An Evaluation of the Principle of Accountability and Transparency under the Companies Act No 10 Of 2017

Abstract

This research paper is primarily focused on assessing whether the Company Law Act No. 10 of 2017 has efficiently and effectively promoted the principles of Transparency and Accountability, bearing in mind that these principles are considered the most important corporate principles in corporate governance. Accountability, referring to those in power being answerable to those who gave them the power, the shareholders are considered the owners of the company, while the Directors and Secretaries are considered to be company officers, who have the sole responsibility of running the affairs of the company, which holds such a high degree of power, Transparency which refers to full disclosure of company records to those that are entitled to that full disclosure. Corporate governance laws may differ from country to country, but the principles remain constant. In determining the efficiency of the company law act, other legislative frameworks have proven to promote accountability and transparency, and these frameworks include the Banking and Financial Services Act, Securities and Exchange Act. All these Acts give birth to Regulatory bodies that ensure that corporate governance is respected and promoted. For example, the Securities Exchange Act gave birth to the Securities Exchange Commission, the Banking and Financial Services Act gave birth to the Bank of Zambia, which has the sole responsibility of promoting corporate governance in financial institutions the securities exchange commission has the responsibility of, regulating and fostering fair and efficient trading through licencing and regulating securities exchanges, clearing and settlement agencies and self-regulatory organizations; to ensuring the financial integrity of transactions and avoidance of systemic risk in the capital markets, providing for licensing and regulation of capital markets operators, to providing for licensing and regulation of credit rating agencies. Lastly, this paper addresses the fact that the corporate governance laws of Zambia should not exist in isolation, but rather it is cardinal that lessons may be drawn from other countries such as Kenya and South Africa