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Co-operative Societies Act

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VOLUME 22

CONTENTS
Chapter 393. Trades Licensing Act
Chapter 394. Zambia National Tender Board Act
Chapter 395. Vacant
Chapter 396. Gold Trade Act
Chapter 397. Co-operative Societies Act
Chapter 398. Money-lenders Act
Chapter 399. Hire-Purchase Act
Chapter 400. Patents Act
Chapter 401. Trade Marks Act

CHAPTER 393
THE TRADES LICENSING ACT

ARRANGEMENT OF SECTIONS

PART I
PRELIMINARY

Section
1. Short title and application
2. Interpretation

PART II
CONTROL OF TRADING AND MANUFACTURING

3. Restriction on trading

4. Restriction on manufacturing
5. Classification and forms of licences
6. Fees and duration of licences
7. Transfer of licences
8. Fee payable on transfer of business to new premises

PART III
LICENSING AUTHORITIES AND ISSUE OF
LICENCES

9. Licensing Authorities
10. Registers of licences
11. Notice of intention to apply for trading (wholesale) licence or
trading (retail) licence
12. Objections
13. Applications for licences
14. Powers of Licensing Authorities in considering applications
15. General principles affecting issue of licences
16. General restrictions on power to issue licences
17. Restriction on issue of certain licences to non-citizens and
avoidance of such licences
18. Licensing Authority may issue a licence subject to conditions
18A. Information required for tax purposes
19. Appeals

PART IV
GENERAL

Section
20. Display of licences
21. Entry on premises and production of licences
22. Duplicate licence
23. Partners to surrender licence upon dissolution, etc., of
partnership
24. Power of President to revoke licences

25. Power of court to order endorsement, cancellation or
disqualification after conviction
26. Repealed by Act No. 32 of 1993
27. Minister may prohibit peddling or hawking
28. Regulations
29. Penalties and evidence
30. Construction

SCHEDULE-Licences and fees

CHAPTER 393

TRADES LICENSING 41 of 1968
41 of 1969
22 of 1971
7 of 1976
4 of 1978
4 of 1988
26 of 1990
5 of 1992
32 of 1993
10 of 1994
13 of 1994.

An Act to amend the law relating to the licensing of certain trades and
businesses; and to provide for matters incidental to or connected with
the foregoing.
[4th October, 1968]

PART I
PRELIMINARY

1. (1) This Act may be cited as the Trades Licensing Act. Short title and
application

(2) No licence shall be required under this Act by-

(a) any person specially appointed to conduct a sale of any goods in
execution of any order of any court; or

(b) a sheriff or his lawful deputy selling goods in the execution of
his lawful duty; or

(c) any duly appointed poundmaster who may sell, on the days duly
appointed for such sales, any animals impounded which may lawfully
be sold; or

(d) any person who sells any goods solely as a necessary incident to
the provision of any professional or other personal services; or

(e) auctioneers; or

(f) any person who sells goods in any area, with the consent in
writing of the Licensing Authority for such area, in connection with the
raising of funds for philanthropic, charitable, cultural, sporting or
educational purposes;

(g) commercial traveller.

(3) Where, under the provisions of any written law other than this Act, a
licence fee is payable in respect of the sale of any goods, no licence shall
be required under this Act in respect of such sale, and no licence under
this Act shall be deemed to authorise any such sale.
(As amended by Act No. 32 of 1993)

2. (1) In this Act, unless the context otherwise requires-
“appropriate fee” means, in relation to any matter, the fee specified in
respect of such matter in the Schedule;
“commercial traveller” means a person who travels from place to place
within Zambia for the purpose of soliciting or receiving orders for the
supply of goods;
“goods” means any goods, wares or merchandise, but does not include-
(a) foodstuffs, livestock and other agricultural and natural products,
the growth or produce of Zambia; or
(b) articles of handicraft made and sold by or on behalf of the same Interpretation
Cap. 290
Cap. 281
Cap. 281
Cap. 281

person (not being a body corporate or a partnership), of which not less
than seventy-five per centum in content or value of the materials used
shall have been grown or produced in Zambia;
“hawker” means any person who is an itinerant trader with no fixed
place of business who goes about from place to place selling goods
which he carries with him in any vehicle other than a tricycle, bicycle or
handcart;
“licence” means a licence issued under this Act, and includes a duplicate
thereof issued under section twenty-two;
“licence holder” means a person named in a licence which is in force,
and “holder” shall be construed accordingly;
“Licensing Authority” means a Licensing Authority specified in section
nine;
“local authority” means-
(a) a city council; or
(b) a municipal council; or
(c) a township council; or
(d) a district council;
“manufacturing” means the transforming, on a commercial scale, of raw
materials into finished or semi-finished products and includes the
assembling of inputs into finished or semi-finished products, but does
not include mining; and “manufacture” shall be construed accordingly.
“market” means a market established under the Markets Act;
“municipal council” and “municipality” have the meaning assigned
respectively thereto in section two of the Local Government Act;
“pedlar” means any person who is an itinerant trader with no fixed place
of business who goes about from place to place selling goods (other than
newspapers) which he carries with him on his person or on a tricycle,
bicycle or handcart;
“retailer” means a person who sells goods by way of business (whether
in conjunction with any other business or not) to other persons
reasonably believed by the seller to purchase such goods for a purpose
other than the resale thereof by those other persons;
“district council” and “rural area” have the meanings assigned
respectively thereto in section two of the Local Government Act;
“sell” includes exchange, barter or offer for sale or expose for sale, and
“sale” shall be construed accordingly;
“stall” means any stand, shelter, table, place or plot in any area set aside
by a local authority for the sale of goods;

“township council” and “township” have the meanings assigned
respectively thereto in section two of the Local Government Act;
“wholesaler” means a person who sells goods by way of business
(whether in conjunction with any other business or not) to other persons
reasonably believed by the seller to intend to resell such goods;
“year” means a calendar year.

(2) Subject to the provisions of subsection (3), a person shall be deemed
to sell goods by way of business if such person owns or is part-owner of,
or controls or partly controls, or is a person interested in, a business
consisting wholly or partly in the sale of goods.

(3) Subject to the provisions of subsection (4) of section twenty-nine, no
person shall be deemed to sell goods by way of business by reason only-

(a) that he is employed as a manager or servant by a person who
sells goods by way of business; or

(b) that he is a director or shareholder of a body corporate which
sells goods by way of business.
(As amended by Act No.32 of 1993)

PART II
CONTROL OF TRADING AND MANUFACTURING

3. (1) A person shall not sell goods by way of business- Restriction on
trading

(a) unless he is the holder of a licence; or

(b) otherwise than in accordance with the terms of such licence.

(2) Any person who contravenes the provisions of this section shall be
guilty of an offence.

4. (1) A person shall not carry on business as a manufacturer- Restriction on
manufacturing

(a) unless he is the holder of, or is authorised to do so under, a
manufacturing licence; or

(b) otherwise than in accordance with the terms of such a licence.

(2) Any person who contravenes the provisions of this section shall be
guilty of an offence.
(As amended by Act No 32 of 1993)

5. (1) The following licences may be issued under this Act: Classification
and form of
licences

(a) a trading (wholesale) licence;

(b) a trading (retail) licence;

(c) a hawker’s licence;

(d) a pedlar’s licence;

(e) a pedlar’s (restricted) licence;

(f) a stall licence;

(g) a restricted licence;

(h) an agent’s licence;

(i) a manufacturing licence.

(2) A licence shall be in such form as may be prescribed.

(3) A trading (wholesale) licence shall authorise the person named
therein to carry on business as a wholesaler, at the premises specified
therein, of such goods or class or classes of goods as may be specified
therein.

(4) A trading (retail) licence shall authorise the person named therein to
carry on business as a retailer, at the premises specified therein, of such
goods or class or classes of goods as may be specified therein.

(5) (Repealed by Act No. 32 of 1993)

(6) A hawker’s licence shall authorise the person named therein to sell
goods as a hawker in such area as may be specified therein.

(7) A pedlar’s licence shall authorise the person named therein to sell
goods as a pedlar in such area as may be specified therein.

(8) A pedlar’s (restricted) licence shall authorise the person named
therein to sell religious books and tracts in such area as may be specified
therein.

(9) A stall licence shall authorise the person named therein to sell such
goods as may be specified therein from a stall situated in such market as
may be specified therein.

(10) A restricted licence shall authorise the sale of tobacco, cigarettes,
breadstuffs, pastry, confectionery and non-alcoholic beverages by any
person named therein-

(a) on any railway station or airport specified therein if such person
has no store or place of business on such railway station or airport; or

(b) at premises situated in any area specified therein other than a
municipality or a township.

(11) An agent’s licence shall authorise the person named therein to carry
on business as a manufacturer’s representative in accordance with such

terms and conditions as may be specified therein.

(12) A manufacturing licence shall authorise the person named therein
to manufacture and sell any product or products specified in the licence.

(13) Notwithstanding the repeal of the Investment Act, 1991-

(a) a manufacturing licence that was issued to a person under that
Act shall be deemed to have been issued under this Act; and

(b) an application for a manufacturing licence pending under that
Act shall be deemed to have been made under this Act to the appropriate
Licensing Authority.
(As amended by Act No. 22 of 1971 and No. 32 of 1993)

6. (1) Subject to the provisions of section eight, there shall be payable
in respect of any licence, at the time it is issued, the appropriate fee: Fees and
duration of
licences

Provided that where a licence is issued in respect of any year after the
30th June in that year, the fee payable in respect of such licence shall be
one-half of the appropriate fee.

(2) Subject to the provisions of this Act, a licence shall continue in force
until the expiry of the 31st December next following the date of issue
thereof, and shall thereupon expire.

(3) Any fee payable in respect of a licence under this Act shall-

(a) where the Licensing Authority is a local authority, be paid into
the general fund of such local authority;

(b) where the Licensing Authority is the Minister or a District
Secretary, be paid into the general revenues of the Republic.

7. (1) Subject to the provisions of this section, a licence shall not be
transferable. Transfer of
licences

(2) A Licensing Authority shall-

(a) in the case of the death of a licence holder, and if so requested by
the widow or widower or the legal personal representative of the
deceased licence holder, transfer the licence to such widow or such
widower or such legal personal representative, as the case may be;

(b) in the case of the bankruptcy of a licence holder or assignment
for the benefit of his creditors generally, transfer the licence to the
lawfully appointed trustee or assignee if so requested by such trustee or
assignee;

(c) where a licence holder is a company in liquidation, transfer the
licence to the lawfully appointed liquidator if so requested by such
liquidator;

(d) in any case where a licence holder becomes subject to any legal
disability, transfer the licence to any person lawfully appointed to
administer his affairs, if so requested by such person.

(3) Any licence transferred under subsection (2) shall, not withstanding
the provisions of section six, continue in force for a period of twelve
months from the date of such transfer and shall thereupon expire.

(4) Any person who-

(a) being a licence holder, lends or transfers or assigns a licence to
any other person;

(b) without lawful authority, makes use of a licence issued to any
other person;
shall be guilty of an offence.

(5) In subsection (2), “licence” does not include a pedlar’s licence or a
pedlar’s (restricted) licence or a restricted licence.

8. (1) Where a Licensing Authority issues a licence (hereinafter Fee payable on

referred to as “the new licence”) to a licence holder applying therefor on
the ground that such licence holder intends to transfer his business to
new premises and to cease carrying on such business in the premises
specified in his existing licence, the fee payable in respect of the new
licence shall, if the licence holder surrenders his existing licence to the
Licensing Authority at the time the new licence is issued, be equal to ten
per centum of the fee paid in respect of the existing licence and no other
amount shall be so payable. transfer of
business to new
premises

(2) A licence surrendered under this section shall expire upon its
surrender.

PART III
LICENSING AUTHORITIES AND ISSUE OF
LICENCES

9. (1) The following shall be Licensing Authorities for the purposes of
this Act: Licensing
Authorities

(a) for the issue of any licence (other than a licence applied for by a
local authority) for the manufacture or sale of goods-
(i) in a city, the city council thereof;
(ii) in a municipality, the municipal council thereof;
(iii) in a township, the township council or the management board
thereof, as the case may be;
(iv) in a district, the district council thereof;
(v) in any other area, such authority as the Minister may, by
statutory instrument, prescribe as the Licensing Authority for the area;

(b) for the issue of any licence to a local authority, the Minister.

(2) A Licensing Authority may authorise, in writing, any person to issue
a licence on behalf of the Authority.
(As amended by Act No. 22 of 1971 and No. 32 of 1993)

10. (1) Every Licensing Authority shall cause to be kept a register of Registers of

licences in such form and containing such particulars as may be
prescribed, and there shall be entered in such register of licences the
details of any licence or duplicate licence issued by such Licensing
Authority, and of any endorsement or cancellation of a licence notified
to such Licensing Authority under section twenty-five. licences

(2) The register of licences of a Licensing Authority shall be available
for inspection by any member of the public during such hours as the
licensing office of such Licensing Authority is open for business.

11. (1) Any person who intends to apply to a Licensing Authority for a
trading (wholesale) licence or a trading (retail) licence shall, subject to
the provisions of subsection (3), give notice of such intention in
accordance with this section. Notice of
intention to
apply for
trading
(wholesale)
licence or
trading (retail)
licence

(2) A notice of intention under this section shall be in the prescribed
form and shall, not less than fourteen days before the application for the
licence is made, be published in the Gazette and in two issues of a
newspaper circulating in the District where it is intended to sell goods
under such licence.

(3) A Licensing Authority may, upon application by any person referred
to in subsection (1), exempt such person in writing from the
requirements of subsection (2) if such Licensing Authority is satisfied
that such person is-

(a) in the case of a person who intends to apply for a trading
(wholesale) licence, the holder of a licence authorising him to carry on
business as a wholesaler in the area of such Licensing Authority; or

(b) in the case of a person who intends to apply for a trading (retail)
licence, the holder of a licence authorising him to carry on business as a
retailer in the area of such Licensing authority;
and such exemption may be granted subject to such conditions with
respect to the giving of notice of intention for the purpose of this section
as the Licensing Authority may impose.

(4) Any person exempted under subsection (3) shall, if he complies with
the conditions imposed under that subsection, be deemed to comply
with the provisions of this section.

12. (1) Where a notice of intention to apply to a Licensing Authority for
a licence is published under subsection (2) of section eleven, any person
who wishes to object to the issue of such a licence shall, not later than
twenty-one days from the last publication of the notice of intention as
required by subsection (2) of section eleven, give notice of his objection
in the prescribed form to such Licensing Authority and to the person
named as the applicant in the notice of intention. Objections

(2) No objection under this section shall be considered by a Licensing
Authority in respect of an application for a licence unless-

(a) the grounds of such objection are stated;

(b) notice thereof is given to the applicant within the time allowed
under subsection (1).
(As amended by Act No. 32 of 1993)

13. (1) Subject to this section, an application for a licence shall be made
in the prescribed form to the Licensing Authority for the area in which
the applicant intends to carry on the activity to be licensed. Application for
licence

(2) An application under subsection (1) shall be accompanied by the
prescribed fee.
(As amended by Act No. 32 of 1993)

14. A Licensing Authority, or any person authorised in writing in that
behalf by a Licensing Authority, shall, for the purpose of considering an
application under section thirteen, have power-
(a) to take evidence on oath or affirmation and, for that purpose, to
administer oaths or affirmations;
(b) to summon, by notice in the prescribed form, any person to give
evidence in respect of such application or to produce any book, plan or
document relating thereto; Powers of
Licensing
Authorities in
considering
applications

(c) to make such investigation as may be necessary in order to
ascertain any of the matters which a Licensing Authority is required to
consider under section fifteen:

Provided that no person shall be required under this section to produce
any book or account or voucher or receipt directly relating to his
business or trade.

15. (1) Subject to the provisions of sections sixteen and seventeen, a
Licensing Authority may in its discretion refuse to issue a licence if it is
satisfied- General
principles
affecting issue
of licences

(a) that the applicant is under the age of eighteen years;

(b) that the issue of such licence is likely to cause nuisance or
annoyance to persons residing, or occupying premises, in the
neighbourhood of the premises in respect of which the licence is sought;
or

(c) that the premises on which the applicant intends to conduct his
business would not conform to the requirements of any law for the time
being in force; or

(d) that the issue of such licence would conflict with any approved
or proposed town planning scheme or zoning area; or

(e) that the issue of such licence would operate against the public
interest.

(2) If a Licensing Authority, other than the Minister, refuses to issue a
licence, it shall, at the time of giving notification of the refusal, inform
the applicant in writing of the reasons for the refusal and refer to the
relevant provision of this Act on which the refusal is based.
(As amended by No. 22 of 1971 and Act No. 32 of 1993)

16. (1) A Licensing Authority shall refuse to issue a licence to any
person who- General
restrictions on
power to issue

licences

(a) is an undischarged bankrupt or has entered into a composition or
a scheme of arrangement with his creditors which is still binding; or

(b) has, within a period of five years immediately preceding the date
of the application, been convicted of an offence against the Bankruptcy
Act; or Cap. 82

(c) has, within a period of five years immediately preceding the date
of the application, been disqualified from holding a licence by order of a
court under section twenty-five; or

(d) in the case of an application for a trading (wholesale) licence or a
trading (retail) licence, has not complied with the provisions of section
eleven; or

(e) in the case of an application for a restricted licence for the sale of
goods on a railway station or airport, is not permitted in writing by the
authority having control of such railway station or airport to sell goods
thereon.

(2) Without prejudice to the provisions of subsection (1), a Licensing
Authority shall refuse to issue a licence to a partnership if any partner
thereof is a person referred to in paragraph (a), (b) or (c) of subsection
(1).

17. A Licensing Authority may not issue any of the licences under this
Act to an applicant who is not a Zambian unless-
(a) the applicant has obtained an investment certificate under the
Investment Act; and
(b) where the applicant is an individual, he has satisfied the
requirements of the Immigration and Deportation Act.
(As amended by Act No. 22 of 1971 and No. 32 of 1993) Restriction on
issue of licences
to non-citizens
Cap. 385
Cap. 123

18. A Licensing Authority may issue a licence subject to such terms
and conditions as it may deem fit, including, but without prejudice to the
generality of this section-
(a) a condition that a particular class or particular classes of goods
Licensing
Authority may
issue a licence
subject to
conditions

shall not be sold;
(b) a condition that a particular class or particular classes of goods
only may be sold;
(c) a condition that goods may be sold in a particular area.

18A. (1) Subject to the Income Tax Act, a Licensing Authority shall
require a licence holder under this Act to provide the Authority with his
physical address of the place where he conducts his business or trade. Information
required for tax
purposes
Cap. 323

(2) The information obtained by the Licensing Authority under
subsection (1) shall be forwarded to the Commissioner General of the
Zambia Revenue Authority at the time when the lience expires or is
renewed.
(As amended by Act No. 32 of 1993)

19. (1) An applicant for a licence who is aggrieved by a decision of the
Licensing Authority under section fifteen rejecting his application may
appeal to the Minister, subject to further appeal to the High Court. Appeals

(2) An appeal under this section shall be lodged by the person aggrieved
within thirty days from the date of receipt of the notice that the
application has been rejected.
(As amended by Act No. 32 of 1993)

PART IV
GENERAL

20. (1) Where a licence is issued in respect of any premises, the licence
holder shall ensure that such licence is displayed at all times in a
prominent position on such premises. Display of
licences

(2) A licence holder who contravenes the provisions of subsection (1)
shall be guilty of an offence.

21. (1) A police officer of or above the rank of Sub Inspector, or a
Trade Inspector authorised in writing by the Minister or a Council
Policeman or employee authorised in writing in that behalf by a
Licensing Authority (hereinafter referred to as an “authorised person”)
may, on production of evidence of his identity and authority to any
person reasonably requiring it- Entry on
premises and
production of
licences

(a) at any reasonable time, enter any premises where goods are
being sold and require any person in charge of such premises to produce
the licence issued in respect of such premises for inspection;

(b) require any person selling goods as a hawker or a pedlar to
produce a licence authorising such sale for inspection;

(c) require any person referred to in paragraph (a), (b) or (c) to give
such information as he may reasonably require to enable him to
ascertain whether the provisions of this Act are being complied with.

(2) Any licence holder, or any person referred to in paragraph (a), (b) or
(c) of subsection (1), who-

(a) fails to produce a licence upon being lawfully required to do so
under subsection (1); or

(b) hinders or obstructs a police officer or authorised person acting
under subsection (1);
shall be guilty of an offence.
(As amended by Act No. 32 of 1993)

22. (1) Where any licence is lost, destroyed or defaced, the licence
holder may make application in the prescribed form to the Licensing
Authority by whom such licence was issued for a duplicate of such
licence, and the Licensing Authority shall, if satisfied that such licence
is lost, destroyed or defaced and has not expired, issue a duplicate
thereof to the licence holder. Duplicate
licence

(2) An application under this section shall be accompanied by the
appropriate fee.

23. (1) Where the constitution of a partnership to whom a licence is
issued is changed otherwise than by the death of a partner, it shall be the
duty of every person who was a partner thereof immediately before such
change to give notice of such change to the Licensing Authority which
issued such licence.
Partners to surrender
licence upon
dissolution, etc., of
partnership

(2) A licence issued to a partnership referred to in subsection (1) shall, if
it has not sooner expired, become void at the expiration of a period of six
months from the date of the change in the constitution of such
partnership and shall be surrendered upon the expiration of the said
period of six months to the Licensing Authority by whom it was issued.

(3) Any person who fails to comply with the provisions of subsection
(1) shall be guilty of an offence.

24. (1) The Minister may in writing, revoke a licence issued under this
Act if the licence holder- Power of
Minister to
revoke licence

(a) obtained the licence by fraud or deliberate or negligent
submission of false or misleading facts or statements; or

(b) contravenes the terms and conditions of the licence.

(2) The Minister shall, before revoking a licence, give written notice to
the licence holder of his intention to revoke the licence and the grounds
for the revocation, and shall require the licence holder to show cause
within a period of twenty-one days why the licence should not be
revoked.

(3) If the licence holder under subsection (2) fails to show cause to the
satisfaction of the Minister as to why his licence should not be revoked,
the Minister shall revoke the licence.

(4) Any licence holder who is aggrieved by the revocation of his licence
may appeal to the High Court within thirty days from the date of receipt
of the notice revoking the licence.

(As amended by Act No. 32 of 1993)

25. (1) Subject to subsection (3), if the holder of a licence is convicted
by a court of an offence in respect of the sale of goods, whether the
offence is against this Act or any other written law, the court may
endorse the conviction on the licence. Power of court
to order
endorsement,
cancellation or
disqualification
after conviction

(2) Subject to subsection (3), if a licence holder whose licence has been
endorsed under subsection (1) is convicted of another such offence
within two years of the date of the endorsement, the court may, in
addition to any other penalty, order that-

(a) the licence shall be revoked; and

(b) the licence holder shall be disqualified from holding the licence
that is endorsed for a specified period.

(3) Subsections (1) and (2) shall not apply if the licence holder proves
that-

(a) the offence was not committed knowingly or wilfully; or

(b) in the case of an act or omission by an employee of the licence
holder, the licence holder had taken reasonable steps to prevent the
commission of the offence.

(4) Where a licence is endorsed, or where a court makes an order for the
cancellation of a licence and the disqualification of a licence holder,
under subsection (1), the court shall cause the Licensing Authority
which issued such licence to be notified of such endorsement or of such
order, as the case may be, and such Licensing Authority shall cause the
particulars of such endorsement or order to be entered in the register of
licences kept by such Licensing Authority under section ten.

(5) Any person whose licence is endorsed or cancelled, under
subsection (1) or who is disqualified from holding a licence by order of a
Court under subsection (2), may appeal against such order in the same
manner as against a conviction, and the court may suspend the operation
of such order, subject to such conditions as it may deem fit, pending the

determination of such appeal.
(As amended by Act No. 32 of 1993)

26. Repealed by Act No. 32 of 1993.

27. (1) The Minister may, by statutory instrument, prohibit peddling or
hawking of any class of goods in any area specified in the statutory
instrument, if- Minister may
prohibit
peddling or
hawking

(a) he is requested to do so by a Local Authority; and

(b) he is satisfied that it is in the public interest to do so.

(2) Any person who contravenes the provisions of a statutory
instrument under this section shall be guilty of an offence.
(As amended by Act No. 32 of 1993)

28. (1) The Minister may, by statutory instrument, make regulations
prescribing all matters which, by this Act, are required or permitted to
be prescribed, or which are necessary or convenient to be prescribed for
carrying out or giving effect to the provisions of this Act. Regulations

(2) Without prejudice to the generality of subsection (1), the regulations
under subsection (1) may provide for-

(a) the keeping of books, documents, accounts and records in
respect of the manufacturing and sale of goods by licence holders,
including the entries to be made therein in respect of dealings in goods;

(b) the manner in which applications for licences may be made and
the forms to be used for such applications;

(c) the form of licences; and

(d) the form of the register of licences required to be kept by a
Licensing Authority under section ten.

(3) Regulations under this section may provide in respect of any
contravention thereof that the offender shall be guilty of an offence.

(4) The power of the Minister to make regulations under this section in
relation to any matter shall not be construed as derogating from any
other powers conferred upon him under this Act to make provision in
relation to the same matter.
(As amended by Act No. 41 of 1969, No. 22 of 1971,
No. 32 of 1993 and No. 13 of 1994)

29. (1) Any person who is guilty of an offence against this Act shall be
liable upon conviction to a fine not exceeding one thousand penalty
units and, in addition, where the offence is a continuing offence, to a
fine not exceeding two hundred penalty units for each day during which
the offence continues. Penalties and
evidence

(2) Where, in a prosecution for an offence against this Act, it is relevant
to prove that a person is not a citizen of Zambia, it shall be presumed
that such person is not a citizen of Zambia until the contrary is proved.

(3) Where, in a prosecution for an offence against this Act, it is alleged
that a person is not the holder of a licence, it shall be presumed that such
person is not the holder of such licence until the contrary is proved.

(4) Where any offence against this Act is committed by a body
corporate, any person, who at the time of the commission of the offence,
was the chief executive, or acting or purporting to act in that capacity,
shall be guilty of such offence unless he proves-

(a) that the offence was committed without his knowledge or
consent; and

(b) that he exercised all such diligence to prevent the commission of
the offence as he ought to have exercised having regard to the nature of
his functions in such capacity.
(As amended by Act No. 32 of 1993 and No. 13 of 1994)

3×0. Until such date as the Minister may, by statutory order, appoint, Construction

subsection (5) of section thirteen shall be read and construed as
if666.181818for t6.18e date “31st October” there were substituted the
date “31st December”.

SCHEDULE

(Sections 2, 5, 6 and 22)

LICENCES AND FEES

Fees payable
Licence In a specified in any other
area area
Fee Units Fee Units
(1) Trading (wholesale) licence 1,000 150
(2) Trading (retail) licence 500 25
(3) Commercial traveller’s licence-
(a) held by a firm, partnership or
individual holding a trading
(wholesale) or trading (retail)
licence, for one person 600 85
(b) held by any other firm, partnership
or individual, for one person 800 150
(c) held by every additional employee
or partner of a holder of a licence
issued under (a) or (b) 100 25
(4) Hawker’s licence 50 15
(5) Pedlar’s licence 25 8
(6) Pedlar’s (restricted) licence 10 3
(7) Stall licence 50 8
(8) Restricted licence 50 8
(9) Duplicate of any licence 10 3
In this Schedule “specified area” means-
(a)the area for the time being of any city or municipality declared, or deemed to have been
declared, to be the area of such city or municipality under the Local Government Act;
(b)the areas for the time being declared as Lusaka Rural District Councils under the Local
Government Act.
(As amended by Act No. 10 of 1994 and No. 13 of 1994) Cap.
281
Cap.
281

SUBSIDIARY LEGISLATION

TRADES LICENSING

SECTION 9-THE TRADES LICENSING (LICENSING
AUTHORITIES) (OTHER AREAS) REGULATIONS Statutory
Instruments
368 of 1968
434 of 1968

Regulations by the Minister

1. These Regulations may be cited as the Trades Licensing (Licensing
Authorities) (Other Areas) Regulations. Title

2. An authority specified in the first column of the Schedule is hereby
prescribed as the Licensing Authority for the area specified opposite
thereto in the second column of the Schedule. Appointment of
Licensing
Authorities

SCHEDULE

(Regulation 2)

LICENSING AUTHORITIES

First Column Second Column
Chililabombwe Township Council Chililabombwe District.
Municipal Council of Chingola .. Chingola District excluding the area of the
Kasompe Township.
Municipal Council of Kabwe .. Kabwe Urban District excluding the area of the
Mukobeko Township.
Kalulushi Township Council .. Kalulushi District excluding the area of the
Chambeshi Township and the Chibuluma Township.
City Council of Kitwe .. Kitwe District excluding the area of the Garneton Township.
Municipal Council of Livingstone Livingstone District.
Municipal Council of Luanshya Luanshya District excluding the area of the Fisenge
Township.
City Council of Lusaka .. Lusaka District excluding the area of the Chelston
Township, the Kabulonga Township, the Kafue Township, the Roma Township and the
Rufunsa Rural Council.
Municipal Council of Mufulira .. Mufulira District excluding the area of the
Kansuswa Township.
City Council of Ndola .. Ndola Urban District excluding the area of the Twapia
Township.
(As amended by No. 434 of 1968)

SECTION 26-THE TRADES LICENSING
(EXEMPTIONS) ORDERS
Orders by the Minister Statutory
Instruments
300 of 1970
171 of 1971
192 of 1971

1. These Orders may be cited as the Trades Licensing (Exemptions)
Orders. Title

2. Subject to paragraph 3, the organisations named in the Schedule
shall be exempt from the operation of section three of the Act. Exemption
from necessity
to hold licence

3. The foregoing exemption shall be subject to the condition that the
profit, if any, of the organisation, whether current or accumulated, shall
not in any way be received by any member. Condition of
exemption

SCHEDULE

(Paragraph 2)
Africa Evanmgelical Fellowship

Brethren in Christ Church

Christian Missions to Many Lands

Livingstone Museum

National Food and Nutrition Commission

Ndola Diocese of the Catholic Church

Scandinavian Independent Baptist Union

Zambia Anglican Council

Zambia Council for the Blind

Zambia Institute of Technology Tuck Shop (Luansimba Campus)

SECTION 26-THE ZAMBIA RAILWAYS
HEADQUARTERS
(STAFF TEA-BAR) (EXEMPTION) ORDER Statutory
Insdtrument
65 of 1978

Order by the Minister

1. This Order may be cited as the Zambia Railways Headquarters
(Staff Tea-Bar) (Exemption) Order. Title

2. Subject to paragraph 3, the organisation named in the Schedule shall
be exempt from the operation of section three of the Trades Licensing
Act. Exemption
from necessity
to hold licence

3. The foregoing exemption shall be subject to the conditions that the
articles sold shall be restricted to cooked food for consumption on the
premises and to sundry supplies, including beverages and tobacco; and
that the sales be restricted to employees of the Zambia Railways
engaged in transportation and ancillary services. Conditions of
exemption

SCHEDULE

(Paragraph 2)

Zambia Railways

SECTION 26-THE TRADES LICENSING (CHINGOLA
PARKS AND GARDENS NURSERY KIOSK)
(EXEMPTION) ORDER Statutory
Instrument
93 of 1978

Order by the Minister

1. This Order may be cited as the Trades Licensing (Chingola Parks
and Gardens Nursery Kiosk) (Exemption) Order. Title

2. The kiosk situated at Chingola Municipal Council Parks and
Gardens Nursery, is hereby exempted from the provisions of section
three of the Act. Exemption

3. The foregoing exemption shall be subject to the condition that the
goods to be sold at the kiosk shall be restricted to foodstuffs for
consumption on the premises, and that the sales shall be restricted to the
employees of the Municipal Council of Chingola working in the
aforementioned nursery. Conditions of
exemption

SECTION 26-THE TRADES LICENSING
(EXEMPTION) ORDER Statutory
Instrument
109 of
1979

Order by the Minister

1. This Order may be cited as the Trades Licensing (Exemption)
Order. Title

2. Subject to paragraph 3, the organisation named in the Schedule
hereto shall be exempt from the operation of section three of the Act. Exemption
from necessity
to hold licence

3. The foregoing exemption shall be subject to the conditions that the
goods sold shall be restricted to sundry supplies, including tobacco; and
that the sales shall be restricted to the staff of the Office of the President. Conditions of
exemption

SCHEDULE

(Paragraph 2)

Dry Canteen of Ndola, Office of the President.

SECTION 26-THE TRADES LICENSING
(EXEMPTION) ORDER Statutory
Instrument
11 of 1979

Order by the Minister

1. This Order may be cited as the Trades Licensing (Exemption)
Order. Title

2. Subject to paragraph 3, the organisation named in the Schedule
hereto shall be exempt from the operation of section three of the Act. Exemption
from necessity
to hold licence

3. The foregoing exemption shall be subject to the conditions that the
goods sold shall be restricted to sundry supplies, including detergents,
toiletries and tobacco; and that the sales shall be restricted to the
students and staff of the organisation. Conditions of
exemption

SCHEDULE

(Paragraph 2)

Luanshya Technical and Vocational Teachers’ College Tuckshop

SECTION 26-THE TRADES LICENSING
(EXEMPTION) ORDER Statutory
Instrument
111 of
1979

Order by the Minister

1. This Order may be cited as the Trades Licensing (Exemption) (No.
3) Order. Title

2. Subject to paragraph 3, the organisation named in the Schedule
hereto shall be exempt from the operation of section three of the Act. Exemption
from necessity
to hold licence.

3. The foregoing exemption shall be subject to the conditions that the
goods sold shall be those produced by the society in furtherance of the
aims and objectives of the society. Conditions of
exemption

SCHEDULE

(Paragraph 2)

Mpika Self-help Co-operative Society Limited.

THE TRADES LICENSING (EXEMPTION) ORDER Statutory
Instrument
227 of
1979

Order by the Minister

1. This Order may be cited as the Trades Licensing (Exemption)
Order. Title

2. Subject to paragraph 3, the persons named in the Schedule hereto
shall be exempt from the operation of section three of the Act. Exemption
from necessity
to hold licence

3. The foregoing exemption shall be subject to the conditions that the
goods to be sold shall be trade fair or show exhibits; and that such sale
shall take place within the fair or show precincts. Conditions of
exemption

SCHEDULE

(Paragraph 2)

Trade Fair, Agricultural and Commercial Show Exhibitors

THE TRADES LICENSING (EXEMPTION) ORDER Statutory
Instrument
228 of
1979

Order by the Minister

1. This Order may be cited as the Trades Licensing (Exemption)
Order. Title

2. Subject to paragraph 3, the organisation named in the Schedule
hereto shall be exempt from the operation of section three of the Trades
Licensing Act. Exemption
from necessity
to hold licence

3. The foregoing exemption shall be subject to the condition that the
project shall be for the Western Province. Condition of
exemption

SCHEDULE

(Paragraph 2)

The Finnish/Zambian Governments Co-operative Project

SECTION 26-THE TRADES LICENSING
(EXEMPTION) ORDER Statutory
Instrument
139 of
1980

Order by the Minister

1. This Order may be cited as the Trades Licensing (Exemption)
Order. Title

2. Subject to paragraph 3, the organisation named in the Schedule
hereto shall be exempt from the operation of section three of the Act. Exemption
from necessity
to hold licence

3. The foregoing exemption shall be subject to the conditions that the
goods sold shall be restricted to foodstuffs and sundry supplies,
including detergents, toiletries and tobacco; and that the sales shall be
restricted to centre residents and members of staff. Conditions of
exemption

SCHEDULE

(Paragraph 2)

Chitwi Rural Reconstruction Centre Tuckshop, Luanshya

SECTION 26-THE TRADES LICENSING
(EXEMPTION) ORDER Statutory
Instrument
83 of 1982

Order by the Minister

1. This Order may be cited as the Trades Licensing (Exemption)
Order. Title

2. Subject to paragraph 3, the organisation named in the Schedule
hereto shall be exempt from the operation of section three of the Act. Exemption
from necessity
to hold licence

3. The foregoing exemption shall be subject to the conditions that the
goods sold shall be restricted to items of grocery and stationery and that
the sales shall be restricted to the students and staff of the School. Conditions of
exemption

SCHEDULE

(Paragraph 2)

Tanzania-Zambia Railway Training School

SECTION 26-THE TRADE LICENSING (EXEMPTION)
ORDER Statutory
Instrument
185 of
1982

Order by the Minister

1. This Order may be cited as the Trades Licensing (Exemption)
Order. Title

2. Subject to paragraph 3, the organisation named in the Schedule
hereto shall be exempt from the operation of section three of the Act. Exemption
from necessity
to hold licence

3. The foregoing exemption shall be subject to the conditions that the
profits, if any, accruing from the sale of goods shall be used for the
purpose of furthering the aims and objectives of the organisation, and
that such sales shall be restricted to Missions providing educational or
health services to the local community in which they are situated. Conditions of
exemption

SCHEDULE

(Paragraph 2)

Mission Medic-Air Limited

SECTION 26-THE TRADES LICENSING
(EXEMPTION) ORDER Statutory
Instrument
79 of 1983

Order by the Minister

1. This Order may be cited as the Trades Licensing (Exemption)
Order. Title

2. Subject to paragraph 3, the organisation named in the Schedule
hereto shall be exempt from the operation of section three of the Act. Exemption
from necessity
to hold licence

3. The foregoing exemption shall be subject to the condition that the
goods sold shall be restricted to items produced by students at the Roma
Homecraft Centre. Condition of
exemption

SCHEDULE

(Paragraph 2)

Roma Homecraft Centre, Lusaka

SECTION 26-THE TRADES LICENSING
(EXEMPTION) ORDER Statutory
Instrument
80 of 1983

Order by the Minister

1. This Order may be cited as the Trades Licensing (Exemption)
Order. Title

2. Subject to paragraph 3, the organisation named in the Schedule
hereto shall be exempt from the operation of section three of the Act. Exemption
from necessity
to hold licence

3. The foregoing exemption shall be subject to the conditions that the
goods sold shall be restricted to items of soft drinks, cigarettes, cakes,
cold snacks and toiletries and that the sales shall be restricted to the
students and staff of the Institute. Condition of
exemption

SCHEDULE

(Paragraph 2)

National Institute of Public Administration

SECTION 26-THE TRADES LICENSING
(EXEMPTION) ORDER Statutory
Instrument
174 of
1983

Order by the Minister

1. This Order may be cited as the Trades Licensing (Exemption)
Order. Title

2. Subject to paragraph 3, the organisation named in the Schedule
hereto shall be exempt from the operation of section three of the Act. Exemption
from necessity
to hold licence

3. The foregoing exemption shall be subject to the conditions that the
goods sold shall be restricted to items of grocery, toiletry and stationery
and that the sales shall be restricted to the students and staff of the
Institute. Condition of
exemption

SCHEDULE

(Paragraph 2)

Zambia Air Services Training Institute

SECTION 26-THE TRADES LICENSING
(EXEMPTION) ORDER Statutory
Instrument
159 of
1987

Order by the Minister

1. This Order may be cited as the Trades Licensing (Exemption) (No.
2) Order. Title

2. Subject to paragraph 3, Holy Cross Secondaty School shall be
exempt from the operation of section three of the Act. Exemption

3. The foregoing exemption shall be subject to the conditions that- Conditions of
exemption

(i) the tuck shop is the property of Holy Cross Secondary School;

(ii) the goods sold shall be restricted to items of grocery, stationery,
soft drinks, cakes, bread, cold snacks, sold to the pupils and workers for
the school.

SECTION 26-THE TRADES LICENSING
(EXEMPTION) ORDER Statutory
Instrument
158 of
1987

Order by the Minister

1. This Order maybe cited as the Trades Licensing (Exemption) Order. Title

2. Subject to paragraph 3, the Zambia National Service shall be exempt
from the operation of section three of the Act. Exemption

3. The foregoing exemption shall be subject to the conditions that- Conditions of
exemption

(i) the goods shall be sold only in the canteens, clubs and messes
owned by the Zambia National Service;

(ii) the canteens, clubs and messes are on the premises of the Zambia
National Service;

(iii) the sale of goods is restricted to produce of the Zambia National
Service.

SECTION 26-THE TRADES LICENSING (MANSA
WHITE FATHERS) (WHOLESALERS’ EXEMPTION)
ORDER Statutory
Instrument
301 of
1970

Order by the Minister

1. This Order may be cited as the Trades Licensing (Mansa White
Fathers) (Wholesalers’ Exemption) Order. Title

2. Any wholesaler who sells goods to the Mansa White Fathers shall,
in respect of any such sale, be exempt from the provisions of section
three of the Act. Exemption

SECTION 28-THE TRADING (GENERAL)
REGULATIONS
Regulations by the Minister Statutory
Instruments
364 of 1968
191 of 1971
Act No.
13 of 1994

1. These Regulations may be cited as the Trading (General)
Regulations. Title

2. A notice of intention published pursuant to section eleven of the Act
shall be published in the form set out in Form 1 in the Schedule and shall
contain the particulars therein prescribed. Form of
advertisement
under section
11 of Act

3. An application for a trading (wholesale) licence shall be in the Form
2 in the Schedule and shall contain the particulars therein prescribed. Form of
application for
trading
(wholesale)
licence

4. Subject to the provisions of regulation 5, an application for a trading
(retail) licence shall be in the Form 3 in the Schedule and shall contain
the particulars therein prescribed. Form of
application for
trading (retail)
licence in
respect of
non-prescribed
goods

5. (1) An application for a trading (retail) licence in respect of the sale
of prescribed goods only shall be in the Form 4 in the Schedule and shall
contain the particulars therein prescribed. Form of
application for
trading (retail)
licence in
respect of
prescribed
goods only

(2) In this regulation, “prescribed goods” has the meaning assigned
thereto in section seventeen of the Act.

6. An application for a commercial traveller’s licence shall be in the
Form 5 in the Schedule and shall contain the particulars therein
prescribed. Form of
application for
commercial
traveller’s
licence

6A. An application for a manufacturer’s licence shall be in the Form 18
in the Schedule and shall contain the particulars therein prescribed.
(As amended by Act No. 191 of 1971) Form of
application for
manufacturer’s
licence

6B. An application for an agent’s licence shall be in the Form 19 in the
Schedule and shall contain the particulars therein prescribed.
(As amended by Act No. 191 of 1971) Form of
application for
agent’s licence

7. An application for-
(a) a hawker’s licence;
(b) a pedlar’s licence;
(c) a pedlar’s (restricted) licence;
(d) a stall licence; or
(e) a restricted licence;
shall be in the Form 6 in the Schedule and shall contain the particulars
therein prescribed in respect of such application. Form of
application for
other licence

8. An application for a duplicate licence pursuant to section twenty-two
of the Act shall be in the Form 7 in the Schedule and shall contain the
particulars therein prescribed. Form of
application for
duplicate
licence

9. The form of licences shall be as follows:
(a) a trading (wholesale) licence shall be in the Form 8 in the
Schedule;
(b) a trading (retail) licence shall be in the Form 9 in the Schedule;
(c) a commercial traveller’s licence shall be in the Form 10 in the
Schedule;
(d) a hawker’s licence shall be in the Form 11 in the Schedule;
(e) a pedlar’s licence shall be in the Form 12 in the Schedule;
(f) a pedlar’s (restricted) licence shall be in the Form 13 in the
Schedule;
(g) a stall licence shall be in the Form 14 in the Schedule;
(h) a restricted licence shall be in the Form 15 in the Schedule.
(i) a manufacturer’s licence shall be in the Form 20 in the Schedule;
(j) an agent’s licence shall be in the Form 21 in the Schedule.
(As amended by No. 191 of 1971) Form of
licences

10. A register of licences kept by a Licensing Authority pursuant to
section ten of the Act shall be in the form prescribed in Form 16 in the
Schedule. Form of register
of licences

11. Notice of an objection pursuant to section twelve of the Act shall be
in the Form 17 in the Schedule and shall contain the particulars therein
prescribed. Form for
objections

12. (1) Every appeal under section nineteen of the Act against a
decision of a Licensing Authority shall be delivered in writing to the
Minister not later than thirty days after the date on which such decision
is notified to the appellant by the Licensing Authority: Procedure for
appeals to
Minister

Provided that the Minister may in his discretion extend the time for
delivering an appeal in any particular case.

(2) An appellant shall set out clearly and concisely the grounds of his
appeal, together with particulars of his current postal address.

(3) An appellant shall, within the time allowed for an appeal under
sub-regulation (1), give notice in writing of his appeal to the Licensing
Authority whose decision is the subject of the appeal and shall state the
grounds of the appeal in such notice.

(4) Where a Licensing Authority is notified of an appeal pursuant to
sub-regulation (3), such Licensing Authority shall prepare and submit to
the Minister a report in writing of the decision appealed against.

(5) The decision of the Minister in respect of an appeal shall be notified
in writing to the appellant and to the Licensing Authority concerned, and
such notification may be issued under the hand of any person duly
authorised by the Minister in that behalf.

(6) Any notice required under this regulation may be served by post
and, for that purpose, the postal address of the Minister shall be:

Permanent Secretary,
(Trades Licensing Appeals),
Ministry of Commerce and Industry,
P.O. Box 31968
LUSAKA.

(7) Any notice required to be served upon any person under this
regulation shall, if served by post at the last known postal address of
such person, be deemed to have been properly served.

SCHEDULE

PRESCRIBED FORMS

FORM 1
(Regulation 2)

THE TRADES LICENSING ACT

NOTICE OF INTENTION TO APPLY FOR A TRADING (WHOLESALE) LICENCE/
TRADING (RETAIL) LICENCE*

*Delete licence not applicable.
Full name of applicant
Postal address
Business name (if any)
Premises at which the business is to be carried on:
Stand No Shop/Street No ……………………………………………….
Name of Street
Town/Village
District
Details of licence it is intended to apply for:
(1) Trading (Wholesale) Licence;
(2) Trading (Retail) Licence;
(a) in a prescribed area;
(b) for prescribed goods only.
(Delete sections which are not applicable.)

