10 Reasons why the Article 400A of the Companies Act of Tanzania ( as amended by parliament ) will discourage Foreign Direct Investment in Tanzania

Tanzania
Lyamber said:
Watu wengi hawaelewi kiingereza hizo sababu 10 hazijaandikwa na Zitto Kabwe hizo sababu ameziandika huyo Amne Suedi Kagasheki anaefanya kazi Shikana Law Group Zitto Kabwe amepost tu daah Kiingereza ni tatizo kubwa sana Tanzania
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Elimu ya Tanzania ni shida kubwa sana kwa sasa hapa Duniani! Mtu mwenye PHD hoja zake na communication skills kama STD 7 tu!
Amne Sued Kagasheki kama Mwanasheria ndo ametumia utaalam wake kuonyesha mapungufu katika Sheria hiyo lakini watu wanamponda Zitto Kabwe.
Acheni tudharaulike tu hatuna jinsi!
 
Cosmo 1 said:
Hupo sahihi, benki ikukopeshe nini wakati wanajua kabisa muda wowote ule Kampuni yako inafungwa? Na hii pia inaweza kuaribu utaratibu mzima wa mikopo katika mabenki labda tu kama mabenki yetu yatakuwa yamesoma huu mswaada kwani muda wowote yanaweza kupigwa.
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Kabisa, benki azikopeshi kupitia sheria bali kwa kuangalia business performance ndio maana kampuni zinatoa financial statement zilizo kaguliwa na external auditors kudhihirisha hesabu zao zipo sawa kwanza. With that all manner of financial appraisal can be looked at kama kampuni husika inakopesheka na mazingira ya biashara yakoje (that’s for economists).

Sasa tena ukisema kuna bwana anaweza funga biashara kwa kuamua hiyo ni kasheshe nyingine mpya kabisa in terms of risk assessment. If you are a lender or a supplier (you always have to calculate default risk in your future income in accounting), kwa sheria hii sijui bank gani itakuwa happy kuna bwana anaweza futa kampuni anytime but this is Tanzania anything is possible.

Or else in business terms it’s a very bad law.
 
Tutaonekana washamba katika jamii ya kimataifa kana kwamba hatuna watu wanaoweza kumshauri jiwe kwenye maswala ya company laws,serikali itaangamia kwa kukosa maarifa
 
Kilatha said:
This a bad a law especially point 6 and 7.

Surely a company also has an article of association which articulates how the company would be run with shareholders giving the powers of decision to the management. With that reasoning you can’t mix shareholders with management in respect to public listed companies, private listed and co-opreations.

Point 7 is even more absurd you can’t just decide to shut down. Creditors won’t lend to a company in the first place if they knew it will be stroked down by government decidion any moment.

There are assemesment before deciding to lend none more crucial than the liquidity of the company and its overall financial performance especially with long term debentures/loans sasa tena ukisema kampuni inaweza futwa na mpuuzi that is not assuring.

This is just a very bad law in the business world which adds the aspect of uncertainty to everyone hivi ni akina nani wanatunga hizi sheria.
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Labda akina Kabudi, Makonda, Musiba nk. Au sasa tuseme ni akina nani.
 
Nyanjomigire said:
Labda akina Kabudi, Makonda, Musiba nk. Au sasa tuseme ni akina nani.
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Kwa sababu ya kuwa ulicho jibu akiendani na quote in the spirit ya kuongelea viongozi wabovu katika kukuunga mkono usimshau Jenista Muhagama. Huyu mama ni mtu wa ovyo kweli kama namsikia taarifa mh spika halafu anatapika pumba tupu baada ya hapo.

Someone needs to tell that useless woman being a chief party whip in the parliament entails ensuring all CCM parliamentarians defend party lines sio kuropoka ovyo.

Yule mama ni mwanasiasa wa ovyo kweli watu kama wale ndio chanzo cha jamii nzima kutosogea kimaarifa kwa sababu ya kupenda kukandamiza fikra mbandala.

Stupid Jenista Muhagama
 
Naona kuna watu ktk nchi hii wanataka twende ile njia ya Zimbabwe. Kutafuta shida ni sekunde tu unaipata ila kutafuta uzuri ndio shughuli kuipata.
 
