Zambia Agricultural Development Bank Act (No. 18 of 1979)

Zombia ..l.gri,,u!hiffJI [No. JS of 1 m ~ B•nk GOVERNMENT OF ZAMBIA ACT No. 18 ot 1979 Dato of A.ent · 12th April, 1979 An Ac:t to provide tor the establlsbmeot. constlta:tton. dutt .. arul pow...,. of tbe Zambia Al!<lcultural Develop ment Bauk for tbe pa.,.,.. of proridlng financial aaaletllnee to a~c;ultural and fishing industries; and to prov:ld• for rnatten connected wlth or loddeo.tal to the foregoing. EN.AcrED by ihe PArlio,ment of Z.,.mbffl. PART I :PBJ:r.notr -UlT' J. Tblf, Act m•y be cited &o tbe Z&rnbi• Agrieultun.J Dffelopment Ba.nk Act, 1919, and eh.all eome into opera.taon on ...eh clat. M th. lli,1,h:..."t' may, by ata.tutory on:k:r, •ppoin.•. 1. In thlo Act, an1- thu contort otherwiiie roquiN,o " :&o.k '" meatll!I the Zambia. Agricultural Development Bank eat&blilhed. by aection lhroe; •• Boe.rd "' me&tl.8 the :Bo&:rti of' Ditect.ant Mtabliahed nnd« NCtion /OV'; .. Chairman •· meam the Chairman or the Board; • Geaen.l M,.n,.ger "mM111 the Cltmara! MAu.g,,r appointed und« MtCtion IQ; .. member " meam a member of the Board and includtll the Chairman. 73 74: Boo,dof Rat.o--... tMJao( , ., .......... .,... , No. 18 of 19'1'] Z..mhia AgricuUum.1 ~Bank PARTll EBuBLISllMniT o• Z.umu Aomeut.TtllU.L Dlw&t.oratUT B,U(JC 3. Thero J,.,. hereby eeta.bliehed the Zambia Agrieu.ltu:-.. 1 .Dovolop1"r:rti Do.nk which l'!hit.ll bo 11, body eoq,ot"Dto with perpetual Muecession and a oommon seal capable of suing and of being 11ucd in ita oorporat-e name, and with powers, sub ject to the other provisiollf!I Qf this Act, t.Q do ,11.)J such other act..e: and th~ ao a. bodv ooroor&te mav do bv law. and as a.re nece,!8&ry for, or indderital to, the carrying out of ite dutiee and functions under thi:, Act. 4. (I) Them shall be a. Bo,:ird of J)irectors which aha.II be, reaponttiblo for tho poliey and tbc Mlrninirinr.tion of tho alfa.ira: and btmnei!A of the Bank. (2) The Boa.rd ab.all oonsist of a. Chairmn.n and nine otbor memben. (3) The Ch&irman And three other memben fJhall be ap• pointed by the lfinilllt~r and the 8ix other members ehall be appoint.eel by t,be shareholdem. (.() F.VA'l'Y mio,mh,,t, 111.h111l hnlrt (lffil'f!I f'I),. -. pru-ir'w1 t:rf t.h-.. yearw e.n.d &hall be eligible for re-appointment. 5. Every member shall be entitled to such remuneration M t.he Board may, with the approv&l of the Minist.er, deter~ miw,, 6. (I) Notwitlu,t.anding anything contained in ,uboection (4.) of aection four, the Minister or the 11harebolders1 aa the OUt'I may be, mav at any time remove from office any member appoint,,d by the Minmr or the obArehol&rs ~ly (a) for ki,;:.1~'ity; (b) for serione misbebniour; (c) it h" becomes a director of any other banking ot' inooey~lending imtitution; (d) ii' be oontravcnea the provisiom of eection aiu;..ot (,) in the cironm,tan.,.. ,et out in Article U (2) of tho Constitution. (2) A member aball ....., to hold office (•) ifbodl,.; (b) if he "'8igne by giring notico in writing to the Ministor; (<) if he i, adjudged b..taupt or ent.m, into ,my arn.r,p ment for the benefit of hit ereditor11; (d) if he io onjndgwl t,, ho of nnommd mind: Z<,mlM Au,i<Ju/1,<ml ~ Bank [No, 18 of I ffl (t) if he is &bee:nt, without leave, from four oonaecnti-rn meetings of the Boan:!. of which he haa had notice. 