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Indigenisation and Economic Empowerment (General) Regulations, 2010, S.I. 21/2010 - With changes as of July 27, 2011
Parliament of Zimbabwe
July 27, 2011

The regulations were amended with effect from 14th May 2010 by the Indigenisation and Economic Empowerment (General) (Amendment) Regulations, 2010 (No. 1), published in SI 95/2010. The only provision affected by the amendment was section 4(1). More extensive amendments were made by the No. 2 amending regulations, published in SI 116/2010, with effect from 25th June 2010; these changes are indicated in the text by use of blue font. The third amendment was with effect from 25th March 2011, by SI 34/2011 – changes shown in green font. The fourth amendment (SI 84/2011) was in response to the adverse report of the Parliamentary Legal Committee on SI 34/2011; it came into effect on 27th July 2011 – changes are shown in purple font. This and other footnotes are by Veritas, and are not part of the official regulations as gazetted.

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IT is hereby notified that the Minister of Youth Development, Indigenisation and Empowerment, after consultation with the Board, has, in terms of section 21 of the Indigenisation and Empowerment Act [Chapter 14:33], made the following regulations:-

Title and date of commencement

1.(1) These regulations may be cited as the Indigenisation and Economic Empowerment (General) Regulations, 2010.

(2) These regulations shall come into force on the 1st March, 2010.

Interpretation

2 In these regulations “appropriate person”, in relation to the submission of a Form IDG 01 and indigenisation implementation plan in terms of section 4, means the person who, in terms of section 10(2) , is responsible for submitting the form and the plan to the Minister;

“approved”, in relation to an indigenisation implementation plan submitted by a business, means approved or deemed to have been approved in terms of section 5;

“dispose”, in relation to the disposal of shares or interests in a business, means sell, donate or otherwise dispose;

“fixed date” means the date fixed in terms of section 1(2) as the date of operation of these regulations;

“form” means a form prescribed in the First, Second, Third, Fourth, Fifth, or Sixth Schedule;

“indigenisation plan” means a written proposal to the Minister on how and when fifty-one per centum or a controlling interest in any business shall fall under the control of the indigenous Zimbabweans.

“management share ownership scheme or trust” means an arrangement the dominant purpose or effect of which is to enable the managerial employees of a company or group of companies to participate in or receive profits or income arising from the acquisition, holding, management or disposal of the stock, shares or debentures of the company or group of companies concerned:

Provided that a management share ownership scheme or trust shall not include a share option scheme operated for the benefit of any managerial employee;

“managerial employee” means a person of any one or more of the following descriptions-

(a) any person who is the principal executive officer, corporate secretary, chief financial officer or human resources manager of a business, by whatever title he or she may be designated and whether or not, in the case of a company, he or she is a director;

(b) any employee of a company who, in the discharge of his or her functions, is directly answerable to the board of directors of a company;

(c) any employee whose contract of employment requires or permits him or her to hire, transfer, promote, suspend, lay off, dismiss, reward, discipline or adjudge the grievances of other employees;

“minimum indigenisation and empowerment quota” means a controlling interest or the fifty-one per centum of the shares or interests which in terms of the Act is required to be held by indigenous Zimbabweans in a business pursuant to any transaction referred to in sections 3, 4, 5, 6, 7(1), 9 and 11;

“net asset value”, in relation to the net asset value of a business, means its net worth, that is to say, the total value of its fixed assets and other assets less the total value of its liabilities;

“non-indigenous business” means a business in respect of which fifty-one per centum of the shares or a controlling interest is not held by indigenous Zimbabweans;

“notifiable transaction” means a transaction in respect of which notice is required to be given in terms of section 8;
“notifying party” in relation to a notifiable transaction, means the party that in terms of section 10(1) , is responsible for notifying the transaction to the Minister;

“primary documents”, with reference to the documents required to be submitted by a responsible person on behalf of a business under section 10(1), means the Form IDG 01 and indigenisation implementation plan required of the business concerned;

“qualifying scheme or trust” means an employee, management or community share ownership scheme or trust that qualifies in terms of section 14, 14A or 14B for the purposes of being used to assess the extent to which a business that is a company has achieved or exceeded the minimum indigenisation and empowerment quota;

“responsible person” mean a person referred to in section 10(1)(a), (b), (c) or (d);

“secondary document” means the resolution or proof of authority referred to in section 10(4)(a), (b), (c) or (d), as the case may be, required to be submitted by a responsible person together with the primary documents;

“sector of the economy”, “subsector of the economy”, “sectoral” and “subsectoral” refer to a sector or subsector of the economy specified in the first or second column of the Table appearing under item 3 of Form IDG 01;

“share option scheme” means an arrangement to benefit employees of a company whereby shares are offered to them for purchase at a future date at a price fixed in advance.

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