Zitto said:
10 Reasons why the Proposed Article 400A of the Companies Act of Tanzania will discourage foreign direct investment in Tanzania

Amne Suedi Kagasheki – International Lawyer. Founder Shikana Law Group.

1. Striking off a company is normally reserved for cases whereby a company is not operational or carrying on a business. Article 400A proposes that a company that is operational and conducting a business may be struck off.

2. The Registrar of Companies’ powers to strike off any company can be exercised not based on a definitive and conclusive evidence, judgment or conviction from court of law, but on a belief that may constitute a reasonable ground.

3. One of the reasons for a company to be struck off is if the Company is “fraudulently registered” (Section 400A (1) (a)) and this goes against the principle of the “conclusiveness of certificate of incorporation” provided and guaranteed under section 16 (1) of the Companies Act which states that a certificate of incorporation given by the Registrar is conclusive evidence that all requirements of this Act in respect of registration have been complied to. Essentially, this weakens the value of a certificate of incorporation under the Companies Act of Tanzania.

4. Section 400A (1) (c) proposes that a company can be struck off because of “misrepresentation” by the registered company directly contradicts section 472 of the Companies Act that provides that false statements and misrepresentation may constitute an offence which is punishable by conviction or a fine. It does not provide that a company can be struck off due to the extremity of such a procedure and its consequences.

5. Section 400A (1) (b) undermines the authority of the Financial Intelligence Unit established by the Anti-Money Laundering Act of Tanzania and puts in danger any investigation or criminal proceeding taking place with regards to offences under this Act. It also denies the right to be heard and to have fair trial since the Registrar in striking off the Company based on a belief has already condemned.

6. The shareholders and directors being prohibited to enter the country as a ground for the Registrar to strike off a company denies the freedom of shareholders to appoint other directors so as the management of the company can continue or to exercise the shareholders’ right of constituting a proxy so that his or her rights are still exercised. This is a direct interference in the affairs of a private company.

7. In striking off a Company, the Registrar has no obligation beforehand to notify creditors that may have claims over the Company and creditors will not have any right to object until after the Company is struck off where a long process of restoration is to commence should creditors wish to enforce their creditors’ rights. Where restoration is granted, the Company will have to pay interest it accumulated from the date the Company was struck off irrespective of whether or not there was cause since the financial instrument will be valid despite the Company being struck off (section 400A (6)).

8. Once a company is published in the Gazette as being struck off, any other person / company can register a company using the same name as the company struck off and this mere fact negates the right of the company that has been struck off to ever be considered for registration again, even where the court may find cause for restoration and another person/ company can benefit from the brand equity built by the Company that is struck off “just like that”.

9. Section 400A undermines the provisions in the Companies Act for winding up a company which are there to protect creditors, partners and shareholders. This provision seeks to punish which is contrary to the spirit of the Companies Act and general principle of good faith in conducting business.

10. Section 400A gives Registrar of Companies unprecedented powers “to undo” what potentially has taken investors years “to do” and potentially if exercised goes against the principle of sanctity of contract as enshrined in the Law of Contract Act of Tanzania.
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Karibu nchi mpya Tanzimuela (Tanzania-Zimbabwe-Venezuela).
 
Zitto said:
10 Reasons why the Proposed Article 400A of the Companies Act of Tanzania will discourage foreign direct investment in Tanzania

Amne Suedi Kagasheki – International Lawyer. Founder Shikana Law Group.

1. Striking off a company is normally reserved for cases whereby a company is not operational or carrying on a business. Article 400A proposes that a company that is operational and conducting a business may be struck off.

2. The Registrar of Companies’ powers to strike off any company can be exercised not based on a definitive and conclusive evidence, judgment or conviction from court of law, but on a belief that may constitute a reasonable ground.

3. One of the reasons for a company to be struck off is if the Company is “fraudulently registered” (Section 400A (1) (a)) and this goes against the principle of the “conclusiveness of certificate of incorporation” provided and guaranteed under section 16 (1) of the Companies Act which states that a certificate of incorporation given by the Registrar is conclusive evidence that all requirements of this Act in respect of registration have been complied to. Essentially, this weakens the value of a certificate of incorporation under the Companies Act of Tanzania.