7. ( l) The Board shall from titne t.o time meet for the ~tion of bu1:1iness of the Bank at tmch pJaoei, and au.oh tiroee M the Chairman may decide, but not lees than onoo in "'~t'J" th~ montba, (2) The Chairman may n.t any time call a special mooting and shall call euch a m~ting if BO requested in writing by at least two membeM1: Provided that, ten daya' notioo of a irpecial mooting shall be given unleM the Chairm"n oon&det"B thst the matt« for corutldemtion is IQ urgent u t.Q require a aborter period of Wo1t,iw, (3) At any meeting of the Board one~h&lf of the total nwnber of members shall coruititute a quorum. (4) Subject t.o the provisions of mbeection (3), tho .Boanl may ,rogulat<> ita own procedure. (5) All docitrioni,: of the Boa.rd shall be taken by mM.na of a tMOlution paMed by & majfflty of the memben pl"t'leffll't and TOting at & mootin~ and, in the (m!:nt of an oquality of Vt.l'f;fw, tho Chairman or other member pre8iding at tho mooting ahall have a. CMting vote in addition to his delibemtive vote. (6) The (,1u,irman shall pl'fflide at errery meeting of the Boa.rd but in the &b9enoo of the Chairman from a.ny xreeting the members presei.t 111ball elect one of their number to act u Ch.,i..-m-11111. (7) Any propoMI circulalA>:! among the members of the Boa.rd and agreed to in writing by one-half or more of the membmJ shall htwe the same foroo and effect M a. remlution p&88ed at a duly constituted lileeting of the Board and 11haD be included in the minutee of tho ne.n meeting of the Boa.rd. 8. The Board may appoint frt1cl1 number or oommitt.Ma u it may deem ttecetllW'Y from amongst its membera to wbOJll it may delegate any of it.I functionll under thil Act. 9. No member ahaJI tab part in the di&euflDtm. or or yotft upon (~) an application fot • loan by any penon ..-ho :ii a debtor or CM.lit.or of mcb member; 75 76 Empl """ -of No. 18 ol lffl] (6) an application {or a Joan by any penon who i1 & employet" or employee of ncb member; or (c) any other matter 1n wbleh such member bu dica,1, or indirect peenni.ary intereet. 10, (I) The Minieter Rb&!!, in oonsultation with the Boa.rd, &ppoint a. General )L8.nager or the Bank &t mch :remu.m,ratiiuu and on such termi, and condition, 8o8 the Board may detar:m.ine. (2) The General Manager shall be the Chfflf Exoou:ti~ of the 'Dank t1.nd sba.U perform such duties as may. trom time 1,u IJ.me, be p=eribed by the Bo.td with the epproval of the l!inilter. (3) The Genera] Manager 11hall be preeent at all meetingw of tbe Board un.Jeea his pre.eenoo at a.ny mooting b.u beero ucw,ed, by the Chairm&n or unless any matiie.t' in which he bu direct or indirect. pocuniary interest is to bo CQIUlidered at tn:1.ch meeting. 11. (1) The Board may, at 8'Uch remuneration, and oo. ruch terms and oooditioua M it deems fit. engage lttt.ff for tho conduct of the bUBineei of the Thuik. (2) The Board may delega.te any of tho powen oont.ined ill subsection (1) to the General Manager. ll. The .Boord shall, with the approval of tho Mininot, provid, 1 JX'ruriOllll or other terminal benefit.a for ~ IJtaff of the Bank ,,, d =-ia.y establish &nd ad.nun.urtet any 110beme or fund for such pw}XlfM!II &nd make oontribntiOlUli to anr mch achemo Ot" £-u.ml. 13. Any funds 11et uide for tht'J pu:rpoeel m.eatiantd in section fwtlflf!! rnay be inVt!llted. by the Bank in ncb. manner a.e tho Bo.rd d00m111 6ti. PA.RT Ill C.tlTl'.u. A•.. i.