FORM 2
(Regulation 3)

THE TRADES LICENSING ACT

APPLICATION FOR ISSUE OF A TRADING (WHOLESALE) LICENCE

1. Full name of applicant
2. Postal address
3. Business name (if any)
4. Premises at which goods will be sold:
Stand No Shop/Street No ……………………………………………….
Name of Street
Town/Village
District
5. I/We apply for a Trading (Wholesale) Licence in the knowledge that the holder of such
licence who sells goods by way of business (whether in conjunction with any other business
or not) to other persons reasonably believed by the seller not to intend to resell such goods,
contravenes the provisions of section 3 of the Trades Licensing Act and shall be guilty of an
offence unless he also holds a valid retail trading licence.
6. My/Our intention to apply for a licence was published in-
the Government Gazette on
the newspaper on (a)
(b)
and the Gazette and newspaper cuttings are enclosed herewith.
7. I
a of ……………………………………………………………
hereby declare as follows:
That the information given in this application is true and correct to the best of my
knowledge and belief:
Dated the day of ……………………………………….. 19 ……………

Applicant
NOTE.-This application shall be accompanied by the appropriate fee.

(See reverse for Schedule of Fees)

SCHEDULE TO THE ACT

LICENCES AND FEES

(Sections 2, 5, 6 and 22)
Fee units
(1) Trading (wholesale) licence .. .. .. .. .. 1500
(2) Trading (retail) licence-
(a) in a prescribed area .. .. .. .. .. 750
(b) in any other area .. .. .. .. .. 375
(3) Commercial traveller’s licence-
(a) held by a firm, partnership or individual holding a trading
(wholesale) or trading (retail) licence, for one person .. .. 750
(b) held by any other firm, partnership or individual for one
person .. .. .. .. .. .. 1800
(c) held by every additional employee or partner of a holder
of a licence issued under (a) or (b) .. .. .. 300
(4) Hawker’s licence .. .. .. .. .. .. 150
(5) Pedlar’s licence .. .. .. .. .. .. 75
(6) Pedlar’s (restricted) licence .. .. .. .. .. 15
(7) Stall licence.. .. .. .. .. .. 75
(8) Restricted licence .. .. .. .. .. .. 75
(9) Duplicate of any licence .. .. .. .. .. 15
(10) Agents licence .. .. .. .. .. .. 750
(11) Duplicate of any licence .. .. .. .. .. 15
(As amended by Act No. 13 of 1994)

FORM 3
(Regulation 4)

THE TRADES LICENSING ACT

APPLICATION FOR ISSUE OF A TRADING (RETAIL) LICENCE

(Application for issue of a Trading (Retail) Licence solely for the
sale of prescribed goods should be made on Form 4)

Part I

1. Full name of applicant
2. Postal address
3. Business name (if any)
4. Premises at which goods will be sold:
Stand No Shop/Street No ……………………………………………….
Name of Street
Town/Village
District
5. If the application is in respect of premises in a prescribed area give the following
details if a general trading licence in the name of the applicant for premises in the same
prescribed area was held in 1968:
Stand No Shop/Street No ……………………………………………….
Name of Street
No. of licence Date of issue …………………………………………..

Part II

6. If the applicant is an individual, state:
(a) Home address
(b) Date of birth
(c) National Registration Card No
(d) Citizenship details*

Part III

7. If the applicant is a body corporate (including a co-operative society), state:
Registered office

Date of formation
8. Give details of all directors (officers in case of a co-operative society):
Full Country of Date of Citizenship No. of
Name Residence Birth Details* shares held

9. Give details of all shareholders (members in case of a co-operative society):
Full Country of Date of Citizenship No. of
Name Residence Birth Details* shares held

(If space insufficient continue details on separate plain sheet of paper and attach to
Form.)
10. If any of the shareholders are companies, are any of the shareholders of these
companies non-Zambian?

Part IV

11. If the applicant is a partnership give details of all partners:
Full Country of Date of Citizenship Interest in
Name Residence Birth Details* Partnership
(shown as
a percentage)

Part V

12. My/Our intention to apply for a licence was published in-
the Government Gazette on
the newspaper on (a)
(b)
and the Gazette and newspaper cutting are enclosed herewith.
13. I/We have obtained or intend to obtain the following type of permit/licence in
accordance with the provisions of the Public Health Regulations

14. I/We have obtained or intend to obtain the written consent of the appropriate highway
authority in accordance with the provisions of rule 3 of the Roads and Road Traffic
(Control of Access, Structures and Works) Rules

15. I,
a of ……………………………………………………………
hereby declare as follows:
That the information given in this application is true and correct to the best of my
knowledge and belief:
Dated the day of ……………………………………….., 19 ……………

Applicant
*If you are a Zambian citizen state whether by:
(i) Birth
or (ii) Naturalisation, if so give Certificate No
or (iii) Registration, if so give Certificate No
NOTE.-This application shall be accompanied by the appropriate fee.
(See reverse for Schedule of Fees)

SCHEDULE TO THE ACT

LICENCES AND FEES

(Sections 2, 5, 6 and 22)

Fee units
(1) Trading (wholesale) licence .. .. .. .. .. ..
1500
(2) Trading (retail) licence-
(a) in a prescribed area .. .. .. .. .. .. 750
(b) in any other area .. .. .. .. .. .. 375
(3) Commercial traveller’s licence-
(a) held by a firm, partnership or individual holding a
trading (wholesale) or trading (retail) licence, for
one person .. .. .. .. .. .. 750
(b) held by any other firm, partnership or individual
for one person.. .. .. .. .. .. 1800
(c) held by every additional employee or partner of a
holder of a licence issued under (a) or (b).. .. .. .. 300
(4) Hawker’s licence .. .. .. .. .. .. ..
150

(5) Pedlar’s licence .. .. .. .. .. .. ..
75
(6) Pedlar’s (restricted) licence .. .. .. .. .. ..
15
(7) Stall licence.. .. .. .. .. .. .. 75
(8) Restricted licence .. .. .. .. .. .. ..
75
(9) Duplicate of any licence .. .. .. .. .. ..
15
(10) Agents licence .. .. .. .. .. .. ..
750
(11) Duplicate of any licence .. .. .. .. .. ..
15
(As amended by Act No. 13 of 1994)

FORM 4
(Regulation 5)

THE TRADES LICENSING ACT

APPLICATION FOR ISSUE OF A TRADING (RETAIL) LICENCE SOLELY FOR THE
SALE OF PRESCRIBED GOODS

(An applicant who intends to sell non-prescribed goods in addition
to prescribed goods should apply on Form 3)
1. Full name of applicant
2. Postal address
3. Business name (if any)
4. Premises at which goods will be sold:
Stand No Shop/Street No ………………………………………………
Name of Street
Town/Village
District
5. I/We apply for a Trading (Retail) Licence to permit me/us to sell the following
prescribed goods:

6. My/Our intention to apply for a licence was published in-
the Government Gazette on
the newspaper on (a)
(b)
and the Gazette and newspaper cuttings are enclosed herewith.
7. I/We have obtained or intend to obtain the following type of permit/licence in
accordance with the provisions of the Public Health Regulations

8. I/We have obtained or intend to obtain the written consent of the appropriate highway
authority in accordance with the provisions of rule 3 of the Roads and Road Traffic
(Control of Access, Structures and Works) Rules

9. I,
a of ……………………………………………………………

hereby declare as follows:
That the information given in this application is true and correct to the best of my
knowledge and belief:
Dated the day of ………………………………………., 19 …………..

Applicant
NOTE.-This application shall be accompanied by the appropriate fee
(See reverse for Schedule of Fees)

SCHEDULE TO THE ACT

LICENCES AND FEES

(Sections 2, 5, 6 and 22)

Fee units
(1) Trading (wholesale) licence .. .. .. .. .. ..
1500
(2) Trading (retail) licence-
(a ) in a prescribed area .. .. .. .. .. .. 750
(b) in any other area .. .. .. .. .. .. 375
(3) Commercial traveller’s licence-
(a) held by a firm, partnership or individual holding a trading
(wholesale) or trading (retail) licence, for one person .. .. ..
750
(b) held by any other firm, partnership or individual for one
person .. .. .. .. .. .. .. 1800
(c) held by every additional employee or partner of a holder
of a licence issued under (a) or (b) .. .. .. .. 300
(4) Hawker’s licence .. .. .. .. .. .. ..
150
(5) Pedlar’s licence .. .. .. .. .. .. ..
75
(6) Pedlar’s (restricted) licence .. .. .. .. .. ..
15
(7) Stall licence.. .. .. .. .. .. .. 75
(8) Restricted licence .. .. .. .. .. .. ..
75
(9) Duplicate of any licence .. .. .. .. .. ..
15
(10) Agents licence .. .. .. .. .. .. ..

750
(As amended by Act No. 13 of 1994)

FORM 5
(Regulation 6)

THE TRADES LICENSING ACT

APPLICATION FOR ISSUE OF A COMMERCIAL TRAVELLER’S LICENCE

1. Name of applicant
2. Postal address
3. Business name (if any)
4. I/We apply for a commercial traveller’s licence for one person in the name of

I/We certify that I/we hold Trading (Wholesale) Licence/Trading (Retail) Licence
No /do not hold a trading
(wholesale) licence/trading (retail) licence.
5. I/We apply for commercial traveller’s licences for ……………………..
additional employees/partners in the names of

I/We certify that I/we hold Commercial Traveller’s Licence No
NOTE.-An additional licence cannot be granted unless the applicant already holds a
commercial traveller’s licence.

Applicant

Date
NOTE.-This application shall be accompanied by the appropriate fee.
(See reverse for Schedule of Fees)

SCHEDULE TO THE ACT

LICENCES AND FEES

(Sections 2, 5, 6 and 22)

Fee units
(1) Trading (wholesale) licence .. .. .. .. .. ..
1500
(2) Trading (retail) licence-
(a) in a prescribed area .. .. .. .. .. .. 750

(b) in any other area .. .. .. .. .. .. 375
(3) Commercial traveller’s licence-
(a) held by a firm, partnership or individual holding a trading
(wholesale) or trading (retail) licence, for one person .. .. ..
750
(b) held by any other firm, partnership or individual for one
person .. .. .. .. .. .. .. 1800
(c) held by every additional employee or partner of a holder
of a licence issued under (a) or (b) .. .. .. .. 300
(4) Hawker’s licence .. .. .. .. .. .. ..
150
(5) Pedlar’s licence .. .. .. .. .. .. ..
75
(6) Pedlar’s (restricted) licence .. .. .. .. .. ..
15
(7) Stall licence.. .. .. .. .. .. .. 75
(8) Restricted licence .. .. .. .. .. .. ..
75
(9) Manufacturer’s licence .. .. .. .. .. ..
1500
(10) Agent’s licence .. .. .. .. .. .. ..
750
(11) Duplicate of any licence .. .. .. .. .. ..
15
(As amended by Act No. 13 of 1994)

FORM 6
(Regulation 7)

THE TRADES LICENSING ACT

APPLICATION FOR ISSUE OF A HAWKER’S, PEDLAR’S, PEDLAR’S
(RESTRICTED),
STALL OR RESTRICTED LICENCE *

* Delete licences not applicable

Part I
1. Full name of applicant
2. Postal address
3. Business name (if any)
4. Home address
5. Date of birth
6. National Registration Card No
7. State whether a Zambian citizen by-
(i) Birth ………
or (ii) Naturalisation Certificate No ……………………………………
or (iii) Registration Certificate No ……………………………………

Part II
8. Site of stall or premises (where applicable)
9. If application is for a hawker’s, pedlar’s, or pedlar’s (restricted) licence state area in
which goods are to be sold:

10. Description of goods to be sold from stall
11. I,
a of ……………………………………………………………
hereby declare as follows:
That the information given in this application is true and correct to the best of my
knowledge and belief:

Dated the day of ………………………………………, 19 ……………

Applicant
NOTE.-This application shall be accompanied by the appropriate fee.

(See reverse for Schedule of Fees)

SCHEDULE TO THE ACT

LICENCES AND FEES

(Sections 2, 5, 6 and 22)

Fee units
(1) Trading (wholesale) licence .. .. .. .. .. ..
1500
(2) Trading (retail) licence-
(a) in a prescribed area .. .. .. .. .. .. 750
(b) in any other area .. .. .. .. .. .. 375
(3) Commercial traveller’s licence-
(a) held by a firm, partnership or individual holding a trading
(wholesale) or trading (retail) licence, for one person .. .. ..
750
(b) held by any other firm, partnership or individual for one
person .. .. .. .. .. .. .. 1800
(c) held by every additional employee or partner of a holder
of a licence issued under (a) or (b) .. .. .. .. 300
(4) Hawker’s licence .. .. .. .. .. .. ..
150
(5) Pedlar’s licence .. .. .. .. .. .. ..
75
(6) Pedlar’s (restricted) licence .. .. .. .. .. ..
15
(7) Stall licence.. .. .. .. .. .. .. 75
(8) Restricted licence .. .. .. .. .. ..
75
(9) Duplicate of any licence .. .. .. .. .. ..
15
(10) Manufacturers licence.. .. .. .. .. .. 1500
(11) Agents licence .. .. .. .. .. .. ..
750
(As amended by Act No. 13 of 1994)

FORM 7
(Regulation 8)

THE TRADERS LICENSING ACT

APPLICATION FOR ISSUE OF A DUPLICATE LICENCE

(Section 22 of the Trades Licensing Act)
1. Full name of applicant
2. Postal address
3. Business name (if any)
4. Premises at which business is carried on (if applicable):
Stand No Shop/Street No ……………………………………………….
Name of Street
Town/Village
District
5. I/We apply for the issue of a duplicate of the
Licence No which was issued to me/us on …………………………
19 ………….
6. State briefly the circumstances under which the licence was lost, destroyed or defaced:

7. The prescribed fee of 15 fee units for a duplicate licence is enclosed.

Dated the day of ……, 19 ……………

Applicant
(As amended by Act No. 13 of 1994)

FORM 8
(Regulation 9)

THE TRADES LICENSING ACT

TRADING (WHOLESALE) LICENCE

No
A trading (wholesale) licence is hereby granted to:

of
trading as
to carry on business as a wholesaler of the following goods or class or classes of goods

on premises at

The licence is subject to the following terms and conditions

This licence expires on 31st December, 19 ……………
(An application may be made to a Licensing Authority not later than the 31st October in
any year for a licence in respect of the following year.)
Fee units paid…………….

Licensing Officer
Date ………………………………………………………

FORM 9
(Regulation 9)
THE TRADES LICENSING ACT

TRADING (RETAIL) LICENCE

No
A trading (retail) licence is hereby granted to:

of
trading as
to carry on business as a retailer of the following goods or class or classes of goods

on the premises at

The licence is subject to the following terms and conditions

This licence expires on 31st December, 19 …………….
(An application may be made to a Licensing Authority not later than the 31st October in
any year for a licence in respect of the following year.)
Fee units paid………………..

Licensing Officer
Date ………………………………………………………

FORM 10
(Regulation 9)
THE TRADES LICENSING ACT

COMMERCIAL TRAVELLER’S LICENCE

No
A commercial traveller’s licence is hereby granted to:

of
to carry on business as a commercial traveller.
The licence is subject to the following terms and conditions

This licence expires on 31st December, 19 ……………
(An application may be made to a District Secretary not later than the 31st October in any
year for a licence in respect of the following year.)
Fee units paid……………..

Licensing Officer
Date ………………………………………………………

FORM 11
(Regulation 9)
THE TRADES LICENSING ACT

HAWKER’S LICENCE

No
A licence is hereby granted to:

of

to carry on business as a Hawker in the
Licensing Authority Area.
The licence is subject to the following terms and conditions

This licence expires on 31st December, 19 ……………
(An application may be made to a Licensing Authority not later than the 31st October in
any year for a licence in respect of the following year.)
Fee units paid……………..

Licensing Officer
Date ………………………………………………………

FORM 12
(Regulation 9)
THE TRADES LICENSING ACT

PEDLAR’S LICENCE

No
A licence is hereby granted to:

of
to carry on business as a Pedlar in the
Licensing Authority Area.

The licence is subject to the following terms and conditions

This licence expires on 31st December, 19 …………….
(An application may be made to a Licensing Authority not later than the 31st October in
any year for a licence in respect of the following year.)
Fee units paid…………….

Licensing Officer
Date ………………………………………………………

FORM 13
(Regulation 9)
THE TRADES LICENSING ACT

PEDLAR’S (RESTRICTED) LICENCE

No
A licence is hereby granted to:

of
to sell religious books and tracts in the
Licensing Authority Area.
The licencee is subject to the following terms and conditions

This licence expires on 31st December, 19 …………….
(An application may be made to a Licensing Authority not later than the 31st October in
any year for a licence in respect of the following year.)
Fee units paid……………….

Licensing Officer
Date ………………………………………………………

FORM 14
(Regulation 9)
THE TRADES LICENSING ACT

STALL LICENCE

No
A licence is hereby granted to:

of
to sell goods from a stall in/at

Description of goods to be sold

The licence is subject to the following terms and conditions

This licence expires on 31st December, 19 ……………
(An application may be made to a Licensing Authority not later than the 31st October in
any year for a licence in respect of the following year.)
Fee units paid……………

Licensing Officer
Date ………………………………………………………

FORM 15
(Regulation 9)
THE TRADES LICENSING ACT

RESTRICTED LICENCE

No……………….
A licence is hereby granted to:

of
to sell tobacco, cigarettes, breadstuffs, pastry, confectionery and non-alcoholic beverages-
(i) on the railway station/airport
(ii) at premises situated in

(Delete section not applicable)
The licence is subject to the following terms and conditions

This licence expires on 31st December, 19…….
(An application may be made to a Licensing Authority not later than the 31st October in
any year for a licence in respect of the following year.)
Fee units paid………………

Licensing Officer
Date ………………………………………………………

FORM 16
(Regulation 10)
REGISTER OF LICENCES

(Section 10 of the Trades Licensing Act)

Licensing Authority ……………………………………………………………………

No.

Date Description of premises
covered by licence Goods
permitte d
Name and postal address of licence
holder of.
licence of issue Stand/Shop No. Street Type of licence to be
sold

FORM 17
(Regulation 11)
THE TRADES LICENSING ACT

NOTICE OF OBJECTION TO ISSUE OF A TRADING (WHOLESALE) LICENCE OR
A TRADING (RETAIL) LICENCE

To the Licensing Authority
I,
of
hereby give notice of my objection to the issue of a
licence to
of
The grounds of my objection are

A copy of this notice of objection has been given to the applicant for the licence.

Objector
Date ………………………………………………………

FORM 18
(Regulation 6A)
THE TRADES LICENSING ACT

APPLICATION FOR ISSUE OF A MANUFACTURER’S LICENCE

1. Full name of applicant
2. Postal address
3. Business name (if any)
4. Premises at which goods will be manufactured:
Stand No. Street No …………………………………………………..
Town District ………………………………………………………
5. Premises at which goods manufactured by applicant will be sold:
Stand No Street No …………………………………………………..
Town District ………………………………………………………
6. Description of goods to be manufactured by applicant:

7. I
a of ……………………………………………………………
hereby declare as follows:
That the information given in this application is true and correct to the best of my
knowledge and belief.
Dated the day of ………………………………………, 19 …………….

Applicant
NOTE.-This application shall be accompanied by the appropriate licence fee of 1000 fee
units.
(As amended by S.I. No. 191 of 1971 and Act No. 13 of 1994)

FORM 19
(Regulation 6B)

THE TRADES LICENSING ACT

APPLICATION FOR ISSUE OF AN AGENT’S LICENCE

1. Full name of applicant

2. Postal address

3. Business name (if any)
4. Premises at which goods will be sold:
Stand No. Street No. ………………………………………………….
Town District ………………………………………………………
5. Type of goods to be sold

6. Names and addresses of foreign companies for which applicant is agent:

7. I,
a of ……………………………………………………………

hereby declare as follows:
That the information given in this application is true and correct to the best of my
knowledge and belief.
Dated the day of ………………………………………., 19 …………….

Applicant
NOTE.-This application shall be accompanied by the appropriate licence fee of 500 fee
units.
(As amended by S.I. No. 191 of 1971 and Act No. 13 of 1994)

FORM 20
(Regulation 9)

THE TRADES LICENSING ACT

MANUFACTURER’S LICENCE

No
A manufacturer’s licence is hereby granted to

of
to sell to the Government, wholesalers, retailers or any other person goods manufactured
by him on premises at

namely (description of those goods).

This licence is subject to the following terms and conditions

This licence expires on the 31st December, 19 ………….. (An application may be made to the
Licensing Authority not later than 31st October in any year for a licence in respect of the
following year.)
Fee units paid…………………

Licensing Officer
Date ………………………………………………………
(As amended by S.I. No. 191 of 1971)

FORM 21
(Regulation 9)

THE TRADES LICENSING ACT

AGENT’S LICENCE

No
An agent’s licence is hereby granted to

of
trading as
to carry on business as a manufacturer’s representative in respect of the following goods
or classes of goods

on premises at

This licence is subject to the following terms and conditions

This licence expires on the 31st December, 19…………….. (An application may be made to a
Licensing Authority not later than 31st October in any year for a licence in respect of the
following year.)
Fee units paid……………….

Licensing Officer
Date ………………………………………………………
(As amended by S.I. No. 191 of 1971)

SECTION 28-THE TRADING (PRESCRIBED GOODS
AND
PROHIBITED GOODS) REGULATIONS Statutory
Instrument
228 of
1971

Regulations by the Minister

1. These Regulations may be cited as the Trading (Prescribed Goods
and Prohibited Goods) Regulations. Title

2. The goods described in the Schedule, or belonging to any class of
goods described therein, are hereby declared to be prescribed goods. Declaration of
prescribed
goods

3. All goods other than the goods described in the Schedule, or
belonging to any class of goods described therein, are hereby declared to
be prohibited goods for the purpose of paragraphs (a) and (b) of
subsection (1) of section seventeen of the Act. Declaration of
prohibited
goods

SCHEDULE

(Regulations 2 and 3)

PRESCRIBED GOODS

Educational supplies
Office machinery, stationery, supplies and equipment
Books, newspapers, periodicals
Electrical goods, fittings, apparatus
Pharmaceutical drugs and cosmetics
Motor vehicles, motor-bicycles, bicycles and spares
Tractors, mechanically propelled earth moving equipment
All types of machinery and machinery parts
Flowers and florists’ equipment
Funeral furniture and equipment
Medical supplies, furniture and equipment
Musical instruments and supplies
Optical spectacles
Dental plates
Photographs and photographic equipment
Pictures, picture frames, artists’ supplies
Scientific instruments and parts
Sewing machines and parts
Pets and pet food
Petrol, oil and lubricants

SECTION 28-THE TRADING (WHOLESALE
TRADING) (INVOICES) REGULATIONS Statutory
Instrument
365 of
1968

Regulations by the Minister

1. These Regulations may be cited as the Trading (Wholesale Trading)
(Invoices) Regulations. Title

2. Without prejudice to the requirements of any other written law,
every wholesaler who sells goods in a wholesale sale shall, at the time of
the delivery of such goods to the purchaser, furnish to the purchaser an
invoice in respect of such goods containing the following particulars;
(a) the date of the sale;
(b) the name and address of the wholesaler;
(c) the name and address of the purchaser;
(d) the serial number of the licence held by the purchaser; and
(e) the quantity, description and purchase price of the goods. Invoices to be
furnished in
respect of
wholesale
transactions

3. Every wholesaler shall retain a copy of any invoice required to be
furnished under regulation 2 in respect of the sale of goods for a period
of not less than twelve months from the date of such sale. Copies of
invoices to be
retained

4. A police officer of or above the rank of Sub Inspector, or a person
authorised in writing in that behalf by a Licensing Authority, may, on
production of evidence of his identity and authority to any person
reasonably requiring it-
(a) at any reasonable time, enter any premises where goods are
being sold by a wholesaler; and
(b) require any person in charge of such premises to produce for his
inspection copies of invoices required to be retained by such wholesaler
under regulation 3. Powers of
inspection

5. (1) Any wholesaler who contravenes any of the provisions of
regulation 2 or 3 shall be guilty of an offence. Offences

(2) Any person who fails to produce any copy of an invoice upon being
lawfully required to do so under regulation 4 shall be guilty of an
offence.

REGULATIONS MADE UNDER THE BUSINESSES ACT-
CHAPTER 199 OF THE 1959 EDITION OF THE LAWS

(Section 15 of the Interpretation and
General Provisions Act)

THE HAWKERS’ LICENCES REGULATIONS Government
Notice
104 of 1958

1. These Regulations may be cited as the Hawkers’ Licences
Regulations.

2. A hawker shall not, by virtue of his hawker’s licence, trade from any
shop, booth, tent or stall.

3. A hawker shall not, by virtue of his hawker’s licence, trade within
half a kilometre of any store or stall licensed under the Act.

NOTICES MADE UNDER THE TRADES LICENSING ACT
(Section 15 of the Interpretation and

General Provisions Act)

PROHIBITION OF PEDDLING AND HAWKING

Peddling of goods is hereby prohibited within one and a half kilometres
of the Luapula Valley Road between the Luongo River and the
Kalungwishi River. Government
Notice
53 of 1960

Hawking of goods by way of retail is hereby prohibited within one and a
Government

half kilometres of the Luapula Valley Road between the Luongo River
and the Kalungwishi River.
Notice
22 of 1960

NOTICES MADE UNDER THE TRADES LICENSING ACT

(Section 15 of the Interpretation
and General Provisions Act)

EXEMPTION OF SPECIFIED BUSINESSES

The Railway Staff Canteen, Ndola, is hereby exempted from the
provisions of section three of the Act, subject to the following
conditions:
(a) that articles sold shall be restricted to cooked food for
consumption on the premises and sundry supplies including beverages
and tobacco;
(b) that the sales be restricted to employees of the Railways engaged
in transportation and ancillary services. Government
Notice
292 of 1958

The Ndola Railway Workers’ Co-operative Society Limited, Ndola, is
hereby exempted from the provisions of section three of the Act, subject
to the following conditions:
(a) that the sales be restricted to employees of the Railways and
their families;
(b) that the premises (building No. 1411) are open daily from 10
a.m. to 12 noon and from 3 p.m. to 5 p.m. on weekdays. Government
Notice
293 of 1958

The Prison Co-operative Dry Canteen Limited, Bwana Mkubwa, is
hereby exempted from the provisions of section three of the Act, subject
to the following conditions:
(a) that the sales be restricted to the Prison Service personnel and
their families;
(b) that the premises are open daily from 10 a.m. to 12 noon and
from 3 p.m. to 5 p.m. on weekdays. Government
Notice
294 of 1958

All persons selling goods by way of business or carrying on the business
of general dealer at St. George’s “Bring-and-Buy Centre”, situate in Government
Notice

Johnston’s Arcade, Zenobia Avenue, Luanshya, are hereby exempted
from the provisions of section three of the Act, subject to the following
conditions:
(a) that the articles, goods, work or foodstuffs sold shall be- 295 of 1958

(i) home-made and donated to the aforesaid Centre by the makers
thereof; or

(ii) second-hand and donated to the aforesaid Centre;
(b) that all profits and proceeds accruing from the carrying on of the
said business shall be used for the benefit and purposes of St. George’s
Church, Luanshya.

Schools established under the Education Act are hereby exempted from
the provisions of section three of the Act when conducting tuck shops
on school premises, subject to the following conditions:
(a) that articles sold shall be restricted to foodstuffs, beverages,
stationery articles normally used in educational institutions, and small
items of uniform, such as ties, badges, hat bands and belts;
(b) that the sales are restricted to pupils of the schools, and to the
staff employed at the schools;
(c) that the tuck shops be not opened for more than eight hours in
any one week during term time, and shall be closed entirely during
school holidays and on all public holidays;
(d) that the shops are conducted in connection with the raising of
funds for educational purposes. Government
Notice
29 of 1959.
Cap. 134

The Copperbelt Technical Foundation Limited is hereby exempted from
the provisions of section three of the Act when conducting shops at the
teaching centres situated at Stand No. 1195, Chingola, Part of Farm No.
1591, Kitwe, Stand No. 1312, Luanshya, and Stand No. 748, Mufulira,
subject to the following conditions: Government
Notice
62 of 1959

(a) that articles sold shall be restricted to foodstuffs, beverages,
stationery articles normally used in educational institutions engaged in
technical and adult education and small items of uniform such as ties,
badges, hat bands and belts;
(b) that the sales are restricted to pupils of the schools, and to the
staff employed at the schools;
(c) that the shops be not opened for more than twelve hours in any

one week during term time, and shall be closed entirely during academic
holidays and on all public holidays;
(d) that the shops are conducted in connection with the raising of
funds for educational purposes.

The Board of the Livingstone Museum is hereby exempted from the
provisions of section three of the Act, subject to the condition that
articles sold by or on behalf of the Board be restricted to duplicate
objects belonging to the Museum and post cards, colour transparencies
and souvenirs specially produced for the Museum.

NOTICES MADE UNDER THE TRADES LICENSING ACT-

(Section 15 of the Interpretation
and General Provisions Act)

EXEMPTION OF SPECIFIED BUSINESSES

Agents of the United Society for Christian Literature, Lusaka and
Kitwe, engaged in the sale within rural council areas of books of a
religious or educational nature supplied by the Society are hereby
exempted from the provisions of section three of the Act. Government
Notice
6 of 1961

The Kitwe office of “The Bible Societies in Zambia and Malawi” is
hereby exempted from the provisions of section three of the Act for so
long as such organisation engages only in the sale of the Scriptures, the
selling prices of which do not exceed the costs of production. Government
Notice
259 of 1961

All grain-buying field depots of the Southern Province Co-operative
Marketing Union Limited, situated in the Kalomo and Choma Districts,
are hereby exempted from the provisions of section three of the Act in
respect of the sale of fertiliser and scotch carts only. Government
Notice
332 of 1961

The London Missionary Society’s Mbereshi Bookroom at Kawambwa is
hereby exempted from the provisions of section three of the Act for so
long as sales from the said bookroom and through its agents are
confined to Bibles, portions of the Scriptures and books of a religious or
educational nature, on a non-profit-making basis. Government
Notice
79 of 1962

The Principal of the Monze Agricultural Training Centre is hereby
exempted from the provisions of section three of the Act when
conducting a tuck shop on the premises, subject to the following
conditions.
(a) that articles sold shall be restricted to toilet articles,
confectionery, groceries and tobacco;
(b) that the sales are restricted to students of the Centre and to the
staff employed at the Centre;
(c) that the tuck shop be not opened for more than four hours in any
one week. Government
Notice
99 of 1962

The Rhokana Corporation Limited is hereby exempted from the
provisions of section three of the Act in respect of its Welfare Workshop
situated in Market Road in Wusikili, Nkana Mine Township. Government
Notice
194 of 1963

The store of the United Church of Zambia, situated within the Kawimbe
Leprosy Settlement, Mbala District, is hereby exempted from the
provisions of section three of the Act, subject to the following
conditions:
(a) that the sales be restricted to patients at the Settlement and
employees of the United Church of Zambia working within the
Settlement and their families;
(b) that all profits and proceeds accruing from the carrying on of the
said business shall be used for the benefit and purposes of the Kawimbe
Leprosy Settlement. Statutory
Instrument
26 of 1964

The Tuck Shop, the Helen Girls’ Camp, situated in the Chingola District,
is hereby exempted from the provisions of section three of the Act,
subject to the following conditions:
(a) that articles sold shall be limited to foodstuffs, beverages,
haberdashery, stationery items and toilet requisites;
(b) that the sales are restricted to camp residents and to staff
employed at the camp;
(c) that the tuck shop be not opened for more than eight hours in any
one week and shall be closed entirely during camp vacations and on all
public holidays; and
(d) that the tuck shop is conducted in connection with the raising of
funds for cultural and educational purposes. Statutory
Instrument
272 of 1965

The Tuck Shop, Natural Resources Development College, situated in
the Lusaka District, is hereby exempted from the provisions of section
three of the Act, subject to the following conditions:
(a) that articles sold shall be limited to beverages, confectionery,
foodstuffs, tobacco and toilet requisites, stationery items normally used
in educational institutions and small items of uniform, such as badges,
belts, hat bands and ties;
(b) that the sales are restricted to pupils of the college and to the staff
employed at the college;
(c) that the tuck shop be not opened for more than eight hours in any
one week during term time and shall be closed entirely during college
holidays and on all public holidays; and
(d) that the tuck shop is conducted in connection with the raising of
funds for educational purposes. Statutory
Instrument
308 of 1965

The Kawama Bookroom of the Christian Mission in Many Lands,
situated in the Kawambwa District, is hereby exempted from the
provisions of section three of the Act for so long as sales from that
Bookroom and through its agents are confined to Bibles, portions of the
Scriptures and books of a religious or educational nature, on a
non-profit-making basis. Statutory
Instrument
174 of 1966

The Presbyterian Church Board Management, operating from the
Presbyterian Manse, Jameson Road, Livingstone, Southern Province, is
hereby exempted from the provisions of section three of the Act for so
long as the sales from that Board of Management are confined to books
and literature of a purely religious nature, on a non-profit-making basis. Statutory
Instrument
242 of 1966

The Scripture Union, operating from Kitwe, Copperbelt Province, is
hereby exempted from the provisions of section three of the Act for so
long as the sales from that Scripture Union are confined to books and
literature of a purely religious nature, on a non-profit-making basis. Statutory
Instrument
293 of 1967

The Africa Evangelical Fellowship, operating from Kitwe, Copperbelt
Province, is hereby exempted from the provisions of section three of the
Act for so long as the sales of the said Africa Evangelical Fellowship are
confined to books and literature of a purely religious nature, on a
non-profit-making basis. Statutory
Instrument
323 of 1967

The Zambia Catholic Bookshop at Ndola, Copperbelt Province, is
hereby exempted from the provisions of section three of the Act for so
long as the sales of the said Zambia Catholic Bookshop are confined to
books and portions of the literature of a purely religious nature, on a
non-profit-making basis.
Statutory Instrument
130 of 1968

CHAPTER 394
THE ZAMBIA NATIONAL TENDER BOARD ACT

ARRANGEMENT OF SECTIONS

PART I
PRELIMINARY

Section
1. Short title
2. Interpretation

PART II
ZAMBIA NATIONAL TENDER BOARD

3. Establishment of Board
4. Composition of Board
5. Tenure of office and vacancies
6. Remuneration and allowances of members
7. Functions of Board
8. Committees of Board
9. Disclosure of interest
10. Immunity of members
11. Procedure and meetings
12. Seal of Board
13. Prohibition of publication or disclosure of information to
unauthorised persons

PART III
ADMINISTRATION

14. Appointment of Director
15. Secretary and other staff
16. Inspectorate unit
17. Powers of inspectors, etc.
18. Failure to comply with prescribed procedures
19. Surcharge and appeals
20. Payment and recovery of surcharge
21. Resisting or obstructing inspector, etc.

PART IV
FINANCIAL AND OTHER PROVISIONS

Section
22. Funds of Board
23. Financial year
24. Books of accounts
25. Audit of accounts
26. Annual report
27. Regulations

CHAPTER 394

ZAMBIA NATIONAL TENDER BOARD
Act No.
30 of 1982
13 of 1994

An Act to provide for the establishment of the Zambia National Tender
Board; to regulate and control the procurement of goods and services for
the Government and parastatal bodies; to consolidate the law relating to
tenders generally; and to provide for matters connected with or
incidental to the foregoing.
[3rd August, 1990]

PART I

PRELIMINARY

1. This Act may be cited as the Zambia National Tender Board Act. Short title

2. In this Act, unless the context otherwise requires- Interpretation

“Board” means the Zambia National Tender Board established by
section three;

“Chairman” means the Chairman of the Board appointed under section
four;

“company” means a company registered under the Companies Act; Cap. 388

“Director” means the Director of the Board appointed under section
fourteen;

“member” means a member of the Board;

“parastatal body” means a statutory corporation or body, or a company
in which the Government has a majority or controlling interest, and
includes a local authority;

“Secretary” means the person appointed under section fifteen to be
Secretary to the Board.

PART II
ZAMBIA NATIONAL TENDER BOARD

3. There is hereby established the Zambia National Tender Board
which shall be a body corporate with perpetual succession and a
common seal, capable of suing and of being sued in its corporate name,
and with power, subject to the provisions of this Act, to do all such acts
and things as a body corporate may do by law. Establishment
of Board

4. (1) The Board shall consist of a Chairman and twelve other members
of whom the following shall be ex-officio members- Composition of
Board

(a) the Secretary to the Cabinet;

(b) the Director-General of the Zambia Industrial and Mining
Corporation Limited;

(c) the Chairman of the Zambia Consolidated Copper Mines
Limited;

(d) the Governor of the Bank of Zambia;

(e) the Permanent Secretary in the Ministry responsible for finance;

(f) the Permanent Secretary in the Ministry responsible for
development planning; and

(g) the Permanent Secretary in the Ministry responsible for works
and supply.

(2) The Chairman and the other members, other than the ex-officio
members, shall be appointed by the President.

(3) Where an ex-officio member is for any reasonable cause unable to
attend any meeting of the Board, he may, in writing, nominate another
senior official from his organisation to attend such meeting in his stead
and the person so nominated shall be deemed to be a member for the
purpose of such meeting.

5. (1) The provisions of this section shall apply to members other than
the ex-officio members. Tenure of office
and vacancies

(2) Subject to the provisions of this section, a member shall hold office
for a period of two years:

Provided that a retiring member may be reappointed.

(3) Upon the expiry of the period for which a member is appointed, he
shall continue to hold office until his successor has been appointed, but
in no case shall such further period exceed three months.

(4) A member shall cease to hold office-

(a) subject to subsection (3), upon the expiry of the period for which
he is appointed or reappointed;

(b) if he is adjudged or otherwise declared to be of unsound mind;

(c) if he is adjudged or otherwise declared to be bankrupt;

(d) if he is lawfully detained or his freedom of movement is
restricted under any law in force in Zambia;

(e) if he is sentenced to a term of imprisonment exceeding six
months;

(f) if he is absent from three consecutive meetings of the Board
without reasonable cause;

(g) upon the expiry of not less than one month’s notice in writing of
his intention to resign given by him to the Chairman;

(h) if he is removed by the President.

6. A member other than a public officer or an employee of a parastatal
body shall be paid such remuneration or allowance as the Minister may
from time to time determine. Remuneration
and allowances
of members

7. (1) The functions of the Board shall be to regulate and control the
procurement of goods and services for the Government and parastatal
bodies. Functions of
Board

(2) Without prejudice to the generality of subsection (1), the Board
may-

(a) formulate rules and regulations governing the procurement of
goods and services for the Government and parastatal bodies;

(b) advertise locally and abroad tenders for the procurement of
goods and services for the Government and parastatal bodies;

(c) regulate the procedures relating to the award of contracts on
behalf of the Government and parastatal bodies;

(d) formulate the conditions under which any rules and regulations
governing the procurement of goods and services for the Government
and parastatal bodies may be varied or waived.

8. (1) The Board may, for the purpose of carrying out its functions
under this Act, establish committees and delegate to any such committee
such of its functions as it may think fit. Committees of
Board

(2) The Board may appoint as members of a committee established
under subsection (1), persons who are or are not members of the Board
and such persons shall hold office for such period as the Board may
determine.

(3) Subject to any specific or general direction of the Board, any
committee established under subsection (1) may regulate its own
procedure.

9. (1) If a person is present at a meeting of the Board or any committee
of the Board at which any matter is the subject of consideration and in
which matter such person or his spouse is directly or indirectly
interested in a private capacity, he shall, as soon as practicable after the
commencement of the meeting, disclose such interest and shall not,
unless the Board otherwise directs, take part in any consideration or
discussion of, or vote on any question touching upon, such matter. Disclosure of
interest

(2) A disclosure of interest made under this section shall be recorded in
the minutes of the meeting at which it is made.

10. No action or other proceedings shall lie or be instituted against any Immunity of

person for or in respect of any act or thing done or omitted to be done in
good faith in the exercise or purported exercise of his functions under
this Act. members

11. (1) The Board shall regulate its own procedure and the validity of
any proceedings, act or decision of the Board shall not be affected by
any vacancy in the membership of the Board or by any defect in the
appointment of any member or by reason that any person not entitled so
to do took part in the proceedings. Procedure and
meetings

(2) For the transaction of its business, the Board shall meet at such
places and at such times, being not less than once every three months, as
the Chairman may determine.

(3) At any meeting of the Board, one-half of the members holding
office at that time shall form a quorum.

(4) There shall preside at every meeting of the Board the Chairman or in
the absence of the Chairman such member as the members present may
elect for the purpose of that meeting.

(5) A decision of the Board on any question shall be by a majority of the
members present and voting at a meeting of the Board and, in the event
of an equality of votes, the person presiding at the meeting shall have a
casting vote in addition to his deliberative vote.

(6) Notwithstanding the provisions of subsection (5), a decision may be
made by the Board on any urgent matter by the circulation of the
relevant papers among the members, and by the expression in writing of
the views of the majority thereof:

Provided that any member shall be entitled to require that any decision
shall be deferred until the matter is considered at a meeting of the Board.

(7) The Board may invite any person, whose presence is in its opinion
desirable, to attend and to participate in the deliberations of a meeting of
the Board but such person shall have no vote.

(8) The Board shall cause minutes to be kept of the proceedings of
every meeting of the Board and of every meeting of any committee
established by the Board.

12. (1) The seal of the Board shall be such device as may be determined
by the Board and shall be kept by the Secretary. Seal of Board

(2) The Board may use a wafer or rubber stamp in lieu of the seal.

(3) The affixing of the seal of the Board shall be authenticated by the
Chairman and the Secretary, or by the Chairman and one other person
authorised in that behalf by a resolution of the Board.

(4) Any contract or instrument which, if entered into or executed by a
person not being a body corporate would not be required to be under
seal, may be entered into or executed without seal on behalf of the Board
by the Secretary or any other person authorised in that behalf by a
resolution of the Board.

(5) Any document purporting to be a document under the seal of the
Board or issued on behalf of the Board shall be received in evidence and
shall be deemed to be so executed or issued, as the case may be, without
further proof, unless the contrary is proved.

13. (1) No person shall, without the consent in writing given by or on
behalf of the Board, publish or disclose to any person, otherwise than in
the course of his duties, the contents of any document, communication
or information whatsoever, which relates to, and which has come to his
knowledge in the course of, his duties under this Act. Prohibition of
publication or
disclosure of
information to
unauthorised
persons

(2) Any person who knowingly contravenes the provisions of
subsection (1) shall be guilty of an offence and shall be liable upon
conviction to a fine not exceeding twelve thousand five hundred penalty
units or to imprisonment for a term not exceeding three years, or to both.

(3) If any person having information which to his knowledge has been
published or disclosed in contravention of the provisions of subsection

(1) unlawfully publishes or communicates any such information to any
other person, he shall be guilty of an offence and shall be liable, upon
conviction, to a fine not exceeding twelve thousand five hundred
penalty units or to imprisonment for a term not exceeding three years, or
to both.
(As amended by Act No. 13 of 1994)

PART III
ADMINISTRATION

14. (1) The President shall appoint, on such terms and conditions as he
thinks fit, a Director who shall be the chief executive officer of the
Board. Appointment of
Director

(2) The office of Director shall be an office in the public service.

(3) The Director shall attend all meetings of the Board, and shall be
entitled to address such meetings, but shall not vote on any matter under
discussion:

Provided that the Board may, for good cause, request the Director to
withdraw from any meeting of the Board.

15. (1) There shall be a Secretary to the Board who shall be appointed
by the Board on such terms and conditions as the Board may determine. Secretary and
other staff

(2) The Secretary shall be responsible for the administration of the
day-to-day affairs of the Board under the general supervision of the
Director.

(3) The Board may appoint, on such terms and conditions as it may
determine, such other staff as it may consider necessary for the
performance of its functions under this Act.

16. (1) In order to ensure due compliance with the provisions of this Inspectorate

Act, the Board shall establish under the general supervision of the
Director an inspectorate unit which shall monitor, in accordance with
the rules or regulations made under this Act, all contracts placed by the
Board, any committee established by the Board, any Government
Department or any parastatal body. unit

(2) The Board may appoint such inspectors and other staff to the
inspectorate unit as may be necessary for the performance of its
functions under this Act.

17. In the performance of his duties under this Act, any inspector or
member of staff of the inspectorate unit shall have-
(a) access to all books, records, returns, reports and other documents
relating to the work of any Government Department or parastatal body
which is under inspection;
(b) access at all reasonable times to the premises of any Government
Department or parastatal body which is under inspection;
(c) power to call for any relevant information from persons
responsible for the financial administration of any Government
Department or parastatal body which is under inspection: Powers of
inspectors, etc.

Provided that no inspector or member of staff of the inspectorate unit
shall have access to any books, records, returns, reports or other
documents, or to any premises if-
(a) such books, records, returns, reports, other documents or
premises belong to any component of the Defence Force or the Zambia
Security Intelligence Service; or
(b) such access is likely to-

(i) prejudice the security, defence or international relations of the
Republic or the investigation or detection of offences; or

(ii) involve the disclosure of any matters or deliberations of a secret
or confidential nature of the Cabinet or of any sub-committee of the
Cabinet.