4. Section 400A (1) (c) proposes that a company can be struck off because of “misrepresentation” by the registered company directly contradicts section 472 of the Companies Act that provides that false statements and misrepresentation may constitute an offence which is punishable by conviction or a fine. It does not provide that a company can be struck off due to the extremity of such a procedure and its consequences.

5. Section 400A (1) (b) undermines the authority of the Financial Intelligence Unit established by the Anti-Money Laundering Act of Tanzania and puts in danger any investigation or criminal proceeding taking place with regards to offences under this Act. It also denies the right to be heard and to have fair trial since the Registrar in striking off the Company based on a belief has already condemned.

6. The shareholders and directors being prohibited to enter the country as a ground for the Registrar to strike off a company denies the freedom of shareholders to appoint other directors so as the management of the company can continue or to exercise the shareholders’ right of constituting a proxy so that his or her rights are still exercised. This is a direct interference in the affairs of a private company.

7. In striking off a Company, the Registrar has no obligation beforehand to notify creditors that may have claims over the Company and creditors will not have any right to object until after the Company is struck off where a long process of restoration is to commence should creditors wish to enforce their creditors’ rights. Where restoration is granted, the Company will have to pay interest it accumulated from the date the Company was struck off irrespective of whether or not there was cause since the financial instrument will be valid despite the Company being struck off (section 400A (6)).

8. Once a company is published in the Gazette as being struck off, any other person / company can register a company using the same name as the company struck off and this mere fact negates the right of the company that has been struck off to ever be considered for registration again, even where the court may find cause for restoration and another person/ company can benefit from the brand equity built by the Company that is struck off “just like that”.

9. Section 400A undermines the provisions in the Companies Act for winding up a company which are there to protect creditors, partners and shareholders. This provision seeks to punish which is contrary to the spirit of the Companies Act and general principle of good faith in conducting business.

10. Section 400A gives Registrar of Companies unprecedented powers “to undo” what potentially has taken investors years “to do” and potentially if exercised goes against the principle of sanctity of contract as enshrined in the Law of Contract Act of Tanzania.
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Dah! Katika zote #8 kiboko.

Anyway, watakipata wanacho kitafuta. Siamini kama ni watanzania ndio wameandika hiyo kitu, am sure wamecopy NK na kupaste bila kusoma as usual
 
Lyamber said:
Watu wengi hawaelewi kiingereza hizo sababu 10 hazijaandikwa na Zitto Kabwe hizo sababu ameziandika huyo Amne Suedi Kagasheki anaefanya kazi Shikana Law Group Zitto Kabwe amepost tu daah Kiingereza ni tatizo kubwa sana Tanzania
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Inashangaza sana kuona watu wanachambua kitu ambacho hata hawajakielewa. Hii nchi tatizo siyo serikali tu hata wananchi wengi tunasikitisha sana.
 
Jamani sheria zetu zimeandikwa kwa lugha ya kingereza ,ndy maana wale ambao hawajui hii lugha wanapiga tu makofi kuashiria kukubali wakati hawajui chochote kuhusu pendekezo {wabunge wote wanatakiwa kuwa at least na degree na siyo kujua kusoma na kuandika tu}
wananchi inabidi kuwakataa hawa wote wa ndiyoooooooooooooo na kuwachagua wanaoweza bila kuangalia mapenzi ya vyama.
Tukiweza kuchagua wabunge wenye uelewa bila mapenzi ya vyama,twaweza kuondokana na hizi blablaaa
 
Afrika tuliumbwa kuwa watumwa nadhani.
Vonix said:
Jaji kiongozi mwaka tulioumaliza 2018 aliwafanyia advocate 900 mahojiano ya ana kwa ana kwa lugha inayovuma sasa hivi kuwa lugha ya mabeberu 100 tu,ndio walioimudu wengine 800 hata sentensi mbili za kiingereza hawamalizi.AIBU.
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