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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Corporate governance in Zambia: a call for contextualisation
Authors:Luwabelwa, WalubitaISNI
Kalula, EvanceISNI
Year:2011
Periodical:Zambia Law Journal (ISSN 1027-7862)
Volume:42
Pages:171-196
Language:English
Geographic term:Zambia
Subjects:enterprises
business organization
company law
Abstract:The simplest definition of corporate governance is perhaps 'the system by which companies are directed and controlled'. It involves not only 'what the board of a company does', but also 'how it sets the values of the company' (Young, et al. 2008). This article considers the legal framework of corporate governance in Zambia. Based on a comparative analysis of selected corporate governance themes in South Africa, the United States and the United Kingdom, it makes recommendations for the improvement of corporate governance in Zambia. The authors argue for a contextualized approach, appreciative of the intricate social, cultural and economic nuances of the country so as not to divorce the legal and institutional framework from the people, which the framework is meant to serve. Specific factors that must be taken into account include Zambia's high poverty levels, the 'unlisted' status of many companies, including State-owned companies, which consequently remain outside of corporate governance reforms, the imbalance between local investors' influence and foreign majority share holders' powers, but also the country's favourable geographic position for trade. The authors emphasize that there is no 'one-size-fits-all' corporate regulatory mode. Importantly, the board, management and also the company's employees should all be convinced of the importance of good corporate governance and the benefits that flow from it. Companies will need to prioritize objectives by progressively focussing first on mandatory areas of compliance followed by other areas of good corporate governance practice ranked according to the company's own needs, resources and philosophy. Notes, ref. [ASC Leiden abstract]
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