18. (1) Notwithstanding anything to the contrary contained in any
written law, where any expenditure is to be incurred on any procurement
of goods or services, it shall be the duty- Failure to
comply with
prescribed

procedures

(a) in respect of a head of expenditure, of the controlling officer
designated as such for that head of expenditure under section four of the
Finance (Control and Management) Act; or Cap. 347

(b) in respect of a parastatal body, of the chief executive officer of
that parastatal body;
to ensure that such procurement of goods or services is in accordance
with the procedures prescribed by or under this Act.

(2) Subject to the provisions of subsection (3), every controlling officer
and chief executive officer shall be accountable for failing to comply
with the provisions of subsection (1).

(3) Where a controlling officer or chief executive officer satisfies the
Board that he had, in accordance with the provisions of any rules or
regulations made under this Act, delegated his functions under
subsection (1) to any other person or committee, then such other person
or every member of such committee shall also be accountable for any
failure to comply with the provisions of subsection (1).

(4) Where a controlling officer or chief executive officer satisfies the
Board that he is, under the provisions of any written law, subject to the
control or direction of any other person, board, committee or other body,
and that it was such control or direction of such other person, board,
committee or other body which caused the failure to comply with the
provisions of subsection (1), then such other person or every member of
such board, committee or other body shall also be accountable for such
failure to comply with the provisions of subsection (1).

(5) In respect of any failure to comply with the provisions of subsection
(1), the Board may take such appropriate corrective or punitive
measures as it may consider necessary.

19. (1) Where the Board is satisfied that an employee of the
Government or parastatal body has caused financial loss by his
recklessness, misconduct or wilful default to follow procedures laid
down in this Act or in any regulations made thereunder, the Board shall
afford such person a reasonable opportunity to furnish a written Surcharge and
appeals

explanation as to why he should not be surcharged with the amount of
such loss.

(2) After considering any explanation furnished under subsection (1),
the Board may surcharge such person with the amount of such loss or
any part thereof, and certify in writing to that effect.

(3) Any person aggrieved by a decision of the Board made under
subsection (2) may, where the amount of surcharge is in excess of
K1,000, appeal against such decision to the High Court or to a
subordinate court of competent jurisdiction.

(4) The High Court or subordinate court, as the case may be, may, upon
determining any appeal lodged under subsection (3)-

(a) confirm, vary or quash the decision of the Board;

(b) remit the case to the Board with such directions as it thinks fit for
giving effect to the decision on appeal;

(c) make such other order as to costs or otherwise as may seem just.

(5) The Chief Justice may, by statutory instrument, make rules
providing for the period within which appeals under this section may be
brought and otherwise regulating such appeals.

20. (1) The amount of every surcharge certified in accordance with
subsection (4) shall become due and recoverable from the emoluments
or other financial benefits of such employee within thirty days after a
copy of the certificate has been furnished to him or, if an appeal with
respect to the surcharge has been lodged, within thirty days after the
appeal is finally disposed of or abandoned or fails by non-prosecution
thereof, as the case may be. Payment and
recovery of
surcharge

(2) The Board may authorise the payment of a surcharge in instalments:

Provided that if default is made in the payment of any instalment, the
balance of the surcharge outstanding shall thereupon become payable in

full.

(3) The amount of any surcharge which is not paid shall be recoverable
by the Board as a civil debt.

(4) Unless the contrary is proved, in any proceedings for the recovery of
the amount of a surcharge, a certificate issued by the Board shall be
conclusive evidence of the facts certified therein, and a certificate
signed by the Secretary that the sum certified to be due has not been paid
to him shall be conclusive evidence of non-payment.

21. Any person who assaults, resists or obstructs any inspector or
member of staff of the inspectorate unit in the exercise of his powers of
access or power to call for relevant information under this Act shall be
guilty of an offence and shall be liable, upon conviction, to a fine not
exceeding five thousand penalty units or to imprisonment for a term not
exceeding two years, or to both.
(As amended by Act No. 13 of 1994) Resisting or
obstructing
inspector, etc.

PART IV
FINANCIAL AND OTHER PROVISIONS

22. (1) The funds of the Board shall consist of such moneys as may- Funds of Board

(a) be appropriated by Parliament for the purposes of the Board;

(b) vest in or accrue to the Board.

(2) The Board may-

(a) subject to the approval of the Minister, raise by way of loans or
otherwise, such moneys as it may require for the performance of its
functions;

(b) charge and collect fees on tender and other related documents;

(c) levy fees and other charges for services provided by the Board.

(3) There shall be paid from the funds of the Board-

(a) the salaries, allowances and loans of the staff of the Board;

(b) such reasonable travelling, transport and subsistence allowance
for members or members of any committee of the Board when engaged
on the business of the Board, at such rates as the Board may determine;
and

(c) any other expenses incurred by the Board in the performance of
its functions.

(4) The Board may invest in such manner as it thinks fit such of its
funds as it does not immediately require for the performance of its
functions.

23. The financial year of the Board shall be the period of twelve
months ending on the 31st December in each year. Financial year

24. (1) The Board shall keep proper books of accounts and other
records relating to its accounts. Books of
accounts

(2) Such books of accounts and other records shall be open for
inspection by the Minister or any person duly authorised by him in that
behalf.

25. (1) The accounts of the Board shall be audited annually and a
detailed report thereon submitted to the Minister and to the Board. Audit of
accounts

(2) For the performance of his duties under subsection (1), the auditor to
the Board shall have access at all reasonable times to all books of
accounts, records, returns, reports and other documents relating to the
Board’s accounts.

(3) In respect of each financial year, the auditor to the Board shall

certify whether or not-

(a) he has received all the explanations and other information
necessary for the performance of his duties;

(b) the accounts of the Board have been properly kept; and

(c) according to the explanations and other information received,
and the books of accounts, records, returns, reports and other documents
relating to the Board’s accounts produced to him, the accounts of the
Board reflect a true and accurate financial position of the Board or of its
profit and loss position, for the period covered by his certification.

26. (1) As soon as is practicable, but not later than six months after the
expiry of each financial year, the Board shall submit to the Minister a
report containing a balance sheet showing the assets and liabilities of the
Board as at the last day of the financial year to which the report relates,
accompanied by an income and expenditure account for that financial
year, together with all supporting statements and returns duly certified
by the auditor to the Board. Annual report

(2) The Minister may at any time request the Board in writing to submit
to him such other reports, returns or statements, duly certified by the
auditor to the Board as he may consider necessary, and the Board shall
comply with such request.

(3) The Minister shall, not later than seven days after the first sitting of
the National Assembly next after the receipt of the report referred to in
subsection (1) lay it before the National Assembly.

27. (1) The Minister may, by statutory instrument, make regulations for
the better carrying out of the purposes of this Act. Regulations

(2) Without prejudice to the generality of subsection (1), the Minister
may, on the recommendation of the Board, make rules or regulations
prescribing any matter which the Board is authorised by this Act to
formulate, regulate or prescribe.

(3) Rules or regulations made under this Act may provide in respect of

any contravention thereof that the offender shall be liable to a fine not
exceeding twenty five thousand penalty units or to a term of
imprisonment not exceeding ten years, or to both.
(As amended by Act No. 13 of 1994)

SUBSIDIARY LEGISLATION

ZAMBIA NATIONAL TENDER BOARD
THE TENDER REGULATIONS [ARRANGEMENT OF
REGULATION]

PART I
PRELIMINARY

Regulation
1. Title
2. Interpretation

PART II
CENTRAL TENDER
COMMITTEE

3. Establishment of Central Tender Committee
4. Composition of Central Tender Committee
5. Functions of Central Tender Committee
6. Proceedings of Central Tender Committee

PART III
PROVINCIAL TENDER
COMMITTEES

7. Establishment of provincial tender committees
8. Composition of provincial tender committees

9. Functions of provincial tender committees
10. Proceedings of provincial tender committees

PART IV
PARASTATAL TENDER
COMMITTEES

11. Establishment of parastatal tender committees
12. Small parastatal bodies
13. Composition of parastatal tender committees
14. Functions of parastatal tender committees
15. Proceedings of parastatal tender committees

PART V
MINISTRY TENDER
COMMITTEES

Regulation
16. Establishment of ministry tender committees
17. Composition of ministry tender committees
18. Functions of ministry tender committees
19. Proceedings of ministry tender committees
20. Procedure where tender committee not established in terms of
part III and V
21. Tender proceedings not to apply to controlled goods, services
purchased at official price, etc.
22. Board to settle disputes
23. Delegation to other persons

PART VI

FINANCIAL LIMITS FOR
GOVERNMENT PURCHASES

24. Financial limits for Government purchases
25. Perishable or fragile goods
26. Special equipment
27. Purchase from Government Stores Department
28. Running contracts at fixed prices

PART VII
FINANCIAL LIMITS OF
PARASTATAL PURCHASES

29. Application of procurement limits in parastatal bodies
30. Perishable or fragile goods

PART VIII
GENERAL PROVISIONS FOR
GOVERNMENT AND
PARASTATAL BODIES

31. Formal tenders
32. Documents for formal tenders
33. Numbering of tenders
34. Date of submission of tenders
35. Reduced time limit
36. Extended time limit
37. Late tenders
Regulation
38. Withdrawal of tenders

39. Procedure, etc., on opening of tenders
40. Tender documents
41. Tenders evaluation
42. Special formal tenders
43. Informal tenders
44. Tender samples
45. Proprietary articles as samples
46. Tender committee sample materials
47. Product specifications
48. Financing of works contract
49. Correspondence upon errors
50. Notification to successful tenderer
51. Non-anticipation of tenders
52. Amendment, alteration or substitution of samples, etc.
53. Price adjustment formulae
54. Invoices, etc.
55. Signing of contract
56. Letter of intent etc.
57. Tenders relating to public security
58. Disposing of contract documents
59. Variation in quantities
60. Inspection of goods delivered
61. General conditions of contracts
62. Offences and penalties relating to tender documents
63. Tenders to be invited and approved only by board
64. Spent

PART IX
OFFENCES AND PENALTIES

FIRST SCHEDULE-Tender Forms

SECOND SCHEDULE-Withdrawal of Tenders

THIRD SCHEDULE-Non-Refundable Tender Document Charges

FOURTH SCHEDULE
PART I-Tender Security Form
PART II-Performance Security Form

SECTION 27-THE TENDER REGULATIONS
Regulations by the Minister
Statutory
Instrument
151 of 1995
132 of 1996

PART I
PRELIMINARY

1. These Regulations may be cited as the Tender Regulations. Title

2. In these Regulations, unless the context otherwise requires- Interpretation

“Board Secretary” means the Secretary to the Board appointed under
section fifteen of the Act;

“Central Tender Committee” means the Central Tender Committee
established by regulation 3;

“Controlled price” means a price of a commodity or service which is
prescribed under the Control of Goods Act; Cap. 421

“Controlling Officer” shall have the meaning assigned to it under
section two of the Finance (Control and Management) Act; Cap. 347

“formal tender” means a tender which is advertised in the Gazette;

“informal tender” means a tender which is not advertised in the Gazette,
but for which competitive quotations have been obtained;

“non-responsive offer” means an offer whose contents do not conform
with what is required in a tender document;

“parastatal body” means any company, management board, association
or statutory body in which the Government has a majority or controlling
interest and includes a city, a municipality or a district council
established under the Local Government Act; Cap. 281

“purchasing officer” means any officer whose responsibility it is to sign
an order for the purchase of any goods or the supply of any service;

“official price” means the price of a commodity or service approved by
the Central Tender Committee in a running contract;

“running contract” means a contract extending over a period of time for
an estimated or variable quantity of goods or services;

“supplies officer” means any person appointed as such by the Board
under section fifteen of the Act;

“tender committee” means a tender committee established by regulation
3, 7, 11 or 16;

“ZCCM” means the Zambia Consolidated Copper Mines Limited, a
company registered under the Companies Act; Cap. 388

PART II
CENTRAL TENDER
COMMITTEE

3. There is hereby established the Central Tender Committee, in
Lusaka, which shall perform such functions of the Board as are set out in
these Regulations. Establishment
of Central
Tender
Committee

4. (1) The Central Tender Committee shall consist of the following
members: Composition of
Central Tender
Committee

(a) the Permanent Secretary responsible for finance, who shall be
the Chairman;

(b) the Deputy Secretary to the Cabinet;

(c) the Permanent Secretary responsible for works and supply;

(d) the Permanent Secretary responsible for development planning;

(e) the Director, Zambia National Tender Board;

(f) the Managing Director, Zambia State Insurance Corporation
Limited;

(g) the Managing Director, Zambia Electricity Supply Corporation
Limited;

(h) the General Manager, Bank of Zambia;

(i) the Company Secretary, ZCCM;

(j) the Secretary, Zambia National Tender Board.

(2) There shall be a Vice-Chairman who shall be elected by the Central
Tender Committee.

5. (1) The functions of the Central Tender Committee shall be to
examine and authorise all procurement of goods, works and services for
both Government and parastatal bodies whose value is above the limits
authorised in these regulations for tender committees established by
regulation 7, 11 or 16. Functions of
Central Tender
Committee

(2) Without prejudice to the generality of sub-regulation (1) the
functions of the Central Tender Committee shall be to-

(a) invite and award running contracts on common user goods or
services;

(b) examine and authorise the variation of tender procedures for the
tender committees established under these Regulations;

(c) undertake and regulate registration of suppliers of goods, works
and services.

6. (1) Except as otherwise provided for in these Regulations, the
Central Tender Committee shall determine its own procedure. Proceedings of
Central Tender
Committee

(2) The Central Tender Committee shall meet at such times and such
places being not less than once in a month as the Chairman may
determine.

(3) The Central Tender Committee shall cause minutes to be kept of the
proceedings of every meeting and such minutes shall be transmitted to
the Board as soon as practicable after the meeting at which they are
confirmed.

(4) The Central Tender Committee may establish sub-committees and
may appoint as members of such sub-committees, persons who are, or
are not, members of the Central Tender Committee for any specific
matter.

PART III
PROVINCIAL TENDER
COMMITTEES

7. There is hereby established, in each province, a provincial tender
committee for the procurement of goods, works and services in respect
of provincial heads of expenditure falling under controlling officers Establishment
of provincial
tender

designated as such in terms of section four of the Finance (Control and
Management) Act. committees
Cap. 347

8. (1) A provincial tender committee shall consist of the following
members: Composition of
provincial
tender
committees

(a) the Permanent Secretary for the Province, who shall be
Chairman;

(b) The Deputy Permanent Secretary for the Province, who shall be
Vice-Chairman;

(c) the head of the Provincial Accounting Unit;

(d) the Provincial Agricultural Officer;

(e) the Provincial Commissioner of Works;

(f) the Provincial Education Officer;

(g) the Provincial Marketing and Co-operative Officer;

(h) the Provincial Medical Officer; and

(i) two other members, other than civil servants, who are ordinarily
resident in the province and who shall be appointed by the Board for a
period not exceeding two years.

(2) The Supplies Officer, shall be appointed Secretary of the tender
committee.

9. (1) The functions of a provincial tender committee shall be to invite
and accept tenders relating to the procurement of goods, works and
services for the Government within the limits provided for in Part VI. Functions of
provincial
tender
committees

(2) Without prejudice to the generality of sub-regulation (1), a

provincial tender committee shall within limits provided for in Part VI
of these Regulations invite and award running contracts on foodstuffs to
be supplied to Government institutions whose expenditure heads fall
under the control of the Provincial Permanent Secretaries.

(3) A provincial tender committee shall perform its functions in
accordance with the provisions of Part VI and VIII.

10. (1) Except as provided for in these Regulations, a provincial tender
committee shall determine its own procedure. Proceedings of
provincial
tender
committees

(2) A provincial tender committee-

(a) shall meet at such times and such places being not less than once
in a month as the Chairman may determine;

(b) shall cause minutes to be kept of the proceedings of every
meeting and such minutes shall be transmitted to the Board as soon as
practicable after the meeting at which they are confirmed; and

(c) may establish sub-committees and appoint as members, of such
sub-committees persons who are, or are not, members of the provincial
tender committee for the purpose of advising the committee on any
specific matter.

PART IV
PARASTATAL TENDER
COMMITTEES

11. There is hereby established in the governing body of every
parastatal body a parastatal tender committee. Establishment
of parastatal
tender
committees

12. Notwithstanding regulation 11, where the physical structure of a
particular parastatal body is too small to be able to constitute a tender
committee in accordance with these Regulations, the Board shall
prescribe the procedures to be followed by such a parastatal body. Small parastatal
bodies

13. (1) A city or municipal council tender committee shall consist of
the following members; Composition of
parastatal
tender
committees

(a) The Town Clerk, who shall be Chairman;

(b) the Director of Administration, who shall be Vice-Chairman;

(c) the Director of Finance;

(d) the Director of Engineering;

(e) the Director of Housing and Social Services;

(f) the Director of Legal Services;

(g) the Director of Public Health; and

(h) two other members, other than members of the council, who are
ordinarily, resident in the district, and who shall be appointed by the
Board for a period of two years.

(2) The head of the section responsible for purchasing and supply in the
council shall be appointed by the Secretary of the tender committee.

(3) A district council tender committee shall consist of the following
members:

(a) the District Executive Secretary, who shall be the Chairman;

(b) the Deputy District Executive Secretary, who shall be the
Vice-Chairman;

(c) the Treasurer;

(d) the Director of Works;

(e) the District Education Officer;

(f) the District Agricultural Officer,

(g) the head of the District Co-operative Union;

(h) one representative of the Security Forces; and

(i) the Administrative Officer, who shall be the Secretary.

(4) The tender committees for parastatal bodies other than councils
established under the Local Government Act shall consist of eight
members appointed by the Board on the recommendations of the
appropriate chief executives, three of whom shall be from outside the
parastatal body. Cap. 281

(5) The chief executive of a parastatal body shall appoint the chairman
of a tender committee established under sub-regulation (3).

(6) The vice-chairman of a tender committee established under
sub-regulation (3) shall be appointed by the members of the tender
committee.

14. (1) The functions of a parastatal tender committee shall be to invite
tenders and authorise procurement of goods, works and services within
the limits specified in Part VIII: Functions of
parastatal
tender
committees

Provided that operating expenditure on goods and services which are not
of a capital nature shall not be subject to the limits specified in Part VIII.

(2) Without prejudice to the generality of sub-regulation (1), a

parastatal tender committee shall-

(a) invite and award running contracts; and

(b) examine and approve the variation of tender procedures.

(3) A parastatal tender committee shall perform its functions in
accordance with the provisions of Part VIII and IX.

15. (1) Except as provided for in these Regulations a parastatal tender
committee shall determine its own procedure. Proceedings of
parastatal
tender
committees

(2) A parastatal tender committee shall meet at such times and places
being not less than once in a month as the Chairman may determine.

(3) A parastatal tender committee may establish sub-committees which
shall consist of persons who are, or are not, members of the committee
for the purpose of advising the committee on any specific matter.

(4) A parastatal tender committee shall cause minutes to be kept of the
proceedings of every meeting and such minutes shall be transmitted to
the Board as soon as practicable after the meeting at which they are
confirmed.

PART V
MINISTRY TENDER
COMMITTEES

16. There is hereby established in each ministry of Government a
tender committee for the procurement of goods and services. Establishment
of ministry
tender
committees

17. A ministry tender committee shall consist of-
(a) the controlling officer, who shall be the Chairman;
(b) an officer of at least deputy permanent secretary rank, who shall
be Vice-Chairman;
(c) the Head of the accounting unit;
(d) the Head of the procurement unit;
(e) the Heads of Departments; and
(f) a senior supplies officer, who shall be the Secretary. Composition of
ministry tender
committees

18. (1) The functions of a ministry tender committee shall be to invite
and accept tenders relating to the procurement of goods and services for
its ministry within the limits provided for in Part VI. Functions of
ministry tender
committees

(2) A ministry tender committee shall perform its functions in
accordance with Part VI and Part IX.

19. (1) Except as otherwise provided for in these Regulations, a
ministry tender committee shall determine its own procedure. Proceedings of
ministry tender
committee

(2) A ministry tender committee shall meet at such times and such
places as the Chairman may determine, but not less than once a month.

(3) A ministry tender committee shall cause minutes to be kept of the
proceedings of every meeting and the minutes shall be transmitted to the
Board as soon as practicable after the meeting at which they are
confirmed.

20. The Board shall prescribe the procedure to be followed by a
Government ministry or department where a tender committee has not
been established in terms of Part III and this Part. Procedure
where tender
committee not
established in
terms of Parts
III and V

21. (1) The tender procedures specified in these Regulations shall not
apply to- Tender
procedures not
to apply to
controlled
goods, services
purchased at
official price,
etc.

(a) goods and services which are to be procured at the official or
controlled price from a Government or parastatal body or goods which
are controlled in terms of price unless-
(i) the goods and services are to be obtained from outside Zambia;
and
(ii) the goods are capital goods; and

(b) goods and services which are to be obtained in accordance with
an international agreement.

(2) Where the goods or services are procured in accordance with
paragraph (a) of sub-regulation (1) the purchasing officer shall, at the
time of ordering the goods or services, inform the relevant tender
committee as to the-

(a) description, unit, quantity and value of the goods ordered; or

(b) type of services to be obtained and the cost thereof.

22. Where a dispute between a tender committee and a contractor
arises and the two parties fail to resolve the dispute amicably, either of
the parties may refer the dispute to the Board for a decision. Board to settle
disputes

23. The Board shall delegate to a tender committee such of its
functions relating to the procurement of goods and services as provided
in these Regulations. Delegation to
other persons

PART VI

FINANCIAL LIMITS FOR
GOVERNMENT PURCHASES

24. (1) Where the estimated value of goods or services for Government
purchases- Financial limits
for Government
purchases

(a) does not exceed fifty thousand kwacha informal tenders shall be
invited and authorised for acceptance by a senior officer generally or
specially designated for the purpose by the Controlling Officer;

(b) exceeds fifty thousand kwacha but does not exceed two hundred
thousand kwacha, informal tenders shall be invited and authorised for
acceptance by the Head of Department with the approval of the
Controlling Officer;

(c) exceeds two hundred thousand kwacha but does not exceed five
million kwacha, informal tenders shall be invited and authorised for
acceptance by the Controlling Officer or the Permanent Secretary for a
Province;

(d) exceeds five million kwacha, but does not exceed twenty-five
million kwacha, formal tenders shall be invited and authorised for
acceptance by a ministry or provincial tender committee; or

(e) exceeds twenty-five million kwacha, formal tenders shall be
invited and authorised for acceptance by the Central Tender Board.

(2) The financial limits specified in sub-paragraph (1) shall be
administered under the following conditions:

(a) the estimated value shall include the total value of all items
which can reasonably be obtained at any one time in one requisition or
in one contract;

(b) the supply or service shall not be sub divided or deliberately
underestimated in order to bring the total value within the limits set in
sub-paragraph (1); and

(c) procurement of the same type of goods or services within the
limits given to controlling officers and their subordinate staff shall not
be undertaken more than once in every three months.
(As amended by S.I. No. 132 of 1996)

25. Contracts for the supply of articles of a fragile or perishable nature
shall, so far as may be practicable, be awarded to a supplier nearest to
the point where the supplies are required. Perishable or
fragile goods

26. Equipment including vehicles, machinery, tools and spares for
Government, shall, as far as it is practicable, be obtained by the ministry
responsible for works and supply. Special
equipment

27. (1) A purchasing officer shall purchase from the Government
Stores any items included in the approved current Stores Catalogue
unless such items are not available. Purchase from
Government
Stores
Department

(2) Where items are not available at Government Stores, a certificate of
non-availability from Government Stores shall be obtained.

28. (1) A purchasing officer may place orders directly with suppliers at
agreed rates under such contracts as may have been arranged either by
the Central Tender Committee or a provincial tender committee. Running
contracts at
fixed prices

(2) Controlling Officers, purchasing officers and provincial Permanent
Secretaries shall ensure that the fullest advantage is taken of running
contracts.

PART VII
FINANCIAL LIMITS FOR
PURCHASES BY PARASTATAL
BODIES

29. (1) Where the estimated value of goods, works and services for a
city or municipal council- Application of
procurement
limits in
parastatal
bodies

(a) does not exceed fifty thousand kwacha, informal tenders shall be
invited and authorised for acceptance by a senior officer generally or
specially designated for that purpose by the Town Clerk;

(b) exceeds fifty thousand kwacha, but does not exceed two hundred
thousand kwacha, informal tenders shall be invited and authorised for
acceptance by the relevant Head of Department;

(c) exceeds two hundred thousand kwacha, but does not exceed five
million kwacha, informal tenders shall be invited and authorised for
acceptance by a tender committee;

(d) exceeds five million kwacha, but does not exceed twenty-five
million kwacha, formal tenders shall be invited and authorised for
acceptance by a tender committee; or

(e) exceeds twenty-five million kwacha, formal tenders shall be
invited and authorised for acceptance by the Central Tender Committee.

(2) Where the estimated value of goods, works or services for a district
council-

(a) does not exceed fifty thousand kwacha, informal tenders shall be
invited and authorised for acceptance by a senior officer generally or
specially designated for that purpose by the Secretary;

(b) exceeds fifty thousand kwacha, but does not exceed two hundred
thousand kwacha, informal tenders shall be invited and authorised for
acceptance by the Secretary;

(c) exceeds two hundred thousand kwacha, but does not exceed one
million kwacha, informal tenders shall be invited and authorised for
acceptance by a tender committee;

(d) exceeds one million kwacha, but does not exceed ten million
kwacha, formal tenders shall be invited and authorised for acceptance
by a tender committee;

(e) exceeds ten million kwacha, formal tenders shall be invited and
authorised for acceptance by the Central Tender Committee.

(3) Where the estimated value of goods and services for parastatal
bodies other than those provided for under sub-paragraphs (1), (2) and
(4)-

(a) does not exceed fifty thousand kwacha, informal tenders shall be
invited and authorised for acceptance by a senior officer generally or
specially designated for that purpose by the Chief Executive;

(b) exceeds fifty thousand kwacha, but does not exceed two hundred
thousand kwacha, informal tenders shall be invited and authorised for
acceptance by the relevant Head of Department;

(c) exceeds two hundred thousand kwacha, but does not exceed
twenty-five million kwacha, informal tenders shall be invited and
authorised for acceptance by a tender committee;

(d) exceeds twenty-five million kwacha, formal tenders shall be
invited and authorised for acceptance by the Central Tender Committee.

(4) Where in ZCCM-

(a) operating expenditure which is not of a capital nature, and the
estimated value of goods or services-
i(i) does not exceed twenty-five million kwacha, tenders shall be
invited and authorised for acceptance by any senior officer deisgnated
for the purpose by the Chief Executive;
(ii) exceeds twenty-five million kwacha, tenders will be invited and
authorised for acceptance by the ZCCM tender committee;

(b) capital expenditure involves Government funding or guarantees,
and the estimated value for goods, works and services-
i(i) does not exceed twenty-five million kwacha, tenders shall be
invited and authorised for acceptance by the ZCCM tender committee;

(ii) exceeds twenty-five million kwacha, formal tenders shall be
invited and authorised for acceptance by the Central Tender Committee.

30. Contracts for the supply of articles of a fragile or perishable nature
shall, so far as may be practicable, be awarded at the centre where the
supplies are required. Perishable or
fragile goods

PART VIII
GENERAL PROVISIONS FOR
GOVERNMENT AND
PARASTATAL BODIES

31. When formal tenders are to be invited a tender committee shall
ensure that-
(a) there is a concise description of the goods or services required;
(b) an estimate of costs and completion time for building and
construction works has been obtained;
(c) the point of delivery of goods or the place where work is to be
performed is specified;
(d) the name and address of the office from which tender
documents, detailed specifications or further particulars may be
obtained has been specified;
(e) the closing date for receipt of tenders by the tender committee
has been stated;
(f) the names of newspapers, trade papers, periodicals or other
media in which it is suggested that tenders be further advertised has
been specified; and
(g) written assurance has been obtained by the Controlling Officer
or the Chief Executive, as the case may be, that funds have been voted
for such project, works or services and such funds as are required to
make stage payments shall be made available on time. Formal tenders

32. Each application to a tender committee for the advertisement of a
tender shall be accompanied by copies of the tender documents, Documents for
formal tenders

specifications and other relevant particulars applicable to the type of
tender.

33. (1) Each application to a tender committee for the advertisement of
a tender shall be given a separate reference number by the tender
committee Numbering of
tenders

(2) The reference number referred to under sub-regulation (1) shall
identify the tender, and the tenderer shall quote it on all tender
documents and print it on the envelop or other document in which
formal tenders are submitted.

34. (1) An offer to tender shall be in the form set out in the First
Schedule. Date of
submission of
tenders

(2) An offer to tender shall be submitted within a period of-

(a) not less than four weeks after the date of publication of the
invitation to tender, or

(b) not less than eight weeks after the date of publication of the
invitation to tender in the case of tenders invited from outside Zambia.

35. Where a Controlling Officer or Chief Executive intends to reduce
the time allowed for tender under paragraph 34 he shall inform the
appropriate tender committee and give full reasons, in writing, for the
proposed reduction. Reduced time
limit

36. (1) If, after the invitation to tender has been published, a
Controlling Officer or Chief Executive wishes to have the published
time limit extended, he shall inform the appropriate tender committee of
his proposed date and give full reasons, in writing, for the extension. Extended time
limit

(2) The extension, if granted, shall be published through the same
media that published the original invitation to tender.

37. A tender received after the closing time shall be stamped, recorded Late tenders

in a register and returned to the tenderer concerned without being
considered.

38. (1) A notification of a withdrawal of a tender shall be in the form set
out in the Second Schedule. Withdrawal of
tenders

(2) A withdrawal of a tender shall only be valid if received before the
closing time of the tender.

(3) A withdrawal of a tender received after the closing date shall be
stamped, recorded in a register and returned to the tenderer concerned.

(4) The tender that was submitted and letter of withdrawal shall be
announced at the public opening, after which, the withdrawn tender
shall be declared non-responsive and recorded as such.

39. (1) All tenders shall be opened- Procedure etc.,
on opening of
tenders

(a) by the Secretary of the tender committee or any person
authorised by the tender committee in that behalf;

(b) in public, at the offices of the tender committee; and

(c) on a day, other than a public holiday, or the day following a
public holiday.

(2) The tender committee shall scrutinise tenders for completeness and
the following tenders shall be considered non-responsive:

(a) a tender submitted after the closing date;

(b) a tender sent by telex, telephone or telegraph;

(c) a tender not accompanied by tender security, where required;

(d) a tender with insufficient information concerning specifications,
prices and delivery;

(e) unsolicited offers; or

(f) a tender upon which the tenderer has made revisions on his own
after the tender opening.

(3) Any person may attend to witness the opening of tenders.

(4) The following procedure shall apply when tenders are being opened:

(a) each priced page shall be embossed;

(b) the name of the tenderer and the tender number shall be
announced; and

(c) the total tender price, quantity offered and delivery period shall
be read out, but where unit prices are quoted these need not be
announced.

(5) A record of persons attending each tender opening and those who
have tendered, shall be maintained.

(6) Envelopes in which tenders and tender modifications are received
shall be retained in a temporary file until all the awards have been made.

40. Tender documents shall state the following:
(a) that the lowest or highest tender shall not necessarily be
accepted;
(b) that no tender shall be considered unless it is delivered to the
tender committee by the closing date and time published and that this
shall apply notwithstanding that the tender may be delayed in the post;
(c) that tenders shall not be considered unless they comply fully
with the advertised specifications and other requirements;
(d) that tenderers shall be at liberty to tender for less goods or
services than required only when the notice of tender so provides; Tender
documents

(e) that each tender shall be submitted in a separate sealed envelope
or other container to the tender committee and that the tenderer shall
print the number of the advertised tender notice and a brief description
of the goods, works or services being tendered for on the envelope or
container;
(f) that tenders for goods shall state-

(i) the country of manufacture and the name of the manufacturer of
the goods;

(ii) for goods manufactured outside Zambia, whether the supply is
offered from stocks on which import duty and value added tax have
been charged or from stocks which will be directly imported free of duty
and value added tax; if the former is the case, the value of goods on
which import duty and value added tax have been calculated shall be
stated;

(iii) if import duty and value added tax have been paid, either on the
items offered or on the material imported for their manufacture, the
amount of duty and value added tax paid shall be stated;

(iv) for goods tendered for by tenderers within Zambia, whether
reserve stocks are held in Zambia and whether any kind of after sales
service is available;
(g) that the contractor shall be responsible for the safe arrival or
delivery of supplies; and in order to mitigate his responsibility, if the
contractor insures the supplies and any other liability under the contract,
the cost of which shall be borne by him, than the contract price shall be
deemed to be inclusive of all insurance charges;
(h) that the contractor shall bear the full financial consequences of
any material damage or personal injuries which, through his action or
his agent’s, may be suffered by himself, his agents or any third party
during the performance of the contract, either on the contractor’s
premises, purchaser’s premises or anywhere else;
(i) that priced bills of quantities contained in a separate envelope
endorsed with the tenderer’s name shall be submitted together with the
tender:
Provided that the lowest tenderer may still be asked to submit
his bills if any are not received by the due date:
(j) that for tenders that have been advertised, the rates set out in the
Third Schedule shall be used as non-refundable tender document

charges;
(k) that tender and performance securities as set out in Part I and II
of the Fourth Schedule shall be required on all procurement of goods
and services in excess of twenty five million kwacha, and that
performance securities shall be required on all building and construction
works in excess of one hundred million kwacha; the tender securities
shall be in the sum equal to two per cent of the amount of the tender and
performance securities shall be equal to ten per cent of the contact price;
(l) that tender securities shall be furnished by the date the tender is
being opened and performance securities shall be furnished within
fourteen days of the signing of the contract;
(m) that failure to furnish tender security or performance security
within the time specified shall constitute grounds for termination of the
contract for default;
(n) that tenders securities shall be returned to unsuccessful tenderers
as soon as an award has been made; tender security or performance
security submitted by a successful tenderer shall be retained until the
tenderer has executed all his contractual obligations;
(o) that the Secretary to the tender committee shall determine the
validity of the tender security or performance security;
(p) that the performance security shall be discharged by the
purchaser and returned to the contractor not later than ninety days after
the date of receipt of the goods or services by the consignee, in terms of
the contract; and
(q) that goods-

(i) manufactured in Zambia, i.e. goods whose cost of materials,
labour and services constitute not less than forty per cent of the finished
product, shall be given price preference of fifteen per cent;

(ii) imported and held in stock by merchants in Zambia shall be
given price preference of five per cent; and

(iii) produced by small business enterprises with a paid up capital or
two hundred and fifty thousand kwacha shall be given preference of
twenty per cent.

41. (1) A tender committee shall ensure- Tender
evaluation

(a) that the criteria used in evaluating tenders is fully consistent with
information given in the tender documents;

(b) that tenders are scrutinised for completeness in accordance with
sub-paragraph (2) of paragraph 39; and

(c) that the period, not exceeding twenty-one days, within which an
evaluation report is to be submitted to it for consideration, is stated.

(2) Where an offer elapses as a result of a purchasing institution failing
to meet the provisions of item (1) of sub-paragraph (1) and a
revalidation of the offer is necessitated, the costs of the revalidation
shall be met by the purchasing institution.

42. (1) Special formal tenders are those which shall not be advertised in
the Gazette or in any other publication and for which tenders shall be
invited from nominated firms in accordance with this paragraph. Special formal
tenders

(2) Except as specifically provided for in these Regulations, the
requirements applying to formal tenders shall apply to special formal
tenders.

(3) A tender committee may authorise special formal tenders or
negotiations where-

(a) there is a proclamation in force declaring a state of emergency or
threatened emergency under the Constitution;

(b) it is in the interest of public order, public safety or public
security;

(c) building works of a specialised or complex nature are involved,
or equipment to be obtained is highly specialised;

(d) the goods and services to be obtained are of a personal or
professional nature;

(e) services are to be rendered by an educational or training
institution;

(f) evidence is furnished that there are no other competing
institutions or organisations in respect of the goods or services to be
supplied or rendered and that the supplier is the sole franchise holder;

(g) the goods or services to be supplied or rendered are to be used in,
or are in the nature of, research work;

(h) equipment to be supplied is technical and is of a nature that
requires standardisation and inter-changeability of parts; or

(i) there has been no acceptable tender from all formal tenders
previously invited.

43. Informal tenders shall be invited from at least three contractors or
suppliers. Informal
tenders

44. (1) Tender samples shall be- Tender samples

(a) submitted as part of the tender, in the quantities, sizes and other
details requested in the invitation to tender;

(b) carriage paid;

(c) received within seven days after the date set for opening of
tenders if submitted separately from tender offers; and

(d) evaluated to determine compliance with all characteristics listed
in the invitation.

(2) Failure of samples to conform to all characteristics referred to in the
invitation for tenders and failure to furnish samples by the time specified
shall entitle a tender committee to reject the tender.

(3) Notwithstanding the other provisions of this regulation, the
Secretary to the tender committee shall call for samples where the
tenderer’s offer is competitive.

45. Where it is not possible to avoid using a proprietary article as a
sample, the tenderer shall make it clear that the proprietary article is
displayed only as an example of the type or quality of the goods being
tendered for and that competition shall not thereby be limited to that
article only. Proprietary
articles as
samples

46. (1) Samples made up from materials supplied by a tender
committee shall not be returned to the tenderer nor shall the tender
committee be liable for the cost of making them. Tender
committee
sample
materials

(2) All samples produced from materials belonging to the tenderer
which are not claimed by the tenderer within a period of three months
from the date of the award of tender, shall be the property of the Board
and shall be sent to the Director who shall dispose of them in such a
manner as may be directed by the Board.

47. (1) The description of the goods or services in the tender invitations
shall be clear and broad based. Product
specifications

(2) Specifications issued by the Zambia Bureau of Standards or any
other international standards being used shall be clearly stated.

(3) A brand name shall not generally be used when tenders are being
invited.

(4) It shall be essential to indicate the brand name or quality of the
article required; and words such as “or other article of comparable
quality” shall be included in the invitation to tender.

48. When the value of goods or services exceeds one hundred million
kwacha, tender documents shall include the following particulars:
(a) how (for example, in terms of working capital and capital
equipment) and to what extent the project shall be financed from the
purchasing institution’s own resources;
(b) if finance from a foreign country is necessary the extent to which
and how, the purchasing institution intends to raise funds in Zambia for
the financing of the project both before and during the course of works; Financing of
works contracts

(c) if funds for the financing of the project are to be raised by
foreign borrowing-

(i) the terms and conditions of such loans;

(ii) to what extent the purchasing institution will request repatriation
of “progress” payments to cover the loans other than the repatriation of
profits on the completion of a contract by the tenderer;
(d) the proportion of the tender sum, in the case of works contracts
expected to be paid out in foreign currency.

49. (1) Copies of all correspondence entered into with tenderers upon
the subject of errors in their tenders between the time of opening of the
tenders and the decision of a tender committee shall be sent to the
Secretary of the tender committee with recommendations and
comments thereon. Correspon-dence
upon errors

(2) Except with the express permission of the Secretary to the tender
committee no other communication shall take place with the tenderer
upon the subject of his tender during this period.

50. (1) The successful tenderer shall be advised by letter or by
telegraph of the receipt of notice of ward, which notice shall include
information relating to the invitation, description of the items, quantity,
price and contract number. Notification to
successful
tenderer

(2) An advance notice of award may be given by the Secretary of the
tender committee to the successful tenderer only where-

(a) a tender is about to expire and it is necessary to issue an award
promptly;

(b) prompt action is necessary to give the contractor an opportunity
to obtain materials;

(c) delivery or performance is urgent and cannot await formal
contract documents; or

(d) prompt action is necessary to permit a contractor to proceed with
preparation of necessary catalogue and other contract data.

(3) Advance notices shall be followed by formal contract documents as
soon as possible.

(4) Telegraphic notices shall contain all of the information as directed
by the tender committee and, in addition, a statement that written
confirmation shall follow.

(5) Oral notices may be given only when circumstances surrounding the
procurement or performance would not allow time for telegraphic
notice, and shall include all information normally included in written
notices and shall also include a statement that written confirmation shall
follow.

(6) Where an award for a formal tender is made the Secretary to the
tender committee shall publish a notice in the Government Gazette
stating who has been awarded the tender.

51. Acceptance of any tender shall not be anticipated and orders shall
not be placed until the necessary authority has been received from the
tender committee. Non-anticipation
of tenders

52. (1) Where it is necessary to amend or alter conditions or
specifications or substitute samples after the original date for the
submission of tenders, fresh tenders shall be invited so that all tenderers
may have an equal opportunity of tendering on the new basis: Amendment,
alteration or
substitution of
samples, etc.

Provided that a Controlling Officer or Chief Executive may recommend
and a tender committee may approve an increase or decrease in the
number of articles involved without calling for fresh tenders.

(2) Where it is necessary to alter the substance of a tender after it has
been accepted, a tender committee may authorise negotiations with the
contractor within the general framework of the accepted tender, but any
proposed variation of contract involving either an increase or a decrease
of the tendered sum be submitted to the tender committee for approval.

53. (1) In periods of inflation, a price adjustment formula shall apply in
order to arrive at a reasonable price. Price
adjustment
formulae

(2) Tenderers shall quote on a present-day-value using price adjustment
based on official statistics of Government agencies basis or United
Nations agencies and the formula shall accommodate both rises and falls
in price levels.

54. A Controlling Officer, a Chief Executive or a tender committee
may request a contractor to submit invoices and other related documents
for examination. Invoice etc.

55. A successful tenderer shall within fourteen days from the date of
the receipt of contract forms sign and submit the contract and where it is
a tender requirement to provide security the security shall be issued
within fourteen days of the date of signing of the contract. Signing of
contract

56. A letter of intent shall only be issued to a supplier or contractor
after all the terms and conditions have been agreed upon by the tender
committee. Letter of intent
etc.

57. Where the contract involves access to confidential information-
(a) a Government ministry or department or body institution shall
notify the contractor of the security classification of the contract and the
elements thereof and of any subsequent revisions in such security
classification;
(b) the contractor shall, prior to the commencement of the contract,
safeguard all classified elements of the contract and shall provide and
maintain a system of strict security control within his own organisation;
and
(c) authorised representatives of the armed, security or police forces
shall have the right to inspect, the procedures, methods and facilities
utilised by the contractor or the compliance by the contractor with the
security requirements under the contract. Tenders relating
to public
security

58. The original tender documents and related correspondence of the Disposing of

successful tenderer shall be retained by the Ministry or parastatal body
and a copy of the contract or agreement shall be forwarded to the Board
and the relevant tender committee. contract
documents

59. In contracts for the supply of goods which run for a considerable
period, the requirements of which cannot accurately be estimated,
provision shall be made in the contract for a variation in the quantity of
the goods to be supplied by twenty-five per centum over or under the
contract figure. Variation in
quantities

60. (1) Goods delivered shall be inspected, sampled and tested by the
receiving Ministry or parastatal body and they shall not be accepted
unless they comply with the stipulations of the contract. Inspection of
goods delivered

(2) Contracts shall contain a clause that the supplier shall be responsible
for all costs and expenses incurred due to a justified rejection of his
goods on the ground that they do not comply with the stipulation of the
contract.

61. The Board shall prescribe general conditions of contract for
Government and parastatal bodies which may, with the approval of the
Board be varied generally or with references to a particular contract. General
conditions of
contract

PART IX
GENERAL PROVISIONS

62. (1) Any person who- Offences and
penalties
relating to
tender
documents

(a) opens any envelope or other container in which a tender is
contained, other than in the due and proper execution of his duties under
these regulations;

(b) burns, tears or otherwise destroys or partially burns, tears or
destroys any tender; or

(c) erases or does any other act which falsifies, or renders
incomplete or misleading any tender;
shall be guilty of an offence and shall be liable, upon conviction, to a
fine not exceeding thirty thousand penalty units or to imprisonment for a
term not exceeding three years, or to both.

(2) For the purpose of this regulation “tender” includes documents or
things submitted together with the tender and which are relevant to the
tender and which are in the possession of the Board, a tender committee
or any other person authorised by the Board.

63. The Board may, in its discretion, direct that all tenders or any class
of tenders shall be invited or approved only by the Board. Tenders to be
invited and
approved only
by board

64. Spent.

FIRST SCHEDULE

Regulation 34)

TENDER FORM

Date:
Contract No.
To:………………………………………………………………………………..
(Name and Address of Purchaser)
Gentlemen.
Having examined the Conditions of Contract and Specifications including Addenda
Nos. ……………………………………………………………………………………………………………………… the receipt of whic
h
offer to supply and
deliver……………………………………………………………………………………………………………………………………………….
in conformity with the said Drawings, Conditions of Contract and Specifications for the sum
of …………………………………………………………………………………………………………, (b) or such other sums as ma
y
I (We) undertaken, if the tender is accepted, to commence delivery of the goods or services*
within ……………………………………………………………………………………………………… (c) and to complete deliver
y
within ………………………………………………………………………………………….. (c) days calculated from date of rec e
If the tender is accepted I (We) will obtain the guarantee of a Bank in a sum not exceeding ……………………….
performance of the Contract.
I (We) agree to abide by this tender for a period of ……………………………………………… (c) days from the date
f
me (us) and may be accepted at any time before the expiration of that period.
Until a formal contract is prepared and executed, this tender together with your written acceptance thereof in
contract between us.
I (We) understand that you are not bound to accept the lowest or any tender you may receive.
Dates this………………………………………………..day of…………………………………………………………………………19….
……………………………………………………………………..
Signature
……………………………………………………………………..
(In the Capacity of)
Duly Authorised to sign tender for and on behalf

Witness…………………………………………………………………………………………
Address ………………………………………………………………………………………..
………………………………………………………………

Signature
(a) description of goods or services
(b) total tender amount
(c) number of days
(d) percentage
* delete whichever is not applicable

SECOND SCHEDULE

(Regulation 38)

WITHDRAWAL OF TENDERS

“I ……………………………………………………………………………………………………….. of (address) being duly authori
s
of ……………………………………………………………………………………………………………………………………………………. .
(employer) ……………………………………………………………………………………………………………………………………….
scheduled for opening on ……………………………………………………………………………………………………………………
.
withdraw that tender from
consideration;…………………………………………………………………………………………………………………………………….
.
Signature ………………………………………………………………………………………
Telephone No ………………………………………………………………………………..
Date ……………………………………………………………………………………………..

