Tanzania
Public Corporations Act
Chapter 257
- Published in Tanzania Government Gazette
- Commenced on 16 March 1992
- [This is the version of this document as it was at 31 July 2002 to 31 December 2007.]
- [Note: This legislation was revised and consolidated as at 31 July 2002 and 30 November 2019 by the Attorney General's Office, in compliance with the Laws Revision Act No. 7 of 1994, the Revised Laws and Annual Revision Act (Chapter 356 (R.L.)), and the Interpretation of Laws and General Clauses Act No. 30 of 1972. All subsequent amendments have been researched and applied by Laws.Africa for TANZLII.]
Part I – Preliminary provisions (ss. 1-3)
1. Short title
This Act may be cited as the Public Corporations Act.2. ***
[Omitted]3. Interpretation
In this Act, unless the context requires otherwise—"agent" means an intermediary such as a public corporation, a company or any other body appointed by the Government which owns fifty-one percent or more of the shares in any public corporation and represents the Government directly or indirectly;"Board" means the Board of Directors of a public corporation;"Chairman" means the Chairman of the Commission;"Commission" means the Presidential Parastatal Sector Reform Commission established by section 21;"divesture" means the transfer of the proprietary interest in a specified public corporation from the Government and includes the winding up or dissolution of the specified public corporation;"effective date" means the date from which the provisions of this Act shall apply to any specified public corporation;"existing law" in relation to a specified public corporation means the written law under which the specified public corporation is established as it exists immediately before the effective date, and includes any other written law or provision of a written law which applies to the specified public corporation;"General Fund" means the General Fund of established by section 33;"Government minority shares" means the equity shares or equity stake whether voting or not owned by the Government or its agent;"initial document" means the Memorandum of Understanding or any other similar document detailing the understanding reached during the negotiations with an investor."member" means a member of the Commission;"Minister" means the Minister responsible for Finance;"public corporation" means any corporation established under this Act or any other law and in which the Government or its agent owns a majority of the shares or is the sole shareholder;"responsible Minister" means the Minister responsible for public corporation or the specified public corporation;"restructuring" in relation to a specified public corporation or specified Government minority shares, means any form of restructuring as a result of which ownership, structure or control of that specified public corporation or specified Government minority shares is altered;"Special Fund" means the special fund established by section 34;"specified Government minority shares" means the shares specified under section 44 to be specified Government minority shares;"specified public corporation" means a public corporation declared under section 14 to be a specified public corporation;"statement of corporate strategy" in relation to a public corporation means the current statement of corporate strategy for that public corporation prepared under section 14;"statutory corporation" means any body corporate (including a public corporation and a corporation sole) established by or under any written law but does not include any company incorporated under the Companies Act1 where the whole of the share capital of the company is owned by a statutory corporation or two or more statutory corporations.Part II – Establishment of public corporations (ss. 4-7)
4. President may establish a public corporation
4A. Existing public corporation
Every public corporation existing on the coming into operation of this Act shall be deemed to be established pursuant to this Act and nothing in this Act or in any regulations made under this Act shall be construed as to affect any provision of any existing law or of any articles of association or any other charter or instrument of a public corporation and those provisions shall continue to have effect after the commencement of this Act.5. Shares of newly formed public corporation
Every order made under section 4 establishing a public corporation shall specify, in addition to the functions of the corporation—6. Powers of the responsible Minister in relation to a public corporation
Where the government is the sole shareholder the responsible Minister may, in writing under his hand, give the Board of Directors of the public corporation directions of a general or specific character as to the performance of its functions.Part III – Administration of public corporations (ss. 8-14)
7. Principles of operation
8. Establishment of Board of Directors
9. Appointment of Board members of public corporations in which the Government is the sole shareholder
10. Appointment of Board members of public corporations in which the Government is not the sole shareholder
Where the Government is not the sole shareholder in a public corporation, the appointment, composition, tenure and vacation of office, quorum, proceedings and meetings of the Board of Directors shall be in accordance with the provisions of the instrument establishing the public corporation.11. Qualifications for appointment to Board membership
In appointing members of any Board of Directors of a public corporation, the appointing authority shall have regard of the need to appoint persons who in addition to having a sound integrity, are properly qualified and appropriately experienced in relation to the business of the public corporation in question.12. Limitation of appointment to Board membership
13. Appointment of chief executive of a public corporation
Part IV – Accountability of public corporations (ss. 15-21)
14. Statement of corporate strategy
15. Annual report, accounts and dividend
16. Half-yearly report
17. Information to be laid before the National Assembly
The responsible Minister shall, soon after receiving the reports, lay before the National Assembly the following—18. Other information
19. Audit
The accounts of every public corporation shall, except where the law establishing the public corporation provides to the contrary, be audited annually by an independent qualified auditor appointed by the Board.20. Supervision of public corporations
Part V – Establishment of the Presidential Parastatal Sector Reform Commission (ss. 22-28)
21. Establishment of the Commission
22. Functions of the Commission
23. Powers of Commission
24. Composition of Commission
25. Term of office of members
26. Remuneration of members
The Chairman, who shall work on a full-time basis, and other members of the Commission who shall work on a part-time basis, shall receive the remuneration and allowances out of the General Fund which the Minister may determine.27. Liability of members
