CHAPTER 363
DEVELOPMENT BANK OF ZAMBIA ACT

Arrangement of Sections

   Section

PART I
PRELIMINARY

   1.   Short title

   2.   Interpretation

PART II
ESTABLISHMENT AND ADMINISTRATION OF THE BANK

   3.   Establishment

   4.   Board of Directors

   4A.   Repealed

   5.   Quorum and meetings of Board

   6.   Establishment of committees

   7.   Employment of Managing Director

   8.   Employment of staff

PART III
SHARE CAPITAL AND OTHER ASSETS

   9.   Authorised capital and its division of shares

   10.   Subscription and allotment of shares

   10A.   Consent of Minister required in certain cases

   11.   Additional shares

   11A.   Transfer and vesting of non-performing portfolio of Bank

   11B.   Conversion of certain financial liabilities into debentures

PART IV
THE BUSINESS, PURPOSES AND FUNDS OF THE BANK

   12.   Business of Bank

   13.   Repealed

   14.   Funds of Bank

   15.   Application of funds

   16.   Financing of projects by Bank

   17.   Limits on financing by Bank

   17A.   Repealed

   18.   Repealed

   19.   Safeguards for investment

   20.   Investment of funds

   21.   Reserve funds and distribution of income

PART V
ACCOUNTS AND AUDIT

   22.   Financial year

   23.   Accounts and audit

   24.   Annual report

PART VA
INSOLVENCY AND DISSOLUTION

   24A.    Insolvency

   24B.    Effect of dissolution of Bank

PART VI
MISCELLANEOUS

   25.   Rules

AN ACT

to provide for the establishment, constitution, duties and powers of a Development Bank of Zambia to assist in the economic development of Zambia and to provide for matters incidental to or connected with the foregoing.

[6th July 1973]

Act 35 of 1972,

Act 6 of 1975,

Act 28 of 1975,

Act 6 of 1979,

Act 29 of 1982,

Act 11 of 2001,

Act 24 of 2005.

PART I
PRELIMINARY

1.   Short title

This Act may be cited as the Development Bank of Zambia Act.

2.   Interpretation

In this Act, unless the context otherwise requires—

“Bank” means the Development Bank of Zambia established under section 3;

“Bank of Zambia” means the Bank of Zambia established under the Bank of Zambia Act;

[Ins by s 2 of Act 24 of 2005.]

“Board” means the Board of Directors of the Bank appointed under section 4;

“Class A Directors” means the members of the Board appointed by the Minister under sub-section (3) of section 4;

“Class B Directors” means the members of the Board appointed by the holders of Class B shares under sub-section (3) of section 4;

“Class A shares” means the shares allotted under paragraph (a) of sub-section (1) of section 10;

“Class B shares” means the shares allotted under paragraph (b) of sub-section (1) of section 10;

“Class C shares” means the Class C shares created under paragraph (a) of sub-section (9) and allotted under section 11;

“commitment fee” means a fee imposed on the allocated but the un with drawn portion of the principal of any loan;

[“economic development” rep by s 2(a) of Act 11 of 2001.]

“employee” means any person in the service of the Bank or engaged in connection with any business of the Bank;

“financial business” has the meaning assigned to it by the Banking and Financial Services Act;

[Ins by s 2 of Act 24 of 2005.]

[“long and medium term finance” rep by s 2(a) of Act 11 of 2001.]

“member” means the Chairperson or any other member of the Board.

[Ins by s 2(b) of Act 11 of 2001.]

[“recipient” rep by s 2(a) of Act 11 of 2001.]

“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 12.

[S 2 am by Act 6 of 1979.]

PART II
ESTABLISHMENT AND ADMINISTRATION OF THE BANK

3.   Establishment

   (1) There 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.

[S 3 renumbered as 3(1) by s 3(a) of Act 24 of 2005.]

   (2) The Bank is a financial business for purposes of the Banking and Financial Services Act.

[S 3(2) ins by s 3(b) of Act 24 of 2005.]

   (3) Notwithstanding sub-section (2), the Bank shall be deemed to be a financial institution for purposes of Part 2 of Chapter VI and Chapter VII of the Banking and Financial Services Act.

[S 3(3) ins by s 3(b) of Act 24 of 2005.]

   (4) After the date of the coming into force of this Act, the Bank of Zambia may prescribe such transition periods as are appropriate to permit the Bank to achieve compliance with the licensing and other requirements of the Banking and Financial Services Act.

[S 3(4) ins by s 3(b) of Act 24 of 2005.]

4.   Board of Directors

   (1) There shall be a Board of Directors which shall, subject to the other provisions of this Act, be responsible for the policy and general administration of the affairs and business of the Bank.

   (2) The Board shall consist of a Chairman and nine other members, shall, subject to the other provisions of this Act, hold office for a period of three years and shall be eligible for reappointment.

   (3) The Chairperson and three other members shall be appointed by the Minister and the remaining six members shall be appointed by the holders of Class B shares:

Provided that in the case of an appointment by the holders of class B shares, a true copy thereof shall be forwarded to the Minister and to the Bank

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