THIRD SCHEDULE

(Regulation 43 (k))
1. NON-REFUNDABLE TENDER DOCUMENT CHARGES
Estimated Tender Cost Tender Document Charges
K
(a) Up to ten million Kwacha 2,000.00
(b) Each additional ten million Kwacha or part thereof 2,000.00
(c) All tenders above one billion Kwacha 200,000.00
2. COST OF POSTAGE OR HAND DELIVERY OF TENDER DOCUMENT
Where a prospective tenderer requests the Board to send the tender documents by post or by
hand delivery, the tenderer shall be charged the actual cost of the postage on delivery.

FOURTH SCHEDULE

(Regulation 43 (l))

PART I

TENDER SECURITY FORM

WHEREAS ………………………………………………………………………………………….. (hereinafter called “the Tende
r
tender
dated ………………………………………………….. …………………………………………………………………………………………..
.
for the supply of ………………………….. (hereinafter called “the
tender”) ………………………………………………………………………………………………
KNOW ALL MEN by these presents that we ……………………………. of …………………………….. …………………….
.
having our registered office at ………………………… ………………………………………………………………………………….
called “the Bank”) are bound unto ……………………………………………………………………………………….. for which
p
be made to the said purchaser, the Bank binds itself, its successors and assigns by these presents.
Sealed with the Common Seal of the said Bank this …………………………………………………. day
of ………………………………………………………………………………………………….. 19……………
THE CONDITIONS of this obligation are:
(a) if the tenderer withdraws its tender during the period of tender validity specified by the Tenderer on t
h
(b) if the tenderer having been notified of the acceptance of its tenderer by the Purchaser during the peri o
(i) fails or refuses to execute the Contract Form, if required; or
(ii) fails or refuses to furnish the Performance Security, in accordance with the instructions to Tende
r
We undertake to pay to the purchaser up to the above amount upon receipt of its first written demand withou t
substantiate its demand, provided that in its demand the purchaser will note that the amount claimed by it is d
occurrence of one or both of the two conditions, specifying the occurred condition or conditions.
This guarantee will remain in force up to and including thirty (30) days after the period of tender validity, an
d
thereof should reach the Bank not later than the above date.
………………………………………………………………
(Signature of the Bank)
………………………………………………………………
(Signature of the Witness)
Name of Witness:
Address of Witness:

PART II

PERFORMANCE SECURITY FORM

To: ………………………………………………………………………………………………………………… (Name of Purchaser)
WHEREAS ……………………………………………………………………………………………………(Name of Supplier) here
i
Supplier” has undertaken in pursuance of Contract
No. ………………………………………………………. .dated ………………………………………………………. in
19……………………………………………………………………… to supply (Description of Goods and
Services) ……………………………………………………………. hereinafter called “the Contract”.
AND WHEREAS it has been stipulated to you in the said Contract that the Supplier shall furnish you with a
B
a recognised Bank for the sum specified therein as security for compliance with the Supplier’s performance o
accordance with the Contract.
AND WHEREAS we have agreed to give the Supplier a Guarantee:
THEREFORE, we hereby affirm that we are Guarantors and responsible to you, on behalf of the Supplier, u
p
(Amount of Guarantee in words and Figures) and we undertake to pay you, upon your first written demand d
Supplier to be in default under the Contract and without cavil and argument, any sum or sums within the lim i
Guarantee) ………………………………………………………………………………. ………………………………………………………
aforesaid, without your needing to prove to or show grounds or reasons for your demand or the sum specifie
d
This guarantee is valid until the ………………………………………………………………………………………………………….. .
day of ……………………………………………………………………………………………………………….. 19…………………………
Signature and Seal of the Guarantors
………………………
……………………….
……………………….
……………………….

Date: ……………………………………………………………………………………..
Address: ………………………………………………………………………………..
………………………………………………………………………………………………
………………………………………………………………………………………………

CHAPTER 396
THE GOLD TRADE ACT

ARRANGEMENT OF SECTIONS

PART I
PRELIMINARY

Section
1. Short title
2. Interpretation

PART II
DEALING IN GOLD

3. Prohibition on dealing in gold except by persons duly
authorised
4. Saving as to location holders
5. Authorised persons only to deal with other authorised persons
6. Forfeiture of licence
7. Prohibition on importation of gold except through customs
ports of entry
8. Procedure by person so importing
9. Burden of proof as to licence or authority
10. Stoppage in transit of any package believed to contain gold
unlawfully dealt with
11. Powers of search
12. Forfeiture of gold seized
13. Saving as to sale of gold seized or forfeited
14. Disposal of fines, etc.
15. Persons liable for acts or omissions

PART III
LICENCES

16. Licences to deal in gold
17. Fees and details of licences to deal in gold
18. Gold Broker’s licence
19. Forfeiture of licence when obtained by misrepresentation
20. Power to authorise bankers, assayers or owners of
metallurgical works to deal in gold
Section
21. Permits to buy or sell gold
22. Penalties
23. Production of licence, permit, etc.

SCHEDULE-Prescribed forms

CHAPTER 396

GOLD TRADE
An Act to regulate and control dealing in gold; to prescribe forms and
fees for licences to deal in gold; and to provide for matters incidental to
or connected with the foregoing.
[18th December, 1912] 16 of 1912
36 of 1933
20 of 1950
9 of 1951
2 of 1956
10 of 1957
19 of 1959
57 of 1964
12 of 1968
10 of 1984
13 of 1994
Government
Notice
497 of 1964
Statutory
Instruments
10 of 1964
5 of 1965

PART I
PRELIMINARY

1. This Act may be cited as the Gold Trade Act. Short title

2. In this Act, unless the context otherwise requires- Interpretation

“dealer” includes a buyer, seller, broker, factor, giver or receiver or any
other party to any dealing or transaction whatsoever with regard to gold,
and “deal” shall be construed accordingly;

“gold” means gold in the raw state in any form or connection whatsoever
which although smelted is not manufactured or made up into any article
of commerce, and includes unrefined gold, amalgam, slimes and
scrapings.
(No. 10 of 1957)

PART II
DEALING IN GOLD

3. No person, except as is in this Act enacted, shall have in his
possession or shall buy, deal in, or receive by way of barter, exchange,
pledge or otherwise, either as principal or agent, or shall sell, offer, or
expose for sale, barter, exchange, pledge, or in any way, either as
principal or agent, dispose of or deliver any gold, or be an accessory to
such buying, dealing in, receiving, offering, exposing, disposing or
delivery aforesaid unless such person so buying, dealing in, receiving,
selling, offering, exposing, disposing or delivering as aforesaid shall be
duly licensed or authorised to deal in gold either as buyer, seller, broker,
factor or otherwise, as the case may be: Prohibition on
dealing in gold
except by
persons duly
authorised

Provided that-

(i) no such licensed dealer or duly authorised person shall deal in
gold, otherwise than in the manner specially authorised by his licence or
authority, or sell, offer or expose for sale, barter or pledge, either as
principal or agent, or in any way dispose of or deliver any gold, unless
such gold shall be actually the property or in the lawful possession of
such licensed dealer in gold or duly authorised person;

(ii) the onus of proof of the bona fide possession of or authority to
deal in any such gold as aforesaid within the meaning of this section

shall in all cases rest on such licensed dealer in gold or duly authorised
person;

(iii) any person who shall be unable to account satisfactorily for or to
prove his right to the possession of gold found in his possession, or to
produce his proper permit for the same in accordance with the
provisions of this Act, shall be liable on conviction to the penalties
hereinafter provided.

4. Nothing contained in section three shall prevent or prohibit a
registered location holder from in any way dealing in or disposing of
gold won and obtained by himself or on his behalf from locations of
which he is the actual registered holder: Saving as to
location holders

Provided that-

(i) the onus of proof that any gold dealt in was so obtained shall rest
and be upon the person alleging that he is a registered location holder,
and that the gold was obtained or won from the location of which he is
the registered holder;

(ii) nothing in this section shall render lawful his dealing in any gold
with any unauthorised person.
(As amended by No. 20 of 1950)

5. Any licensed dealer in gold, registered location holder, banker, or
duly authorised person buying or receiving by way of barter, pledge or
otherwise, either as principal or agent, any gold from any person, or in
any way dealing with the same with any person not being a licensed
banker, licensed dealer in gold, registered location holder disposing of
gold won from his own locations, or duly authorised person, shall be
liable upon conviction to the penalties hereinafter provided, and shall in
addition forfeit any licence which such person may hold, and any right
of renewal of the same, for such period as the court may direct, and no
such person shall thereafter be registered as the agent of any location
holder.
(As amended by No. 20 of 1950) Authorised
persons only to
deal with other
authorised
persons

6. Any licensed or authorised dealer in gold in any way dealing in gold
otherwise than in the manner specially authorised by the licence or Forfeiture of
licence

authority held by or vested in him shall, on conviction thereof, be liable
to the penalties hereinafter provided, and shall in addition forfeit his
licence and any right of renewal of the same for such time as the court
may deem fit to direct.

7. No person shall import or introduce into Zambia any gold won or
obtained from any place outside Zambia except by or through one or
other of the ports of entry duly appointed under the Customs and Excise
Act, and any person importing or introducing such gold at any other port
shall be liable upon conviction to the penalty hereinafter provided, and
the gold so introduced and imported shall be forfeited in addition to any
other penalties to which such person may be liable for any other offence
under this Act. Prohibition on
importation of
gold except
through
customs ports
of entry
Cap. 322

8. (1) Any person introducing and importing gold from any place
beyond the boundaries of Zambia shall, by written notice, inform the
Controller of Customs and Excise or other proper official of the fact that
he is so introducing such gold, and shall make a solemn declaration
before such official stating- Procedure by
person so
importing

(a) the place from which such gold was obtained;

(b) the date on which it was obtained;

(c) the name and usual address of the person from whom and the
manner in which it was obtained;

(d) the weight and value of such gold and whether the same is gold
itself refined or unrefined, or amalgam of gold, or slimes or scrapings.

(2) Any person who shall make a declaration which is to his knowledge
false and untrue in any of the above particulars shall be deemed to have
contravened subsection (1) and shall, upon conviction thereof, be liable
to all the penalties which may be inflicted on any person who commits
perjury, and the gold introduced and imported shall be confiscated.

9. If, in any proceeding under this Act, the court has to be satisfied
either that the accused person, or any witness, or any other person, is not
authorised or licensed to deal in gold within the meaning of the section
under which such accused person is being tried, such accused person,
witness, or other person shall be deemed to be unlicensed or Burden of proof
as to licence or
authority

unauthorised unless such accused person, witness, or other person, shall
prove to the satisfaction of the court that he is duly licensed or
authorised as aforesaid.
(As amended by No. 20 of 1950)

10. Any police officer of or above the rank of Sub Inspector, or the
Chief Inspector of Mines, the Assistant Chief Inspector of Mines, Senior
Inspectors of Mines, or any Inspector of Mines, or any officer duly
authorised by the President in that behalf, whenever he shall have good
cause to believe that any letter, parcel or package which is being
despatched through the post office by any person not authorised or
licensed to deal in gold, contains gold, or if such officer shall have cause
to believe that such package, letter or parcel contains gold obtained from
a person not authorised or licensed to deal in gold, may stop or cause to
be stopped such letter, parcel or package aforesaid at any post office
within Zambia, or while in possession of the post office either during the
transit of such letter, parcel or package or otherwise, and thereupon any
of the aforesaid officials may proceed to open and examine such letter,
parcel or package in the presence of the postmaster or any post office
official, and if there shall be discovered therein any gold sent by any
unauthorised or unlicensed person, or obtained from any unauthorised
or unlicensed person, the person who has despatched such letter, parcel
or package shall be liable to the penalties hereinafter provided and all
gold found in such letter, parcel or package shall be forfeited.
(As amended by No. 20 of 1950, No. 9 of 1951,
No. 2 of 1956 and S.I. No. 10 of 1964) Stoppage in
transit of any
package
believed to
contain gold
unlawfully dealt
with

11. Any police officer, when thereto authorised by a warrant granted
under the hand of a magistrate having jurisdiction, may at any time enter
in and upon and search any buildings, premises or railway trains,
vehicles, ships or boats, or any other place where he may have good
cause to suspect that any gold is unlawfully concealed, and may arrest
and search any person then being upon such building, premises, railway
train, vehicle, boat or other place, whom he may have good cause to
suspect of having upon his person or in his possession any gold obtained
in contravention of this Act, and should there be found upon such
person, or in such premises, building, railway train, vehicle, boat or
other place, any gold so obtained, may seize such person who may
reasonably be suspected of being the possessor of or interested in such
gold and as soon as possible bring such person before any magistrate
having jurisdiction, and if such person shall then fail to produce a proper
permit or licence for the possession of such gold or to account for the
possession thereof to the satisfaction of the magistrate before whom Powers of
search

such person is brought, such person shall be liable to all the penalties
hereinafter provided, and such gold shall be forfeited and sold as
hereinafter provided.
(As amended by No. 36 of 1993)

12. Should any gold seized or taken under the provisions of this Act be
ordered to be forfeited by any competent court, such gold may be sold
and the proceeds of such sale paid into the general revenues of the
Republic: Forfeiture of
gold seized

Provided that-

(i) any such gold shall not be sold until the expiry of six months
after the date of the order forfeiting and confiscating the same, and after
due advertisement of the sale of the same; and

(ii) should any person appear, claim and establish his right to any
gold so forfeited or confiscated within the said period, the said gold shall
be delivered to such person, but such person shall be liable to pay to the
Government any reasonable expenses to which the Government may
have been put in the proper retention, custody and advertisement of such
gold.
(As amended by S.I. No. 5 of 1965)

13. No person who, by the order in writing of any court, shall sell any
gold seized or forfeited under this Act, shall be liable in respect of such
sale to any of the penalties provided for in this Act. Saving as to
sale of gold
seized or
forfeited

14. All fines recovered and the proceeds of all gold forfeited and sold
under the provisions of this Act shall be paid into the general revenues
of the Republic.
(As amended by S.I. No. 5 of 1965) Disposal of
fines, etc.

15. If any act should be done, omission made or transaction carried
out, in contravention of the terms of this Act, the following persons shall
be liable and suffer the penalties upon conviction for the act, transaction,
or omission complained of:
(a) the person actually doing the act or carrying out the transaction Persons liable
for acts or
omissions

or making the omission; or
(b) in case the act, transaction or omission complained of shall have
been done or omitted on behalf of a bank or company, the manager or
secretary of such bank or company; or
(c) in case the act, transaction or omission was done or omitted on
behalf of a partnership or firm, then all the members of such partnership
or firm within the jurisdiction of the court before which conviction is
sought:

Provided that in all proceedings against the persons mentioned in
paragraphs (b) and (c), if such persons shall point out the person who
actually did the act or made the omission complained of, and shall prove
that such act or omission was done or made without his authority and not
for his benefit, then the person so pointed out shall alone be liable for the
penalties prescribed in this Act.

PART III
LICENCES

16. No person shall deal in gold either as buyer, seller, exporter or
importer or in any other capacity whatever, nor shall any person carry on
the business of a gold broker or factor unless such person shall be duly
licensed for such purposes as aforesaid either as dealer, broker or factor,
or in any other capacity, and any person contravening this section shall
be liable to the penalties hereinafter provided. Licences to deal
in gold

17. For every licence to deal in gold, other than a licence to be a gold
broker or factor, there shall be paid a fee of two thousand five hundred
fee units when the licence is first issued to a person, or a fee of twelve
thousand five hundred fee units when the licence is renewed, and every
such licence shall be issued by the Minister and shall be in Form 1 in the
Schedule: Fees and details
of licences to
deal in gold

Provided that every such licence shall, no matter when taken out, expire
on the 31st December then next following.
(No. 20 of 1950 as amended by No. 10 of 1957, No. 10 of 1984 and
Act No. 13 of 1994)

18. (1) For every licence to be a gold broker or factor there shall be paid
a fee of one thousand two hundred and fifty fee units, and every such
licence shall be issued by the Minister and shall be in Form 2 in the
Schedule: Gold broker’s
licence

Provided that every such licence shall, no matter when taken out, expire
on the 31st December then next following.

(2) The Minister shall not issue any licence to deal in gold or to carry on
the trade of gold broker or factor unless the person applying for such
licence shall, when applying for the same, produce and lodge with him a
certificate under the hand of a police officer of or above the rank of Sub
Inspector in Form 3 in the Schedule:

Provided that-
(i) a police officer of or above the rank of Sub Inspector shall not
sign or issue such certificate until the person applying for such
certificate shall, together with two sufficient sureties, have entered into a
recognizance in Form 4 in the Schedule;
(ii) no such certificate shall be issued to any person who shall, at the
tim of making application for such certificate, be the holder of or
interested in any retail licence to deal in intoxicating liquors, or who
shall have been convicted of any offence under this Act, and shall have
been adjudged to have forfeited his licence until such time shall have
elapsed during which he was adjudged incompetent to hold any licence;
(iii) nothing in this section shall make it compulsory on any police
officer to issue the certificate aforesaid.
(As amended by No. 20 of 1950, No. 10 of 1957, S.I. No. 10 of 1964, Act
No. 10 of 1984 and Act No. 13 of 1994)

19. Any licence, permit or certificate which shall have been obtained
by concealment or misrepresentation of matters which, if known,
would have prevented the issue of any such licence, permit or
certificate under this Act for any valid reason shall, upon proof of such
concealment or misrepresentation before any magistrate, be forfeited,
and the person who by such concealment or misrepresentation shall
have obtained such licence, permit or certificate shall upon conviction
be liable to the penalties hereinafter provided. Forfeiture of
licence when
obtained by
misrepresentation

20. Any banker, assayer, or owner of metallurgical works may be
authorised by the Minister without the production of the certificate
mentioned in this Act to deal in gold, subject to such terms and
conditions as to the amount of gold to be possessed or dealt in at any one
time and the manner of dealing with such gold as the Minister may deem
fit to impose, and without the payment of any fee or licence money.
(As amended by No. 10 of 1957) Power to
authorise
bankers,
assayers or
owners of
metallurgical
works to deal in
gold

21. On payment to him of the sum of one hundred and twenty- five fee
units, the Minister may issue to any person a permit in Form 5 in the
Schedule to buy, sell, deliver or receive any gold: Permits to buy
or sell gold

Provided that no such permit to buy or receive shall be granted unless
the applicant shall make a declaration either in Form 6 or 7 in the
Schedule. Any person making a false declaration to obtain such permit
shall be guilty of an offence.
(No. 20 of 1950 as amended by No. 2 of 1956, No. 12 of 1968
and Act No. 13 of 1994)

22. Any person convicted of contravening either section three, five,
six, seven, ten, eleven, sixteen, twenty or twenty-one shall be liable to a
penalty not exceeding thirty thousand penalty units or imprisonment
with or without hard labour for a period not exceeding five years, or to
both for each offence so committed, and all gold, the subject of any
transaction in contravention of this Act, shall be confiscated to the
Government by the court before which the proceedings relating thereto
shall be taken, or by any other competent court.
(As amended by No. 20 of 1950
and Act No. 13 of 1994) Permits to buy
or sell gold

23. Every licensed gold dealer and every holder of a permit shall be
bound to exhibit his licence or permit to any police officer of or above
the rank of Sub Inspector or the Chief Inspector of Mines, the Assistant
Chief Inspector of Mines, Senior Inspectors of Mines, or any Inspector
of Mines or other official thereto duly authorised by the President, and
every such licensed person or persons holding a permit who shall refuse
or neglect to produce the licence or permit to such authorised person
when called upon to do so shall for the first offence be liable to a penalty
not exceeding three thousand penalty units and for a subsequent offence Production of
licence, permit,
etc.

a penalty not exceeding nine thousand penalty units and shall, in
addition, be liable to forfeit any licence or permit held by him or any
renewal of the same for such period as the court shall order.
(As amended by No. 20 of 1950, No. 9 of 1951,
No. 2 of 1956, S.I. No. 10 of 1964 and No. 13 of 1994)

SCHEDULE

PRESCRIBED FORMS

FORM 1
(Section 17)

FORM OF LICENCE TO DEAL IN GOLD

I, on this …………………………….. day of ……………………………..,
19 ………., do hereby authorise and empower who has
produced to me his certificate required by section 18 of the Gold Trade Act, to deal in gold
within Zambia for the
ending on the day of …………………………………….. 19 ………. and no longer.

(Signed)
(No. 10 of 1975 as amended by S.I. No. 5 of 1965)

FORM 2
(Section 18)

FORM OF LICENCE FOR GOLD BROKER OR FACTOR

I, on this …………………………….. day of ……………………………..,
19 ………., do hereby authorise and empower who has
produced to me his certificate required by section 18 of the Gold Trade Act, to act as gold
broker or factor within Zambia for the
ending on the day of …………………………………….. 19 ………. and no longer.

(Signed)
(No. 10 of 1957 as amended by S.I. No. 5 of 1965)

FORM 3
(Section 18)

FORM OF GOLD DEALER’S OR GOLD BROKER’S OR FACTOR’S CERTIFICATE

I, Police Officer,
of do hereby certify
that is a fit and proper
person to receive a licence to deal in/act as Broker of/act as Factor of Gold.
(Station) ……………………………………………………………

Police Officer
(Date) ………………………………………………………………
(No. 20 of 1950 as amended by S.I. No. 10 of 1964)

FORM 4
(Section 18)

RECOGNIZANCE UNDER THE GOLD TRADE ACT

On the day of ………………………………………. ,19 ………….,
appeared before me magistrate of the District of
and acknowledge themselves to owe the Republic
to wit the said the sum of one thousand kwacha
and the said and ………………………………………………….. each
the sum of one thousand kwacha of good and lawful money to be respectively made and
levied of their several goods, chattels, lands and tenements to the use of the Republic if the
said shall fail in performing the conditions underwritten.
The condition of this recognizance is that if the said
shall strictly conform to and abide by all and singular the provisions of the Gold Trade Act
during the time the licence to be by him obtained under that Act shall be in force, then this
recognizance shall be null and void or else shall remain in full force and effect.
The said and the said ……
and the said do hereby further jointly and severally
agree that in the event of the said being convicted
of contravening any provision of this Act this recognizance shall ipso facto become at once
executable without the necessity of further process just as if judgment had been obtained
upon it.
Taken and acknowledged this day and year above written.
Proposed Licensee
Surety
Surety
Magistrate
(As amended by S.I. No. 10 of 1964)

FORM 5
(Section 21)

FORM OF PERMIT

Permission is hereby granted unto
to (a) gold of the weight of
from/to ……………………………………………………….
(Date) ……………………………………………………
(Signed)
(a) Insert here “buy”, “sell”, “deliver” or “receive”.
NOTE.-The definition of “gold” in the Act is as follows: “Gold” means gold in the raw state
in any form or connection whatsoever which although smelted is not manufactured or made
up into any article of commerce, and includes unrefined gold, amalgam, slimes and
scrapings.
(No. 20 of 1950 as amended by No. 2 of 1956
and No. 12 of 1968)

FORM 6
(Section 21)

FORM OF DECLARATION OF PERSON DESIRING A PERMIT

I, of …………………………………………. do solemnly and
sincerely declare as follows:
(1) I am desirous of receiving from gold of the
weight of which I require for my own use and not
for the purposes of trade here or elsewhere:
(2) The said from whom I am to receive the
said gold is, to the best of my knowledge and belief, duly authorised under the
provisionsof the Gold Trade
Act to be in possession of the said gold, and I make this solemn declaration
conscientiously believing the
same to be true.
Declared before me this ……………………………………… day of
……………………………………,19 ………..

Magistrate
NOTE.-The definition of “gold” in the Act is as follows: “Gold” means gold in the raw state
in any form or connection whatsoever which although smelted is not manufactured or made
up into any article of commerce, and includes unrefined gold, amalgam, slimes and
scrapings.
(As amended by No. 36 of 1933)

FORM 7
(Section 21)

FORM OF DECLARATION OF PERSON DESIRING A PERMIT

I, of ………………………………….. do solemnly and
sincerely declare as follows:
(1) I am desirous of receiving from gold of the
weight of which I require for use in my trade as a
and not for sale or other disposal.
(2) The said from whom I am to receive the said
gold is, to the best of my knowledge and belief, duly authorised under the
provisions of the Gold Trade Act to
be in possession of the said gold, and I make this solemn declaration
conscientiously believing the same to be
true.
Declared before me this ………………………………………. day of
……………………………………,19 ………..

Magistrate
NOTE.-The definition of “gold” in the Act is as follows: “Gold” means gold in the raw state
in any form or connection whatsoever which although smelted is not manufactured or made
up into any article of commerce, and includes unrefined gold, amalgam, slimes and
scrapings.
(No. 20 of 1950)

CHAPTER 397
THE CO-OPERATIVE SOCIETIES ACT

ARRANGEMENT OF SECTIONS

PART I
PRELIMINARY

Section
1. Short title
2. Interpretation

PART II
RESPONSIBILITIES OF THE MINISTER

3. Encouragement of co-operative development
4. Responsibilities of Minister
5. Information on co-operation
6. Persons required to furnish information to Minister
7. Annual report on societies

PART III
PUBLIC OFFICERS

8. Director
9. Registrar

PART IV
REGISTRATION AND ORGANISATION OF
CO-OPERATIVE SOCIETIES

10. Procedure for registration
11. Requirements before registration
12. Certificate of registration
13. Societies to be bodies corporate

14. Conversion of a company into a society
15. Limited liability
16. Display of registered name
17. Dealers or traders not to register under this Act
18. Registrar may require societies to form or join a co-operative
union
19. Powers of societies
Section
20. By-laws
21. Amendments to by-laws
22. Copy of Act, rules and by-laws to be open to inspection
23. Reserve fund and distribution of net surplus
24. Kinds of societies not restricted

PART V
SOCIETIES FOR RURAL DEVELOPMENT

25. Co-operative marketing
26. Distribution of agricultural requisites, etc.
27. Co-operative farming
28. Multi-purpose societies
29. Society as agent of marketing board
30. Allotment of shares in lieu of patronage bonus or other
payment
31. Borrowing of patronage bonus or other payment
32. Marketing contracts
33. Encouragement of thrift
34. Registration of by-laws to encourage thrift
35. Provision of credit by agricultural societies
36. Board of directors to supervise credit and loans
37. Registration of by-laws for the provision of agricultural credit
38. A society may combine thrift services with the provision of
credit
39. Farm machinery and related services

40. Assistance to livestock, dairy and poultry producers, etc.
41. Land improvement services
42. Special provisions in the by-laws
43. Advisory or supervisory services for farmers
44. Storage of agricultural products
45. Transportation of agricultural products and farm supplies

PART VI
CO-OPERATIVE SERVICES FOR PRODUCERS OF
NATURAL PRODUCTS

Section
46. Co-operative services for producers of natural products

PART VII
BUILDING CONSTRUCTION AND HOUSING
SOCIETIES

47. Building construction society
48. Housing society
49. Special powers
50. Commencement of operations
51. Special features
52. Sinking fund

PART VIII
CREDIT UNIONS

53. Objects of a credit union
54. Name
55. Membership generally
56. Membership of certain organisations
57. Powers of a credit union
58. Borrowing powers of a credit union
59. Commencement of lending operations

60. Land and buildings
61. Election and appointment of officers
62. Special duties of directors
63. Jurisdiction of credit committee
64. Loans by credit unions
65. Maximum of loans to a member
66. No loans in certain cases
67. Restrictions on making loans in certain cases
68. Approval of loans for certain purposes
69. Restrictions on loans to officers
70. Prohibitions
71. Unauthorised loans prohibited
72. Rates of interest on loans
Section
73. Reports of credit committee
74. Duties of supervisory committee
75. Engagement of auditor for a credit union
76. Shares in credit union
77. Members’ deposits and withdrawals
78. Cash reserve to meet withdrawals
79. Distribution of net surplus of credit union

PART IX
ARTISANS’, CRAFTSMEN’S AND CONTRACTING
SOCIETIES

80. Production, manufacture and sale of goods
81. Special provisions in the by-laws

PART X
CONSUMERS’ SOCIETIES

82. Consumers’ societies
83. Special provisions in the by-laws

84. Special responsibilities of directors of a consumers’ society
85. Credit controlled by directors
86. Qualifications for election in certain cases
87. Application of Part X

PART XI
COMMUNITY SERVICE SOCIETIES

88. Community buildings, facilities or services
89. No dividends on capital or patronage bonus
90. Provision of health services

PART XII
FEDERATIONS

91. Objects
92. Use of the word “co-operative”

PART XIII
MEMBERSHIP

Section
93. Membership governed by by-laws
94. Who may be members
95. Rights of minors
96. Member not to exercise rights until due payment made
97. Certificate of membership
98. Lien on members’ shares
99. Certain societies to furnish statements to members
100. Every society to keep a membership register
101. Votes of members and delegates
102. Contracts with minors
103. Limitation on share holdings
104. Assignment, transfer and re-purchase of shares
105. Shares or interest not attachable

106. Transfer of interest on death of member
107. Liability of past member and estate of deceased member for
debts of society
108. Creation of charges in favour of societies
109. Withdrawal by members
110. Expulsion of a member

PART XIV
DIRECTORS

111. Board of directors (or committee)
112. Effect of election of directors by districts
113. Duties and powers of directors
114. Officers
115. Term of office
116. Directors must be members
117. Vacancy on board of directors
118. Vacation of office of director
119. Liability of directors or other officers for unlawful transactions
Section
120. Meetings of directors
121. Security
122. Removal from office

PART XV
MEETINGS

123. Annual and other general meetings
124. Special meetings
125. Registrar may prescribe manner of calling meetings
126. Quorum
127. Power of Registrar to call meetings
128. Authority of the members

PART XVI

CHARGES BY SOCIETIES

129. Registration
130. Registration of enforcement of security and filing of accounts
131. Rectification of register of charges
132. Entry of satisfaction
133. Failure to send particulars for registration
134. Society’s register of charges
135. Right to inspect copies of instruments and register of charges
136. Perpetual charges

PART XVII
ADMINISTRATION OF SOCIETIES

137. Registered office
138. Seal
139. Books and records
140. Audit and investigation by Registrar
141. When public accountant required as auditor
142. Power of Registrar to inspect societies’ books, etc.
143. Yearly and other returns

PART XVIII
AMALGAMATION AND DIVISION OF SOCIETIES

Section
144. Amalgamation of societies
145. Division of societies

PART XIX
DISSOLUTION AND WINDING-UP

146. Dissolution of societies
147. Liquidation after cancellation of registration
148. Liquidator’s powers

149. Power of Registrar to control liquidation
150. Appeals against decisions
151. Enforcement of decisions
152. Limitation of the jurisdiction of the civil court
153. Closure of liquidation

PART XX
DISPUTES

154. Settlement of disputes
155. Case stated on question of law

PART XXI
RULES

156. Purpose and contents of rules

PART XXII
ORGANISATION AND SUPERVISION

157. Assistance with co-operative organisation and education
158. Inspection and advisory services by Registrar, etc.
159. Registrar may supply by-laws
160. Inspection of records
161. Appointment of special directors and other officers
Section
162. Removal of directors and other officers
163. Appointment of administrator
164. Board of review

PART XXIII
MISCELLANEOUS

165. Recovery of sums due to Government
166. Special exemptions
167. Power to exempt societies from provisions of this Act

168. Prohibition of the use of the words “co-operative” or “credit
union”
169. Companies Act not to apply
170. Offences and penalties
171. Misdealings with property
172. Repeal and savings

FIRST SCHEDULE-Powers of Societies

SECOND SCHEDULE-Matters required to be in the by-laws of a
society

CHAPTER 397
CO-OPERATIVE SOCIETIES

An Act to provide for the registration, inspection, examination and
supervision of co-operative societies which belong to the people who
use their services, the control of which rests equally with all their
members, and the gains from which are distributed among the members
in proportion to the use they make of these services or their interest in
their society; to repeal the Co-operative Societies Ordinance; to provide
that co-operative societies registered under the Act repealed by this Act
shall continue in existence and in operation as if registered under this
Act; to encourage co-operative development by the provision of
services to assist the organisation and operation of various kinds of
co-operative societies to meet the economic and social needs of their
members on a self-help basis; and to provide for all matters incidental to
the foregoing.
[1st March, 1972] 63 of 1970
13 of 1994

PART I
PRELIMINARY

1. This Act may be cited as the Co-operative Societies Act. Short title

2. In this Act, unless the context otherwise requires- Interpretation

“agricultural product” means any product of agriculture, including grain

and seed, maize, groundnuts, cotton, tobacco and other field crops,
livestock and livestock products, fruit and fruit products, vegetables and
vegetable products, honey and any article wholly or partially processed
or otherwise derived therefrom;

“agricultural requisites” means supplies needed for agricultural
production, and includes building materials, fertiliser, dip, veterinary
preparations, seed, animal feeding stuffs, breeding stock, draught
animals, planting material, farm implements, hand tools, fencing
materials, petroleum products, and other supplies and equipment
normally used in agricultural production;

“board of directors” means the governing body of a society to whom the
supervision and the direction of its affairs are entrusted by the members;

“by-laws” means the registered by-laws of a society, having been passed
by the members and approved by the Registrar, and includes
amendments thereto;

“co-operative principles”, except as otherwise provided in this Act,
means the following principles and methods used in the operation and
administration of a society:

(i) each member or delegate has one vote;

(ii) there is no voting by proxy;

(iii) race, creed or political beliefs are no bar to voluntary
membership and, subject to this Act, membership is open to all who can
use the services of a society;

(iv) the services of a society are mainly for its members;

(v) the dividend on share capital shall not exceed six per centum per
annum;

(vi) the services are available as nearly as possible at cost, allowing
for the fact that, except where otherwise provided in this Act, the rules
or the by-laws, the savings arising from yearly operations are paid to
members, or members and non-member patrons, in the form of
patronage bonus, in proportion to the use made of the services, or to the
supply of labour or other contributions made by members and

non-member patrons;

“co-operative union” means a society, the membership of which is
comprised of societies operating in the same general locality;

“delegate” means-

(a) a representative of a society, which is itself a member of another
society, the meetings of which such representative has been elected or
appointed to attend, and at which he is entitled to vote under the by-laws
of that other society;

(b) a representative of members residing in a particular district, or of
a particular group or class of members, who has received a mandate to
vote at a meeting of their society from such members, group or class in
accordance with the provisions of the by-laws of the society;

“dividend” means a member’s share of the net surplus divided amongst
the members in the same proportion as the paid-up share capital held by
them in the society;

“federation” mean a society the membership of which is restricted to
societies, co-operative unions and federations thereof;

“member” means a person who, or other society which, in terms of the
by-laws of a society is entitled to vote at meetings of that society;

“natural product” means any product of forest, lake, river, mine or
quarry, and any article wholly or partially derived therefrom, and
includes fish and fish products, lumber and wood products, fuel and
construction materials;

“net surplus” means such portion of the total income received by or
accrued to a society during any year as remains after deductions have
been made for all expenditure incurred during that year, and adequate
provision has been made for depreciation, bad debts, tax liability and
reserve funds;

“non-member patron” means a person, not being a member, who uses
the services of a society to such extent as may be provided for in the
by-laws;

“officer” means Chairman, Vice-Chairman, member of the board of
directors or of any committee, Secretary, Treasurer, employee or other
person, empowered under this Act, the rules or the by-laws to give
direction or supervision respecting the business of a society;

“patronage bonus” means a share of the net surplus of a society divided
amongst the members or, if the by-laws so provide, amongst the
members and non-member patrons, in proportion to the use made of the
services of the society, or the value of labour provided or other
contributions made to the society;

“Registrar” means the Registrar of Co-operative Societies appointed
under section nine;

“rules” means the rules made under this Act;

“society” means a co-operative society registered under this Act or
heretofore registered as such under any former written law;

“special resolution” means a resolution passed by a three-quarter
majority of the members, or delegates, or members and delegates, as the
case may be, present at a meeting of a society called for the purpose, and
of which at least twenty-one clear days’ notice in writing was given
together with a copy of the proposed resolution.

PART II
RESPONSIBILITIES OF THE MINISTER

3. The Minister shall take such measures as he deems advisable for the
encouragement generally of co-operative development for economic,
social and cultural purposes and human advancement on the basis of
self-help and, in particular, but without limiting the generality of the
foregoing, for the encouragement of the organisation of co-operative
societies as a means of-
(a) improving the economic situation of their members;
(b) contributing to the economy an increased measure of democratic
control of economic activity;
(c) increasing personal and national capital resources by the Encouragement
of co-operative
development

encouragement of thrift, the prevention of usury and the wise use of
credit;
(d) increasing incomes and employment by a fuller utilisation of
resources, including the bringing of new land into productive use, the
marketing and processing of agricultural and natural products, the
development of local industries and processing of raw materials;
(e) improving social and cultural conditions and, where appropriate,
providing supplementary services in housing, health, education and
communications;
(f) raising the level of general and technical knowledge of members
of societies.

4. In encouraging co-operative development and in carrying out the
provisions of this Act, the Minister shall take, authorise or approve such
measures as he deems necessary to-
(a) assist the organisation of co-operative societies among persons
or groups who desire to provide themselves with, or to market,
commodities or services, or both, on a co-operative self-help basis;
(b) facilitate the financing of societies, where necessary for their
establishment and operation, by the provision of, or arrangement for,
loans, guarantees of loans, or otherwise;
(c) provide for such advice as may be necessary to assist officers
and members of societies to achieve their objects;
(d) institute inquiry into and collect, classify and analyse
information and statistics relating to societies and co-operative
development;
(e) establish or facilitate the establishment of a research service or
services for inquiry generally into the operation of societies, and for
investigation and analysis of economic, social and other problems as
may be deemed advisable to lead to the encouragement of new or
improved methods of co-operative development, including- Responsibilities
of Minister

(i) production of agricultural or natural products and the processing
and marketing of such products;

(ii) industrial development, manufacturing and marketing and sale
by wholesale;

(iii) credit, investment and business finance;

(iv) wholesaling and retailing of goods and services;

(v) community and welfare services on a co-operative basis;
(f) issue from time to time such reports, circulars and other
publications relating to societies and co-operative development as may
be deemed advisable;
(g) provide or authorise such other service as may be necessary in
carrying out the provisions of this Act.

5. The Minister shall disseminate, or arrange for the dissemination of,
information relating to co-operation and co-operative development in
such manner and form as may be found best suited to promote interest in
and understanding of co-operative principles and practices with a view
to the encouragement of the organisation of co-operative societies based
on self-help.
Information on
co-operation

6. (1) All officers of societies to which this Act applies shall furnish the
Minister with such information as he may from time to time require.
Persons required to
furnish information
to Minister

(2) An officer who fails to comply with a request of the Minister under
subsection (1), or who knowingly makes a statement, false in any
material particular, in any information furnished to the Minister, shall be
guilty of an offence.

7. Within a period of six months after the close of the financial year, an
annual report respecting the operations of societies registered under this
Act shall be prepared under the direction of the Minister and included in
the annual report of the Minister laid before the National Assembly. Annual report
on societies

PART III
PUBLIC OFFICERS

8. (1) There shall be a Director of Co-operative Societies for the
purposes of this Act, who shall be a public officer and who shall be
responsible for providing and administering the services required by
societies for their organisation, registration, operation and advancement Director

and for carrying out the provisions of this Act.

(2) There may be appointed a Deputy Director of Co-operative
Societies and such other public officers as may be necessary to assist the
Director in carrying out his functions.

9. (1) There shall be a Registrar of Co-operative Societies who shall be
a public officer and who shall exercise such powers and perform such
duties as are prescribed in this Act. Registrar

(2) There shall be a Deputy Registrar of Co-operative Societies
(hereinafter referred to as the “Deputy Registrar”) and one or more
Assistant Registrars for the purposes of this Act, who shall be public
officers and who shall exercise such functions and perform such duties
as may be prescribed by or under this Act.

(3) The Registrar may, subject to the provisions of this Act and to the
general or special directions of the Director of Co-operative Societies,
delegate any of his functions under this Act to the Deputy Registrar or to
an Assistant Registrar.

(4) Any power conferred or duty imposed by or under this Act on the
Registrar, or delegated to him by the Director of Co-operative Societies,
may be exercised or carried out by the Deputy Registrar if the Registrar
is unable to exercise that power, or himself carry out that duty, due to
illness or absence.

PART IV
REGISTRATION AND ORGANISATION OF
CO-OPERATIVE SOCIETIES

10. (1) Any ten or more persons, or two or more societies, desiring to
associate themselves together to form a society in accordance with
co-operative principles, with or without capital divided into shares, may,
on payment of the prescribed fee and subject to the approval of the
Registrar, be registered under this Act with limited liability. Procedure for
registration

(2) An application for registration as a society shall be made to the
Registrar in the prescribed form and be subject to the rules.

(3) Where the application is made by two or more societies, at least two
duly authorised officers of each society shall sign the application which
shall be accompanied by the resolution of each society concerned
approving the application for registration.

(4) Each application for registration shall be accompanied by copies of
the by-laws of the proposed society.

11. (1) Before approving registration, the Registrar may require such
additional information about the proposed society as he deems
necessary, including- Requirements
before
registration

(a) the economic or other need for the organisation of the society;

(b) the educational and advisory work respecting co-operative
principles and the organisaton and operations already being carried on
amongst the applicants for registration and other persons expected to
become members;

(c) the number of persons expected to become members upon the
commencement of operations;

(d) whether the capital to be furnished initially by the applicants for
registration and other persons expected to become members is sufficient
for the commencement of operations;

(e) the availability of officers capable of directing and managing the
affairs of the society, and of keeping such records and books of account
for the society as the Registrar may require.

(2) If, as a result of the information provided to him under subsection
(1), the Registrar is of the opinion that the applicants for registration and
other persons expected to become members require more educational
and advisory work respecting co-operative principles and the
organisation and operation of a society, or the expected membership
appears to be too small for the satisfactory commencement of

operations, or more time is necessary to raise the capital initially
required, or that more training is advisable for persons expected to
become officers, he may delay his approval of registration in order to
prescribe more educational and advisory work, or discussion of the
objects of the society with more persons who could be expected to
benefit from membership, or more time to raise the capital initially
required, or more training, as the case may be.

(3) If, as a result of the information provided to him under subsection
(1), or notwithstanding any action taken under subsection (2), the
Registrar is of the opinion that registration is not economically advisable
or he is otherwise unwilling to approve registration, he shall give
specific reasons therefor to the Minister and to the applicants for
registration.

(4) An appeal against refusal to register the society shall lie to the
Minister within ninety days of such refusal.

12. (1) If the Registrar approves registration, he shall issue a certificate
of registration to the society, together with a copy of the by-laws
certified by him as having been duly approved and registered. Certificate of
registration

(2) A certificate or registration signed by the Registrar shall be
conclusive evidence that the society therein mentioned is duly
registered, unless it is proved that the registration of the society has been
cancelled.

(3) No society shall be registered under a name identical with that of
another society or so nearly resembling the same as to be likely to
deceive.

(4) The word “limited” shall be the last word in the name of every
society and, except as otherwise provided in this Act, the word
“co-operative” shall form part of the name of every society.

13. The registration of a society shall render it a body corporate by the
name under which it is registered, with perpetual succession and a
common seal and with limited liability, and with power to hold property,
to enter into contracts, to institute and defend suits and other legal Societies to be
bodies
corporate

proceedings, and to do all things necessary to achieve its objects in the
exercise of the powers available to it under the provisions of this Act,
the rules and its by-laws.

14. (1) A company registered under the Companies Act (or any Act
which replaces it) may, by a special resolution as defined in that Act (or
replacing enactment), determine to convert itself into a society. Conversion of a
company into a
society.
Cap. 388

(2) Such a resolution shall be accompanied by copies of the by-laws of
the proposed society therein referred to, and shall appoint ten persons,
being members of the company, who together with the Secretary shall
sign the by-laws, and who may either be authorised to accept any
alterations made by the Registrar therein without further consultation
with the company, or may be required to lay all such alterations before
the company in general or special meeting as the resolution may direct.

(3) A copy of such resolution, signed by the Chairman of the meeting at
which it was passed and the Secretary, shall, with the by-laws, be sent to
the Registrar, who thereupon shall deal with the resolution as an
application for registration of a society under this Act.

(4) After the receipt of such resolution and such by-laws and of such
information as he may require under section eleven, the Registrar may-

(a) if satisfied that the company will be operated in accordance with
co-operative principles, register the company as a society; or

(b) refuse registration, giving specific reasons therefor to the
company and to the Minister as required under section eleven.

(5) An appeal against refusal to register the company as a society shall
lie to the Minister within ninety days of such refusal.

(6) (a) Upon the registration of a company as a society, the Registrar
shall issue a certificate of registration to the society together with a copy
of the by-laws certified by him as having been duly approved and
registered.

(b) A copy of such resolution under the seal of the company together
with the certificate issued as aforesaid shall be sent by the company’s
secretary to the Registrar of Companies and, upon his registering that
resolution and certificate, the conversion shall take place; the Registrar
of Companies shall notify the said Secretary in writing of the date and
time of this registration.

(c) The name under which any company is registered under these
provisions as a society shall not include the word “company”.

(d) Subject to paragraph (e), upon the conversion of a company into a
society, the registration of the company as such shall become void and
shall be cancelled by the Registrar of Companies.

