Development Bank of Zambia Act, 1972
- Commenced on 6 July 1973
- [This is the version of this document as it was at 31 December 1996 to 6 October 2005.]
Part I – Preliminary
1. Short title and commencementThis Act may be cited as the Development Bank of Zambia Act.
2. InterpretationIn this Act, unless the context otherwise requries—"Bank" means the Development Bank of Zambia established under section three;"Board" means the Board of Directors of the Bank appointed under section four;"Class A directors" means the members of the Board appointed by the Minister under subsection (3) of section four;"Class B directors" means the members of the Board appointed by the holders of Class B shares under subsection (3) of section four;"Class A shares" means the shares allotted under paragraph (a) of subsection (1) of section ten;"Class B shares" means the shares allotted under paragraph (b) of subsection (1) of section ten;"Class C shares" means the Class C shares created under pararaph (a) of subsection (9) and allotted under section eleven;"commitment fee" means a fee imposed on the allocated but the unwithdrawn portion of the principal of any loan;"economic development" means the development, in conformity with the priorities of the national development plans made by the Government from time to time, of—(a)manufacturing, assembly and processing industries, including industries engaged in the processing of products of agriculture, forestry and ranching;(b)engineering, construction, transport, power, tourist and mining industries; and(c)large-scale corporate agriculture and ranching;"employee" means any person in the service of the Bank or engaged in connection with any business of the Bank;"long- and medium-term finance" means any—(a)equity participation in a company; or(b)loan where the obligation of the borrower to repay the principal sum advanced will not, in the absence of default, be discharged sooner than twenty-four months from the date on which such loan became effective;"recipient" means any body, corporate or unincorporate, to whom the Bank makes available long- and medium-term finance;"shareholders" means the persons who have subscribed to share capital of the Bank, and have paid the subscription;"special funds" means the funds administered by the Bank under paragraph (d) of section twelve.[As amended by Act No. 6 of 1979]
Part II – Establishment and administration of the Bank
3. EstablishmentThere is hereby established the Development Bank of Zambia which shall by that name be a body corporate with perpetual succession and a common seal and shall be capable of suing and being sued and, subject to the provisions of this Act, of doing or performing all such acts or things as a body corporate may by law do or perform.
4. Board of Directors
4A. Absence of Chairman and Deputy ChairmanThe Deputy Chairman shall preside at any meeting of the Board at which the Chairman is not present and, if at any meeting both the Chairman and the Deputy Chairman are not present, the members present, if they constitute a quorum, shall elect one of their number to be the Chairman of the meeting.[As amended by No. 6 of 1975]
5. Quorum and meetings of Board
6. Establishment of committeesThe Board may establish one or more committees comprising some or all of its members to carry out such functions as the Board may delegate to any of such committees.
7. Employment of Managing Director
8. Employment of staff
Part III – Capital
9. Authorised capital and its division of shares
10. Subscription and allotment of shares
11. Additional shares
Part IV – The business, purposes and funds of the Bank
12. Business of Bank
13. Limitations on activities
14. Funds of Bank
15. Application of fundsThe funds of the Bank shall be applied towards—
16. Financing of projects by the BankThe Bank shall finance only those projects which are economically viable and technically feasible.[As amended by No. 6 of 1975]
17. Principles for and limits on financing by Bank
17A. Financing small enterprises
18. ***[Repealed by No. 6 of 1975]
19. Safeguards for investmentIn case of default on any loan, the Bank shall take appropriate action to safeguard its investment.
20. Investment of fundsThe Bank may invest all or any part of its funds not immediately required for the purposes mentioned in this Act in good and sound investment.[As amended by No. 6 of 1975]
21. Reserve funds and distribution of income
Part V – Accounts and audit
22. Financial yearThe Board shall determine the financial year of the Bank.
23. Accounts and audit
24. Annual report
Part VI – Miscellaneous
25. RulesThe Board may make such rules, consistent with the provisions of this Act, as it considers necessary or appropriate to further the objects and functions of the Bank.
History of this document
07 October 2005 amendment not yet applied
31 December 1996 this version
06 July 1973