• Home /
• Our Articles /
• The effect of Corporate Rescue in Zimbabwe

The effect of Corporate Rescue in Zimbabwe

The effect of corporate rescue proceedings in Zimbabwe is to impose a general moratorium on commencing or continuing with legal proceedings, including enforcement of actions, against the company or in relation to any property owned by the company or lawfully in its possession, in any forum, for the duration of the corporate rescue proceedings.

There are two ways of commencing corporate rescue proceedings in Zimbabwe. Firstly, in terms of section 122 (1) of the Insolvency Act [Chapter 6:07] which provides that the board of a company or its shareholders can make a resolution to institute corporate rescue proceedings. Secondly, by way of an application to the High Court in terms of section 124 of the Insolvency Act [Chapter 6:07] for an order commencing corporate rescue proceedings. see Metallon Gold Zimbabwe (Pvt) Ltd v Shatirwa Investments (Pvt) Ltd & Others 2021 (2) ZLR 193 (S).