(e) The registration of a company as a society shall not affect any right
or claim for the time being subsisting against the company nor any
penalty for the time being incurred by the company; and-
(i) for the purposes of enforcing any such right, claim or penalty,
the company may be sued and proceeded against in the same manner as
if it had not been registered as a society;
(ii) any such right or claim and the liability to any such penalty shall
have priority as against the property of the society over all other rights or
claims against or liabilities of the society.

15. Every member shall be individually liable to the creditors of a
society for the debts and liabilities of the society in a sum not exceeding
the amount, if any, unpaid on the shares allotted to him, if any, or on his
membership fee, as the case may be, until the whole amount of his
shares or membership fee has been paid up. Limited
liability

16. Every society shall cause its registered name to be painted or
affixed, and to be kept painted or affixed, in a conspicuous position and
in letters easily legible, on the outside of its registered office and every
other office or place in which the business of the society is carried on,
and shall have that name engraved in legible characters on its seal, and
mentioned in legible characters-
(a) in all notices, advertisements and other official publications of
the society;
(b) in all business letters of the society; Display of
registered name

(c) in all bills of exchange, promissory notes, endorsements,
cheques, and orders for money or goods, purporting to be signed by or
on behalf of the society;
(d) in all bills, invoices, receipts and letters of credit of the society.

17. Notwithstanding the other provisions of this Act, a group of
persons who desire to associate themselves together in trade or business
primarily for gain, without provision for the distribution of profits
amongst customers in proportion to patronage, shall not be registered as
a society. Dealers or
traders not to
register under
this Act

18. Where the Registrar, after investigation, considers it to be in the
interests of the members of a society or necessary to achieve the objects
of a society, he may, by notice in writing served on the societies or
society, as the case may be-
(a) recommend or require any two or more societies to form and
apply for the registration of a co-operative union; or
(b) recommend or require any society to join a co-operative union. Registrar may
require societies
to form or join a
co-operative
union

19. Subject to this Act, the rules and the by-laws, a society shall have, as
ancillary and incidental to the object or objects set forth in its by-laws,
the powers contained in the First Schedule, but nothing shall preclude a
society from including in its by-laws, subject to the approval of the
Registrar, any powers in addition to, or from excluding or modifying,
those mentioned in the First Schedule. Powers of
societies

20. The by-laws of every society shall include provision in respect of
the matters mentioned in the Second Schedule. By-laws

21. (1) The by-laws of a society may be amended by cancellation,
alteration or addition thereto by a resolution of a two-thirds majority of
members or delegates, or members and delegates, as the case may be,
present at a duly called general meeting. Amendments to
by-laws

(2) Save as hereinafter provided, no amendment to the by-laws shall be
valid until the amendment has been registered under this Act, for which
purpose three copies of the amendment signed by the Chairman of the
last-mentioned meeting and the Secretary shall be forwarded to the
Registrar.

(3) If the Registrar is satisfied that the amendment is not contrary to this
Act and the rules, and if he otherwise approves it, he may register the
amendment.

(4) Where it is deemed expedient that the members or delegates, or
members and delegates, to be present at a meeting of the society at
which a proposed amendment to the by-laws is to be submitted for their
approval, should take action at the same meeting towards implementing
the proposed amendment, the Registrar may approve the proposed
amendment prior to the meeting, and, if the proposed amendment is
adopted as it stands, it shall have immediate force and effect:

Provided, however, that as soon as possible thereafter copies of the
resolution containing the amendment shall be forwarded to the Registrar
for registration in accordance with subsection (2).

(5) After approval by the Registrar, a copy of every amendment,
certified under the hand of the Registrar as approved and registered,
shall be returned by him to the society.

22. Every society shall keep a copy of this Act, the rules, its by-laws
and a list of its members open to inspection, free of charge, at all
reasonable times at the registered office of the society. Copy of Act,
rules and
by-laws to be
open to
inspection

23. (1) Every society which derives a surplus from its yearly
transactions shall maintain a reserve fund, the constitution and operation
of which shall be provided for in the by-laws. Reserve fund
and distribution
of net surplus

(2) Except as otherwise provided in this Act, and unless the by-laws
provide that the net surplus derived by a society from its operations shall
be set aside in one or more reserve funds, or for the maintenance of
further development of the services provided by the society, or donated
to local organisations with objectives beneficial to the community,
every society shall, after making the necessary provision for the reserve
fund or funds, for any dividend payable on any share capital and for any
amount for educational purposes, distribute such surplus, within a

period of twelve months from the close of its financial year, as payment
of patronage bonus in the manner provided for in its by-laws.

24. The kinds of societies which may be formed and registered under
the provisions of this Act are not restricted to the kinds of societies
mentioned in the following Parts V to XII. Kinds of
societies not
restricted

PART V
SOCIETIES FOR RURAL DEVELOPMENT

25. A society may be registered primarily to undertake and carry on all
kinds of business operations connected with the marketing, collecting,
receiving, taking delivery of, buying, handling, feeding, fattening,
finishing, slaughtering, preserving, harvesting, drying, processing,
manufacturing, canning, cleaning, grading, storing, transporting,
selling, or otherwise disposing of or utilising any agricultural product
produced or delivered to it by its members or non-member patrons, or
connected with the manufacturing or buying, selling or marketing of the
by-products thereof. Co-operative
marketing

26. A society may be registered primarily to undertake and carry on all
kinds of business operations connected with the purchasing, procuring,
processing, manufacturing, exchanging, hiring, dealing in and
distributing agricultural requisites, consumer goods and household
necessities for sale at retail to its members or non-member patrons: Distribution of
agricultural
requisites, etc.

Provided that where the society is a co-operative union or a federation, it
may sell such agricultural requisites, consumer goods and household
necessities at wholesale to its member societies.

27. (1) A society may be registered primarily for the purpose of
providing farming services to its members, including- Co-operative
farming

(a) purchasing, taking on lease or otherwise acquiring, developing,
maintaining and operating land as a farming enterprise on behalf of its
members; or

(b) purchasing; taking on lease or otherwise acquiring land for

farming purposes and using such land by-
(i) dividing a portion thereof amongst its members, by sale, lease or
otherwise, for their individual use and operation as producers of
agricultural products; and
(ii) developing, maintaining and operating the remainder of such
land as a farming enterprise on behalf of its members.

(2) In addition to the objects mentioned in paragraph (a) or (b) of
subsection (1), a society registered for the purpose of providing farming
services to its members may have one or more of the following further
objects:

(a) marketing agricultural products produced by the society on
behalf of its members and produced by its members on their own
account;

(b) purchasing agricultural requisites, consumer goods and
household necessities required by the society and its members;

(c) encouraging thrift among its members by the acceptance of
savings deposits in accordance with section thirty-three;

(d) providing credit for its members in accordance with section
thirty-five;

(e) providing housing and services relating thereto for the use of its
members.

28. A society may be registered to undertake and carry on all kinds of
business and operations connected with the co-operative marketing of
agricultural products as provided in section twenty-five, for the handling
of agricultural requisites, consumer goods and household necessities as
provided in section twenty-six, and for one or more of the objects listed
in section twenty-seven. Multi-purpose
societies

29. A society marketing agricultural products, handling agricultural
requisites or providing farming services to its members, may be
appointed as agent of any marketing board or other authority established
by law for the purpose of marketing agricultural products or distributing
agricultural requisites. Society as agent
of marketing
board

30. The by-laws of a society marketing agricultural products, handling
agricultural requisites or providing farming services to its members may
provide that, in lieu of the payment in cash of amounts deducted from
the sale or resale price of agricultural products delivered to the society,
or of a patronage bonus, the society may allot to its members shares of
capital, and upon such allotment each member shall be deemed to have
made an application for the said shares, and agreed to pay therefor by
the application of such amounts or of such bonus towards the purchase
price of such shares. Allotment of
shares in lieu of
patronage
bonus or other
payment

31. The by-laws of a society marketing agricultural products, handling
agricultural requisites or providing farming services to its members may
provide that, in lieu of the payment in cash of amounts deducted from
the sale or resale price of agricultural products delivered to the society,
or of a patronage bonus, the society may require its members, without
the completion of individual contracts, to undertake to make loans to the
society from such deductions or patronage bonus, under such terms and
conditions as are provided for in the by-laws, and such by-laws shall
have the same effect as if each member had entered into a separate
contract with the society and shall create a legal obligation on his part to
make such loan, but only to the extent of such deductions or patronage
bonus. Borrowing of
patronage
bonus or other
payment

32. (1) A society marketing agricultural products may, with the
approval of the Registrar, which may be given generally or specifically,
make and execute marketing contracts with its members, requiring the
members to sell or deliver for sale, for any period of time specified
therein, all or any part of their products or commodities specified in such
contracts, exclusively to or through the society or any agencies created
by the society. Marketing
contracts

(2) A contract made under this section may provide that the society may
sell or resell the products delivered to it by its members with or without
taking title thereto, and pay over to its members the sale or resale price
after deducting an agreed commission.

(3) A marketing contract may provide for payment by the members to
the society of specified sums as liquidated damages for any products or
commodities sold, marketed or withheld by them in breach of the terms
of the contract, and any such provision shall be valid and enforceable in

the courts.

(4) Except where the Registrar’s approval has been given generally to a
society in respect of a particular form of contract, every society entering
into a contract under the provisions of subsection (1) shall, before the
signing and execution of the contract, forward two copies of it to the
Registrar who shall thereupon either indicate his disapproval thereof or
endorse his approval on one copy and return it to the society.

(5) No contract entered into under this section shall be contested in any
court on the ground that it constitutes a contract in restraint of trade.

33. (1) For the purpose of encouraging thrift amongst its members, a
society which includes in its objects the marketing of agricultural
products, the handling of agricultural requisites or the provision of
farming services, may, subject to this Act and the rules, be authorised by
its by-laws to accept interest-bearing savings deposits from its members. Encouragement
of thrift

(2) Savings deposits may be made in such minimum and in such
maximum amounts as may be prescribed in the by-laws.

(3) Savings deposits may be made-

(a) for an indefinite period but withdrawable by the member on
application in writing and on giving such notice, if any, as may be
required by the by-laws:

Provided that the board of directors may in any case require
up to thirty days’ notice in writing of the intention to withdraw, or such
additional notice as may in any particular case be approved or required
by the Registrar;

(b) for a stipulated term by agreement between the member and the
society and on such conditions as may be prescribed in the by-laws.

(4) Moneys may be deposited by a member from his personal funds or
by written order-

(a) upon the society to deduct and deposit in his savings account a

designated amount or amounts from payments due to him for
agricultural products delivered by him to the society; or

(b) upon any marketing board or other organisation to deduct and
deposit in his savings account with the society a designated amount or
amounts from payments due to him for agricultural products delivered
by him to, or under the authority of, such marketing board or other
organisation.

(5) The rates of interest payable on savings deposits for an indefinite
period and for a stipulated term respectively, shall be set from time to
time by the board of directors, within such limits as may be prescribed
by the rules, and approved by the Registrar.

(6) Moneys deposited in the society for a stipulated term shall not be
withdrawable before maturity except in the case of the death or
disability of the member, or his removal from the district served by the
society and his desire to terminate his membership, or other emergency,
but the board of directors may in any case require up to thirty days’
notice in writing of the intention to withdraw the whole or part of such
moneys, or such additional notice as may in any particular case be
approved or required by the Registrar, and the rate of interest specified
in any agreement respecting deposits for a stipulated term may be
discounted in such manner as may be determined by the board of
directors or as set out in the deposit agreement.

(7) No member shall place in a deposit account for a stipulated term, in
one amount or in an amount additional to amounts already deposited by
him, such sum as would cause the total amount of his money in such
deposit account to exceed one-fifth of the total amount of all such
deposits in the society at that time.

(8) A member depositing moneys with the society for a stipulated term
may be required to maintain paid-up share capital in the society in such
amount as may be designated in the by-laws.

(9) Subject to the approval of the board of directors, a member may
assign his savings deposits as security for a loan from or through the
society.

34. The Registrar may approve and register by-laws for the purposes
mentioned in section thirty-three if he is satisfied that- Registration of
by-laws to
encourage thrift

(a) the purpose of the by-laws has been discussed by the members in
educational meetings;

(b) the society is in a good financial position or, if it is a new society,
its registration is considered to be economically advisable;

(c) savings deposits and withdrawals therefrom will be recorded
separately from other transactions of the society;

(d) adequate safe-keeping facilities and accounting services will be
provided by the society;

(e) the society will furnish such returns respecting savings deposits
as he may require;

(f) officers of the society responsible for funds have received such
information and training as he deems necessary for the proper
supervision and management of savings deposits.

35. (1) For the purpose of providing credit required by farmers, a
society which includes in its objects the marketing of agricultural
products, the handling of agricultural requisites or the provision of
farming services may, subject to this Act and the rules, be authorised by
its by-laws to grant credit or make loans to its members for such
purposes and under such terms and conditions as may be prescribed in
the by-laws. Provision of
credit by
agricultural
societies

(2) Loans may be made by the society from its own funds or, under
conditions prescribed in the by-laws, from the proceeds of loans made to
the society by credit organisations or other persons.

(3) Any borrowing by the society for the purpose of making loans under
subsection (2) shall be subject to the approval of the Registrar.

(4) A society may grant credit or make loans under this section-

(a) for productive purposes, including seasonal loans or advances
for financing the production and marketing of agricultural products, for
the purchase of agricultural requisites, for farm improvement, and for
housing and building materials;

(b) for provident purposes, including the purchase of consumer
goods and household necessities for the use of the borrower and his
family, consolidation and repayment of debts, and payment of taxes, and
for payments towards insurance, health and education;

(c) with the approval of the Registrar, to another society which is a
member.

(5) The by-laws may prescribe the maximum credit or amount that may
be lent to a borrower, the maximum period within which loans for
varying purposes shall be repaid, and the maximum rate or rates of
interest that may be charged for credit or loans.

(6) The society shall require such type of security from a borrower as
the by-laws may prescribe or as may be approved by the board of
directors:

Provided that no society shall lend money under this section on
mortgage of any description of immovable property except with the
permission of the Registrar.

(7) No credit or loan shall be made to a person who is not a member in
good standing with the society.

36. (1) Subject to the provisions of this Act and the rules, the board of
directors shall have general supervision of all credit and loans made by a
society in accordance with section thirty-five, shall fix the amount of
credit or loan in each case, shall determine the security required before
the credit is granted or the loan is made, and shall fix the rate of interest. Board of
directors to
supervise credit
and loans

(2) A majority of the members of the board of directors shall be present
when an application for credit or a loan is under consideration, and the
credit or loan applied for shall not be given or made unless the

application is approved by at least a majority of those present.

(3) No officer of the society shall be allowed to borrow or receive credit
in excess of the sum of his shares in the society, his loan capital in the
society, if any, and his savings deposits in the society, if any, assigned as
security to the society, unless the application is approved, in the absence
of the applicant, by a majority of the board of directors and also by the
Registrar.

(4) The board of directors, when reviewing an application for a loan,
shall consider-

(a) the character of the applicant;

(b) whether the loan is for a productive or provident purpose;

(c) the ability of the applicant to repay the loan;

(d) the availability to the applicant of technical advice respecting
agricultural production and farm management practices if the loan is for
a productive purpose;

(e) the security to be given by the applicant, and whether one or
more guarantors of the loan will be required.

(5) To encourage thrift, the board of directors may, as a condition of the
loan being granted, require that the applicant agree, during the period
within which the loan is to be repaid, to purchase shares in the society,
or deposit moneys in a savings deposit account (if the society is
permitted to accept savings deposits) in such amount or amounts as may
be specified.

(6) A full and correct record shall be kept of all the proceedings of the
board of directors in carrying out its duties under this section, and the
record shall be available for inspection by the Registrar.

(7) The directors of a society shall examine regularly its credit and loan
transactions and, if further such transactions are likely to impair the
financial situation of the society, the directors shall direct the proper

officers to refuse further credit and withhold further loans for such
period as the directors may determine.

37. The Registrar may approve and register by-laws for the purposes
mentioned in section thirty-five if satisfied that-
(a) the purpose of the by-laws has been discussed by the members in
educational meetings;
(b) the society is in a good financial position or, if it is a new society,
its registration is considered to be economically advisable;
(c) the granting of credit and making of loans, their supervision and
repayment will be recorded separately from other transactions of the
society;
(d) adequate safe-keeping facilities and accounting services will be
provided by the society;
(e) the society will furnish such returns respecting grants of credit
and lending operations as he may require;
(f) officers of the society responsible for the supervision of credit
and loans have received such information and training as he deems
necessary. Registration of
by-laws for the
provision of
agricultural
credit

38. A society with authority to provide and administer agricultural
credit in accordance with section thirty-five may, by its by-laws, be
authorised to accept interest-bearing savings deposits in accordance
with section thirty-three. A society may
combine thrift
services with
the provison of
credit

39. A society may be registered for one or more of the following
principal objects and purposes:
(a) providing, operating and maintaining farm machinery and other
equipment for use by or on behalf of the members in the production of
agricultural products;
(b) storing, marketing or otherwise utilising agricultural products
produced by members with the assistance of services provided by the
society under paragraph (a);
(c) handling agricultural requisites for the production of agricultural
products produced by members with the assistance of services provided
by the society under paragraph (a). Farm
machinery and
related services

40. A society may be registered to assist producers of livestock of Assistance to

various kinds, including dairy cattle and poultry, with one or more of the
following principal objects and purposes:
(a) providing artificial insemination or other breeding services for
livestock owned by members;
(b) assembling, transporting, selling by public auction or otherwise
handling various kinds of livestock or poultry produced by members,
and providing buildings and equipment required for such services;
(c) purchasing or otherwise acquiring livestock or poultry for
feeding or finishing by members on a contract or other basis;
(d) purchasing or otherwise acquiring livestock or poultry as
foundation, replacement or breeding stock for production by members;
(e) establishing and maintaining central feeding stations for the use
of members engaged in the production of livestock;
(f) providing a hatching, brooding or raising station for the use of
members engaged in poultry production;
(g) purchasing, procuring or maintaining bees for the production of
honey for the use by or on behalf of members;
(h) purchasing, taking on lease or otherwise acquiring and
maintaining land for the grazing of livestock of members;
(i) purchasing, taking on lease or otherwise acquiring land for the
production of fodder and feeding stuffs required by members engaged in
the production of livestock or poultry;
(j) purchasing, taking on lease or otherwise acquiring, maintaining
and managing a livestock or poultry enterprise for the production of
meat, milk and other dairy products, poultry and eggs, on behalf of its
members;
(k) contracting for or otherwise providing veterinary services to
members engaged in the production of livestock or poultry, and fixing
and collecting fees payable by members to the society to finance such
services:
Provided that no society shall be registered with this object
without the written approval of the Minister responsible for veterinary
services. livestock, dairy
and poultry
producers, etc.

41. A society may be registered for one or more of the following
principal objects and purposes:
(a) the provision and maintenance of water supplies for household
and farm use;
(b) the provision and maintenance of water supplies for irrigation Land
improvement
services

purposes and the management of irrigation projects on behalf of
members;
(c) maintaining and supervising an area of land for watershed
development, flood control, drainage, soil erosion control, and crop
rotation.

42. (1) To achieve its objects a society registered with any of the
objects mentioned in sections thirty-nine to forty-one inclusive, may
provide in its by-laws- Special
provisions in
the by-laws

(a) that each member undertake to lend such funds and furnish such
fixed or working capital for the society as may be designated from time
to time by the directors;

(b) that each member undertake to contribute such labour or other
services as may be necessary for the operation of the society.

(2) Where the objects of a society include the provision of grazing land
in accordance with paragraph (h) of section forty, or the production of
fodder and feeding stuffs in accordance with paragraph (i) of the same
section, the by-laws may authorise the directors to assign quotas for the
number of head of livestock to be grazed by each member on land
maintained by the society, or for the provision of fodder and feeding
stuffs sold to or otherwise provided to each member from such land.

(3) Where the objects of a society include those mentioned in section
forty or forty-one, the by-laws may provide that no dividend shall be
paid to its members on share capital, that no patronage bonus shall be
paid, and that any net surplus shall be transferred to reserve to meet
unforeseen losses or other contingencies, or to maintain and improve the
services provided by the society.

43. A society may be registered for the principal object and purpose of
contracting with, or arranging with, any technically qualified person or
organisation to provide advisory and supervisory services to assist
members with farm management practices connected with the farm
operated by each, and to collect fees from members for payment by the
society for such advisory or supervisory services. Advisory or
supervisory
services for
farmers

44. A society may be registered for the principal object and purpose of Storage of

purchasing, taking on lease, building or otherwise acquiring, operating
and maintaining local, district or regional warehouses for storage of
agricultural products produced by its members for their own use or for
sale; and purchasing, hiring or otherwise acquiring and operating
equipment for the assembling, cleaning and transporting of such
products. agricultural
products

45. A society may be registered for the principal object and purpose of
purchasing, hiring or otherwise acquiring, operating and maintaining
lorries, trucks and other equipment required for assembling and
transporting to market, agricultural products produced by its members,
and for the assembling and transporting of agricultural requisites and
other goods required by its members. Transportation
of agricultural
products and
farm supplies

PART VI
CO-OPERATIVE SERVICES FOR PRODUCERS OF
NATURAL PRODUCTS

46. (1) A society may be registered having as its principal objects and
purposes, or any of them, the production, processing, utilisation or
marketing of natural products, and rendering to its members services
ancillary to such objects, including- Co-operative
services for
producers of
natural products

(a) purchasing, hiring or otherwise acquiring, maintaining and
operating boats, motors, nets and other equipment to be used in group
fishing by members, or by each member on an individual basis, and the
marketing of fish and fish products;

(b) obtaining or providing equipment, contracts and management
services for the production and marketing of pulp wood, fuel wood,
timber, lumber and other forest products, or products derived wholly or
partially there from;

(c) subject to the provisions of the Mines and Minerals Act,
obtaining prospecting, exploration and mining licences and obtaining or
providing equipment, contracts and management services for the
development, utilisation and disposal of the products of any mine. Cap. 213

(2) A society registered under this section which includes amongst its

objects the marketing of natural products for its members, may-

(a) be appointed as agent of any marketing board or other authority
established by law for the marketing and distribution of products which
the society may be authorised to market under its by-laws;

(b) make and execute marketing contracts requiring its members to
sell or deliver for sale, for any period of time specified therein, all or any
part of their products as specified in such contracts exclusively to or
through the society or any agencies created by the society, in which case
the provisions of section thirty-two shall apply to any such marketing
contracts.

PART VII
BUILDING CONSTRUCTION AND HOUSING
SOCIETIES

47. A building construction society may be registered for the following
principal objects and purposes: Building
construction
society

(a) building houses and flats for individual or family use, and other
buildings for industrial, business or public use, either for sale by the
society itself or under agreement negotiated with a municipality or other
public body or authority performing a function of government or
providing a public service, or with a company, society, association,
partnership or other organisation or person;

(b) purchasing, manufacturing, processing or otherwise providing
materials for the construction of buildings, or contracting for
architectural services or for the installation of utilities.

48. A housing society may be registered for the following principal
objects and purposes:
(a) building or otherwise acquiring houses or flats for sale to its
members for their individual ownership and use;
(b) building or otherwise acquiring, maintaining and managing
houses or flats for lease to its members; Housing society

(c) purchasing and site planning land for sale or lease to its members
for houses or blocks of flats.

49. (1) A building construction society may, if so provided in its
by-laws, make loans or advances to its members for the purchase of
tools, materials and equipment for their individual use in connection
with building projects undertaken in accordance with section
forty-seven and sell to its members consumer goods and household
necessities. Special powers

(2) A housing society may, if so provided in its by-laws, accumulate the
savings of its members for the building and management of houses and
flats, the ownership of which is vested in the society, or for the making
of loans to its members for the building, purchasing or maintenance of
houses or flats, or for other purposes mentioned in section forty-eight.

(3) A housing society may, if so provided in its by-laws, raise additional
funds by borrowing for a period not exceeding thirty years for the
building of houses and flats, the ownership of which is vested in the
society, or for making loans to its members for the building of houses or
flats, or for the purchasing and maintenance of houses or flats acquired
by them from the society, or for other objects mentioned in section
forty-eight.

50. No building construction, or housing, society shall commnece
operations until it has furnished satisfactory evidence to the Registrar
that the members have received the training required for the satisfactory
completion of the building projects which the society expects to
undertake, and that the capital furnished by its members is equal to such
amount as may initially be prescribed by the by-laws. Commencement
of operations

51. The by-laws of a building construction, or housing, society shall,
where applicable, provide-
(a) the manner in which each member is to furnish capital for the
purposes of the society, and the amounts thereof;
(b) the manner in which a member may be required to pay for
services furnished by the society, whether in the form of rent, purchase
price of housing, or payment for other services;
(c) the manner in which the furnishing of labour services or
materials by a member may be valued in payment for any services Special features

received by him through the society.

52. Every housing society shall, before the distribution of any net
surplus, set aside an amount annually in the form of a sinking fund for
the repayment of any bonds, debentures or other funds borrowed in
accordance with subsection (3) of section forty-nine, both as to principal
and interest. Sinking fund

PART VIII
CREDIT UNIONS

53. A co-operative savings and credit society, in this Part referred to as
a credit union, may be registered for the promotion of thrift among its
members and the creation of a source of credit for its members at
controlled rates of interest, exclusively for provident or productive
purposes. Objects of a
credit union

54. One or more of the words “savings”, “thrift” and “credit” shall form
part of the name of every society registered exclusively for the purposes
mentioned in section fifty-three, and, with the approval of the Registrar,
the word “co-operative” may be omitted from the registered name. Name

55. Subject to the provisions of section fifty-six, the membership of a
credit union shall be drawn from groups of persons having a common
bond of occupation or association, or from groups living within a
well-defined neighbourhood or community, or within a rural or urban
district. Membership
generally

56. (1) A credit union may, with the approval of the Registrar, admit as
members another credit union or other society and any of the following
organisations: Membership of
certain
organisations

(a) a municipality or other public body performing a function of
government or providing a public service;

(b) a religious organisation;

(c) a labour organisation, an agricultural organisation, or a
benevolent or fraternal organisation;

(d) an organisation operated exclusively for charitable, educational
or community welfare purposes, no part of the income of which is
payable to or otherwise available for the personal benefit of any
proprietor, member or shareholder thereof.

(2) A society, municipality or other organisation mentioned in
subsection (1), which is a member of a credit union, may vote at
meetings of the credit union by a duly appointed delegate in accordance
with the by-laws.

(3) The terms and conditions under which a member society or
organisation may obtain loans from a credit union shall be set forth in
the by-laws, and shall not be inconsistent with the provisions of this Act,
and the total amount of all loans made by the credit union to member
societies or organisations shall not at any time exceed an amount
equivalent to one-quarter of the combined paid-up capital and deposits
of the credit union.

(4) Except with the approval of the Registrar, no credit union shall
admit to membership another credit union or society or other
organisation unless their membership is drawn from the same general
group as that composing the membership of the credit union.

57. For the purposes of carrying out its objects every credit union may,
subject to the provisions of this Act and the rules-
(a) receive the savings of its members as payments on shares and as
deposits, either in individual or in joint accounts, and receive deposits
from other societies, the Government of Zambia, or any department,
board, bureau or agency thereof, any municipality or statutory authority
performing a function of government or providing a public service, and
any company, the majority of the shareholders of which are members of
the credit union;
(b) make loans to its members for provident or productive purposes;
(c) deposit money in commercial banks in Zambia, the Post Office
Savings Bank, building societies registered under the Building Societies
Act, loan companies and trust companies authorised to receive money
on deposit, and with any federation registered under Part XII and Powers of a
credit union
Cap. 412

authorised to receive money on deposit;
(d) invest in any stocks, bonds or securities of the Government of
Zambia, and, with the approval of the Registrar, to an extent not
exceeding one-quarter of its capital, in paid-up shares of other credit
unions or in securities issued by and secured by first mortgage on
immovable property of a society, or to an extent not exceeding one-half
of its capital in paid-up shares of any federation registered under Part
XII with objects of making loans to and accepting deposits from its
member societies:
Provided that the total amount of investments made by a credit
union under this paragraph, other than in stocks, bonds and securities of
the Government of Zambia, shall not exceed one-half of its capital;
(e) borrow money as provided by section fifty-eight.

58. (1) Subject to the approval of the Registrar, a credit union may
borrow- Borrowing
powers of a
credit union

(a) upon a vote of at least three-fourths of the members of the board
of directors-
(i) moneys not exceeding in the aggregate one-quarter of its
combined capital, surplus and deposits; or
(ii) moneys not exceeding in the aggregate an amount equal to the
total of the market value of stocks, bonds and securities of the
Government of Zambia held by the credit union, or an amount equal to
the total value of the unencumbered shares and deposits for a stipulated
term held by the credit union in any federation registered under Part XII
with objects to lend money to and accept deposits from member
societies, whichever such amount is the greater; or

(b) upon a special resolution passed by the members of the credit
union, approving a recommendation of at least three-quarters of the
members of the board of directors, additional moneys from time to time,
so long as the balance owing by the credit union in respect of all moneys
borrowed at no time exceeds one-half of its combined capital, surplus
and deposits.

(2) The Registrar shall review annually the borrowing of a credit union
under subsection (1) and may at any time withdraw his approval of
further borrowings under that subsection.

(3) A credit union may, with the approval of the Registrar, charge,
hypothecate, mortgage or pledge its immovable or movable property,
rights and powers, undertakings, franchises, book debts and unpaid calls
of the credit union, to secure any liability for the repayment of moneys
borrowed under subsection (1).

59. No credit union shall commence lending operations until it has
furnished satisfactory evidence to the Registrar that such number of
members as he may specify have subscribed for the minimum number
of shares prescribed in the by-laws for each member, and have made the
payments initially required thereon. Commencement
of lending
operations

60. A credit union may, with the approval of the Registrar, for its
purposes hold, purchase or take on lease in its own name, and sell,
exchange, mortgage or lease, any land or buildings. Land and
buildings

61. (1) Subject to the provisions of subsections (2) and (3), at the first
general meeting held after the receipt of its certificate of registration a
credit union shall elect- Election and
appointment of
officers

(a) a board of directors of not less than five in number;

(b) a credit committee of not less than three members (unless the
by-laws provide that the credit committee shall be appointed by the
board of directors);

(c) a supervisory committee of three members (unless the by-laws
provide that one member of the supervisory committee shall be
appointed by the board of directors).

(2) No employee of a credit union, other than the Secretary, shall be a
director.

(3) No director, nor any member of the credit committee, nor any
employee of the credit union, shall be a member of the supervisory
committee.

62. In addition to such other duties as are imposed by this Act and the Special duties

rules, the board of directors of a credit union shall-
(a) determine the maximum individual shareholdings, the maximum
individual loans and the aggregate amount of such loans which the
credit union may make from time to time within the limits laid down in
the by-laws;
(b) determine the interest rates on loans and deposits;
(c) declare dividends; and
(d) make and have charge of the investments of the credit union,
other than loans to members. of directors

63. (1) Subject to the provisions of sections sixty-eight and sixty-nine,
the credit committee of a credit union shall have the general supervision
of all loans to members and, subject to any general order of the board of
directors, the provisions of this Act and the rules, shall fix the amount of
each loan. Jurisdiction of
credit
committee

(2) A majority of the credit committee shall be present when an
application for a loan is under consideration and the loan applied for
shall not be made unless the application is approved by a majority of the
members of the committee present.

(3) A full and correct record shall be kept of all proceedings of the credit
committee in carrying out its duties, and the record shall be available for
inspection by or under the direction of the Registrar.

64. (1) Every loan made by a credit union shall be for a provident or
productive purpose. Loans by credit
unions

(2) Every application for a loan shall be on a form provided by the credit
committee, and shall set forth the purpose for which the loan is desired,
the security, if any, offered and such other information as may be
required by the committee.

(3) The credit committee shall inquire carefully into the character and
the financial conditions of each applicant for a loan and his sureties or
guarantors, if any, in order to determine his ability to repay the loan, and
shall determine whether the loan applied for is for a provident or
productive purpose and will be of probable benefit to the borrower.

(4) Except for loans of such small amounts as may be prescribed in the
rules, the credit committee shall require security to be given on all loans
and shall determine the particular security to be taken in each case.

(5) An assignment of shares or of deposits, or a negotiable instrument
endorsed by a guarantor, may be accepted as security for a loan.

(6) The security for a loan shall be in the possession, or within the
control, of the credit union before the loan is made, and where security
covering immovable or movable property is required for the purpose of
securing the repayment of a loan, the proceeds of the loan shall not be
made available to the applicant until all documents necessary to
establish the claim of the credit union on the security in case of default
have been duly executed and, if so required, registered.

(7) Notwithstanding the provisions of subsection (6), the lending of
money on mortgage of any description of immovable property shall be
subject to the approval of the Registrar.

(8) Where more loan applications are pending than can be granted by
the credit union from the funds available, preference shall be given by
the credit committee to the applicants for the smaller loans in the order
received if the need for the loan and the security offered compare
favourably with the need and the security offered with respect to
applications for larger loans.

65. (1) No loan shall be made by a credit union if it would cause the
borrower to become indebted to the credit union for an amount in the
aggregate of all loans made by the credit union to the borrower, in
excess of eight per centum of its paid-up capital, surplus and deposits, or
in excess of such lesser percentage as may be provided in the by-laws. Maximum of
loans to a
member

(2) Notwithstanding the provisions of subsection (1), the by-laws of a
credit union may authorise the making of loans for amounts in excess of
eight per centum of its paid-up capital, surplus and deposits, to a
municipality, or to a statutory body performing a function of
government or providing a public service, or to a society:

Provided that the total of all loans made to all such borrowers shall not at

any time exceed an amount equivalent to one-quarter of its paid-up
capital, surplus and deposits.

66. A credit union shall not, without the approval of the Registrar,
make any, or any further, loans if the aggregate of its reserves consisting
of cash on hand and on deposit with a bank, or other organisation
authorised to accept money on deposit, is less than ten per centum of its
combined paid-up capital and deposits. No loans in
certain cases

67. (1) Subject to its by-laws, and it having such minimum amount of
paid-up capital, surplus and deposits as shall be prescribed in the rules, a
credit union may make loans- Restrictions on
making loans in
certain cases

(a) for the purchase of farm land for the personal use of the
borrower, and for the purchase or erection of buildings necessary for the
conduct of farming operations on such land;

(b) for the purchase or erection of a dwelling-house or other
buildings for the personal use of the borrower and the land on which
such dwelling-house or other buildings are situated or are to be erected;

(c) for the purchase of land or the purchase or erection of buildings
required for use in the operation of a business of which the borrower is
the sole owner or proprietor, whose total assets before the loan is made
do not exceed such amount as shall be prescribed in the rules;

(d) where the borrower is a society, for the purchase of land, or the
purchase or erection of buildings, required for the use of that society, if
the total assets of the society, before the loan is made, do not exceed
such amount as may be prescribed in the rules.

(2) No loan shall be made by a credit union for financing the operation
of a business except for such purposes and under such conditions as
shall be prescribed in the rules.

(3) The total amount of loans made by a credit union in accordance
with this section shall not at any time exceed an amount equivalent to
one-quarter of its paid-up capital, surplus and deposits.

68. An application for a loan under section sixty-seven shall be Approval of

considered by, and shall require the approval by majority vote of, the
following persons meeting together:
(a) a majority of the members of the credit committee; and
(b) two or more directors; and
(c) one member of the supervisory committee. loans for certain
purposes

69. No officer of a credit union shall be allowed to borrow in excess of
the value of his shares and deposits, assigned as security to the credit
union, and the market value of any stock, bonds or securities of the
Government of Zambia held by him and so assigned, unless the
application is approved by a majority vote, taken in the absence of the
applicant, of the following persons meeting together:
(a) a majority of the members of the credit committee; and
(b) two or more directors; and
(c) one member of the supervisory committee. Restrictions on
loans to officers

70. Subject to the provisions of section fifty-seven, no credit union
shall lend money to, or accept deposits from, a person who is not a
member of the credit union. Prohibitions

71. (1) No officer or employee of a credit union shall lend money from
the funds of the credit union to an applicant for a loan unless the
application and loan have been approved as required by this Act. Un-authorised
loans prohibited

(2) An officer or employee who contravenes this section is guilty of an
offence.

72. The interest rates on loans made by a credit union shall not exceed
one per centum per month on unpaid balances. Rates of interest
on loans

73. The credit committee shall report-
(a) at least monthly to the board of directors regarding the number
of loans made during the period under review, the amount lent, renewals
of loans granted, if any, the rate of interest where the rate varies between
different types and classes of loans, and the purposes for which loans
were made;
(b) to the annual general meeting respecting the work of the Reports of
credit
committee

committee during the preceding year, and shall provide thereat a
summary showing the purposes for which loans were made but without
disclosing the name of any borrower.

74. The supervisory committee of a credit union shall-
(a) make regular examinations of the affairs of the credit union;
(b) require at least one of its members to sign the monthly or other
financial statement prepared by the treasurer;
(c) unless an auditor of the credit union has been appointed by or
with the approval of the Registrar, make an annual audit and submit a
report thereon to the annual general meeting signed by at least two
members of the committee;
(d) fill any vacancy in its membership until the next annual general
meeting;
(e) if approved by unanimous vote of all members of the committee,
suspend any officer of the credit union and call a meeting of the credit
union to consider the report of the committee on the suspension;
(f) call a special meeting of the credit union to consider any matters
which, in the opinion of the committee, should be placed before the
credit union;
(g) send to the Registrar within such period of time and in such form
as he may require, details of all examinations made by the committee in
accordance with this section;
(h) maintain a full and correct record of all its examinations and
proceedings undertaken in accordance with the provisions of this Act
and make the record available for inspection by or under the direction of
the Registrar. Duties of
supervisory
committee

75. (1) Where the combined share capital and deposits of a credit union
exceed such an amount as shall be prescribed from time to time by the
Minister by statutory order, the supervisory committee shall request the
board of directors to engage as auditor, with the approval of the
Registrar, a person publicly carrying on the profession of accountant in
Zambia to conduct the annual audit of the books and accounts. Engagement of
auditor for a
credit union

(2) When an auditor is so engaged, the supervisory committee shall
submit the auditor’s report to the next annual general meeting.

76. (1) Shares in a credit union may be paid for by instalments at the Shares in credit

times and in the manner determined by the by-laws. union

(2) The by-laws may require each member to subscribe for such
minimum number of shares as may be designated in the by-laws.

(3) After a member has paid for his initial membership share and for
such minimum number of shares as may be prescribed pursuant to
subsection (2), he may, unless the directors decide otherwise, continue
to make payment for additional shares without being required to sign a
written application to purchase such additional shares:

Provided that no member, other than a society, may hold more than
one-fifth of the shares of a credit union or such lesser amount as the
by-laws may specify.

(4) Moneys paid for or on account of shares may be withdrawn on
application being made in writing on any day when the registered office
of the credit union is open for business, but the board of directors may in
any case require up to ninety days’ notice of intention to withdraw the
whole or any part of any such moneys, or such additional notice as may
in any particular case be required by, or approved by, the Registrar.

77. (1) A member may deposit moneys in a deposit account in a credit
union in such minimum amounts as may be prescribed in the by-laws. Members’
deposits and
withdrawals

(2) If permitted by the by-laws, a member may, by agreement with the
credit union, deposit moneys in an account with a credit union for a
stipulated term, for such minimum and maximum periods and subject to
such other conditions as may be prescribed in the by-laws.

(3) Moneys deposited by a member in a credit union for a stipulated
term shall be in such amounts as may be agreed to by the credit union:

Provided that the aggregate of all amounts received on deposit for a
stipulated term shall not at any time exceed the amount of the paid-up
share capital of the credit union.

(4) Moneys deposited in the credit union pursuant to subsection (1) may
be withdrawn on any day the credit union is open for business:

Provided that-
(i) the board of directors may in any case require up to thirty days’
notice in writing of the intention to withdraw the whole or any part of
such moneys, or such additional notice as may in any particular case be
required by, or approved by, the Registrar;
(ii) if moneys deposited for a stipulated term pursuant to subsection
(2) are withdrawn before maturity, the rate of interest fixed in the
deposit agreement may be discounted in such manner as may be
determined by the board of directors or as may be specified in the
deposit agreement.

78. (1) Every credit union shall maintain a reserve to meet withdrawals
of moneys in share and deposit accounts, consisting of cash on hand, or
in a bank or other organisation authorised by law to accept moneys on
deposit, and such reserve shall not, at the end of any calendar month, be
less than ten per centum of the liabilities of the credit union to its
members in respect of shares and deposits at that time. Cash reserve to
meet
withdrawals

(2) Cash may only be kept on hand by a credit union in accordance with
the conditions respecting safe-keeping facilities, insurance and other
safeguards prescribed in the rules and approved in the case of each credit
union by the Registrar.

79. (1) When determining the net surplus made by a credit union, the
board of directors shall deduct and set aside annually in a reserve fund
against uncollectable loans and probable future losses such sum as shall
be equal to at least twenty per centum of the year’s surplus, until the
reserve fund is equal to, and remains equal to, at least ten per centum of
the outstanding loans repayable to the credit union, or to such other
greater amount as may be prescribed in the rules or the by-laws. Distribution of
net surplus of
credit union

(2) After determining the net surplus, the board of directors of a credit
union shall present to the annual general meeting a declaration
respecting the distribution of the net surplus, which may provide-

(a) that a dividend of a specified amount not exceeding six per

centum per annum be paid to the members on all fully paid-up shares as
shown by the books of the credit union at the end of the preceding
financial year, or held by a member for not less than such part of the
preceding financial year as may be prescribed in the by-laws;

(b) that there be set aside, if the by-laws so provide, a specified
amount not exceeding five per centum of the net surplus, to be used for
such educational purposes as the directors may determine;

(c) that the remainder of the surplus, if any, be divided amongst the
members as a borrower dividend in proportion to the amount of interest
paid by them to the credit union on all loans or on specified classes of
loans during the preceding financial year.

PART IX
ARTISANS’, CRAFTSMEN’S AND CONTRACTING
SOCIETIES

80. A society may be registered for the following principal objects and
purposes, or any of them:
(a) producing, preparing, adapting, processing and manufacturing
goods, wares and merchandise from materials of every description, for
sale or under contract;
(b) undertaking contracts or sub-contracts, by the provision of
labour and technical services, materials and equipment, for land
clearance or reclamation, road construction, the construction of
industrial plants, public utilities or facilities for the development of
natural resources, and for furnishing services for the maintenance of
buildings, industrial plants and sites, mines and public utilities;
(c) providing all necessary materials, equipment, facilities and
services to enable members and their families to produce, prepare, adapt
or process goods, wares and merchandise in their homes, either for
individual sale by each member or for sale by or through the society;
(d) rendering services to its members and non-member patrons as
contractors, or as producers, processors, and manufacturers of goods,
wares and merchandise, which are ancillary to their operations or
activities. Production,
manufacture
and sale of
goods

81. To achieve its objects a society registered in accordance with Special

section eighty may make provision in its by-laws regarding-
(a) the extent of the liability of each member to lend funds and to
furnish fixed working capital for the society;
(b) the extent to which each member shall undertake by contract or
otherwise to contribute labour or other services necessary for the
operation of the society;
(c) the conditions under which the society may make loans or
advances to members to finance their work;
(d) the sale of consumer goods and household necessities to
members. provisions in
the by-laws

PART X
CONSUMERS’ SOCIETIES

82. (1) A society may be registered for the principal purpose of
purchasing, procuring, processing, manufacturing, exchanging, hiring
and dealing in goods, wares and merchandise, including foodstuffs,
clothing, household goods, fuel and other necessities of all kinds for
individual or family consumption or use, as well as agricultural
requisites, for sale at retail to its members and non-member patrons. Consumers’
societies

(2) The membership of a consumers’ society may be limited to persons
living within a well-defined neighbourhood or community, or within an
urban or rural district.

83. To achieve its objects a consumers’ society may provide in its
by-laws-
(a) that no goods be sold on credit, or alternatively the conditions
and restrictions to which the sale of goods on credit shall be subject; Special
provisions in
the by-laws

(b) that in lieu of the payment in cash of patronage bonus due to a
member, the directors may allot to him shares in the society in the
manner and to the number mentioned in the by-laws, and that, upon such
allotment, such member shall be deemed to have made an application
for such shares, and shall be under an obligation to pay therefor out of
the patronage bonus due to him, but only to that extent;
(c) that in lieu of payments of patronage bonus in cash, the society

may require its members, without the completion of individual
contracts, to undertake to make loans to the society from such patronage
bonus for such purposes and under such conditions as are provided in
the by-laws, which shall have the same effect as if each member had
entered into a separate contract with the society, and shall create a legal
obligation on the part of each member to make such loans, but only to
the extent of such patronage bonus.

84. (1) The board of directors of a consumers’ society shall examine
regularly the condition of the society’s business by requiring the proper
officers to furnish during every financial year, monthly or quarterly, or
at such other times as the directors may determine, a report disclosing
the results of the operations of the society during a specified period,
including information respecting accounts receivable and accounts
payable, other assets and liabilities, income and expenses, purchases and
sales, and a comparison of such information with the corresponding
period of the previous financial year, for the purpose of enabling the
directors to determine the progress being made by the society in
achieving its objects. Special
responsibilities
of directors of a
consumers’
society

(2) The directors shall examine regularly all credit or hire-purchase
transactions to determine whether or not they are in conformity with the
by-laws of the society, and if, in the opinion of the directors, such
transactions are likely to impair the financial situation of the society, the
directors shall direct the proper officers to refuse further credit and
refrain from entering into further hire-purchase transactions for such
period as the directors may determine.

