via Hundreds of companies shut down – DailyNews Live by Lloyd Mbiba 14 APRIL 2014
The Registrar of Companies has struck more than 176 companies off the register, while 634 companies are set to be de-registered in the next three months.
In a general notice 121 of 2014 published in the Government Gazette on Friday, the companies were struck off in accordance with section 320 of the Companies Act (Chapter 24:03).
According to section 320 (1) the registrar has the right to remove a company from the register where there are reasonable grounds to believe that the company is not carrying out business or is not in operation.
“If a company makes a default for a period of more than two years in rendering returns required by section 123, and the registrar has reasonable cause to believe that the company is not carrying on business or in operation, the registrar may publish in the Gazette and send the company by registered post for such notice mentioned in subsection (2),” reads part of the Companies Act.
The section relates to a three-month notice of the intention to remove the said company from the register.
The majority of the companies struck off the register are in manufacturing and investments business.
On average, the capital base for the companies varies from Zimbabwean dollar to millions of US dollar.
Companies such as Broader Properties Private Limited have a capital base of $1, 5 million while Redlands Development Company has $400 000, Market Cash Butchery Private Limited $1, 5 million and Traveset Enterprises private Limited $100 000.Other companies such as Sotrade Investments and Roncram Investments had capital bases of Z$20 each indicating that they ceased operations during the Zimbabwean dollar era.
Other companies which were struck off the registrar include Deloitte & Touche Executor & Trust Company, Select Seeds of Zimbabwe, Goldridge School, DeBeers Zimbabwe Holdings Private Limited, Chubb Locks Union
Security Private Limited, Talbot Trading and Carldon Investments.
Further, in a general notice 122 of 2014 the Registrar of Companies notifies that he intends to strike off more than 600 companies in the next three months.
“It is hereby notified in terms of section 320 of the Companies Act that at the expiration of the three months from the date of publication of this notice, the names of the companies set out in the schedule will, unless cause is shown to the contrary, be struck off the register and the said companies shall be dissolved,” reads part of the Gazette.
The majority of the companies facing the chop have a capital base of $20 000.
Some of the companies to be struck off the register include Zasol Enterprises, Gyral Trading, Bato Investments, Interlap property Developers, Torhills Construction, Midlands Boilers and Oback Stationery and General Private Limited.
Last year, National Social Security Authority (Nssa) revealed that 711 companies closed shop in Harare since 2011, rendering 8 336 individuals jobless.
Early this year, Zimbabwe Congress of Trade Unions said a record 9 617 job losses and 75 company closures were recorded last year amid fears that the trend could escalate this year as the economy continues to shrink.