-t U. (l) Subject to tht, pro""Wona o£ n.~ (!), tl:ao ~ authomod capital of the Bank ab.all be eetl;dlty-&ve m.illion kwaebe (KlG,000,000) divided into .,,enty-11"' million oJw. of Kl par- value which 1b&ll be allotted in. such mllDMI' u tbn ll.inist« m•y determine. Zambio .dgricN/lvn,I ~-. B<loJ: [No. 18 of lffl (2) The autbori,,,d capil41 may he - by • .-lati<m of the Board with the appronl of the-· (3) The Boa.rd JM.y a.lint Aii.dititma.l dta.l"P.ll!l 1¥11nilting from the, increue of $l)O authoriill,d capital purm"°t to the provisi.m9 of snbaection (2) to 11ttch ponow,, whether reoident In Zambia, or elaewhere, u th~ Minmer may approve. (.&) Th,,, a.utht'lri-4 M-pit&I nf' tltA R11.nlr 11.nrl any Mdition&l ~ ~tin.g from any incre&IIO thertd shall be divided into mch clM!O!I of eblt.l't'J8 with euch right.I u the Boa.rd may deten:nioe. PART IV Ftllffls AXD Bl1RllfB88 or THll B.llflt 15. (I) The fund, of the B<nk •hall con.oi.t of 11ttch 111DU1 of ffl"""7 (•) .. may he ,..,.,...i. by the !l&nk under ...Uona , .. ,,,,,. and ri:rlufl; (b) u the Bank may aequin, by mO&llll of grant. or raise hy mNLllll nfloanA; (o) u may he approprialod for it by Padiament; and (d) aa m•y """""'to it in the course of it. buaineoo. (2) No charge or lien ahaU he cn,alod upon the fund, of lhe 1knk. 16, The Bank ob,.I~ with the appr<mJ of the :M.u,;,,tor reopomibi, for flnanoo, 11,.,,.. po,,,,r to raillo additional funda by (a} obtatniugonirdmftatromutlH,r banb; (b) ....,;vu,g "'oneyoondol"""t; (o) ""Y other m••bod of which the Miniater M!pOMiblo for finance m•y ,.pprove. 17, The fund, of the Bank ahaU he appllod tow.rd.. (•) the payment of ..i.n.., f,.., rom...,,,tion, a11owan ... &nd •-due and payabl, to the me.nhen of the Boa.rd aud the staff of the llanlt; (b) tho '"P"yment of 11ttma raised by ny of loan by Ibo ll&nkandthepaym,,nlofin--; (,) the provision ofloog, medium and abort-term loans for agricultnroland liming prujecto; (d) lhe P"ym.nt of rat., -t, tueo, insuraoee premiuma. including the . of mainlolwloo of which may become ....led in lhe Berui:; (•) the payment of mch dmdenda aa the Boo.rd mAY approV!l; (/) ench napitt.l expenditure u the Boo.rd mA) •pp.,.,,, (g) ench eontributlona to charitable or hmm,lent organiationo .. lhe Boo.rd may authorise; Lo11.11t !l.nd ,o:unt1~ Act No. :!'ll oft!l7.5 Modt1of appliCALion forlOUIS Lmut11tion, lffl gn.nung ., ...... .... fond. C..p. 700 lnvc"llment ., ....... No. 18 oflmJ Znml>ia,I~ n.,,,1 ,.., lmnk .QI) .tho lending of money t-0 members of ,Wf of the Bank for the purch.aee of motor vehlclee or houeea for penvm.111 Of'M1pat.inn ; {i) any other expen&lS nece888.ry for or incidental to tho business of the Bank authoriood under this Aet. 18. The buaine6J!I of the Be.nkl'lhall be {11) to proVide loans or any other form of credit fa.cthtiea to any pereon, oomptmy, statutory oorporation, local authority, 8&'K>ciation, co-operative -.ociety, the GO\·cmmont or any other institution . .approved .by t.h~ .Boud. r,;)I:' Arty agri.mltunJ Q;' lieh.ing prvj-t; (b) to