oa Comparative and International Law Journal of Southern Africa - Legal aspects of corporate finance in Zambia: a comparative study of the law on financial assistance
The mischief sought to be remedied by a law restricting financial assistance in the acquisition of company shares is somewhat unclear. In fact, financial assistance does not alter or reduce the share-capital of a company. In 1994 a new Companies Act was enacted in Zambia. This statute, which repealed and replaced the Companies Act 1921, changed company law in Zambia fundamentally. Among the changes was the introduction of statutory provisions instituting restrictions on financial assistance in the acquisition of company shares. This article examines the salient features of the law restricting financial assistance in the acquisition of company shares. The efficacy of the law in Zambia is examined and distinctions and similarities between that system and those of the United Kingdom and South Africa are considered.
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