Exploring Beneficial Shareholding In Zimbabwe

The new companies Act in Zimbabwe being the Companies and other Business Entities Act [Chapter 24:31] introduces the concept of mandatory beneficial shareholding disclosure in Zimbabwe. Put simply a beneficial owner is defined as an individual who indirectly holds more than twenty percent of the company's shares directly or indirectly which holds more than twenty percent of the company's voting rights.  The new Act further provides that not more than twenty percent shares in a company may be held by a nominee on behalf of a beneficial owner. A nominee shareholder is simply put as a registered shareholder who holds shares. In an entity on behalf of their true and beneficial owner and this relationship is often governed by a nominee shareholder agreement which an agent and principal relationship whereby the nominee is often only allowed to deal with the company's securities in a specified manner.