do all other me.tt;en, 1i.nd thi.ngt incidental to or connected with the foregoing. PART V l.oANB .L"(I) Sv.c~ J9. .A Joan made under 86ciion ~ig/aJ,t!IM may be granted on 1111y of Lho folluwiug l,IUCUrit.it..'l! (a) a mortgage on uno.r.hatQtcd improvement.. on land ·within Zambia a.s provided in the Land (Convenion ofTjtles) Act; (b) at-Op order on crops or b&n.k acoountl'l; {c) bills of aalo or a.gricultural charges cn,atod uuder th~ Agricultural Credito Act; or (d) any other eoeuritv proacribed by the Boa.rd. 20, An •pplitation for • loan shall he made in such l'.t\.llDOO? and L1 such form aa the Board m11.y determine. l1. No !?an ehall be granted~ {a) to any member « hut spow,e or, S&ff ae provided in put.graph (h) of ...tion """""'"'• ony membor of staff' of the Bank; or (b) to a.ny other pen,on in t'!Xctl88 of any amount lb:ed by the Board. 22. The Battk shall maintain a reee1 H fund • provided in ,ect,ion '"1"'- of tho Banking Aet. 23. The Board m•y in...i all or any part of the fund, of tho Bank not immedi,,1',ly required for tho - of thill A-ct. PART VI Acoou~ A1f1> AunIT l4. The fuw,ciaJ year of the Bank •hall begin on Ibo I• January, and end on the 31,t December of oocl1 YOOl". Zambia Agrkultitrq] D<v,/,,pmenJ. Bank [No. 18 ol 1'179 25. (1) The Board ah.all cause to he kept and mn.intainod proper boob of a.<!'OOunt and roeoffllll of all the traruiaclions of the Bank an<l 1nt<1h books of ~count£ and reoords shall be kept at tb<J prineipo.l pl~= of l.iui,im:.,-ss vf l,hc Bank. (2) The aecounbt of the Bank for each fina.nei&I year •hall be 11uditcd by 11, pet"f/,On who pu blidy carries on the profession of acoountnnt in Zambia and who shall be appointed auditor by the sh1:uehol<lers. (3) For the purposes of audit, the audit.or shall at all reaaonablo times ho.Ye a,cceg,s to all books und records relating to the a.Meta:, liahilit.ic!l, int'ome nnd exp-:-nrlit,um of the Bank. Aooount. and &Ud.tt 26. { 1) The Board shall, not 111.k>r than six months &ft.er Annu.J the end of each financial year, submit to the Minister and the n,port sharcbolden a report of it8 operatiom1 indud.ing a ste.tement of IMXX)UOWI for th11,t, y<:Ar duly ccrtiliod l,y the u.mlit.ur. (2} The Minister shall, not later than nine months "ft.er the end of each financial year eaw:te the annual report and atatemt,nt of acro1mt.e referred to in rmbeection (1) to be publi.ehed in the Gazelle and laid before Parliament, PART VII )lisc!:LLA.Ifl:OUS 'J:I. (1) The oorJmon seal oftbe Bank eha.U be 81'.lcb a.a may be detennined by the Board, and the affixing of the eea-1 eba.ll ht,, •utbenti':!'•tOO hy th(; ,;,igru,tt1N11 of tho Cbllirnum and any other two members ae the Board may appoint. (2) Any documen~. purporting to be a. document e.i.:6""ttted or imrned undci: the .,,al of the Bank authentieated as afon:aid aball l:..3 l'OOOived in. ", id.c...~'-'O u:a.d 11ha.ll, unloot1 tbe oontro.:t-y ii, proved, be doomed to be dw:r executed. (3) Any cheque d"'wn by the Bank ,hall be oigned by .. ch offi:oen of the Btmk, not being Jes, th1tn two in number, u tho &..N m .. y dNignat... 28. The Boa.rd may, with the approval of the Mlnilter by l!Mtut.ory instrument, make regulatiom for the better carrying iato effect of the provWom of UlUJ Act.