understand. Its demands are too many and rigid, that it is not appropriate for the small businessman. It is important to look at the provisions of the PBCA Chapter 24:11 to establish whether the provisions available offer any added advantages to the small businessman than what was currently on offer then. It is also necessary to compare these regulations with the law governing companies, partnerships and co-operatives in order to conclude whether there was an actual need for such new regulations in the form of a new Act or whether it would have been easier and even more advantageous to incorporate these rules or regulations in the Companies Act. The PBCA creates the latest business entity in Zimbabwe.1 The intention of the Act is to provide a new form of enterprise which is most suitable for small businessman. This enterprise would enjoy liberalised regulations. It would be simpler to incorporate and at the same time enjoy the benefits of limited liability. Limited liability is a very important concept in business. It protects the investor from possible personal financial ruin if the business fails. However, it must be accepted that where there is such protection, it is essential to put in place some regulatory provisions for the protection of the other players in the field.