THE Zimbabwe Stock Exchange (ZSE) has tendered for a legal advisor as it steps up efforts to finalise the demutualisation exercise which has been on the cards for years.
In a tender notice yesterday, ZSE said it was seeking to transform itself into a company limited by shares and at the same time update its member rules and listing requirements tosynchronise them with the Securities Act (Chapter 24:25) and Statutory Instrument 100 of 2010.
Demutualisation refers to a process by which a mutual organisation is transformed into a publicly traded firm. A mutual company is one that is owned by members for their benefit.
According to the notice the legal advisor would work in co-operation with appointed financial advisors, the ZSE and other stakeholders as appropriate, to provide legal advice generally regarding the transformation process, prepare the founding documents to corporatise the ZSE, review and align member rules to current legislation and the transformation objective and review the proprietary rights of current members.
“The explicit objectives of the assignment are legal advice on the best transformation process; incorporation of the ZSE as a corporate body limited by shares; legal advice on the equity entitlement of proprietary rights in the ZSE as currently constituted and in the corporatised ZSE, reads part of the notice.”
The demutualisation of ZSE is expected to be completed in January next year.
The process has been on the cards for several years with the government saying lack of funding was hindering the process that is expected to increase the value of shares.
By the end of last year the government was reportedly considering injecting $4 million to facilitate the demutualisation process.
Stockbrokers have largely been uneasy about the developments at the stock exchange, especially the delays in completing the demutualisation process as the slow process of demutualisation has seen the local bourse lagging behind other regional stock exchanges such as the Johannesburg Stock Exchange.
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