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Financial Institutions (Resolution) Act [Chapter 24:28] Act 31/2004
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for the administration of troubled financial institutions; to provide
for formulation and implementation of schemes of resolution in respect
of such institutions; and to provide for matters connected with or incidental
to the foregoing.
by the President and the Parliament of Zimbabwe.
[Date of commencement:
14th January, 2005.]
of Troubled Financial Institutions
of certain financial institutions.
where investigated financial institution not troubled but in default of
Banking Act, etc.
of troubled financial institutions.
of declaration to certain officers.
of Administration and Functions of Administrator
powers of administrator in relation to troubled financial institution.
of certain provisions of Companies Act to administration.
dispositions of property by troubled financial institutions and specified
of troubled financial institution’s affairs.
of assets, liabilities and share capital of troubled financial institutions.
meeting of creditors and members.
meetings of creditors and members.
Persons in Relation to Troubled Financial Institutions
of persons responsible for causing financial institution to be troubled.
commissioners for taking evidence.
or vesting in State of rights of, or disposal of shares held by, specified
of assets of specified persons in satisfaction of their liabilities to
troubled financial institution.
of administrator in relation to specified persons.
by specified persons.
by specified persons.
25. Power of administrator
to compromise with persons liable to be specified or prosecuted.
of Resolution and Interim Management of Successor Financial Institutions
of administrator with respect to scheme of resolution.
provisions for repayment of depositors of troubled financial institutions.
of scheme of resolution.
where resolution not possible.
of scheme of resolution and matters incidental thereto.
of interim board.
where valuation of shares, etc. by administrator or Reserve Bank disputed.
employed by troubled financial institution before its administration.
of assets during administration.
of administrator and assistant administrators.
incurred by administrator and interim board to have preference over pre-administration
of administration excluded in determining preference under mortgage bond.
of auditor during administration.
consequent upon administration.
43. Cap. 14:28
not to apply.
Act may be cited as the Troubled Financial Institutions (Resolution) Act
Act shall apply to all financial institutions referred to in section 6(1),
including those formed, registered or incorporated before the date of
commencement of this Act:
that if the Reserve Bank proposes to issue a declaration in relation to
a financial institution, and, before such declaration is issued, there
is made or presented to the court—
application in terms of section 191 of the Companies Act for the sanctioning
of a compromise or arrangement proposed between the financial institution
and its creditors or members, sections 191 to 194 of that Act; or
petition for the winding up of the financial institution in terms of section
207 of the Companies Act, Part V or VI of that Act; or
application for a provisional judicial management order in terms of section
299 of the Companies Act, Part V or VI of that Act;
apply to such financial institution unless, within thirty days after the
date of presentation of the petition or the making of the application,
as the case may be, the Reserve Bank issues a declaration in respect of
the financial institution.
means an administrator appointed under section 6(1), and includes any
assistant administrator appointed under that provision;
in relation to a troubled financial institution, means the administration
of the troubled financial institution in accordance with the notice of
declaration or a scheme of resolution;
"board", "curator", "director", "chief
executive officer", "inspector", "registered"
and "supervisor" have the meanings assigned to those terms by
the Banking Act;
Banking Act" means the Banking Act [Chapter 24:20];
Companies Act" means the Companies Act [Chapter 24:03];
of the administration" means the date when a declaration in relation
to a financial institution takes effect in terms of section 6(7);
"Master", "Registrar", "secretary" and "share"
have the meanings assigned to those terms by the Companies Act;
means a declaration issued in terms of section 6;
includes any document stored in electronic form in any computer;
banking institution registered or required to be registered in terms of
the Banking Act [Chapter 24:20]; or
building society registered or required to be registered in terms of the
Building Societies Act [Chapter 24:02]; or
People’s Own Savings Bank established in terms of the People’s Own Savings
Bank of Zimbabwe Act [Chapter 24:22]; or
asset manager as defined in the Asset Management Act [Chapter 24:26];
collective investment scheme as defined in section 3 of the Collective
Investment Schemes Act, 1997; or
person who carries on a business of acceptance of deposits and other repayable
funds from the public;
in relation to a financial institution, means¾
shareholder, debenture-holder or other person having a right to vote at
meetings of the financial institution; or
contributory as defined in section 202 of the Companies Act;
means the Minister of Finance and Economic Development or any other Minister
to whom the President may, from time to time, assign the administration
of this Act;
in relation to a troubled financial institution, includes an auditor of
funds" means funds held by or on behalf of the State (whether or
not appropriated by Act of Parliament) and includes any moneys advanced
by the Troubled Bank Fund;
Bank" means the Reserve Bank of Zimbabwe referred to in section 4
of the Reserve Bank of Zimbabwe Act [Chapter 24:22];
of resolution" means a scheme referred to in section 26;
person" means any person specified in terms of section 14(8);
financial institution" means a successor to a troubled financial
institution that is reconstructed, amalgamated or transferred in terms
of section 10(a), (b) or (c);
financial institution" means a financial institution in respect of
which a declaration has been made;
Bank Fund" means the Troubled Bank Fund established by the Reserve
Bank for the purpose of providing financial assistance to financial institutions.
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