The Patents and Companies Registration Agency-PACRA- has clarified that it is not mandatory for the Minister of Finance to be listed as a shareholder in all companies registered by a government institution.
Zambia National Service-ZNS- Commander Lieutenant General Maliti Solochi has been registered as one of the shareholders in Eagles Holdings Limited, a move which has been criticized by various stakeholders arguing that the minister of finance should have instead been registered as provided by the law.
But PACRA Registrar and Chief Executive Officer Benson Mpalo has clarified that whilst section 3 of the Minister of Finance (incorporation) act, chapter 349 of the laws of Zambia declares the Minister of Finance as a corporation sole with power to hold shares in any company, the provision does not make it mandatory for him to be a shareholder in all private companies incorporated by government agencies.
Mr. Mpalo says in view of the foregoing, where government institutions seeking to incorporate a private company are in doubt of who must hold shares, PACRA has always guided that the Minister of Finance, being a corporation sole, should be considered an option.
In a statement, Mr. Mpalo says this however does not entail that it is mandatory for the Minister of Finance to be listed as a shareholder in all companies registered by a government institution.
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