85. No officer or employee of a consumers’ society acting on its behalf
shall purchase or sell goods on credit except in accordance with
instructions given by the board of directors. Credit
controlled by
directors

86. A consumers’ society may provide in its by-laws that no member
shall be eligible for election as a member of the board of directors if any
amount owing by him to the society is in arrear, or if he has failed to
obtain or purchase from the society during its preceding financial year,
goods, wares, merchandise or supplies to the value stipulated in the
by-laws. Qualifications
for election in
certain cases

87. Where a consumers’ society has for its objects the providing of
other services to its members, or members and non-member patrons, this Application of
Part X

Part shall nevertheless apply to that society with respect to the purchase
and sale of goods, wares and merchandise, or agricultural requisites, if
any, at retail.

PART XI
COMMUNITY SERVICE SOCIETIES

88. A society may be registered for the benefit of the community in
which its members reside with one or more of the following objects:
(a) operating and maintaining a public or community hall or
community centre, a recreational ground or any other facilities solely for
health, community welfare, civic improvement, public entertainment,
cultural activities or recreation; or
(b) providing services for procuring health care, or other services of
a social or educational nature to promote occupational or community
group welfare. Community
buildings,
facilities or
services

89. (1) A society registered under section eighty-eight shall not pay a
dividend or patronage bonus, and no part of the net surplus arising from
the yearly operations of the society shall be paid to any member or
patron. No dividends
on capital or
patronage
bonus

(2) Any net surplus arising from the yearly operations of the society
shall be set aside as a reserve fund for unforeseen losses or other
contingencies, or for the maintenance or further development of the
services provided by the society, or the directors, if so authorised by the
annual general meeting and permitted by the by-laws, may donate the
net surplus, in whole or in part, to one or more local organisations with
objectives beneficial to the community.

90. Where a community service society is to be registered under this
Part for the main purpose of contracting for or otherwise arranging for
the payment of medical or hospital or nursing services on behalf of its
members, and collecting premiums assessed upon its members for
payment by the society to persons or organisations providing these
services, such society shall not be registered without the written
approval of the Minister in charge of health services. Provision of
health services

PART XII
FEDERATIONS

91. A federation of societies, or of co-operative unions, or of societies
and co-operative unions, may be registered as a society under this Act
for one or more of the following purposes:
(a) carrying on any co-operative enterprise envisaged by this Act,
and, without limiting the generality of the foregoing, providing facilities
for- Objects

(i) processing and marketing agricultural products or natural
products;

(ii) procuring, manufacturing and selling agricultural requisites and
consumer goods at wholesale;

(iii) establishing and operating a co-operative savings and credit
service for member societies;

(iv) providing management and other services required by building
construction or housing societies;

(v) managing, supervising and co-ordinating activities of farming
societies and other societies providing special production services to
agriculturists;

(vi) acquiring, maintaining and operating buildings and equipment
for the assembling, warehousing and transporting of agricultural
products;

(vii) operating services for the transportation of agricultural products
and other commodities;
(b) carrying on, encouraging and assisting educational and advisory
work relating to co-operative enterprise, and, without limiting the
generality of the foregoing, establishing and operating a college or
institute for education and training in co-operative principles and
operating methods, operating district or regional training schools for
officers and members of co-operative societies, providing

correspondence courses regarding co-operative principles and operating
methods and providing information on co-operative principles and
practices to youth groups;
(c) rendering services designed to ensure efficiency and uniformity
in the conduct of the business of its member societies, standardising
their book-keeping, accounting and other procedures, and providing an
auditing service;
(d) reducing operating costs by arranging for group bonding of
co-operative society employees, and purchasing book-keeping and other
supplies for sale to its members;
(e) printing, publishing and circulating any newspaper or other
publication designed to foster or increase interest in co-operative
enterprises, principles and practices.

92. The Registrar may, in his discretion, dispense with the requirement
that the word “co-operative” shall form part of the name of a society,
when such society is a federation. Use of the word
“co-operative”

PART XIII
MEMBERSHIP

93. Subject to the provisions of this Act, membership of a society shall
be governed by its by-laws, but in no case shall a society fix any limit to
the number of its members. Membership
governed by
by-laws

94. (1) Each applicant for the registration of a new society who has
subscribed for one share in the society or who has paid the membership
fee, if any, shall be deemed to have agreed to become a member of the
society, and his name shall, upon its registration, be entered in the
register of members. Who may be
members

(2) No person, other than those mentioned in subsection (1), shall
become a member of a society until his written application for
membership has been approved by resolution of the board of directors
and recorded in the minutes.

(3) Each applicant for membership shall be notified in writing that his

application has been approved or has not been approved.

(4) Unless the by-laws provide to the contrary, a person of the age of
sixteen years may become a member of a society, but such person shall
not be eligible to act as a member of the board of directors or of any
committee of the society until he has reached the age of twenty-one
years.

(5) An applicant, other than another society or other organisation, shall
not be admitted to membership unless he is resident within or occupies
land within the society’s area of operation as described in its by-laws.

95. (1) If so provided in its by-laws, a society may receive moneys on
share account, or on deposit account, from or for the benefit of a minor,
and it shall be lawful for the society to pay such minor the dividend or
interest which may become due on any such shares or deposits. Rights of
minors

(2) Any payment or deposit made on behalf of a minor pursuant to
subsection (1) may, together with any dividend or interest, be paid to the
guardian of that minor for the use of the minor.

(3) The receipt of any minor or guardian for money paid to him under
this section shall be sufficient discharge of the liability of the society in
respect of that money.

(4) A minor under the age of sixteen years has only such rights in a
society as may be prescribed in the rules.

96. No member of a society shall exercise the rights of a member until
he has made such payment to the society in respect of membership, or
has acquired such interest in the society, as may be prescribed in this
Act, the rules or the by-laws. Member not to
exercise rights
until due
payment made

97. (1) Where there is no share capital, every member who has paid his
membership fee, if any, in full shall receive a certificate of membership. Certificate of
membership

(2) Subject to subsection (3), a share certificate may be issued on
request.

(3) Shares may be paid for by instalments at the times and in the manner
prescribed by the by-laws, but no share certificate shall be issued to a
member until the shares to which it relates have been fully paid for.

98. Every society shall have a lien on the shares or other interest of its
members in the society for debts due from them to the society, and the
interest of any member in the society shall be subject to a set-off of any
indebtedness by him to the society. Lien on
members’
shares

99. Except in the case of a community service society registered under
Part XI, every society shall, after each annual general meeting, furnish a
statement to each member showing his share capital or other amounts
held to his credit in the society at the end of the previous financial year,
and the amounts, if any, credited to him out of the distribution of the net
surplus resulting from the operations of the society during that financial
year. Certain
societies to
furnish
statements to
members

100. (1) Every society shall keep a register of its members, and of the
shares, if any, held by members, which register shall show and shall be
prima facie evidence of- Every society to
keep a
membership
register

(a) the names, addresses and occupations of the members, the
number of shares held by them respectively, if the society is registered
with share capital, the numbers of such shares if they are distinguished
by numbers, and the amount paid or considered to be paid thereon;

(b) the date on which each person, society or other organisation was
registered or recorded as a member;

(c) the date on which each person, society or other organisation
ceased to be a member.

(2) Every society may be required by the Registrar to furnish him with a
list of members at such time as he may specify, and such list shall be
open for inspection in the office of the Registrar on payment of such fee
as may be prescribed in the rules.

101. (1) Each member or delegate in a society shall have one vote only
at meetings of the society, and there shall be no voting by proxy. Votes of
members and
delegates

(2) In case of an equality of votes, the Chairman shall have a casting
vote.

(3) Where a society comprises other societies which are members of it,
the by-laws of such society shall prescribe the number, or the method of
determining the number, of delegates which those member societies
may appoint to attend and vote at meetings of such society.

102. The fact that any person who has been admitted as a member of a
society has not yet reached the age of twenty-one years shall not prevent
that person from executing any instrument or giving any acquittance
necessary to be executed or given under this Act or the rules, and shall
not be a ground for the invalidation of any contract entered into by such
person with the society, and any such contract entered into by any such
person with the society, whether as principal or as surety, shall be
enforceable at law as against such person, notwithstanding his minority. Contracts with
minors

103. No member, other than another society, shall hold more than
one-fifth of the share capital of a society. Limitation on
share holdings

104. (1) Subject to the provisions of section seventy-six (which relate to
the right of a member of a credit union to withdraw his shares), and
subject to the provisions of subsection (2) of this section, shares may be
assigned or transferred, or may be redeemed or re-purchased by the
society. Assignment,
transfer and
re-purchase of
shares

(2) Every such assignment, transfer, redemption or repurchase shall be
subject to such conditions as may be prescribed in the by-laws of the
society, and shall not be valid unless approved by the board of directors,
who shall not give such approval if it would reduce the total number of
members below the minimum required by this Act for the registration of
the society.

105. The shares or other interest of a member in the capital of a society
shall not be liable to attachment or sale under decree or order of a court Shares or
interest not

in respect of any debt or liability incurred by such member: attachable

Provided that, subject to the by-laws, nothing herein contained shall
prohibit the transfer, assignment or sale of the shares or other interest of
a member to the society, or to any member thereof.

106. (1) On the death of a member, a society may transfer the shares or
other interest of the deceased member to the person nominated in
accordance with the rules made in this behalf, or, if there is no person so
nominated, to the legal personal representative of the deceased member,
or may pay to such nominee or legal personal representative, as the case
may be, a sum representing the value of such member’s share or other
interest, as ascertained in accordance with the by-laws or the rules. Transfer of
interest on
death of
member

(2) A society shall pay all other moneys due to the deceased member
from the society to his legal personal representative.

(3) All transfers and payments made by a society in accordance with
this section shall be valid and effectual against any demand made upon
the society by any other person.

107. (1) Subject to the provisions of section fifteen, the liability of a
past member for the debts of a society as they existed on the date on
which he ceased to be a member shall continue for a period of two years
and no more reckoned from that date: Liability of past
member and
estate of
deceased
member for
debts of society

Provided that, if the first audit of the accounts of the society after his
ceasing to be a member discloses a credit balance in favour of the
society, the financial liability of such past member shall forthwith cease.

(2) Subject to the provisions of section fifteen, the estate of a deceased
member shall be liable for the debts of a society as they existed on the
date of his decease for a period of two years and no more reckoned from
that date:

Provided that, if the first audit of the accounts of the society after his
decease discloses a credit balance in favour of the society, such liability

shall forthwith cease.

108. Subject to any prior claim of the Republic on the property of the
debtor and to the lien or claim of a landlord in respect of rent or any
money recoverable as rent and to any stop-order registered under the
provisions of the Farmers’ Stop-order Act, Chapter 226 of the 1952
Edition of the Laws, and to any agricultural charge registered under the
provisions of the Agricultural Credits Act, and, in the case of
immovable property, to any prior registered charge thereon-
(a) any debt or outstanding demand due and payable to a society by
any member or past member shall be a first charge on all crops or other
agricultural produce, felled timber or other forest produce, marine
produce, fish, livestock, fodder, agricultural, industrial and fishing
implements, plant, machinery, boats, tackle and nets, raw materials,
stock-in-trade and generally all produce of labour and things used in
connection with production raised, purchased or produced in whole or in
part from any loan whether in money or in goods given him by the
society:
Provided that nothing herein contained shall affect the claim of
any bona fide purchaser for value without notice of the loan given by the
society;
(b) any debt or outstanding demand due and payable to a housing
society by any member or past member in respect of rent, shares, loans
or purchase money or any other rights or amounts payable to such
society shall be a first charge upon his interest in the immovable
property of such society. Creation of
charges in
favour of
societies
Cap. 224

109. (1) Subject to the other provisions of this Act and the rules, a
member may withdraw from a registered society under such conditions,
and on giving such notice of withdrawal, as may be required by the
by-laws. Withdrawal by
members

(2) Payment of the shares or other interest of the member withdrawing
under special circumstances, including illness, disability, permanent
removal from the area or district served by the society, or death, shall be
made in such order of priority as the by-laws may prescribe or, where
not so prescribed, in such order of priority as the directors may approve.

(3) Where, upon the withdrawal of a member, to make payment for the
shares held by the member at their par or paid-up value, or to make
payment of any other interest of the member at the value shown on the

books of the society, would, in the opinion of the directors, impair, or
further impair, the financial stability of the society, the directors may
suspend payment for such period as may be approved by the Registrar,
or may offer in final settlement such lesser amount as they deem just.

(4) The directors shall deal promptly with all applications for
withdrawal from membership.

110. (1) (a) Upon complaint arising against any member of a society, it
shall be the duty of the Secretary, upon the instructions of the board of
directors, to provide the member with written notice of the particulars of
the complaint and of the date, time and place of the meeting of the board
of directors at which the complaint and the question of the expulsion of
the member will be considered. Expulsion of a
member

(b) The directors may, at such meeting duly called and at which a
majority of the directors are present, having given the member against
whom the complaint has been raised the opportunity to make
representations or submissions orally or in writing or both, in rebuttal or
in mitigation, resolve, by at least a two-thirds majority vote, that the
member be expelled.

(c) The Secretary of the society shall, within two weeks from the date
on which the member is expelled, notify him in writing of the action of
the directors.

(d) An appeal from the action of the directors may be taken by the
member to the next general meeting of the society if written notice of
intention to appeal is given by him to the Secretary of the society within
thirty days from the date of receipt of the notice mentioned in paragraph
(c).

(e) At such a meeting a majority of the members present may, after
considering any written or oral representations by the member, confirm
or rescind the action of the directors.

(f) If the meeting does not confirm the action of the directors in
expelling the member, such expulsion shall be held to be null and void,
and the member treated as if no such expulsion had occurred.

(2) Where the Registrar, after investigation, is of the opinion that a
member has acted in contravention of the rules or the by-laws of the
society, or has acted in a way that is detrimental to the interests of the
society and its members, he may communicate his complaint in writing
to the directors who shall thereupon proceed in accordance with the
provisions of paragraphs (a) and (b) of subsection (1).

(3) The share capital or other interest in a society held by a member who
is expelled under this section shall be refunded to him as soon as funds
are available.

(4) A member who has been expelled from a society under this section
shall forfeit all rights to share in the net surplus or other benefits of the
society from the date of his expulsion, other than the right to have his
share capital or other interest in the society refunded to him, together
with such dividend as may later be declared and calculated up to the date
his share capital or other interest was refunded.

(5) No person who has been expelled from a society shall be eligible for
re-admission as a member within a period of one year from the date of
his expulsion.

PART XIV
DIRECTORS

111. (1) Every society shall have a board of directors consisting of such
number of persons as shall be prescribed by its by-laws. Board of
directors (or
committee)

(2) Every reference in the by-laws of a society to a “committe” elected
by the members to supervise the business and property of such society
shall be deemed to have the same meaning as the words “board of
directors” in subsection (1), and any reference in this Act to the powers
and duties of directors shall apply to the powers and duties of such
committee duly elected by the members of a society in accordance with
its by-laws.

(3) The persons whose names appear in the application for the
registration of a society shall, upon registration, be deemed to have all
the powers and duties of directors, and shall direct the affairs of the
society until their successors have been elected by the members at the
first general meeting.

112. Where the by-laws of a society provide for the election of
directors by members or delegates voting by districts, directors so
chosen shall be deemed to be elected by all the members or delegates as
if the election had been by vote of all the members or delegates present
at a duly called meeting. Effect of
election of
directors by
districts

113. (1) Subject to the provisions of sections sixty-three and
seventy-four (which relate to the duties of credit committees and
supervisory committees in credit unions) the board of directors shall
direct and supervise the business and property of a society and may
exercise all such powers of the society as are not required by this Act,
the rules or the by-laws to be exercised by resolution of the society in a
general or special meeting. Duties and
powers of
directors

(2) Without limiting the generality of the provisions of subsection (1),
the directors shall-

(a) consider, and approve or reject, applications for membership of
the society;

(b) call for and examine regularly reports from officers of the
society which will disclose the true position of the society, its operations
and financial condition;

(c) keep the members informed of the progress of the society,
encourage interest and a sense of ownership on their part in the society,
and have charge of any educational or advisory work amongst the
members respecting co-operative principles and the objects of the
society;

(d) except in the case of a credit union, to which the provisions of
Part VIII apply, prepare and present to the annual general meeting of the
society a resolution determining the distribution of the net surplus for
the previous financial year in accordance with the other provisions of

this Act, the rules and the by-laws of the society;

(e) make a report to the annual general meeting of the work of the
directors during the preceding financial year, and the progress made by
the society during that year, with such recommendations as they deem
necessary to maintain or improve the services provided by the society to
its members.

(3) A full and correct record shall be kept of all proceedings of the board
of directors in carrying out its duties, and the records shall be available
for inspection by or under the direction of the Registrar.

(4) If a director has an interest in any other society, company or
organisation with which, to his knowledge, the society of which he is a
director proposes to enter into a contract, he shall disclose the fact of his
interest to his board of directors at or before the time the contract is
made, and he shall not vote in respect of such contract; should he so
vote, his vote shall not be valid.

114. The directors shall elect from their number a Chairman and one or
more Vice-Chairmen, and may appoint and fix the remuneration of a
Secretary, Treasurer, or a Secretary-treasurer or manager who need not
be a member of the society. Officers

115. The term of office of the directors shall be prescribed in the
by-laws. Term of office

116. No person other than a member of a society or delegate of a
member society shall be eligible to be elected or appointed as a director
of the society, except as provided in sections one hundred and sixty-one
and one hundred and sixty-two. Directors must
be members

117. (1) Subject to the provisions of subsection (2), where a vacancy on
the board of directors occurs otherwise than by expiration of the term of
office, the remaining members of the board may, unless the by-laws
provide otherwise, fill the vacancy until the next annual general
meeting. Vacancy on
board of
directors

(2) Where, by reason of vacancies on the board of directors, the number

of directors is reduced to less than the number required by the by-laws to
constitute a quorum for a meeting of directors, the remaining directors
shall immediately call a special general meeting of the society to fill the
vacancies.

118. The office of a director shall be vacated if the director-
(a) is removed from his office under the provisions of section one
hundred and twenty-two; or
(b) holds any office of profit in the society other than that of
Secretary, Treasurer, Secretary-treasurer or manager; or
(c) becomes bankrupt; or
(d) becomes of unsound mind; or
(e) is concerned or participates in the profits of any contract made
between the society and any other society, company or organisation in
which he has an interest, the fact of which he knowingly failed to
disclose to the board of directors at or before the time the contract was
made; or
(f) is convicted of any offence involving dishonesty or is
imprisoned for three months or more; or
(g) dies. Vacation of
office of
director

119. If a loan or other transaction is made in contravention of this Act,
all directors, members of any committee and other officers of the society
who made the loan or other transaction, or assented thereto, are jointly
and severally liable to the society up to the amount of the loan or other
transaction: Liability of
directors or
other officers
for unlawful
transactions

Provided that if, in proceedings to recover from a person mentioned in
this section any amount for which he is liable hereunder, it appears to
the court that he has acted honestly and reasonably and ought fairly to be
excused in whole or in part for making or assenting to the loan or other
transaction, the court may relieve him wholly or partly from personal
liability.

120. (1) The directors shall hold meetings at such times as may be
provided in the by-laws. Meetings of
directors

(2) Unless the by-laws provide otherwise, meetings of directors shall be

held and notice thereof given in accordance with the resolutions of the
directors.

(3) The Chairman may at any time and shall, if requested in writing by a
majority of the directors to do so, call a special meeting of the directors.

(4) Unless the rules or the by-laws otherwise provide, the number of
directors required to constitute a quorum for the transaction of business
shall be a majority of the number of directors of the society; and if a
quorum is not present at a meeting of the directors, those present shall
adjourn the meeting from time to time until a quorum is present.

121. Subject to the rules, the directors may require every person
appointed to an office pertaining to the receipt, management or
expenditure of the money of a society to give such security as the
directors deem sufficient. Security

122. In the absence of a provision in its by-laws, a society may for
good reason, by resolution passed by at least two-thirds of the members
and delegates present at a general meeting or at a special meeting called
for the purpose, remove any director before the expiration of his term of
office. Removal from
office

PART XV
MEETINGS

123. (1) Every society shall provide in its by-laws for an annual general
meeting and may also provide for semi-annual, quarterly or other
general meetings. Annual and
other general
meetings

(2) Unless the by-laws otherwise provide, a notice of every general
meeting shall be sent to each member or delegate entitled to attend the
same, at least twenty-one days prior to the date of the meeting, at the
address given in the register of members.

124. (1) The directors of a society may at any time and, where at least Special

one-tenth of the members or one-quarter of the delegates so request
shall, call a special meeting of members or members and delegates, as
the case may be. meetings

(2) Unless the by-laws otherwise provide, notice of all special meetings,
together with a statement of the purpose thereof, shall be sent to each
member or delegate who is entitled to attend the same, at least
twenty-one days prior to the date of the meeting.

(3) No business other than that specified in the notice shall be transacted
at a special meeting unless all members of and delegates to the society
are present at the meeting and unanimously agree to discuss other
business.

125. If at any time it is impracticable to call a general or special
meeting of the society in the manner provided by this Act, or the
by-laws, the Registrar may, on application to him for the purpose,
prescribe the manner of calling the meeting. Registrar may
prescribe
manner of
calling
meetings

126. Save as otherwise provided in this Act, the rules or the by-laws,
the quorum at a general or special meeting of a society shall be a
majority of the members, or delegates, or members and delegates, as the
case may be, entitled to attend and vote. Quorum

127. (1) If a society fails to hold an annual general meeting, the
Registrar may call a meeting of the society to enable the members to
secure such information regarding its affairs as they are entitled to
receive under this Act, and to deal with any matter affecting the society
and its affairs, including the adoption of additional by-laws or
amendments to existing by-laws. Power of
Registrar to call
meetings

(2) The Registrar may call a special meeting of the society for the
purpose of reporting to the members the result of any audit, examination
or other investigation of the society’s affairs ordered or made by him.

(3) Notwithstanding any other provision in this Act, the rules or the
by-laws, the quorum at a general or special meeting called by the
Registrar under subsection (1) or (2) shall be the members or delegates

attending.

128. (1) The authority of the members as joint owners of the business
and property of a society shall be vested in the annual general meeting of
members, and in any special meeting called in accordance with the
provisions of this Part. Authority of the
members

(2) Without limiting the generality of the provisions of subsection (1),
the members at the annual general meeting shall confirm or amend the
resolution of the board of directors respecting the distribution of the net
surplus, if any, arising from the yearly business of the society, receive,
discuss and dispose of the reports of officers of the society, the auditor’s
report, if any, the financial statement and the report of any inspection of
the affairs of the society made by or under the direction of the Registrar,
elect directors and committees as required by this Act, and make such
decisions and recommendations as they deem necessary with respect to
the objects and services of the society, for implementation by the
directors and other officers.

(3) Officers may be paid reasonable travelling and other out-of-pocket
expenses incurred by them in discharging their duties, and may be paid
such honorarium as the by-laws of the society may permit, or such
honorarium, payment of which shall be subject to the prior written
permission of the Registrar, as the members may by majority vote
approve at a general meeting.

(4) Receipt of an honorarium under the provisions of subsection (3)
shall not imply that the recipient is the holder of an office of profit.

PART XVI
CHARGES BY SOCIETIES

129. (1) Every charge created by a society and being either- Registration

(a) a charge for the purpose of securing any issue of debentures; or

(b) a charge on uncalled or unpaid share capital of the society; or

(c) a charge created or evidenced by an instrument which, if
executed by an individual, would require registration as a bill of sale; or

(d) a charge on land, wherever situate, or any interest therein; or

(e) a charge on book debts; or

(f) a floating charge on the undertaking or property of the society;
shall, so far as any security on the society’s property or undertaking is
thereby conferred, be void against the liquidator and any creditor of the
society, unless the prescribed particulars of the charge, together with the
instrument, if any, by which the charge is created or evidenced, are
delivered to or received by the Registrar for registration in the manner
required by this Act within thirty days after the date of its creating, but
without prejudice to any contract or obligation for payment of the
money thereby secured, and, when a charge becomes void under this
section, the money secured thereby shall immediately become payable.

(2) Where a negotiable instrument has been given to secure the payment
of any debts due to a society, the deposit of the instrument for the
purpose of securing an advance to the society shall not for the purposes
of this section be treated as a charge on those debts.

(3) The holding of debentures entitling the holder to a charge on land
shall not be deemed to be an interest in land.

(4) The Registrar shall keep with respect to each society a register in the
prescribed form of all charges requiring registration under this section,
and shall, on payment of the prescribed fee, enter in the register, with
respect to every charge, the date of creation, the amount secured by it,
short particulars of the property charged and the names of the persons
entitled to the charge.

(5) The Registrar shall give a certificate under his hand of the
registration of any charge registered in pursuance of this section, stating
the amount thereby secured, and the certificate shall be conclusive
evidence that the requirements of this section as to registration have
been complied with.

(6) It shall be the duty of the society to send to the Registrar for
registration the particulars of every charge requiring registration under
this section, but registration of any such charge may be effected on the
application of any person interested therein:

Provided that where the registration is effected on the application of
some person other than the society, that person shall be entitled to
recover from the society the amount of any fees properly paid by him to
the Registrar on the registration.

(7) The register kept pursuant to this section shall be open to inspection
by any person on payment of the prescribed fee.

(8) Every society shall cause a copy of every instrument creating any
charge requiring registration under this section to be kept at the
registered address of the society.

(9) In this Part, the expression “charge” includes mortgage.

130. (1) If any person obtains an order for the appointment of a receiver
or manager of the property of a society, or appoints such a receiver or
manager under any powers contained in any instrument, he shall, within
seven days from the date of the order or of the appointment under the
powers contained in the instrument, give notice of the fact to the
Registrar, and the Registrar shall, on payment of the prescribed fee,
enter the fact in the register of charges. Registration of
enforcement of
security and
filing of
accounts

(2) If any person makes default in complying with the requirements of
subsection (1), he shall be guilty of an offence and liable on conviction
to a fine not exceeding one hundred penalty units for every day during
which the default continues.

(3) Every receiver or manager of the property of a society who has been
appointed under the powers contained in any instrument, and who has
taken possession, shall, once in every half year while he remains in
possession, and also on ceasing to act as receiver or manager, file with
the Registrar an abstract in the prescribed form of his receipts and
payments during the period to which the abstract relates, and shall also,
on ceasing to act as receiver or manager, file with the Registrar notice to

that effect, and the Registrar shall enter the notice in the register of
charges.

(4) Every receiver or manager who makes default in complying with the
provisions of subsection (3) shall be guilty of an offence and be liable on
conviction to a fine not exceeding one thousand penalty units.
(As amended by Act No. 13 of 1994)

131. A Judge, on being satisfied that the omission to register a charge
within the time hereinbefore required, or that the omission or
mis-statement of any particular fact with respect to any such charge was
accidental or due to inadvertence or to some other sufficient cause, or is
not of a nature to prejudice the position of creditors or of the society, or
that on other grounds it is just and equitable to grant relief, may, on the
application of the society or any person interested, and on such terms
and conditions as seem to the Judge just and expedient, order that the
time for registration be extended or, as the case may be, that the
omission or mis-statement be rectified. Rectification of
register of
charges

132. The Registrar shall, on evidence being given to his satisfaction
that the debt for which any registered charge was given has been paid or
satisfied, order that a memorandum of satisfaction be entered on the
register, and shall if required furnish the society with a copy thereof. Entry of
satisfaction

133. If any society makes default in sending to the Registrar for
registration the particulars of any charge requiring registration under
this Part, then, unless the registration has been effected on the
application of some other person, the society, and every officer thereof
or other person who is knowingly a party to the default, shall be guilty of
an offence and liable on conviction to a fine not exceeding one thousand
penalty units for every day during which the default continues.
(As amended by Act No. 13 of 1994) Failure to send
particulars for
registration

134. (1) Every society shall keep a register of charges and enter therein
all charges specifically affecting property of the society and all floating
charges on the undertaking or any property of the society, giving in each
case a short description of the property charged, the amount of the
charge, and the names of the persons entitled thereto. Society’s
register of
charges

(2) If any officer knowingly and wilfully authorises or permits the

omission of any entry required to be made pursuant to this section, he
shall be guilty of an offence and liable on conviction to a fine not
exceeding one thousand penalty units.
(As amended by Act No. 13 of 1994)

135. (1) The copies of instruments creating any charge requiring
registration under this Part and the register of charges kept pursuant to
the last foregoing section, shall be available at all times for inspection by
any creditor or member of the society without fee, and the said register
of charges shall also be open for inspection by any other person on
payment of such fee, not exceeding one hundred kwacha for each
inspection, as the society may prescribe. Right to inspect
copies of
instruments and
register of
charges

(2) If inspection of the said copies or register is refused, any officer
refusing inspection or authorising or knowingly and wilfully permitting
the refusal shall be guilty of an offence and liable on conviction to a fine
not exceeding one hundred penalty units, and a further fine not
exceeding one hundred and forty penalty units for every day during
which the refusal continues; and, in addition to the above penalty, any
Judge sitting in Chambers may by order compel an immediate
inspection of the copies or register.
(As amended by Act No. 13 of 1994)

136. A condition contained in any charge created by a society shall not
be invalid by reason only that thereby the charge is made irredeemable
or redeemable only on the happening of a contingency, however remote,
or on the expiration of a period, however long, any rule of equity to the
contrary notwithstanding. Perpetual
charges

PART XVII
ADMINISTRATION OF SOCIETIES

137. Every society shall have a registered office to which all
communications and notices may be addressed. Registered
office

138. (1) Every society shall have a corporate seal which shall contain
the name of the society. Seal

(2) The seal of a society shall not be affixed to any instrument except by
the authority of a resolution of the board of directors, and the application
of the seal shall be authenticated by the signatures of two directors and
of the Secretary.

139. (1) Every society shall keep such records and books of accounts as
the Registrar may require, including a proper set of commercial books,
in which all transactions of the society shall be clearly entered. Books and
records

(2) Subject to such conditions as may be prescribed by the rules, the
records of the society shall be open for inspection by any member or
delegate during the usual office hours at the registered office of the
society:

Provided that no person who is not an officer of the society, nor
specially authorised by resolution thereof, shall have the right to inspect
the account of any other member without the written consent of that
member.

(3) A copy of any entry in a book of a society regularly kept in the
course of business may be authenticated by a certificate written at the
end of such copy declaring that it is a true copy of such entry and that the
book containing the entry is still in the custody of that society, such
certificate being dated and signed by the Secretary of the society and one
member of the board of directors.

(4) If authenticated as aforesaid, any such copy as is mentioned in
subsection (3) shall be received in any legal proceedings, civil or
criminal, as prima facie evidence of the existence of such entry and of
the matters, transactions and accounts therein recorded in every case
where, and to the same extent as, the original entry itself is admissible.

(5) No officer of any society shall, in any legal proceedings to which the
society is not a party, be compelled to produce any of the society’s
books, the contents of which can be proved under subsections (3) and
(4), or to appear as a witness to prove any matters, transactions or
accounts therein recorded, unless the court for special reasons so directs.

140. (1) Subject to the provisions of paragraph (c) of section Audit and

seventy-four and sections seventy-five and one hundred and forty-one
the Registrar shall audit, or cause to be audited by some person
authorised by him by general or special order in writing, the accounts of
every society at least once in every year. investigation by
Registrar

(2) The audit under subsection (1) shall include the examination of
accounts receivable, accounts payable and overdue debts, if any, and a
valuation of the assets and liabilities of the society.

(3) The Registrar and every person appointed to audit the accounts of a
society shall have power when necessary-

(a) to summon at the time of his audit, any officer, employee or
member of the society who he has reason to believe can give
information in regard to any transactions of the society or the
management of its affairs;

(b) to require the production of any book or document relating to the
affairs of, or any cash or securities belonging to, the society, by an
officer, agent, employee or member in possession of such book,
document, cash or securities;

(c) to examine any officer of the society under oath.

(4) When the accounts of a society have been audited, the report of the
auditor shall be presented to the annual general meeting and to the
Registrar.

(5) When the Registrar is of the opinion that the affairs of a society
require an immediate investigation in order to safeguard the interests of
the members, or the rights of creditors, he may order a special
investigation to be made by some person authorised by him.

(6) A report of any special investigation made under subsection (5) may
be presented to a special meeting of the members called by or under the
direction of the Registrar.

141. (1) The annual audit of the books and accounts of a society whose
total assets exceed such an amount as shall be prescribed from time to When public
accountant

time by the Minister by statutory order shall be conducted by a person
publicly carrying on the profession of accountant in Zambia, appointed
by the Registrar or engaged by the board of directors of the society with
the approval of the Registrar. required as
auditor

(2) A federation registered under the provisions of Part XII, with
objects which include the provision of auditing services, may appoint
such an accountant as auditor for a society which is a member of such
federation, and, if its by-laws so permit, for any other society at the
request of that society or the Registrar.

(3) The rules may provide that a society, for whom the services of such
an accountant are required as auditor under subsection (1), shall become
a member of a federation registered under section ninety-one with
objects which include the provision of auditing services, and shall
request such federation to appoint the auditor for the society.

(4) An auditor engaged or appointed under this section shall make a
report to the members of the society on the accounts and balance sheet
examined by him, and shall state in the report-

(a) whether or not he obtained all the information and explanations
he required;

(b) whether, in his opinion, the balance sheet referred to in the report
is properly drawn up so as to exhibit a true and correct view of the state
of the society’s affairs according to the explanations given, and as shown
by the books of the society;

(c) whether, in his opinion, all the transactions of the society which
have come to his notice have been within the objects and powers of the
society.

(5) The auditor shall disclose to the Registrar any matter or
circumstance which has come to his knowledge or attention during the
course of his audit which will, in his opinion, assist the Registrar with
the administration of this Act, and the Registrar may enlarge or extend
the scope of the audit and direct that any further or particular
examination be made or any other procedure for the audit be adopted.

142. The Registrar, or any person authorised by general or special
order in writing by the Registrar, shall at all reasonable times have
access to all the books, accounts, papers and securities of a society, and
shall be entitled to inspect the cash in hand, and every officer of the
society shall furnish such information in regard to the transactions and
operations of the society as the person making the inspection may
require. Power of
Registrar to
inspect
societies’ books,
etc.

143. (1) Every society shall, within six months after the end of each
financial year, send to every member who requests it, an audited
statement of the receipts and expenditures and of the assets and
liabilities of the society. Yearly and
other returns

(2) Every society shall furnish the Registrar with such annual and other
returns and information as he may require.

(3) Every return and other document required under this Act shall be
made in such form as the Registrar may require or as may be prescribed
in the rules.

(4) If any person wilfully makes, orders or allows to be made any entry
or erasure in, or omission from, any balance sheet of a society, or any
collecting book, or any return or document required to be sent, produced
or delivered for the purposes of this Act, with intent to falsify the same,
or to evade any of the provisions of this Act, he shall be guilty of an
offence and liable on conviction to a fine not exceeding one thousand
five hundred penalty units:

Provided that a person shall not be prosecuted for an offence under this
section without the written consent of the Director of Public
Prosecutions.
(As amended by Act No. 13 of 1994)

PART XVIII
AMALGAMATION AND DIVISION OF SOCIETIES

144. (1) Subject to the approval of the Registrar, any two or more
societies may, by special resolution of each of those societies, become
amalgamated together as one society, with or without any dissolution or
division of the funds of those societies or any of them; and the property
of each of those societies shall become vested in the amalgamated
society, without the necessity of any form of conveyance or assignment,
upon the registration of the amalgamated society. Amalgamation
of societies

(2) Subject to the approval of the Registrar, any society may by special
resolution transfer its engagements to any other society which
undertakes to fulfil those engagements; and if that resolution approves
the transfer of the whole or any part of the society’s property to that other
society, the whole or, as the case may be, that part of the society’s
property shall vest in that other society, without the necessity of any
form of conveyance or assignment, upon the registration of the
resolution.

(3) At such meeting as aforesaid a declaration by the Chairman that the
resolution has been carried shall be deemed conclusive evidence of that
fact.

(4) Two copies of every such special resolution, signed by the
Chairman of the meeting at which the resolution was passed and
countersigned by the Secretary of the society, shall be sent within
twenty-one days of the passing thereof to the Registrar with, in the case
of an amalgamation, three copies of the by-laws of the amalgamated
society.

(5) Subject to being provided with such additional information as he
may require, the Registrar may approve and register the resolution, and,
in the case of an amalgamation, register the amalgamated society and its
by-laws; and until the resolution is so registered it shall not take effect.

(6) An amalgamation or transfer of engagements in pursuance of this
section shall not prejudice any right of a creditor of any society which is
a party thereto.

(7) Upon the registration of such resolutions, amalgamated society and
by-laws, the Registrar shall endorse his certificate of registration upon

one copy of each resolution and by-laws, as the case may be, and return
it to the society which sent it.

(8) Whenever, in pursuance of this section, any property, rights,
liabilities or obligations of a society become vested in an amalgamated
or other society, in respect of the transfer of which any written law
provides for registration, it shall be the duty of the amalgamated or other
society to make written application to the proper officer of the
appropriate registration authority for the registration of such transfer,
and it shall be the duty of such officer, on production of the appropriate
resolutions duly registered by the Registrar, and, in the case of an
amalgamation, the certificate of registration, to make such entries in the
appropriate register as shall give effect to such transfer and, where
appropriate, to issue to the amalgamated or other society concerned a
Certificate of Title or a Provisional Certificate in respect of the said
property, or to make necessary amendments to the register, as the case
may be, and, if presented therefor, to make endorsement on the deed
relating to the title, right or obligation concerned.

145. (1) Subject to the approval of the Registrar and subject to such
conditions as may be prescribed in the rules, a society may, by a special
resolution, resolve to divide itself into two or more societies. Division of
societies

(2) The resolution shall contain proposals for the division of the assets
and liabilities of the society among the new societies into which it is
proposed to divide, and shall prescribe the area of operation of, and
specify the members who will constitute, each of the new societies; and
the property of the society, other than land or an interest in land, shall
vest in the new societies in accordance with the division determined in
the resolution upon the registration of the new societies.

(3) Two copies of the resolution, signed by the Chairman of the meeting
at which the resolution was passed and countersigned by the Secretary
of the society, shall be sent within twenty-one days of the passing
thereof to the Registrar, with three copies of the by-laws of the proposed
new societies.

(4) Subject to being provided with such additional information as he
may require, the Registrar may, if satisfied that the proposed division is
in the interest of the members, and does not prejudice the rights of any
creditor, register the resolution, the new societies and their respective

by-laws, and cancel the registration of the original society; and until the
resolution is so registered it shall not take effect.

(5) A division of a society in pursuance of this section shall not
prejudice any right of a creditor of the society divided.

(6) Upon the registration as aforesaid, the Registrar shall endorse his
certificate of registration upon one copy of the resolution and return it to
the original society with his certificate of cancellation of its registration,
and shall likewise endorse the by-laws of the new societies and send one
copy thereof to each of the new societies with their certificates of
registration.

PART XIX
DISSOLUTION AND WINDING-UP

146. (1) The Registrar may make an order in writing for the
cancellation of the registration of a society if satisfied that- Dissolution of
societies

(a) the registration was obtained by fraud or mistake; or

(b) the society exists for an illegal purpose; or

(c) the society has wilfully, after notice by the Registrar,
contravened any of the provisions of this Act, the rules or the by-laws;
or

(d) the society is no longer operating in accordance with
co-operative principles; or

(e) the number of members of the society has fallen below the
minimum required by this Act; or

(f) the society is no longer in business or operation; or

(g) the results of an investigation made under section one hundred
and forty show that the society is unable to continue in business.

(2) Upon receipt by the Registrar of an application from a society made
in pursuance of a special resolution and requesting the cancellation of
the registration of that society, he may, subject to the immediately
following subsections, make an order for the cancellation of the
registration of such society.

(3) Any member of such a society may, within sixty days from the date
of an order under subsection (1), appeal from such order to the Minister.

(4) Where no appeal is presented within sixty days from the making of
an order cancelling the registration of a society under subsection (1), the
order shall take effect upon the expiration of that period; but where an
appeal is presented within sixty days, the order shall not take effect
unless and until the appeal is disallowed by the Minister.

(5) Where the Registrar makes an order for the cancellation of the
registration of a society under this section, he may make such further
order as he may think fit for the custody of the books and documents and
the protection of the assets of the society until the order cancelling the
registration takes effect.

(6) No society shall be wound up except by order of the Registrar.

(7) When the registration of a society is cancelled by an order under this
section, the society shall from the date on which the order takes effect
cease to exist as a body corporate and shall cease to carry on any
business, make any transactions or do any act affecting its property or its
members or patrons.

(8) Where the registration of a society is cancelled by an order under
this section, a floating charge on the undertaking or property of such
society which was created within twelve months prior to the date of
dissolution of such society shall, unless it is proved that the society,
immediately after the creation of the charge, was solvent, be invalid
except to the amount of any cash paid to the society at the time of or
subsequently to the creation of, and in consideration for, the charge,
together with interest on that amount at a rate not exceeding six per
centum per annum.

147. (1) Where the Registrar makes an order cancelling the registration
of a society under the provisions of section one hundred and forty-six,
he may, either before or after the said order takes effect, also make an
order appointing one or more persons to be, subject to his direction and
control, liquidator or liquidators of the society. Liquidation
after
cancellation of
registration

(2) The assets of the registered society shall vest forthwith in the
liquidator or liquidators appointed under this section with effect from
the appointment:

Provided that if any appeal made under the provisions of subsection (3)
of section one hundred and forty-six is upheld and the order cancelling
registration is set aside, then the appointment of any liquidator or
liquidators shall cease forthwith and the assets of the society shall
forthwith again vest in the society, but without prejudice to the validity
of any acts lawfully performed by a liquidator in terms of this Act.

148. (1) A liquidator appointed under the provisions of section one
hundred and forty-seven shall, subject to the guidance and control of the
Registrar, and to any limitations imposed by the Registrar by an order
under the provisions of section one hundred and forty-nine, have power
to- Liquidator’s
powers

(a) determine from time to time the contribution to be made by
members and past members or by the estates or deceased members of
the society to its assets;

(b) appoint, and give notice of, a day before which creditors, whose
claims are not already recorded in the books of the society, shall state
their claims or be excluded from any distribution;

(c) decide in accordance with the law relating to bankruptcy and
subject to the provisions of section one hundred and fifty-three of this
Act, any question of priority which arises between creditors;

(d) refer disputes to arbitration and institute and defend suits and
other legal proceedings on behalf of the society;

(e) decide by what persons and in what proportions the costs of

liquidation are to be borne;

(f) give such directions in regard to the collection and distribution
of assets as may be necessary in the course of winding up the society;

(g) compromise any claim by or against the society with the
approval of the Registrar;

(h) call such general meetings of members as may be necessary for
the proper conduct of the liquidation;

(i) take possession of the books, documents and assets of the
society;

(j) carry on the business of the society so far as may be necessary
for winding it up beneficially, but not to issue any loans; and

(k) arrange for the distribution of the assets of the society in a
convenient manner when a scheme of distribution has been approved by
the Registrar.

(2) Subject to such rules as may be made in this behalf, any liquidator
appointed under this Act shall, in so far as such powers are necessary for
carrying out the purpose of this section, have power to summon and
enforce the attendance of parties and witnesses, and to compel the
production of documents by the same means and (so far as may be) in
the manner as is provided in the case of a civil court.

149. A liquidator shall exercise his powers subject to control and
revision by the Registrar, who may-
(a) rescind or vary any order made by a liquidator and make
whatever new order is required;
(b) remove a liquidator from office;
(c) call for all books, documents and assets of the society;
(d) by order in writing limit the powers of the liquidator under the
provisions of the foregoing section; Power of
Registrar to
control
liquidation

(e) require accounts to be rendered to him by the liquidator;
(f) procure the auditing of the liquidator’s accounts and authorise

the distribution of the assets of the society;
(g) make an order for the remuneration of the liquidator;
(h) refer any subject of dispute between a liquidator and any third
party to arbitration if that party shall have consented in writing to be
bound by the decision of the arbitrator.

150. An appeal to a subordinate court of the first class, having
jurisdiction over the area in which the headquarters of the society are
situated, from any act, decision or instruction, done or given by a
liquidator under the provisions of section one hundred and forty-eight,
or by the Registrar under the provisions of section one hundred and
forty-nine, may, with the written consent of the Attorney-General, be
made in the manner prescribed in the rules. Appeals against
decisions

151. Orders, decisions or instructions given under the provisions of
sections one hundred and forty-eight, one-hundred and forty-nine and
one hundred and fifty may be enforced as follows:
(a) when given by a liquidator or the Registrar, by any court having
jurisdiction, in the same manner as a decree of such court;
(b) when given by a subordinate court of the first class on appeal, in
the same manner as a decree of such court. Enforcement of
decisions

152. Save in so far as is hereinbefore expressly provided, no civil court
shall have any jurisdiction in respect of any matter concerned with the
dissolution of a society under this Act. Limitation of
the jurisdiction
of the civil
court

153. (1) In the liquidation of a society whose registration has been
cancelled, the funds, including the reserve fund, shall be applied first to
the costs of liquidation, then to the discharge of the liabilities of the
society, then to the payment of the share capital and then, if the by-laws
of the society so permit, to the payment of a dividend at a rate not
exceeding six per centum per annum for any period for which no
disposal of the net surplus was made. Closure of
liquidation

(2) When the liquidation of a society has been closed and any creditor
of that society has not claimed or received what is due to him under the
scheme of distribution, notice of the closing of the liquidation shall be
published in the Gazette, and all claims against the funds of the society
liquidated shall be cancelled when two years have elapsed from the date

of the publication of the notice in the Gazette.