The Commission, its members, officers or employees shall not be liable for any thing done in good faith in the performance or intended performance of any duty or in the exercise of any power under this Act.Part VI – Operation of Commission (ss. 29-33)
28. Meetings
29. Furnishing information to the Commission
30. Seal and execution of documents
31. Committees
The Commission may, on the terms and conditions which it may determine, appoint any committees which it may consider necessary to perform the functions or advise the Commission on the matters which the Commission may direct.32. Staff
Part VII – Financial provisions of the Commission (ss. 34-38)
33. General Fund
34. Special Fund
35. Accounts and audit
36. Tax relief
The Commission shall be exempted from the payment of all taxes, rates and duties.37. Fees
The Commission may levy any fees for its services which may be approved by the Minister from time to time.Part VIII – Specified public corporations and specified Government minority shares (ss. 39-48)
38. Declaration of specified public corporation
39. Powers of Commission in relation to specified public corporations
40. Duty to obtain approval
40A. Requirements of a specified public corporation
41. Duty to consult and co-operate
42. Duty of Board of specified public corporation
Notwithstanding that a public corporation may be declared a specified public corporation it shall be the duty of the Board of every public corporation—43. Powers of Commission in restructuring specified public corporations
44. Specified Government minority shares
45. Powers of the Commission in relation to Government minority shares
45A. Inoperative agreement
Part IX – Financial provisions (ss. 49-52)
46. Accounts of public corporations in which the Government is the sole shareholder
Where the President establishes any public corporation whereby the Government is the sole shareholder, the President shall provide for proper accounts of the public corporation and other records in relation to it to be kept by the public corporation, and shall further provide for statement of account in the form which the President may direct to be prepared in respect of each financial year of the public corporation in the manner and in the form which the President may direct.47. Audit
48. Transfer of shares to Treasury Registrar and redemption of other shares
49. Conversion of loans and advances into equity
Where a public corporation whose capital structure has been restructured has an undischarged loan or advance from the Government, the Government may use that loan or advance to acquire shares in that public corporation.Part X – Miscellaneous and transitional provisions (ss. 53-65)
50. Power to reorganise public and statutory corporations
51. Borrowing powers of a public corporation in which the Government is the sole shareholder
52. Powers of President to make orders
The powers of the President to make an order under any provision of this Act shall include powers to make any one or more orders, either at the same time or from time to time, as the President may deem necessary or expedient.53. Delegation of powers
54. Contract between Treasury Registrar and public corporation
Every public corporation which holds a position of monopoly in its business in the country shall conclude an agreement with the Treasury Registrar with a view to—55. Consultancy services by former holding corporations
56. Regulations
The Minister may make regulations for giving effect or enabling effect to be given to the purposes and provisions of this Act and in particular without prejudice to the generality of the foregoing, may by regulations modify in their application to a specified public corporation any regulations made under it or any instrument of a specified public corporation in any manner and to any extent which may be necessary or expedient to bring those provisions into conformity with the provisions of this Act.57. ***
[Repeals Acts Nos. 17 of 1969 and 12 of 1976]57A. Dissolution or winding up of public corporation
58. Certain institutions to cease to be public corporations
For the avoidance of doubt, with effect from the date of coming into operation of this Act, every District Development Corporation, established under the District Corporations Act 8, all non-commercial services institutions, sports and culture institutions, research institutions and institutions of learning, shall, in pursuance of section 3, cease to be public corporations.59. Transfer of liabilities
Upon dissolution of any holding public corporation its liabilities incurred in relation to any company which was a subsidiary of that holding public corporation shall be transferred to that former subsidiary company or companies in relation to which the liabilities were incurred.60. Amendment of Cap. 370
[Amends the Treasury Registrar (Powers and Functions) Act.]61. Savings
Save to the extent expressly provided in this Act or in any regulations made under this Act, nothing in this Act or in any regulations made under this Act shall be construed as to affect any provisions of any existing law or of any Articles of Association or any other charter or instrument of a specified public corporation, and those provisions shall continue to have effect after the commencement of this Act in relation to the specified public corporation, except in so far as they are thereafter amended, modified, repealed or revoked by a competent authority or any provision thereof expires, but shall be read with such modifications, adoptions, qualifications and exceptions as provided in this Act or any regulations made under this Act.History of this document
03 January 2014 amendment not yet applied
28 May 2010 amendment not yet applied
01 January 2008 amendment not yet applied
31 July 2002 this version
Consolidation
16 March 1992
Commenced
Cited documents 7
Act 6
1. | Companies Act | 1016 citations |
2. | Rent Restriction Act | 106 citations |
3. | Severance Allowance Act | 34 citations |
4. | Loans and Advances Realisation Trust Act | 20 citations |
5. | District Development Corporations Act | 10 citations |
6. | Treasury Registrar (Powers and Functions) Act | 8 citations |
Ordinance 1
1. | Bankruptcy Act | 12 citations |
Documents citing this one 127
Judgment 57
Gazette 33
Government Notice 22
Act 11
1. | Companies Act, 2002 | 336 citations |
2. | Registration of Documents Act | 91 citations |
3. | Tanzania Harbours Authority Act | 16 citations |
4. | Tanzania Railways Corporation Act | 13 citations |
5. | National Bank of Commerce (Reorganisation and Vesting of Assets and Liabilities) Act | 9 citations |
6. | Protection from Radiation Act | 9 citations |
7. | Sugar Industry Act | 9 citations |
8. | Treasury Registrar (Powers and Functions) Act | 8 citations |
9. | Tanzania Telecommunications Corporation Act, 2017 | 3 citations |
10. | National Microfinance Bank Ltd. Incorporation Act | 2 citations |
Ordinance 2
1. | Penal Code | 15464 citations |
2. | Land Registration Act | 5 citations |
Finding aid 1
1. | The Subsidiary Legislation of Tanzania Index - Vol. 2: 1998 - 2007 |
Law Reform Report 1
1. | Review of the Legal Framework Governing Insolvency in Tanzania |