Tanzania
Privatisation Trust Act
Chapter 127
- Published in Tanzania Government Gazette
- Commenced on 15 June 1997
- [This is the version of this document at 31 July 2002.]
- [Note: This legislation has been thoroughly revised and consolidated under the supervision of 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. This version is up-to-date as at 31st July 2002.]
Part I – Preliminary provisions (ss. 1-2)
1. Short title
This Act may be cited as the Privatisation Trust Act.2. Interpretation
In this Act, unless the context otherwise requires—"accounting date" means the last working day of the month of March, June, September and December in any year during the Trust period;"auditors" means the auditors of the Privatisation Trust appointed under section 19;"Board" means the Board of Trustees established under section 5;"Commission" means the Presidential Parastatal Sector Reform Commission established under the Public Corporation Trust appointed under section 19;"Divestment Plan" means a plan prepared by the Manager and approved by the Board under section 12;"eligible institution" means an entity established in Tanzania which allows participation by the general public and which, in the opinion of the Trustees, have been established with the objective of benefiting citizens by investing its assets in among other things, equity securities effectively for the benefit of its members;"eligible investor" means a citizen of Tanzania or an eligible institution;"investee company" means a newly privatised enterprise in which the Trustees have acquired shares;"management contract" means the contract under which the manager is appointed to undertake the management of the Privatisation Trust;"Manager" includes a professional management company or merchant bank appointed under section 15;"Minister" means the Minister responsible for finance;"newly privatised enterprise" means a company which has been privatised by the transfer of shares carrying a majority of the voting rights in the company to a buyer or buyers none of which is an agent or instrumentality of the Government or a company in which the Government or any such agency or instrumentality holds less than thirty percent of the issued shares;"public corporation" means any corporation established under any written law and in which the Government or its agent owns majority of the shares or is the sole shareholder;"services" means the duties, powers and obligations of the Manager under the Management Contract;"shares" means the shares in newly privatised enterprises or any other securities derived therefrom acquired by the Trustees;"Special Fund" means a fund established under subsection (1) of section 34 of the Public Corporations Act 1;"Trust" means the Privatisation Trust established under section 3;"Trustees" means the Trustees for the Trust;"Trust period" means the life of the Trust as prescribed in paragraph (d) of subsection (2) of section 3;"Trust property" means the shares selected and acquired by the Trustees together with income or other assets whether accruing from the shares, proceeds of sale of shares, or interest accruing on monies received by and held by the Trustees for the account of the Trust;"undistributed shares" means shares which at the end of the Trust period have not been sold or otherwise subject to a binding commitment to sell under the provisions of this Act.Part II – Establishment of the Privatisation Trust (ss. 3-6)
3. Establishment and life span of the Trust
4. Objects and functions of the Trust
The objects and functions of the Trust shall be—5. Board of Trustees
6. Meetings of the Board
Part III – Administration of the Trust (ss. 7-14)
7. Receipt, holding and divestment of shares
8. Disposal of undistributed shares
9. Offer of shares in public corporation or newly privatised enterprises to the Board
10. Power to acquire shares
11. Board to have regard to Divestment Plan
The Board shall have regard to the recommendations in the Divestment Plan approved in accordance with subsection (1) of section 12.12. Board requirements in relation to Divestment Plan
13. Holding of shares
14. Amount available for distribution
Part IV – Management of the Trust (ss. 15-16)
15. Management of the Trust
16. Management fees
Part V – Financial provisions (ss. 17-27)
17. Valuation
18. Financial year of the Trust
The financial year of the Trust shall be the same as the financial year of the Government.19. Auditing and reporting
20. Fees and expenses
21. Costs and expenses of the Manager
22. Taxation status of Trust
23. Remuneration and indemnity of Trustees
24. Money and banking
25. Records and accounts
26. Board's duty to maintain report
The Board shall maintain reports on–27. No power to borrow
The Board shall not borrow or extend credit on behalf of the Trust or charge or encumber or otherwise alienate or deal with the Trust property except as may be provided for in this Act.Part VI – General provisions (ss. 28-37)
28. Disclosure of interests
29. Confidentiality
30. Exclusivity
The Manager shall not render any services similar to its services to any other person except with the consent of the Board, and such consent shall not be unreasonably withheld.31. Conflicts and disclosures
32. Ratification, indemnity and extent of liability
33. No lien
The Manager and the Board shall not be entitled to exercise a right of lien on any of the Trust property or otherwise dispose of any shares other than for the purposes of the Trust.34. Agents
35. Amendment to existing enactments
36. Regulations
The Minister may make regulations as he deems necessary of convenient for the effective implementation of the purposes and provisions of this Act.37. Duration of this Act
Without prejudice to the provisions of section 8 this Act shall continue in force for a period of five years commencing on the day the Trust starts operating and shall then expire unless upon the recommendation of the Minister, the National Assembly by resolution extends its duration for a further period as it may deem necessary.History of this document
31 July 2002 this version
Consolidation
15 June 1997
Commenced
Cited documents 4
Legislation 4
1. | Stamp Duty Act | 129 citations |
2. | Income Tax Act | 99 citations |
3. | Public Corporations Act | 52 citations |
4. | Trustees' Incorporation Act | 2 citations |
Documents citing this one 1
Legislation 1
1. | Transfer of Powers and Duties (Commissioner for Mines) Notice, 1967 |