(3) Any surplus remaining after the application of the funds to the
purposes specified in subsection (1), and to the payment of any claims
not cancelled under subsection (2), shall-

(a) be distributed amongst the members at the time of dissolution (or
their legal personal representatives) in proportion to the value of the
business of each such member with the society during the three years
immediately preceding the date of dissolution or, if the society has not
existed for such period, during the existence of the society or, if the
society has done no business during these three years, then in proportion
to the share capital held by them at such date;

(b) if it is impracticable to make a distribution in accordance with
paragraph (a) whether through insufficiency of funds or otherwise, be
paid, subject to the approval of the Registrar (either in whole or as to any
residue of a partial distribution) to local organisations with objectives
beneficial to the community.

PART XX
DISPUTES

154. (1) If any dispute touching the business of a society arises- Settlement of
disputes

(a) among members, past members, and persons claiming through
members, past members and deceased members; or

(b) between a member, past member, or person claiming through a
member, past member or deceased member, and the society, its board of
directors, or any officer of the society; or

(c) between the society or its board of directors and any officer of
the society; or

(d) between the society and any other society;
such dispute may, unless the by-laws provide for the arbitration of

disputes, be referred to the Registrar for decision.

(2) A claim by a society for any debt or demand due to it from a
member, past member or the nominee or legal personal representative of
a deceased member, shall be deemed to be a dispute touching the
business of the society within the meaning of subsection (1).

(3) The Registrar may, on receipt of a reference under subsection (1)-

(a) decide the dispute himself; or

(b) refer it for disposal to an arbitrator or arbitrators:

Provided that if the question at issue in such dispute is one involving
complicated questions of law and fact, or one of the parties requests that
the dispute be referred to a civil court, the Registrar may, in his
discretion, suspend proceedings in the matter until the question has been
determined by a civil suit instituted by one of the parties to the dispute;
if no such suit is instituted within six months of the Registrar’s order
suspending proceedings, the Registrar shall take action in accordance
with the foregoing provisions of this subsection.

(4) Any party aggrieved by the award of the arbitrator or arbitrators may
appeal therefrom to the Registrar within one month of such award.

(5) An appeal to the Minister against a decision of the Registrar under
subsection (3) or (4) shall lie within two months of such decision.

(6) An award of the arbitrator or arbitrators, or a decision of the
Registrar under the provisions of this section, if no appeal is made
therefrom, or if any such appeal is lost, abandoned or withdrawn, and
the decision of the Minister under subsection (5), shall be final and shall
not be called in question in any civil court, and shall be enforced in the
same manner as if the award or decision had been a judgment of a civil
court.

155. (1) Notwithstanding anything contained in the last foregoing
section, the Registrar at any time, when proceeding to a decision under
this Act, may refer any question of law involved in such decision for the Case stated on
question of law

opinion of the High Court.

(2) Any Judge, as the Chief Justice may direct, may consider and
determine any question of law so referred, and the opinion given on such
question shall be final and conclusive.

PART XXI
RULES

156. (1) For the purpose of carrying out the provisions of this Act
according to their intent, and to facilitate the administration of societies,
the Minister may, by statutory instrument, make such rules and orders as
are ancillary thereto and are not inconsistent therewith, for any society,
or kinds or classes of societies, or societies seeking registration. Purpose and
contents of
rules

(2) Without restricting the generality of the foregoing, the Minister may
make rules and orders respecting-

(a) provisions other than those prescribed in this Act which shall be
contained in the by-laws of a society;

(b) fees to be paid under the provisions of this Act, or any rule;

(c) the procedure to be followed in applying for the registration of a
society;

(d) model by-laws for different kinds of societies;

(e) the forms to be used, the conditions to be complied with and
procedure to be followed by persons, societies or other organisations
applying for admission as members;

(f) the rights in a society of a minor under the age of sixteen years,
subject to section ninety-five;

(g) the manner in which payment of their interest in a society may
be made to members who have been expelled;

(h) the procedure for the nomination of a person to receive a
deceased member’s shares or interest, and the manner in which the value
of such shares or interest shall be ascertained;

(i) the procedure at general or special meetings of members, the
order of business at such meetings, the nomination and election of
officers, the methods of voting, the quorum at meetings and the reports
of results of elections and of the appointment of officers which have to
be forwarded to the Registrar;

(j) the procedure at meetings of boards of directors, the quorum and
order of business at such meetings and the manner in which boards of
directors shall carry out their duties;

(k) the procedure at meetings of credit committees and supervisory
committees elected or appointed by a credit union or a federation, and
the manner in which such committees shall carry out their duties;

(l) the duties of and procedure to be followed by officers, including
the Chairman, Vice-Chairman, Secretary, Treasurer and
Secretary-treasurer, and the manner in which these duties may be
modified or altered when assigned to a manager or a managing director;

(m) the conditions under which a society marketing agricultural
products, handling agricultural requisites or providing farming services
may, subject to section thirty-three, be authorised to accept
interest-bearing savings deposits from its members;

(n) the conditions under which a society marketing agricultural
products, handling agricultural requisites or providing farming services
may, subject to section thirty-five, be authorised to make loans to its
members;

(o) the procedure by credit unions and federations in providing
savings and credit services to their members under Part VIII or under
paragraph (a) (iii) of section ninety-one, including the purchase and
withdrawal of shares by members, the making and withdrawal of
deposits by members, the manner of making loans to members, the
deposit and payment of funds of the credit union or society, the
maintenance of a cash fund to meet withdrawals, the qualifications of
officers, and requirements for the keeping of records;

(p) the maintenance of reserve funds, the objects for which such
funds may be applied, and the investment of funds controlled by a
society;

(q) the minimum amount and form of security which may be
required by the directors from any person appointed to an office relating
to the receipt, management or expenditure of money;

(r) when a society shall be required to become a member of a
federation registered under section ninety-one with objects which
include the provision of auditing services, the appointment of such
federation as auditor for the society;

(s) the manner in which any question of breach of contract
involving the disposal of agricultural products or natural products to or
through the society may be determined, and the manner in which
liquidated damages for such breach may be assessed, if the question is
not referred to the courts;

(t) the conditions under which funds may be raised by a society by
means of the sale of bonds, debentures or other securities of the society,
and the information respecting the sale of such bonds, debentures or
securities to be filed with the Registrar or with a board constituted under
section one hundred and sixty-four;

(u) the duties of and the procedure to be followed by a board
constituted under section one hundred and sixty-four;

(v) the form of yearly or other financial returns and reports to be
filed by societies with the Registrar;

(w) provision for the audit of the accounts of societies, for the
charges, if any, to be made for such audit, for the levy of contributions
from all or any societies to be paid into a fund to be used to finance the
audit of such accounts, and for the administration of such fund.

PART XXII
ORGANISATION AND SUPERVISION

157. (1) The Registrar or any person authorised to act for him shall, at
the request of any person or groups of persons interested in the
organisation of a society under this Act, furnish such information
regarding co-operative principles, practices and organisation as will
assist them in determining the feasibility of such organisation and
facilitate registration. Assistance with
co-operative
organisation
and education

(2) Where the Registrar is of the opinion that a group or groups of
persons can improve the conditions under which they live, or can
provide themselves with new services which they need, by the
organisation, registration and operation by them of a society under this
Act, the Registrar, or any person authorised to act for him, may offer to
assist such group or groups of persons with such information respecting
co-operative principles, practices and organisation as will enable them
to determine the feasibility of such organisation and registration.

(3) Where a federation has been registered under Part XII with objects
which include the provision of education and advisory work relating to
co-operative enterprises and development, the Registrar may request
such federation to furnish information regarding co-operative
principles, practices and organisation required pursuant to subsection
(1), or carry on such educational and advisory work as will assist in
determining the feasibility of organising a society under the conditions
mentioned in subsection (2).

158. (1) The Registrar, or any person authorised to act for him, shall
provide, or cause to be provided, such inspection, examination, and
technical or other information and advice regarding the affairs of a
society as may be necessary to assist its officers and members in the due
observance of and compliance with this Act, and in the achievement of
the objects and the purposes of the society on a co-operative basis. Inspection and
advisory
services by
Registrar, etc.

(2) Subject to the provisions of subsection (1), the Registrar may
encourage and arrange with the officers of a federation registered under
Part XII, where consistent with its objects, to provide such technical or
other information and advice regarding the operations of a society which
is a member of such federation, as may be necessary to assist its officers
and members in the achievement of its objects and purposes, and, where
appropriate, to provide to the society other services designed to facilitate
the inspection and examination of its affairs.

(3) Subject to instructions from the Minister, the Director of
Co-operative Societies may arrange with the proper officers of any
department or agency of the Government that such department or
agency undertake to provide such technical or other information and
advice regarding the operations of a society as may be necessary to
assist its officers and members in the achievement of its objects and
purposes, and, where appropriate, to provide to the society other
services designed to facilitate inspection and examination of its affairs
in accordance with this section.

159. The Registrar may, upon request and upon an indication of the
proposed objects or purposes, prepare such by-laws as may be required
for any society, or proposed society. Registrar may
supply by-laws

160. (1) Upon payment of the prescribed fee, any person may inspect in
the office of the Registrar the by-laws of any society registered under
this Act. Inspection of
records

(2) A certified copy of the by-laws of any society registered under this
Act may be furnished at cost.

(3) Except with the consent of the Registrar, no other document or part
thereof relating to any society registered under this Act shall be
available for search.

161. (1) The Registrar may of his own accord, and shall on the direction
of the Minister, appoint one or more special members to the board of
directors of a society, or one or more special officers to manage the
affairs of a society, or to assist the persons deemed to have all the
powers and duties of directors under the provisions of subsection (3) of
section one hundred and eleven, or to provide other services required for
its management. Appointment of
special directors
and other
officers

(2) The number of special members appointed to the board of directors
under subsection (1) shall not exceed one-third of the number of
directors prescribed in the by-laws, including the Chairman and the
Vice-Chairman.

(3) Action may be taken under subsection (1) if-

(a) deemed necessary to assist the society to achieve its objects or
otherwise deemed to be in the interests of the member; or

(b) the society has received a grant-in-aid from the Government or
an agency of the Government; or

(c) money has been lent to the society by the Government or an
agency of the Government and the loan or a portion thereof has not been
repaid by the society; or

(d) a loan made to the society has been guaranteed by the
Government or an agency of the Government, and either such guarantee
is still outstanding or the Government or agency of the Government has
been called upon to make a payment in respect of such guarantee, and
the society has failed to pay to the Government or its agency all or a
portion of the sum paid out as a result of the implementation of the
guarantee.

(4) Special members appointed to the board of directors under
subsection (1) shall exercise all the powers and responsibilities of
directors elected by the members of the society under this Act.

(5) Special officers appointed under subsection (1) to provide services
with respect to the management of the society shall exercise all the
powers and responsibilities of officers appointed by or under the
authority of directors under this Act.

(6) Special members appointed to the board of directors under this
section may require that a decision of the board in any particular case
shall not take effect until it has received the approval of the Minister or
the Registrar, as the case may be.

(7) Special members appointed to the board of directors under this
section shall assist the board in its duties and responsibilities as
prescribed in section one hundred and thirteen, including the provision
of training courses for directors and other officers, and in any
educational or advisory work respecting co-operative principles and
methods carried on among the members of the society under the
direction of the board.

(8) The allowance or salary, if any, of a person or persons appointed
under subsection (1) shall, if the Registrar so directs, be paid out of the
society’s funds.

(9) Where the objects of a society include the marketing of agricultural
products, the handling of agricultural requisites or the marketing of
natural products, management services to be provided to such society by
special officers pursuant to action taken under subsection (1) may, with
the approval of the Minister, be provided by another society or by or
under the direction of a marketing board or other authority established
by law for the purpose of marketing agricultural products, handling
agricultural requisites or marketing natural products.

(10) Special members of the board of directors or special officers
appointed under this section shall continue in office until the Registrar,
subject to instructions from the Minister, is satisfied that the
administration and management of the affairs of the society can be
carried on exclusively by its elected directors, or officers appointed by
or under the authority of such directors.

162. (1) When the investigation of the affairs of a society discloses that
elected directors or other officers are not performing their duties
properly, or that their actions are detrimental to the interest of the
members or creditors, the Registrar may of his own accord, and shall on
the direction of the Minister, remove such directors or other officers, as
the case maybe, from office, and order that the affairs of the society shall
be administered by one or more special directors, or managed by one or
more special officers, all to be appointed by him. Removal of
directors and
other officers

(2) Special directors appointed under subsection (1) shall have authority
to exercise all the powers and responsibilities of directors elected by
members of the society under this Act, and be entitled to receive such
allowance or salary, if any, as the Registrar may determine.

(3) Special officers appointed under subsection (1) to provide services
with respect to the management of the society, shall have authority to
exercise all of the powers and responsibilities of officers appointed by or
under the authority of directors of the society under this Act, and be
entitled to receive such allowance or salary, if any, as the Registrar may
determine.

(4) An order made by the Registrar under subsection (1), including the
appointment of special directors or other officers to replace those
removed, shall be reported by the Registrar or his representative to the
next general meeting of members, giving the reasons therefor.

(5) The allowance or salary, if any, of persons appointed under
subsection (1) shall, if the Registrar so directs, be paid out of the
society’s funds.

(6) Where the objects of the society include the marketing of
agricultural products, the handling of agricultural requisites or the
marketing of natural products, management services to be provided to
such society by special officers pursuant to action taken under
subsection (1) may, with the approval of the Minister, be provided by
another society or by or under the direction of a marketing board or
other authority established by law for the purpose of marketing
agricultural products, handling agricultural requisites or marketing
natural products.

(7) Special directors or other officers appointed under subsection (1)
shall, at such times as the Registrar may approve, call meetings of the
members of the society to report to them on the affairs of the society,
and shall carry on amongst the members of the society such educational
and advisory work respecting co-operative principles and practices as
they deem necessary to facilitate resumption of the administration and
management of the society by its own directors and officers.

(8) Special directors or other officers appointed under this section shall
continue in office until the Registrar, subject to instructions from the
Minister, is satisified that the administration and management of the
affairs of the society can be resumed by its own directors and officers.

(9) Appointments of special directors or other officers made under this
section, and the cancellation of the appointment of such special directors
or other officers, shall be published by notice in the Gazette.

163. (1) Where the Registrar is of the opinion that the financial position
of a society, or the manner in which it is being operated, as disclosed by Appointment of
administrator

an investigation or an examination under this Act, necessitates the
appointment of an administrator to protect the interests of members, he
may of his own accord, and shall on the direction of the Minister,
appoint an administrator and fix his remuneration.

(2) An administrator appointed under subsection (1) shall have all the
powers and may perform all or any of the duties of the board of
directors, of any committee or of any other officers, shall be responsible
to the Registrar for the conduct of the business of the society, shall carry
out all orders and directions of the Registrar with respect to the society
and may pay the expenses of his administration out of the funds of the
society.

(3) Where an administrator is appointed under subsection (1), no
member of the board of directors or of any committee, nor any other
officer of the society shall thereafter, so long as the administrator
remains in charge of the conduct of the business of the society, exercise
any of the powers conferred upon them by this Act, the rules or the
by-laws.

(4) The administrator shall take steps and do all things necessary to
protect the interests of the members and the rights of the creditors of the
society and shall maintain, so far as is practicable, the services of the
society to its members.

(5) For the purpose of this section, the administrator shall have access to
all books, accounts, securities, documents, vouchers and cash of the
society, and shall have control of all the property of the society.

(6) Subject to the approval of the Registrar, the administrator may call a
meeting of the members of the society to report to them on the affairs of
the society and the steps taken by him to protect their interests.

(7) The administrator shall conduct the business of the society until the
Registrar, subject to instructions from the Minister, is satisfied that the
administration and management of its affairs can be resumed by its own
directors or other officers, or until the society is dissolved and a
liquidator appointed.

164. (1) The Minister may constitute a board of not more than five
persons to review, at his request- Board of review

(a) applications by societies for grants-in-aid from the Government,
or proposals to make such grants-in-aid to societies;

(b) applications from societies for loans from the Government or
from an agency of the Government, or for the consolidation or
refinancing of such loans if they have not been repaid in whole or in
part;

(c) applications from lending agencies for guarantees of the
repayment of moneys lent, or to be lent to societies;

(d) the information filed with the Registrar respecting the proposed
sale of securities by a society pursuant to subsection (3) of section one
hundred and sixty-six.

(2) The board may recommend, for the consideration of the Minister,
approval of or changes in an application made pursuant to paragraphs
(a), (b) and (c) of subsection (1) and may prescribe conditions which
have to be complied with by a society before receiving any grant or loan,
or before any guarantee is given.

(3) When the board is requested to review the information filed with the
Registrar pursuant to subsection (3) of section one hundred and
sixty-six, the board may, subject to the approval of the Minister,
prescribe the manner of creating and setting aside by the society of
reserves, or prescribe some other plan to be put into effect by such
society for the purpose of ensuring the payment of interest on securities
sold and the repayment of the principal sum secured thereby, as and
when the interest and principal respectively become due.

(4) If the board disapproves of an application referred to it pursuant to
paragraphs (a), (b) and (c) of subsection (1), or of the proposed sale of
securities pursuant to paragraph (d) of that subsection, the board shall
report the reasons for such disapproval to the Minister.

PART XXIII

MISCELLANEOUS

165. (1) All sums due to the Government from society, or from an
officer or member or past member of a society, as such, may be
recovered in the manner provided for the recovery of debts due to the
Government under the law for the time being in force. Recovery of
sums due to
Government

(2) Sums due from a society to the Government may be recovered
firstly from the property of the society and secondly from the members,
subject to the limit of their liability.

166. (1) A credit union registered for the promotion of thrift amongst
its members and the creation of a source of credit for its members as
provided under section fifty-three, and any federation registered for
objects and purposes provided in paragraph (c) of section ninety-one,
shall be exempt from the provisions of any written law specially
governing banks. Special
exemptions

(2) The Minister may, by statutory instrument, remit in the case of any
society or class of societies any fee payable under any law requiring
registration and for the time being in force:

Provided that such remittance of duty or fees may be withdrawn by the
Minister at any time in like manner.

(3) A society shall be exempt from the provisions of any written law for
the time being in force governing the sale of securities:

Provided that if the society intends to invite its members or the public, or
both, to subscribe for or purchase any bonds or debentures or any other
securities of the society, having a definite date of maturity and bearing
interest, it shall, before making such offer, file with the Registrar such
information as he may require, or as the rules may prescribe, including
the amount to be offered for purchase or subscription, the purposes for
which the amount to be subscribed or purchased is to be used, and the
security to be offered.

(4) Notwithstanding anything in the Trades Licensing Act, or any Cap. 393

subsequent law relating to trade licensing, it shall not be obligatory upon
any society to obtain a licence to carry on trade or business in so far as
the trade or business carried on is exclusively with the members of the
society.

167. The Minister may, by statutory instrument, exempt any society or
class of societies from any of the provisions of this Act under such
conditions as he may think fit, or may direct that such provisions shall
apply to any society or class of societies with effect from such date or
with such modifications as may be specified in the order. Power to
exempt
societies from
provisions of
this Act

168. (1) No person, other than a society, shall trade or carry on business
under any name or title of which the word “co-operative” or of which the
words “credit union” constitute a part without the approval of the
Minister. Prohibition of
the use of the
words
“co-operative”
or “credit
union”

(2) Any person who contravenes the provisions of this section shall be
guilty of an offence and shall be liable on conviction to a fine not
exceeding one hundred penalty units, and, in the case of a continuing
offence, to a further fine not exceeding twenty penalty units for each day
during which the offence continues.
(As amended by Act No. 13 of 1994)

169. The provisions of the Companies Act (or any Act which replaces
it) shall not apply to a society. Companies Act
not to apply
Cap. 388

170. (1) Any officer or member of a society who- Offences and
penalties

(a) wilfully fails to give any notice, send any return or document, or
fails to do or allow to be done any act or thing which the society is
required by this Act to give, send, do or allow to be done; or

(b) wilfully neglects or refuses to do any act or furnish any
information required for the purposes of this Act by the Registrar or any
other official or person whose duties require him to obtain the
information, or wilfully does any act or thing forbidden by this Act; or

(c) wilfully makes a record or a return or furnishes information in
any respect false or insufficient;
shall be guilty of an offence.

(2) Any person found guilty of an offence under this Act shall be liable
on conviction, where no penalty is specially provided, to a fine not
exceeding one thousand penalty units, or to imprisonment for a term not
exceeding six months, or to both.

(3) If a society fails or refuses to forward a return or document required
by the Registrar for the purposes of this Act, the Registrar may,
notwithstanding any other provision of this Act, make an order for the
cancellation of the registration of the society and remove its name from
the register of societies maintained in his office.

(4) If a society remedies the default referred to in subsection (3), the
Registrar may issue a new certificate of registration upon payment of the
fees prescribed for that purpose, and restore the society to the register of
societies, and thereupon the society shall be deemed to have continued
in existence, and the society and all persons shall be in the same position
as if the registration of the society had never been cancelled.
(As amended by Act No. 13 of 1994)

171. (1) If any person unlawfully obtains possession of any property or
moneys belonging to a society, or, having such property or moneys in
his possession unlawfully and without a claim of right, withholds the
same or mis-applies the same or wilfully applies the whole or any part
thereof to purposes other than those permitted by this Act, the rule or the
by-laws, he shall be guilty of an offence. Misdealings
with property

(2) Any person convicted of an offence under subsection (1) may, at the
time when sentence is passed, be ordered to return, deliver up or repay
the aforesaid property or moneys either forthwith or within a stipulated
time and, in default of compliance, to be imprisoned for a term not
exceeding six months.

(3) Imprisonment imposed under the provisions of subsection (2) shall
terminate forthwith in the event of the property or moneys being

returned, delivered up or repaid before the expiration of the sentence.

(4) No prosecution shall be brought under the section without the
written consent of the Director of Public Prosecutions.

172. (1) The Co-operative Societies Act, Chapter 689 of the Revised
Edition (hereinafter referred to as the “repealed Act”) is hereby repealed. Repeal and
savings

(2) Notwithstanding the provisions of subsection (1)-

(a) every society, and all the by-laws of a society, registered under
the repealed Act, shall be deemed to have been registered under this Act;

(b) any register kept pursuant to the repealed Act shall be deemed to
be part of a register to be kept under this Act;

(c) any documents referring to a provision of the repealed Act shall
be construed as referring to a corresponding provision of this Act;

(d) any orders, rules and directions, appointments and other acts,
lawfully made or done under a provision of the repealed Act, or
appointments made for the administration thereof, and in force
immediately before the commencement of this Act, shall be deemed to
have been made or done under the corresponding provision of this Act
or for the administration of this Act, and shall continue to have effect
accordingly in so far as they are not inconsistent with the provisions of
this Act.

FIRST SCHEDULE
(Section 19)

POWERS OF SOCIETIES

For the purpose of carrying out its objects, every society shall, subject to the provisions of
this Act and the rules, have the following powers unless these powers or any of them are
expressly excluded or modified by its by-laws:

(a) to purchase, take on lease or in exchange, hire or otherwise acquire and hold any
movable or immovable property, and any rights and privileges the society deems
necessary or convenient for the attainment of its objects; Purchase
of
property

(b) to sell, exchange, lease, dispose of, turn to account or otherwise deal with all or any
part of the property and rights of the society; Sale of
property

(c) to manage, improve and develop the property of the society; Management
of property

(d) to borrow or raise money-
(i) by mortgage of any of the land or buildings of the society;
(ii) by the issue of bonds or debentures conferring no charge, or a fixed or
floating charge, upon all of the assets and undertakings of the society, including its
uncalled capital;
(iii) by pledging as security the products, goods, wares, merchandise and
other property vested in or acquired by the society; Borrowing

(e) to enter into any contract or arrangement whatever for or incidental to the
attainment of its objects;
Contracts

(f) to make loans or advances to its members; Loans
and
advances

(g) to accept the savings of its members; Savings

(h) to construct, improve, maintain, develop, work, manage, carry out or control any
roads, warehouses, factories, buildings, shops, stores and any other works or Construction
of roads,

conveniences that may seem directly or indirectly calculated to assist to advance the
interests of the society and its members; factories,
etc.

(i) to purchase or otherwise acquire or undertake all or any part of the business of, and
to assume the whole or any part of the liabilities of, any person, company or another
society carrying on any business which the society is authorised to carry on; Purchase
of
business

(j) to become a member of, or to take or otherwise acquire and hold shares or
securities of, any other society or company with limited liability having objects wholly
or in part similar to those of the society, or carry on any business capable of being
conducted so as to benefit the society in accordance with its objects, and sell or
otherwise deal with the same; Arrangements
with other
societies or
companies

(k) to become a member of a credit union or of any federation registered with objects
described in paragraph (a) (iii) of section ninety-one, and to purchase shares from, or loan
to, or borrow money from, such credit union or federation; Membership
in savings
and credit
societies

(l) to amalgamate with or enter into any agreement for co-operation with any other
society having objects wholly or in part similar to the objects of the society; Amalgamation
or partnership

(m) to agree with any persons, company or society to employ and use the same
personnel, methods, means or agencies for carrying on and conducting their respective
businesses or services; Co-operation

(n) to enter into any arrangements with the Government or any authority, national,
provincial, district, municipal, local or otherwise, that may seem beneficial to the
society, and to obtain from the Government or authority any rights, privileges and
concessions which the society may think it desirable to obtain, and carry out, exercise
and comply with such arrangements, rights, privileges and concessions; Arrangements
with
Government
and other
authorities

(o) to draw, make, accept, endorse, execute and issue promissory notes, bills of
exchange, bills of lading, warrants and other negotiable or transferable instruments; Promissory
notes, etc.

(p) save as provided in section fifty-seven (which relates to credit unions), to invest or
deposit moneys of the society not immediately required-
ii(i) in the Post Office Savings Bank; or
i(ii) in any commercial bank in Zambia; or
(iii) in any securities issued or guaranteed by the Government; or
(iv) in such other manner as may be decided by the board of directors and
either sanctioned by this Act or the rules, or approved by the Registrar; Investment
of funds

(q) to become a member of such other society or company as the Registrar may permit
for the purpose of establishing and supporting or aiding in the establishment and support of
trusts, funds and institutions calculated to benefit members, employees or ex-employees of
the society, or the dependants or relatives of such persons, to grant benefits and allowances,
and to make payments towards insurance; Benefits to
members
and
employees

(r) to subscribe or guarantee money for local organisations with objectives beneficial
to the community; Support of
community
organisations

(s) to issue fully paid-up shares of capital stock or other securities of the society to a
member in payment or part payment of any immovable or movable property purchased or
otherwise acquired by the society from that member, or for labour, services or materials
sold to the society by that member; Issue of
shares for
property or
services

(t) to sell or dispose of the undertaking of the society or any part thereof for such
consideration as the society thinks fit; Sale of
undertaking

(u) to carry on, encourage and assist educational and advisory work relating to
co-operation and the objects of the society; Co-operative
education

(v) to enlarge the business of the society and its services to members by the operation of
branches; To operate
branches

(w) to take or hold mortgages, hypothecs, liens and charges to secure the price of any
part of the property of the society of whatever kind sold by the society or any money due to
the society, and to assign or otherwise dispose of the said mortgages, hypothecs, liens and
charges; Hold
mortgages
and liens

(x) to appoint or employ such officials, servants or other persons as the board of
directors thinks necessary, to fix the terms and conditions of their appointment or
employment, and to pay them remuneration according to these terms and conditions; Appointment
of officials

(y) generally to carry on and undertake any business or service which may seem
capable of being conveniently carried on in connection with the objects of the society, or
calculated directly or indirectly to benefit the society and its members, and to insure against
any losses, damage, risks or liabilities which the society may incur. General
powers

SECOND SCHEDULE
(Section 20)

MATTERS REQUIRED TO BE IN THE
BY-LAWS OF A SOCIETY

Every society shall have by-laws in respect of the following matters:
1. The name of the society.
2. The place and postal address of its registered office.
3. The objects for which the society is established.
4. The value of each share if the society is formed with capital divided into shares, and
whether the capital is limited or unlimited in amount.
5. The qualifications for membership.
6. The minimum number of shares to be subscribed for by each member as a condition of
being admitted to membership, the minimum amount payable on application on each share
so subscribed which shall not be less than ten per centum of its value, the method of
payment of the amount, if any, remaining unpaid on the minimum subscription for shares,
and the method of allotment of and payment for any additional shares.
7. If there is no share capital, the terms of membership and the basis on which the interest
of the member in the society will be determined.
8. The entrance fee, if any.
9. The annual membership fee, if any.
10. The purposes to which funds may be applied.
11. The composition of the board of directors.
12. The manner of distributing the net surplus.
13. The conditions on which a member may withdraw from membership.
14. The geographical area of operation of the society.
15. The term of office of the directors.
16. The holding of annual general meetings.
17. The honorarium (if any) to be paid to the officers of the society.
18. The dates of the society’s financial year.
19. Subject to the provisions of section seventy-nine in the case of a credit union, the
method of constituting, operating and allocating the reserve fund and the amount or method
of fixing the amount to be contributed thereto.
20. Such other matters concerning the administration and operation of the society as may
be required by the rules or by the Registrar.

SUBSIDIARY LEGISLATION

THE CO-OPERATIVE SOCIETIES ACT
THE CO-OPERATIVE SOCIETIES RULES
[ARRANGEMENT OF RULES]

PART I
PRELIMINARY

Rule
1. Title
2. Interpretation

PART II
GENERAL RULES FOR
CO-OPERATIVE SOCIETIES

Procedures for Registration
3. Application for registration
4. Decision on application
5. Additional requirements for registration
6. Certificate of registration and change of name
7. Refusal to register
8. Refund of fees
9. Qualifications for membership
10. Application for membership
11. No membership without cash payment
12. Rights of minors
13. Nominees
14. Withdrawals from membership

Meetings
15. First general meeting
16. Annual general meeting
17. Semi-annual meeting
18. Other general meetings
19. Notice of meetings
20. Quorum
21. Adjournment
22. Extension of term of office
Rule
23. Chairman of annual general meeting
24. Order of business at annual general meeting
25. Order of business at special meeting
26. Voting
Nominations and Elections
27. Elections and terms of office
28. Nominations (two optional methods)
29. Nominations may be seconded
30. When balloting necessary
31. All elections by secret ballot
32. Ballots void
33. Procedure for elections
34. Order of elections
35. Destruction of ballots
36. Election report to Registrar
Duties and Procedures of Directors
37. Election of directors
38. Officers
39. Other officers
40. Special committees appointed by board of directors
41. Supervision of special committees

42. Regular meetings of board of directors
43. Special meetings of board of directors
44. Quorum at directors’ meetings
45. Agenda for directors’ meeting
46. Procedure of directors’ meetings
47. Failure to attend board meetings
48. General duties of directors
49. Membership information
50. Declaration of officers
Duties of Officers
51. Duties of Chairman
52. Duties of Vice-Chairman
Rule
53. Duties of Secretary
54. Duties of Treasurer and annual financial statement
55. Duties of Secretary-treasurer
56. Duties of manager
No Conflict of Interest
57. Action to be taken

PART III
SPECIAL RULES FOR CREDIT
UNIONS

Objects and Services
58. General services and membership
59. Services to member organisations
60. Special deposit services
61. Loans for farm land and the erection of dwellings
62. Loans for business purposes
63. Total amount of loans for land, buildings and business

purposes
64. Loans to officers
65. Preference in the granting of loans
Temporary Suspension of Loaning Operations
66. Suspension and resumption of loaning operations
Withdrawals of Shares and Deposits
67. Methods of withdrawal
Cash Fund to Meet Withdrawals
68. Cash fund
69. No overdrafts allowed
Use of Passbook
70. Entries in passbook or other statement
Investment in Land and Buildings
71. Purpose and value
Special Duties of Directors of Credit Unions
72. Special duties

Credit Committee and Loans
Rule
73. Organisation
74. Quorum
75. Special duties
76. Undesirable loans
77. Loan applications and promotion of thrift
78. Guarantor
79. Shares as security
80. Loans in special cases
81. Meetings
82. Records
83. Inspection of records

84. Report to directors
85. Report to annual general meeting
Supervisory Committee and Auditor
86. Organisation
87. Persons ineligible for appointment
88. Meetings
89. Vacancies
90. Special duties of supervisory committee
91. Verification of members’ accounts
92. Report to annual general meeting
93. Presentation of inspection or auditor’s report
Uncollectable Loans
94. Uncollectable loans and charge-offs
95. Limitation of payments
Appointment of Auditor
96. Appointment
Inspection of Credit Unions
97. Evaluation of loans
98. Discussion of inspection report with officers
99. List of loans in arrears

PART IV
MISCELLANEOUS

Use and Maintenance of a Reserve Fund
Rule
100. Use of reserve fund
101. Investment of moneys in reserve fund
Use of Petty Cash Fund
102. Restricted use of petty cash fund

Inspection and Technical Advice
103. Discussion of inspection report with officers of a society
104. Special services by co-operative federations
105. Special services by Government agencies
106. Special services by advisory officers and members
Appointment of Auditor
107. When appointment required
108. Audit fees payable to Registrar under certain conditions
Charges by Societies
109. Form of register and forms for registration and discharge

FIRST SCHEDULE-Prescribed forms

SECOND SCHEDULE-Prescribed fees

SECTION 156-THE CO-OPERATIVE SOCIETIES
RULES
Rules by the Minister Statutory
Instrument
39 of 1972
96 of 1987
19 of 1994
4 of 1997
Act No.
13 of 1994

PART I
PRELIMINARY

1. These Rules may be cited as the Co-operative Societies Rules. Title

2. In these Rules, unless the context otherwise requires- Interpretation

“board of directors” means the governing body of a society to whom the
supervision and direction of its affairs are entrusted by the members, and
shall be deemed to have the same meaning as the word or words

“committee” or “managing committee” in the by-laws of a society;

“by-laws” means the by-laws of a society registered under the Act or
registered under the former Co-operative Societies Act;

“credit union” means a “savings and credit society” or “thrift and credit
society” registered with objects in accordance with section fifty-three of
the Act;

“Form” means a form set out in the First Schedule;

“Registrar” means the Registrar of Co-operative Societies or any person
authorised to act for the Registrar;

“society” includes a credit union, a co-operative union or federation.

PART II
GENERAL RULES FOR
CO-OPERATIVE SOCIETIES

Procedures for Registration

3. (1) Every application for registration of a society shall be in Form 1,
together with or preceded by the information prescribed in Form 2 as
may be required, and accompanied by the fee prescribed in the Second
Schedule. Application for
registration

(2) The application shall be submitted in triplicate and each copy
thereof shall be signed and accompanied by a copy of the by-laws of the
proposed society.

(3) No society with share capital shall be registered unless the
applicants for registration have subscribed for such minimum number of
shares as may be prescribed in the by-laws as a condition of
membership, and have paid in cash not less than one-quarter of the value

of each share so subscribed, or such other portion of the value prescribed
in the by-laws with the approval of the Registrar, and have paid the
entrance fee, if any:

Provided that the Registrar is satisfied that the share capital to be
furnished initially by the applicants and other persons expected to
become members will be sufficient for the commencement of
operations, having regard to the share capital and other funds necessary
to achieve the objects of the proposed society.

(4) No society without share capital shall be registered unless the
applicants for registration have paid in cash the initial membership fee
prescribed in the by-laws, or have complied with any other initial
financial participation with respect to membership so prescribed, and
have paid the entrance fee, if any:

Provided that the Registrar is satisfied that the membership fees or any
other funds to be furnished initially by the applicants and other persons
expected to become members will be sufficient for the commencement
of operations, having regard to such membership fees and other funds
necessary to achieve the objects of the proposed society.

4. (1) Subject to rule 5, the Registrar shall make a decision within thirty
days of the receipt of an application for registration as to whether or not
he approves of such application, or whether he requires additional
information in accordance with section eleven of the Act before making
such decision, and shall notify the applicants for registration
accordingly. Decision on
application

5. In order to determine whether registration is economically or
otherwise advisable in any particular case, the Registrar may prescribe
one or more of the following requirements before registration:
(a) that additional information be provided to show whether the
proposed society meets an economic, social or cultural need, and has
reasonable prospects for achieving its objects;
(b) that the applicants for registration obtain support from more
persons who may be expected to become members;
(c) that more capital be furnished initially by the applicants for
registration and other persons expected to become members, and that
such additional capital be sufficient for the commencement of Additional
requirements
for registration

operations;
(d) that arrangements be made for more educational and advisory
work respecting co-operative principles and practices and the objects of
the proposed society among the applicants for registration, and among
other persons who may be expected to become members;
(e) that there be sufficient assurance respecting the availability of
officers capable of directing and managing the affairs of the proposed
society and of keeping adequate records and books of account as
prescribed by the Registrar under the Act, and that, if necessary, such
officers be required to undergo such additional training as the Registrar
deems necessary.

6. (1) If the Registrar approves of registration he shall issue a certificate
of registration to the society in Form 3, together with a copy of the
application and by-laws certified by him, with a copy of the application
and by-laws certified by him, and shall cause such registration to be
published by notice in the Government Gazette. Certificate of
registration and
change of name

(2) Notwithstanding sub-rule (1), a registered society may by
amendment to its by-laws change its name.

(3) The Registrar, if he is satisfied that the change of name is not
objectionable, shall enter the new name on the register of co-operative
societies in place of the former name, issue to the society a certificate
showing the change of name, and shall cause a notice of the change of
name to be published in the Government Gazette.

(4) The change of name of a registered society shall not affect any rights
and obligations of the society, or render defective any legal proceedings
by or against the society, and any legal proceedings that might have
been continued or commence against it in its former name, may be
continued or commenced against it in its new name.

7. If, as a result of information provided to him by the applicants for
registration under rule 3 or notwithstanding any additional requirement
for registration prescribed under rule 5, the Registrar is of the opinion
that registration is not economically advisable or he is otherwise unable
to approve of registration, he shall give specific reasons for such refusal
in writing to the Minister and to the applicants for registration. Refusal to
register

8. If an application for registration is not approved in accordance with
rule 7, registration fees received by the Registrar shall be refunded
immediately to the applicants for registration. Refund of fees

9. A person who, in the opinion of the directors, is honest, industrious,
self-reliant and of good habits, or a society or other organisation referred
to in the Act, shall be eligible for membership in a society if the
applicant for membership complies with the provisions of the Act, the
rules and the by-laws of the society with respect to membership. Qualifications
for membership

10. An application for membership shall be in Form 4 duly signed by
the applicant and, where the applicant is an individual person, shall be
endorsed in writing by a director or a member of the society in good
standing or other reliable person, and shall be presented to a regular or a
special meeting of the board of directors for approval or rejection: Application for
membership

Provided that, if an applicant is unable to sign his name, such applicant
shall make his mark on the application form and it shall be duly
witnessed by a director, a member, or other reliable person.

11. No applicant for membership shall be admitted to membership or
exercise the rights of membership unless such applicant-
(a) has subscribed for such minimum number of shares prescribed
in the by-laws as a condition of membership and has paid in cash not
less than one-quarter of the value of each share so subscribed, or such
other portion of the value as the by-laws may prescribe, and has paid the
entrance fee, if any; or
(b) in the case of a society registered without share capital, has paid
in cash the membership fee prescribed in the by-laws, and has complied
with any other initial financial participation with respect to membership
so prescribed, and has paid the entrance fee, if any. No membership
without cash
payment

12. (1) A minor may be a member if provided in the by-laws, but where
such minor is under the age of sixteen years his parent or guardian shall
be informed of his desire to become a member and to open a share
account or pay a membership fee, as the case may be. Rights of
minors

(2) Where the parent or guardian has been informed of a share or
deposit account held by a minor under the age of sixteen years and no

restrictions on the account are imposed by the society, a minor may
make payments to and withdraw money from such account, or make
such other use of the account as deemed desirable without the approval
of his parent or guardian.

(3) A minor under the age of sixteen years who makes use of the
services of the society in accordance with sub-rule (1) or (2) shall have
all the rights of a member except the right to vote.

(4) Shares may be held and deposits may be made in a society by a duly
authorised person on behalf of a junior savings club or other junior
organisation, and withdrawals may be made on behalf of such club or
organisation with the written approval of the person authorised to hold
shares or to make such deposits.

13. (1) Every member of a society may at the time or after he becomes
a member nominate in writing, with two attesting witnesses, one person
who, in the event of his death, will succeed to his shares or other interest
in the society, and the name of such nominee shall be entered in the
membership register if the nominee is eligible for membership. Nominees

(2) In the event of such nominee not becoming a member or not being
admitted to membership by the directors, the value of the shares or other
interest shall nevertheless be paid to him in accordance with sub-rule
(4).

(3) In the event of such nominee dying or of the member desiring to
cancel such nomination, the member may from time to time nominate in
writing another person in the same manner as in sub-rule (1), and the
necessary alterations shall be made in the records of the society.

(4) For the purpose of a transfer to the nominee, or to the legal
representative if there is no nominee, the value of any shares or other
interest shall include the sum actually paid to the society by the member
or credited to his share capital or other account from time to time out of
the earnings of the society in accordance with the by-laws.

(5) Where any money is paid to a nominee who is a minor, a receipt
given either by the minor or by his parent or guardian shall be a

sufficient discharge to the society making such payment.

14. (1) A member may withdraw from the society upon giving such
notice as may be required by the by-laws, or such additional notice as
the directors may deem necessary in any particular case and approved
by the Registrar. Withdrawals
from
membership

(2) Without restricting the generality of the foregoing, additional notice
may be required if the member is a borrower or guarantor of a loan
owing to the society, or is otherwise indebted to the society.

(3) No member withdrawing shall be entitled to a refund of his
membership fee.
Meetings

15. (1) Unless otherwise provided in the by-laws, every society shall,
within two months from the receipt of the certificate of registration,
unless the time is extended by the Registrar, hold a general meeting at
which all members shall be entitled to be present and to vote. First general
meeting

(2) The business of the first general meeting shall include the election of
directors and committees, if any, who shall serve until re-elected or their
successors are elected at the first annual general meeting.

16. Every society shall hold an annual general meeting of its members
or delegates in every calendar year as prescribed in the by-laws: Annual general
meeting

Provided that such meeting shall, unless otherwise approved by the
Registrar, be held within six months of the close of the previous
financial year of the society.

17. A semi-annual business meeting of a society may be held in any
year for the purpose of reviewing the operations of the society. Semi-annual
meeting

18. Other general meetings of a society may be held quarterly or at
such other times as may be determined by the directors. Other general
meetings

19. (1) Unless the by-laws provide that the notice giving the date, time
and place of the annual, semi-annual, special or other members’ or
delegates’ meeting of a society shall be advertised in one issue of a
newspaper circulating in the city, town or other locality in which the
registered office of the society is located, notice of all meetings shall be
mailed or otherwise sent, or made available to each member or delegate
of the society at his last known address. Notice of
meetings

(2) At least twenty-one days’ notice shall be given of every meeting
whether by advertisement, mail or otherwise.

(3) The notice shall contain a statement of the purpose of the meeting,
and, wherever practicable, the agenda for the meeting shall be made
available to each member or delegate before the meeting is held.

(4) The non-receipt by a member of a notice or information respecting
the date, hour and place of a meeting shall not invalidate the proceedings
or the business transacted at the meeting.

20. (1) The by-laws may prescribe the quorum at a general meeting of a
society: Quorum

Provided that in no instance where the society is comprised of individual
persons shall the number to constitute a quorum be less than the number
of directors plus one, except where the Registrar calls a meeting of a
society in accordance with section one hundred and twenty-seven of the
Act when the quorum shall be the number of members or delegates in
attendance at such meeting.

(2) Where the by-laws of a society do not prescribe a quorum, the
provisions of section one hundred and twenty-six of the Act shall apply
to that society.

21. If a quorum is not present within one hour from the time appointed
for any meeting of a society in a rural area, or within thirty minutes of
the time appointed for any meeting of a society in a city or town, the
meeting shall stand adjourned until called again by the directors, or an
application is made to the Registrar for direction or assistance from him
with respect to calling the meeting. Adjournment

22. Where a society has been unable to hold an annual general meeting
within the period prescribed by its by-laws or rule 16, and as a result the
election of directors and committee members required to be elected has
not taken place, the term of office of retiring directors or committee
members shall not expire until they are re-elected or their successors are
elected at a general or a special meeting. Extension of
term of office

23. Unless the members or delegates nominate some other member or
delegate to be Chairman of the meeting, the Chairman of the board of
directors or the Vice-Chairman shall be Chairman of the annual general
meeting and other general or special meetings of the society. Chairman of
annual general
meeting

24. The order of business at the annual general meeting shall include-
(a) registration and call to order by the Chairman;
(b) reading and approval or correction of the minutes of the last
annual general meeting;
(c) business arising out of the minutes;
(d) report of the directors (managing committee);
(e) report of the Treasurer, Secretary-treasurer or manager, and
consideration of the financial statement;
(f) reports of other committees (if the society is a credit union, this
shall include reports of the credit committee and the supervisory
committee);
(g) report of auditor, if any;
(h) adoption or other disposal of reports;
(i) apportionment of the net surplus as recommended by the
directors according to the by-laws and the Act;
(j) amendments to by-laws, if any;
(k) elections;
(l) appointment of auditor where required;
(m) unfinished business;
(n) new business;
(o) adjournment. Order of
business at
annual general
meeting

25. The order of business at a special meeting shall be- Order of

(a) registration and call to order;
(b) election of a Chairman if the Chairman of the board of directors
or other person who calls the meeting to order is not to be the Chairman
of the meeting;
(c) reading of notice of meeting;
(d) consideration of the matter or matters for which the meeting has
been called and which have been specified in the notice of meeting;
(e) adjournment. business at
special meeting

26. (1) Except as provided in rule 12 (3) respecting minors under the
age of sixteen years, each member who has complied with the
provisions of the by-laws respecting admission to and the maintenance
of membership in the society, or delegate elected by the members of the
society from a district thereof, or any delegate representing a member
society or other organisation, or any special director appointed by the
Registrar in accordance with section one hundred and sixty-one or one
hundred and sixty-two of the Act, shall have one vote at a meeting of a
society. Voting

(2) Except in the case of a special resolution as defined in section two of
the Act or a resolution to amend the by-laws in accordance with section
twenty-one of the Act, a majority of the members or delegates present at
a meeting where there is a quorum shall decide all questions.

(3) A resolution put to the vote of the meeting shall be decided by a
show of hands unless a poll is demanded by at least three members or
delegates present.

(4) If a poll is demanded it shall be taken by ballot in such manner as the
Chairman of the meeting directs.

(5) The Chairman of the meeting at which a show of hands takes place
to decide a question or a resolution, or at which a poll is demanded, shall
have the right to vote and shall have a second or a casting vote in the
event of an equality of votes.
Nominations and Elections

27. (1) Subject to section one hundred and twelve of the Act, the
election of directors and other committees to be elected shall take place
at the annual general meeting of a society or at a special meeting called
for the purpose. Elections and
terms of office

(2) The by-laws may provide that the directors, who shall not be less
than five, and members of other committees, if any, shall be elected for
one, two or three year terms and, subject to sub-rule (4), shall be eligible
for re-election.

(3) (a) Where the by-laws provide that the directors shall be elected for
a one year term at a time, the directors elected at the first general
meeting held after the receipt by the society of its certificate of
registration shall hold office until the first annual general meeting when
their successors are elected. At each annual general meeting thereafter,
directors shall be elected to replace those retiring and shall hold office
for one year.

(b) Where the by-laws provide that the directors shall be elected for a
two year term at a time, the directors elected at the first general meeting
held after receipt by the society of its certificate of registration shall be
elected to hold office until the first annual general meeting when their
successors are elected. At the first annual general meeting the number of
directors designated in the by-laws shall hold office until the second
annual general meeting, and the number of directors designated in the
by-laws shall be elected to hold office until the third annual general
meeting. At each annual general meeting thereafter, directors shall be
elected to replace those retiring and the directors so elected shall hold
office for a two year term.

(c) Where the by-laws provide that the directors shall be elected for a
three year term at a time, the directors elected at the first general
meeting of the society held after receipt of its certificate of registration
shall be elected to hold office until the first annual general meeting
when their successors are elected. At the first annual general meeting the
number of directors designated in the by-laws shall be elected to hold
office until the third annual general meeting, and the number of directors
designated in the by-laws shall be elected to hold office until the fourth
annual general meeting. At each annual general meeting thereafter,
directors shall be elected to replace those retiring and directors so
elected shall hold office for a term of three years.

(4) Notwithstanding sub-rules (2) and (3), the by-laws may provide that
no director shall hold office for a period of more than six consecutive
years from the time he was first elected at an annual general meeting
without standing down for a period of one year, after which he may be
nominated at the annual general meeting held at or immediately
following the end of such year.

(5) Unless the by-laws of a credit union provide that the members of the
credit committee, who shall be not less than three in number, shall be
appointed by the board of directors, the by-laws shall provide that the
members of such committee shall be elected at the annual general
meeting and the provisions as to term of office and election procedure
set forth in sub-rule (3) (c) shall apply.

(6) (a) Where the by-laws of a credit union provide that the three
members of the supervisory committee shall be elected by the members
at an annual general meeting, the procedure prescribed in the by-laws
shall be as in sub-rule (3) (c).

(b) Where the by-laws of a credit union provide that one member of the
supervisory committee shall be appointed by the board of directors and
the remaining two members by the membership of the credit union at the
annual general meeting, the procedure shall be as follows:

(i) at the first annual general meeting held after receipt by the credit
union of its certificate of registration, one member of the supervisory
committee shall be appointed by the board of directors and the
remaining members elected by and from the membership. This
committee shall hold office until the first annual general meeting;

(ii) after the first annual general meeting the member of the
supervisory committee appointed by the directors shall hold office for
one year. Of the two members of the supervisory committee elected by
the members of the credit union at the first annual general meeting, the
first member, or the one receiving the highest number of votes cast, shall
hold office for three years and the second for two years. Thereafter, as
each term expires the election or appointment, as the case may be, shall
be for a period of three years.

28. (1) Unless the by-laws provide otherwise the Chairman may, with
the approval of the directors, at or before the meeting, appoint a
nominating committee of three members who shall, with the consent of
the nominee, place in nomination one or more names for each vacancy,
but after the report of the nominating committee has been placed before
the meeting the Chairman shall call for additional nominations from the
meeting, and after a reasonable time has elapsed a motion to close
nominations shall be in order. Nominations
(two optional
methods)

(2) If no nominating committee is appointed, nominations shall take
place from the meeting only.

29. Nominations may be seconded, but where the nominee is not
present at the meeting his consent to stand for election shall be obtained
either in advance by the nominating committee or be presented in
writing by the nominator and the seconder at the time of nomination. Nominations
may be
seconded

30. When there are two or more candidates for any office a ballot shall
be taken, but where only one member is nominated for the office the
Chairman shall declare such member elected. When balloting
necessary

31. All elections shall be held by secret ballot: All elections by
secret ballot

Provided, however, that if a member is unable to write, a person
appointed by the returning officer may assist such member by writing on
the ballot the name of the candidate or each candidate for which the
member wishes to vote.

32. If a member places more or less names on the ballot than the
number to be elected, his vote shall not be counted. Ballots void

33. (1) When nominations are closed, the Chairman of the meeting
shall appoint a returning officer and one or more persons to assist him as
required. They shall distribute the ballots, and when the vote has been
taken they shall collect and count them, and the returning officer shall
announce the results to the meeting. Procedure for
elections.

(2) The method of election shall be that with one ballot and the
candidate or candidates receiving the highest number of votes cast shall
be declared elected.

(3) Where candidates are to be elected for varying terms with one
ballot, the candidates receiving the highest number of votes cast shall be
declared elected for the longest or the longer term, as the case may be.

(4) (a) If two or more candidates receive an equal number of votes the
meeting may, by resolution carried by a clear majority of those present,
provide that a second ballot be taken.

(b) If the meeting does not decide that there shall be a second ballot,
then the returning officer, in the event that the equality of votes is not
broken by withdrawal of one or more candidates, shall write the names
of such candidates separately on blank sheets of paper of equal size and
the same colour and texture and, after folding the same in a uniform
manner so that the names are concealed, deposit them in a container and
direct some person to withdraw one of the sheets or such greater number
as are required to complete the election; and the candidate or candidates
whose name or names appear on the sheets so withdrawn shall be
declared elected by the returning officer.

34. Where, in addition to the board of directors, one or more
committees are to be elected, as in a credit union, the order of elections
shall be as follows:
(a) election of directors;
(b) election of credit committee if not appointed by the directors (for
credit unions only); and
(c) election of members of supervisory committee except where one
member thereof is to be appointed by the directors (for credit unions
only). Order of
elections

35. After the results of the vote have been determined, the Chairman of
the meeting shall order the ballots to be destroyed. Destruction of
ballots

36. Within twenty-one days after the election the names and addresses,
together with information respecting the terms of office of all persons Election report
to the Registrar

elected, shall be forwarded to the Registrar by the Secretary of the
society.
Duties and Procedures of Directors

37. At the first general meeting of the society a board of directors
according to the number designated in the by-laws, which shall not be
less than five, shall be elected by and from the members to retain office
until the first annual general meeting of the society, and until they are
re-elected or their successors are elected as provided in the by-laws. Election of
directors

38. (1) The directors shall meet within twenty-one days after their
election following the first general meeting and following each annual
general meeting thereafter, and shall organise for the current year by
electing a Chairman and one or more Vice-Chairmen from their number,
and shall appoint a Secretary, Treasurer, or a Secretary-treasurer, who
need not be a member of the society. Officers

(2) Notwithstanding sub-rule (1), the directors may appoint a manager
who may also be appointed annually to perform the duties of Secretary
or Treasurer or Secretary-treasurer, as the case may be.

39. If the society is a credit union the directors shall, if the by-laws so
provide, appoint a credit committee of not less than three members and
one member of the supervisory committee. Other officers

40. (1) In carrying out their duties as required by the Act, the directors
may appoint an executive committee consisting of the Chairman, the
Vice-Chairman, and one other director. The duties of the executive
committee shall include- Special
committees
appointed by
board of
directors

(a) carrying out decisions made by the directors at board meetings
where necessary;

(b) to take such action as may be necessary between board meetings
to achieve the objects of the society and safeguard the interests of
members; and

(c) to make such recommendations to the board of directors with

respect to the affairs of the society as may be deemed necessary from
time to time.

(2) When a society provides credit to farmers in accordance with
sections thirty-five and thirty-six of the Act, or is permitted by its
by-laws to sell consumers’ goods on credit as provided in section
eighty-three of the Act, the directors may appoint a committee to
supervise credit whose duties shall include-

(a) examining regularly the condition of credit transactions and
reporting to the directors whether the administration of credit is in
accordance with the policies laid down by the directors at board
meetings;

(b) seeing to it that a loan made or credit granted to a member is
used efficiently by him and only for the purpose for which such loan or
credit was made or granted;

(c) where a loan or a credit account is in arrears, recommending
measures to ensure the repayment of the debt; and

(d) recommending where necessary improved methods for the
administration of credit or the curtailment or the termination of credit
services in connection with such goods or commodities as may be
deemed necessary.

(3) The directors may appoint a co-operative education and training
committee to keep the membership of the society informed about
co-operative principles and practices and the progress of their society, to
foster co-operation with other co-operative organisations, and to arrange
for programmes of membership education and training courses for
officers.

41. Minutes of all special committee meetings shall be kept by the
Secretary of the society and minutes and reports of the work of such
committees shall be made available to the directors. All special
committees shall be subject to general direction and supervision by the
board of directors. Supervision of
special
committees

42. Regular meetings of the board of directors shall be held at least
monthly and at such other times as may be required by the business of Regular
meetings of

the society. board of
directors

43. Special meetings of the board of directors may be called by the
Chairman at any time and shall be called upon the written request of a
majority of the directors. Special
meetings of
board of
directors

44. Unless the by-laws otherwise provide, the quorum at a directors’
meeting shall be the majority of directors, including special directors, if
any. Quorum at
directors’
meetings.

45. The agenda for the regular meeting of the board of directors shall
include the following:
(a) call to order by the Chairman;
(b) reading and disposal of the minutes of previous meeting;
(c) new applications for membership;
(d) report on proposed withdrawals from membership;
(e) consideration and disposal of monthly or other financial and
progress reports respecting the business of the society;
(f) reports of committees, if any;
(g) report of auditor, if any;
(h) report of the inspection and audit of the society by the Registrar,
when available;
(i) other business required by the Act;
(j) new business;
(k) date of next meeting; and
(l) adjournment. Agenda for
directors’
meeting

46. (1) Except as otherwise provided in the Act, including sections
fifty-eight and one hundred and ten, a majority vote at a directors’
meeting at which a quorum is present shall be sufficient for the
transaction of business at board meetings. Procedure of
directors’
meetings

(2) The Chairman of the board of directors or other presiding officer
may vote on any question and shall have a second or a casting vote in the

event of an equality of votes.

47. (1) Should a member of the board of directors be absent from two
consecutive meetings of the board without good reason, the other
directors may, unless the by-laws provide otherwise, pass a resolution at
a properly called board meeting at which a quorum is present, that the
Secretary inform the member by written notice that unless he attends the
next meeting of the board when called, his office as director shall be
declared vacant by the board of directors. Failure to attend
board meetings.

(2) If the director fails to attend the next meeting of the board of
directors notwithstanding the notice sent to him as in sub-rule (1)
provided, the other directors may, by resolution passed at a properly
called board meeting and by written notice sent to him to that effect,
declare his office vacant and fill the vacancy until the next annual
general meeting of the society.

48. In carrying out their duties to direct and supervise the business and
property of the society the directors shall-
(a) approve or reject applications for membership in the society;
(b) have power to appoint, define the duties of, terminate the
services of, and, as may be required, determine the remuneration of the
Secretary-treasurer or the Secretary and Treasurer, or the manager, or
co-operative education secretary, and of such other employees of the
society, if any, as they deem necessary for the achievement of its
objects;
(c) examine carefully and regularly the condition of the business
and property of the society, and require the manager or
Secretary-treasurer or such other employee as may be in charge of the
society’s records to provide monthly or quarterly, or at such other times
as the directors may determine, a report or reports disclosing the results
of operations and financial condition of the society during a specified
period, and a comparison of such information with the results of
operations during a similar period of the previous year;
(d) (i) require every person appointed to an office relating to the
receipt and expenditure of money of the society, or the supervision of
goods and commodities of the society, including any employee with
these responsibilities and any person appointed as signing officer, to
furnish, in addition to any other security required, a fidelity guarantee
bond of such minimum amount set forth in a schedule prescribed by the
Registrar from time to time; General duties
of directors

(ii) arrange for fire insurances, burglary and hold-up insurance,
and any other form of insurance necessary to protect the business and
property of the society;
(e) designate a commercial bank, registered building society, the
Post Office Savings Bank, a federation registered under section
ninety-one of the Act, or other organisation authorised to receive money
on deposit in which funds of the society shall be deposited;
(f) see to it that a proper set of records and books of account for the
purposes of the society are kept and maintained by an officer with
sufficient knowledge or training for the purpose;
(g) supervise credit transactions of the society, if any, and examine
regularly the condition of accounts receivable and accounts payable, and
curtail or terminate credit transactions for such period as may be deemed
advisable to safeguard the interests of the society and its members;
(h) when an officer responsible to the directors for the supervision
of funds, goods or commodities of the society, ceases for any reason to
be so responsible, prepare or cause to be prepared, immediately before
his successor is appointed, an account of such funds, or an inventory of
such goods or commodities, as the case may be;
(i) direct or supervise the taking of an inventory at least annually of
goods or commodities on hand, if any, that are sold or marketed by the
society;
(j) prepare a recommendation to the annual general meeting
respecting the apportionment of the annual net surplus as provided in the
Act and the by-laws;
(k) approve or prepare for submission by the Chairman a report to
the annual general meeting respecting the work of the directors during
the preceding financial year, the progress of the society during such
year, together with such recommendations as appear necessary to
achieve the objects of the society and improve services to members.

49. The directors shall, with the assistance of a co-operative education
and training committee, if any, appointed under rule 40 (3), keep the
members informed regarding the business of the society and encourage
interest, support and a sense of ownership on their part by-
(a) presenting to the members periodic reports regarding the
condition of the society, its services and objects;
(b) publicising the activities of the society in newspapers and in
other ways;
(c) carrying on, encouraging and assisting educational work relating Membership
information

to co-operatives and the objects of the society, including support of
youth groups to facilitate their participation in co-operative and
community affairs; and
(d) providing that after each annual general meeting each member
of the society, other than a community service society organised in
accordance with section eighty-eight of the Act, receives a statement or
other information showing his share capital or other interest in the
society after the apportionment of the annual net surplus for the
preceding financial year.

50. All directors, members of committees, and employees of a society
with responsibility for the direction or management of its affairs or the
provision of services to members in accordance with its objects shall,
annually or upon being elected or appointed to office or employment,
sign a declaration in Form 5 relating to-
(a) faithful performance of duties;
(b) keeping in strict confidence business transacted between the
society and its members.
Duties of Officers Declaration of
officers

51. The Chairman of the board of directors shall preside at the opening
and closing of all meetings of a society and of the board of directors, and
his other duties shall include-
(a) exercising general supervision over the officers and the business
of the society;
(b) calling all meetings;
(c) presenting to the annual meeting the directors’ report on the
affairs of the society;
(d) presenting to the annual meeting the recommendation of the
directors respecting the distribution of the net surplus according to the
Act and the by-laws;
(e) countersigning all cheques, notes, bills of exchange and other
negotiable instruments for carrying on the business of the society, unless
some other person or persons are authorised to do so by resolution of the
board of directors; and
(f) performing such other duties and transacting such other business
that customarily relate to his office. Duties of
Chairman

52. In the absence or inability of the Chairman to carry out his duties, Duties of

all the rights and powers of the Chairman shall for the time being be
vested in the Vice-Chairman and, in the case of the office of the
chairman becoming vacant, the Vice-Chairman shall act as Chairman
until the next annual general meeting. Vice-Chairman

53. The Secretary shall attend and keep a record of all meetings of the
society and of the board of directors, have custody of the seal of the
society, conduct correspondence on behalf of the society, sign share
certificates or membership certificates and, with the Chairman or other
authorised officers, sign contracts, and sign, execute and deliver all
deeds and conveyances of property which the directors may order
executed. Duties of
Secretary

54. The Treasurer, who may act as the manager of the society under the
orders of the board of directors, shall-
(a) receive and deposit in whatever depository the directors may
order all moneys received by and paid to the society, and give receipts
therefor;
(b) with the Chairman or any other person or persons authorised by
the directors, sign all cheques, notes, bills of exchange, and other
negotiable instruments necessary for the carrying on of the business of
the society;
(c) keep a just and true record of all business transactions of the
society, have custody of the cash, securities, books of accounts, registers
and other papers of the society:
Provided that the adequacy of the books and accounts kept by
the Treasurer shall be subject to the approval of the Registrar;
(d) prepare, or cause to be prepared, for the annual general meeting,
the directors and the Registrar, within four months of the end of the
preceding financial year, a statement in a form approved by the
Registrar, of the receipts and expenditure, the results of operations, and
assets and liabilities of the society for such year, and prepare or cause to
be prepared an interim financial statement for any semi-annual or other
general or special meeting if requested to do so by the directors;
(e) send promptly to the Registrar the annual financial statement
referred to in paragraph (d) and send, or arrange to send, to the Registrar
the auditor’s report, if any, and such other returns as the Registrar may
require from time to time;
(f) if requested to do so by the directors, prepare a statement of the
estimated income and expenses of the society for the ensuing year for
consideration of the board of directors at their first meeting following Duties of
Treasurer and
annual financial
statement

the annual general meeting of the society.

55. The office of Secretary and Treasurer may be held by one and
the same person, in which case the duties shall be as prescribed in
rules 53 and 54. Duties of
Secretary-treasurer

56. If the directors appoint a general manager to manage the business
and property of the society, the duties of Secretary or Treasurer, or
Secretary-treasurer, may be modified or altered in accordance with the
allotment of such duties as may be assigned by the directors to the
manager and other officers. In such cases definite instructions in writing
shall be given to each officer so that the duties prescribed in rules 53 and
54 will be carried out.
No Conflict of Interest Duties of
manager

57. If an officer or employee of a society undertakes in his own behalf
any business or trade for profit, and such business or trade is in
competition with or duplicates services available from the society to its
members, or to persons who may be expected to become members, and
continues to do so while holding office or being an employee, such
person, if holding an elective office, shall vacate such office
immediately or be liable to removal by the directors or by the Regisrar
or, if appointed as an employee by or with the approval of the directors,
shall be liable to immediate removal by the directors or by the Registrar. Action to be
taken

PART III
SPECIAL RULES FOR CREDIT
UNIONS

Objects and Services

58. (1) No co-operative savings and credit society, in these Rules
referred to as a credit union, shall engage in any business except in
accordance with objects prescribed in section fifty-three of the Act, and
may exercise the powers necessary to achieve such objects, or powers General
services and
membership

that are ancillary or incidental thereto, subject to the by-laws.

(2) The by-laws shall specify the common bond of occupation,
association or residence to which membership of the credit union shall
be limited.

59. (1) A credit union may, by by-laws and with the approval of the
Registrar, provide for admission to membership of another credit union,
other society, or one or more organisations mentioned in section fifty-six
of the Act: Services to
member
organisations

Provided that-
(i) the by-laws shall specify the terms and conditions upon which
such member credit union, society or organisation may obtain loans or
other services;
(ii) the total amount of loans made to such member credit union,
other society or other organisation shall not at any time exceed an
amount equivalent to one-quarter of the paid-up capital and deposits of
the credit union.

(2) A credit union shall require the directors or other elected officers of
a registered organisation, which is a member in accordance with section
fifty-six of the Act, to file with the credit union a resolution in Form 6
authorising the officers of the organisation named therein to transact
business with the credit union.

(3) A credit union shall require the duly authorised officers of an
organisation that is not registered, but is a member in accordance with
section fifty-six of the Act, to furnish a resolution in Form 7 naming the
officers who have authority to make withdrawals and to sign on behalf
of such organisation.

(4) Except upon a resolution given to its signing officers, a certified
copy of which shall be filed with the credit union, no loan shall be given
to a member organisation which is not registered:

Provided, however, that in the making of a loan to such organisation
which is a member, a credit union shall in any particular case require
such additional security by way of an endorsement of a negotiable

instrument in the form of a promissory note to repay the loan as may be
deemed advisable.

60. Deposits may be accepted from other than individual members of
the credit union in accordance with paragraph (a) of section fifty-seven
of the Act under the following conditions:
(a) the credit union adopts a by-law providing for the conditions
under which such deposits may be accepted;
(b) the Registrar is satisfied that the credit union- Special deposit
services

(i) has a permanent place of business;

(ii) is adequately provided with safe-keeping facilities for books,
records, money and securities;

(iii) has a full-time Treasurer and staff to carry on regular services to
its individual members;

(iv) has adequate bonding and insurance coverage;

(v) has an adequate book-keeping system that is kept up to date;

(vi) has paid-up share capital and deposits credited to its individual
members of at least K200,000, or such lesser or greater amount as the
Registrar may prescribe;

(vii) has been authorised to use orders negotiable by endorsement
(cheques) with clearing arrangements with commercial banks; and

(viii) has appointed an auditor.

61. A credit union may make loans for the purchase of farm land or a
small farm holding, or occupancy title thereto for the personal use of the
borrower, and for the purchase or erection of buildings necessary for the
conduct of farming operations on such land holding, or for the purchase
or erection of a dwelling-house or other buildings for the personal use of
the borrower and the land on which such dwelling-house or other
buildings are situated or erected, subject to the following conditions:
(a) that the combined amount of paid-up capital and deposits of the
credit union is at least K10,000, or such lesser or greater amount as the Loans for farm
land and the
erection of
dwellings

Registrar may prescribe; and
(b) that a loan made for the purpose of this rule and the total of any
other loans made to the borrower shall not at any time exceed an amount
in excess of eight per centum of the paid-up capital and deposits of the
credit union, or in excess of such lesser percentage as may be provided
in the by-laws.

62. (1) If the by-laws so provide, loans may be made by a credit union
for the purchase of land or the purchase or erection of buildings used in
the operation of a business, or for financing the operation of a business
of which the borrower is the sole owner or proprietor, subject to the
following conditions: Loans for
business
purposes

(a) that the combined amount of paid-up capital and deposits of the
credit union is not less than K25,000;

(b) that a loan made for the purpose of this sub-rule and the total of
any other loan made to the borrower shall not at any time exceed an
amount in excess of eight per centum of the paid-up capital and deposits
of the credit union, or in excess of such lesser percentage as may be
provided in the by-laws;

(c) that the total assets of the borrower as shown by a statement of
his affairs before the loan is made do not exceed K10,000.

(2) If the by-laws so provide, loans may be made for the purchase of
land or the purchase or erection of buildings used in the operation of a
society, or for financing the operation of the business of a co-operative
society, subject to the following conditions:

(a) that the combined amount of paid-up capital and deposits of the
credit union is not less than K25,000;

(b) that a loan made for the purposes of this sub-rule and the total of
any other loan made to the borrower as a society shall not at any time
exceed an amount in excess of eight per centum of the paid-up capital
and deposits of the credit union, or in excess of such lesser percentage as
may be provided in the by-laws;

(c) that the total assets of the borrower as a society, as shown by the
financial statement filed with the Registrar for the preceding financial

year, do not exceed K10,000.

(3) Loans made for financing the operation of a business in accordance
with sub-rules (1) and (2) shall be made only for the following purposes:

(a) for the purchase of agricultural or other commodities for
marketing, or for the purchase of agricultural requisites or other
merchandise for sale at retail;

(b) for improvements to buildings or equipment used in the
business;

(c) for the payment of wages and salaries; and

(d) for the consolidation of debts incurred by the borrower in the
operation of the business.

63. (1) The total amount of loans made by a credit union in accordance
with rules 61 and 62 and section sixty-seven of the Act shall not at any
time exceed an amount equivalent to one-quarter of the paid-up capital
and deposits of the credit union. Total amount of
loans for land,
buildings and
business
purposes

(2) All applications for loans made under rules 61 and 62 and in
accordance with section sixty-seven of the Act require the approval by a
majority vote of the following persons meeting together:

(a) a majority of the members of the credit committee;

(b) two or more directors; and

(c) one member of the supervisory committee:

Provided, however, that where the by-laws of the credit union specify
that the members of the credit committee shall be appointed by the
board of directors, there shall be deemed to be a compliance with this
rule where at least two of the members of the credit committee present at
the meeting are also directors.

64. Where an officer of a credit union applies for a loan in excess of the
value of his shares and deposits assigned as security to the credit union,
and the market value of any stock, bond or security of the Government
of Zambia held by him and so assigned, his application shall require
approval by majority vote, taken in the absence of the applicant, of the
following persons meeting together:
(a) a majority of the members of the credit committee;
(b) two or more directors; and
(c) one member of the supervisory committee: Loans to
officers

Provided, however, that where the by-laws specify that the members of
the credit committee shall be appointed by the board of directors, there
shall be deemed to be a compliance with this rule where at least two of
the members of the credit committee present at the meeting are also
directors.

65. Where the by-laws provide for loans to a credit union, other society
or other organisation, in accordance with section fifty-six of the Act, and
where the by-laws provide for loans for business purposes in accordance
with rule 63 and section sixty-seven of the Act, and there are more loan
applications pending than can be granted from the funds available,
preference shall be given by the credit committee to applications from
individual members, other than for business purposes, subject to the
provisions of subsection (8) of section sixty-four of the Act.
Temporary Suspension of Loaning Operations Preference in
the granting of
loans

66. Where the Registrar is of the opinion that the manner in which
loans are being made by a credit union as disclosed by an examination or
investigation under the Act, or the amount of loans being made threaten
the financial stability of the credit union and the interests of its
members, he may-
(a) by written notice sent or delivered to the Chairman and
Treasurer or Secretary-treasurer or manager, as the case may be, order
the suspension of loaning operations or further loaning operations
during such period as he may prescribe;
(b) appoint an officer of the credit union or some other competent
person as an administrator in accordance with section one hundred and
sixty-three of the Act to collect loans in arrears and place other loans
outstanding in a condition to ensure repayment, and have charge of other Suspension and
resumption of
loaning
operations

operations of the credit union;
(c) permit the resumption of loaning operations after the financial
position of the credit union has been restored to a satisfactory basis,
under the direction of its own officers or subject to assistance from such
special directors or other special officers as he may appoint.
Withdrawals of Shares and Deposits

67. (1) A member may withdraw funds standing to his credit in share
capital account or in deposit account in the credit union, or placed to his
credit by the credit union from the proceeds of a loan made to him, by
cheque payable to the member and issued by the credit union on a
commercial bank or other depository in which the funds of the credit
union are placed, provided that the necessary withdrawal voucher has
been signed by the member. Methods of
withdrawal

(2) Withdrawals may be made in cash by signing a cash withdrawal and
disbursement voucher at the office of the credit union, in a form
designated by the directors and approved by the Registrar for use only at
the office of the credit union, and containing the member’s account
number, his personal signature, and initialed by the

Treasurer or his assistant when the withdrawal is charged to the
member’s account; or a stamp bearing the name of the credit union and
the date may be used in place of an initial.

(3) Withdrawals may be made by orders negotiable by endorsement
(cheques) where the Registrar has authorised the use of such orders and
the credit union has arrangements for clearing.
Cash Fund to Meet Withdrawals

68. (1) Where a cash fund, other than petty cash for designated
purposes as in rule 102, is maintained for the purposes of rule 67 (2) and
authorised by the board of directors with the approval of the Registrar,
the following conditions shall apply: Cash fund

(a) withdrawal from the bank or other depository for the stated cash
fund shall be made only as required so that the amount of cash in hand
shall not exceed at any time the amount authorised by the directors and
approved by the Registrar;

(b) the cash shall be kept in a suitable safe until required and shall be
in the sole custody of the Treasurer, Secretary-treasurer or the manager,
as the case may be:

Provided that the Registrar may require such information as
he deems necessary regarding the adequacy of safe-keeping facilities;

(c) the credit union has in force burglary and hold-up insurance in
an amount designated by the directors and approved by the Registrar.

(2) Where the use of orders negotiable by endorsement (cheques) has
been authorised by the Registrar as in rule 67 (3) to be issued by
members on their deposit account in the credit union, the following
conditions shall apply, namely, that the credit union:

(a) has a permanent place of business adequately provided with
safe-keeping facilities for books of account, records, money and
securities, controlled by the directors;

(b) has a full-time Treasurer and other staff to carry on regular
savings and credit services for its members;

(c) has adequate burglary and hold-up insurance and bonding
coverage;

(d) has an adequate book-keeping system that is kept up to date;

(e) has clearing arrangements with commercial banks;

(f) has combined paid-up capital and deposits in excess of
K200,000;

(g) maintains a reserve to meet withdrawals consisting of cash in
hand or in bank, or other depository in which funds of the credit union
are placed, that is not less than twenty per centum of the combined share
capital and deposits of the credit union at the end of the preceding
calendar month; and

(h) has appointed an auditor.

69. (1) No officer or employee of a credit union shall permit any
withdrawal of funds from share capital or deposit account, or from the
proceeds of a loan properly approved in accordance with the Act and
placed to the credit of the borrower by the credit union, when the funds
in such accounts are not sufficient to cover the withdrawal. No overdrafts
allowed

(2) Nothing in this rule curtails, abridges or defeats any remedy for the
recovery from a member of any amount withdrawn in excess of the
amount standing to his credit in his share capital or deposit account, or
loan account.
Use of Passbook

70. (1) All payments to or withdrawals from share capital account or
from deposit account, if any, shall be shown by the necessary entries in a
passbook or statement provided to the member. Entries in
passbook or
other statement

(2) The proceeds of any loan and repayments thereon, together with
interest payments, shall be shown by the necessary entries in the
passbook or statement provided to the member as in sub-rule (1).

(3) All entries in a passbook or statement under this rule shall be
initialed by the Treasurer or his authorised assistant, except where
machine posting is used.

(4) A member using the stop order deduction plan for payments to or
withdrawals from a credit union, pursuant to the Act, shall present his
passbook to the Treasurer or his authorised assistant at least quarterly.

(5) If a passbook is lost or destroyed, immediate notice of the loss or
destruction shall be given by the member to the Treasurer who may
issue a new passbook:

Provided that where a new passbook is so issued, the member’s account
in the credit union may be given a new number.
Investment in Land and Buildings

71. (1) A credit union may for its purposes, with the approval of the
Registrar, hold, purchase or take on lease in its own name, and sell,
exchange, mortgage or lease any land or buildings. Purpose and
value

(2) The value of land and buildings so acquired shall not exceed K5,000
or an amount equivalent to three per centum of its combined paid-up
capital and deposits, whichever amount is the lesser, except by
resolution of a general meeting and with the approval of the Registrar.

(3) Sub-rule (2) does not apply to land and buildings acquired by the
credit union as security for or in settlement of a loan, and any property
so acquired may be sold, exchanged, mortgaged or leased.
Special Duties of Directors of Credit Unions

72. In addition to the duties designated in section one hundred and
thirteen of the Act and in rule 48 in so far as applicable, the directors of
a credit union shall have the following special duties:
(a) to appoint the credit committee unless the by-laws provide that
members of the credit committee shall be elected by the members at the
annual general meeting;
(b) to appoint one member of the supervisory committee unless the
by-laws provide that all members of the supervisory committee shall be
elected by the members at the annual general meeting;
(c) to determine from time to time the maximum individual
shareholdings of a member, the maximum individual loan, and the total
amount of all loans that may be made by the credit committee, having
regard to the resources of the credit union from time to time and the
provisions of the by-laws;
(d) to determine the rate of interest that may be charged by the credit
union on loans or on various kinds or classes of loans, subject to section
seventy-two of the Act, and to determine the rate of interest on deposits,
if any;
(e) to have charge of investments of the credit union other than
loans to members;
(f) to require the Treasurer, or Secretary-treasurer or manager to
prepare and submit monthly or quarterly or other financial statements
showing the financial position of the credit union, including the number
of loans made during the period, repayments on loans made, what loans
are in arrears, if any, and to authorise such action as may be deemed Special duties

necessary to collect such loans in arrears or otherwise place them in
good standing;
(g) to require the supervisory committee to prepare and submit
within the prescribed time reports of its examination, in a form approved
by the Registrar, in order to enable the directors to study such reports
and, as a result of such study, to give such directions as may be
necessary regarding the operations of the credit union;
(h) to study in consultation with the credit and supervisory
committees the report of any examination conducted by or under the
direction of the Registrar, and to inform the Registrar regarding action
taken to carry out the recommendations, if any, in such report;
(i) when an officer who is responsible to the directors for the
management or custody of the funds of the credit union ceases for any
reason to be so responsible, the directors shall immediately and before
his successor is appointed, prepare or cause to be prepared a statement
showing the cash on hand and in bank, and have such statement
reconciled with the books and accounts of the credit union;
(j) to prepare and present to the annual general meeting a
recommendation respecting the distribution of the nets surplus including
dividends on shares; and
(k) to present to the annual general meeting a report of the work
done by the directors during the preceding financial year and
recommendations to the members for the ensuing year.
Credit Committee and Loans

73. Immediately after their election by the members of the credit union
or by the directors, as the case may be, the credit committee shall meet
and elect a Chairman and appoint a Secretary. Organisation

74. A majority of the credit committee shall constitute a quorum and
an application for a loan shall require a majority approval of those
present: Quorum

Provided that if only two members of the committee are present,
unanimous approval shall be required.

75. Except as provided in sections sixty-eight and sixty-nine of the Act
and in rule 80, the credit committee shall have supervision of all loans to
members and, subject to any general order of the board of directors, Special duties

shall fix the amount and the rate of interest of each loan.

76. No loan shall be made to a member who is not in good standing or
has failed to make a satisfactory settlement for any previous loan. Undesirable
loans

77. (1) No loan shall be made unless an application therefor has been
completed on a form provided by the credit committee, and the proceeds
of the loan shall not be made available to the applicant until he has
signed a negotiable instrument as a promissory note to repay the loan in
a form approved by the Registrar and satisfactory to the committee, and
has provided such security for the loan as the committee may require. Loan
applications and
promotion of
thrift

(2) To promote thrift and a stronger basis for personal credit, the credit
committee may, except in case of an emergency or hardship, require that
a new member shall save regularly in the form of payments on shares in
the credit union for a period of six months from the time of his
acceptance into membership, or for such longer period as the committee
may fix, before making a loan to such member in excess of the amount
of his shareholdings in the credit union.

(3) To promote thrift and to strengthen the credit union as a source of
credit for its members, the credit committee may, as a condition of a
loan being granted, require an applicant to subscribe for and make
payments on such minimum number of additional shares as may be
agreed upon.

78. A guarantor who endorses a negotiable instrument as a promissory
note to repay the loan need not be a member of the credit union. Guarantor

79. The shares held by a member, and money on deposit, if any, in the
credit union may be assigned as security for a loan, together with such
other security as the credit committee may require. Such shares and
deposits shall constitute the first claim by the credit union as security for
a loan in case of default, but without prejudice to a claim to any
additional security that may have been required by the credit committee
when the loan in default was granted. Shares as
security

80. (1) A majority of the credit committee and the board of directors
meeting together may, by unanimous resolution, with the approval of Loans in special
cases

the Registrar, authorise the treasurer to make loans without submitting
the application to the credit committee under the following conditions:

(a) in an amount not exceeding K20 in each case, for a period of not
more than thirty-one days, where the applicant is in good standing as a
member and signs a promissory note to repay the loan;

(b) in an amount not exceeding K200 in each case if an equivalent
amount of paid-up shares and deposits in the credit union is held by the
applicant and assigned as security to the credit union, or the market
value of any stocks, bonds or securities of the Government of Zambia in
an equivalent amount are held and so assigned, or both.

(2) All loans made by the treasurer in accordance with sub-rule (1) shall
be reported by him at least monthly to the credit committee and to the
board of directors.

(3) The resolution referred to in sub-rule (1) may be rescinded at any
time upon an order by the board of directors or the Registrar.

81. The credit committee shall meet monthly or at such other times as
may be required by the business of the credit union. Meetings

82. A full and correct record shall be maintained of all proceedings
with respect to loan applications considered by the committee, and the
recommendations made to the Treasurer or Secretary-treasurer or
manager with respect to the rate of interest, the terms of repayment, and
the security prescribed for each loan approved by the committee. All
applications for loans approved and negotiable instruments therefor
shall be filed by the committee as permanent records of the credit union. Records

83. In addition to the authority of the Registrar, or any person
authorised by him to have access to and to inspect all the books,
accounts, papers, securities and cash in hand of the credit union in
accordance with section one hundred and forty-two of the Act, records
of the credit committee shall be open for inspection by the board of
directors under conditions specified by board resolution, and shall be
available for inspection by the supervisory committee in accordance
with the special duties of such committee under rule 90. Inspection of
records

84. The credit committee shall report to the directors at least monthly
or at such other times as may be required by the business of the credit
union, and such report shall include the number of loans made during
the period under review, the amount loaned, renewals of loans granted,
if any, loans in arrears, if any, the rate of interest where the rate varies
between different kinds or classes of loans, and the purposes for which
loans were made. Report to
directors

85. The report of the work of the credit committee during the
preceding financial year shall be presented to the annual general
meeting by the chairman of the credit committee without disclosing the
name of any borrower.
Supervisory Committee and Auditor Report to
annual general
meeting

86. Immediately after their election, or appointment where one
member is appointed by the board of directors, the supervisory
committee shall meet and appoint a chairman and a secretary. Organisation

87. No director, member of the credit committee, or employee of the
credit union shall be elected or appointed to the supervisory committee. Persons
ineligible for
appointment

88. The supervisory committee shall meet at least monthly or at such
other times as may be required for examination of the affairs of the
credit union. Meetings

89. (1) If the position of a member of the supervisory committee who
has been elected by the members of the credit union becomes vacant,
such vacancy shall be filled by the remaining members of the committee
until the next annual general meeting. Vacancies

(2) If the position of the member of the supervisory committee who has
been appointed by the directors, subject to the by-laws, becomes vacant,
the directors may fill the vacancy for the unexpired term.

90. The supervisory committee shall examine and supervise the affairs
of the credit union as prescribed in section seventy-four of the Act, and
without limiting the generality of such duties, shall- Special duties
of supervisory
committee

(a) make a surprise cash count and bank verification, together with
reconciliation with books and records, at least quarterly;
(b) check at least quarterly applications for loans during the period
under review to determine whether for each loan made there is a
completed application in the prescribed form on file, whether the
security given for each loan is in accordance with the recommendations
of the credit committee, whether a negotiable instrument in the form of a
promissory note for the repayment of the loan has been signed by the
borrower, and whether the terms of repayment or renewals, if any, have
been complied with;
(c) determine whether the provisions of the Act and these Rules
have been complied with in making loans, including loans to member
organisations, if any, maximum loans to individual members, loans for
the purchase of land or for the purchase or erection of buildings for
business purposes, and loans to officers;
(d) check any overdrawing from share capital account, from deposit
account or loan account, if any, in accordance with rule 69;
(e) unless this duty is performed at least annually by an auditor
appointed by the credit union, verify periodically at random, and not less
than once in every year, at least ten per centum of the accounts of
members with the credit union, including the amount of share capital
and the amount of deposits, if any, and the amount owing on a loan, if
any, as shown by the books and the records of the credit union:
Provided that the verification form shall be sent to each member
whose account is verified;
(f) check periodically the minutes of the board of directors and the
credit committee and see to it that the policies and practices prescribed
therein are being followed;
(g) ensure that at least one member of the supervisory committee
signs the monthly, quarterly or annual financial statement prepared by
the Treasurer;
(h) prepare and sign a quarterly report with respect to the
examination of the affairs of the credit union by the supervisory
committee, in a form prescribed by the Registrar.

91. If a verification form issued by the supervisory committee shows
any deficiency in the account of a member, such form, with the
necessary notation thereon or explanation by the member, shall be
returned by him to the chairman of the supervisory committee, who shall
immediately report the circumstances to the Registrar. Verification of
members’
accounts

92. The annual report on the examination of the affairs of the credit
union by the supervisory committee during the preceding financial year
shall be presented to the annual general meeting by the chairman of the
supervisory committee without disclosing the transactions of any
member. Report to
annual general
meeting

93. The report of any inspection or audit by or under the direction of
the Registrar, and the report of the auditor if an auditor has been
appointed in accordance with section seventy-five of the Act and rule 96,
shall be presented to the annual general meeting by the chairman of the
supervisory committee.
Uncollectable Loans Presentation of
inspection or
auditor’s report

94. (1) Where the whole or any part of a loan has remained unpaid for a
period of four years from the date fixed for the repayment of the loan in
full, and no payment on account of principal has been made to the credit
union after that date, the amount remaining unpaid shall be charged to
and paid from the reserve fund. Uncollectable
loans and
charge-offs

(2) No loans shall be charged to the reserve fund without the joint
approval of the directors, the credit committee and the supervisory
committee, and with the consent of the Registrar.

(3) The amount to be charged off under sub-rule (1) shall be determined
after deducting the shares and deposits, if any, standing to the credit of
the member in default, on the books of the credit union, and less the
market value of any security held by the credit union as security for the
loan.

(4) The directors may in their discretion determine that a loan to be
charged to and paid from the reserve fund under sub-rule (3) shall be
paid from the reserve fund in annual instalments over a period of five
years.

(5) Where no payment of interest and principal has been made to a
credit union on a loan made by it within a period of two years after the
date on which the interest or principal became due, no further interest on
the loan shall be credited to the revenue of the credit union as an account
receivable.

(6) Any moneys subsequently recovered with respect to a loan charged
off under this rule shall be paid into the reserve fund.

95. Where the total of the amounts to be charged off to the reserve fund
under rule 94 exceeds the amount of money in such reserve fund, no
further payments to members shall be made under subsection (2) of
section seventy-nine of the Act except to the reserve fund until the
moneys in that fund are sufficient to pay all amounts to be charged
thereto.
Appointment of Auditor Limitation of
payments

96. (1) Where the combined share capital and deposits of a credit union
exceed K200,000 as shown by its latest financial statement, or such
other amount as the Minister may prescribe by statutory order from time
to time, the Registrar may require the credit union to appoint an auditor,
in which case the supervisory committee shall request the board of
directors to appoint as auditor a person publicly carrying on the
profession of accountant in Zambia to conduct the annual audit of the
books and accounts. Appointment

(2) The appointment of the auditor shall be subject to the approval of
the Registrar.

(3) A federation with objects in accordance with section ninety-one of
the Act which include the provision of auditing services for its members
may appoint a person publicly carrying on the profession of an
accountant as auditor for the credit union upon the recommendation of
the supervisory committee and at the request and with the approval of
the Registrar.
Inspection of Credit Unions

97. (1) An annual inspection and audit of the affairs of a credit union as
required by the Act shall include an examination and evaluation of each
loan as shown by the books to determine the prospects for repayment,
whether the security appears to be adequate and in order, and what
further action, if any, will be necessary to ensure ultimate repayment. Evaluation of
loans

(2) The inspection and audit report shall include a classification of each
loan as follows:

(a) repayment in accordance with the terms of the loan seems
assured;

(b) repayment will be delayed and new terms may have to be
arranged;

(c) repayment is doubtful unless additional security is provided by
the borrower;

(d) prospects of repayment are poor in that a loss is probable unless
adequate and immediate remedial action can be taken.

(3) When a public accountant has been appointed as an auditor of a
credit union in accordance with sections seventy-five and one hundred
and forty-one of the Act, he shall disclose to the Registrar after his
annual audit the condition of those loans that require special action to
ensure repayment.

98. (1) Immediately after his inspection and audit of a credit union, the
representative of the Registrar or other duly authorised person who
conducted such inspection and audit shall meet with the board of
directors to discuss with them the condition of the credit union as he
found it, and the need for any immediate action to be taken by the
directors and other officers to improve loaning and other operations and
to protect the interests of members. Discussion of
inspection
report with
officers

(2) A report of any discussion under sub-rule (1) shall be included in the
inspection and audit report to be sent to the Registrar for such further
action as he deems necessary.

99. (1) At the end of every financial year every credit union shall
prepare a list of all overdue loans or loans in arrears, showing with
respect to each loan- List of loans in
arrears

(a) the total amount of principal outstanding;

(b) the terms of repayment and interest agreed upon with the
borrower;

(c) the amount and number of instalments in arrears;

(d) the date on which the last payment was made on principal;

(e) the amount of shares and deposits assigned to the credit union by
the member in arrears;

(f) a description of the security held, if any;

(g) the estimated value of the security for the loan in arrears;

(h) the net amount of the loan in arrears after deducting the amount
of shares and deposits assigned and the value of other security given for
the loan in arrears.

(2) The list referred to under sub-rule (1) shall be prepared within thirty
days after the end of the financial year of the credit union to which the
list relates, shall be signed as correct by the Treasurer or
Secretary-treasurer or the manager, as the case may be, and shall be
approved by the Chairman, and a copy sent to the Registrar
immediately.

(3) For the purposes of this rule, “loan in arrears” means any loan on
which the member is in default for more than ninety days on a payment
or payments of principal or interest according to any loan agreement he
has made with the credit union.

PART IV
MISCELLANEOUS

Use and Maintenance of a Reserve Fund

100. Subject to rule 94, in the case of a credit union, the reserve fund or
funds as prescribed by the Act and the by-laws of a society shall be used
to protect the financial position of the society under the following
conditions:
(a) the net losses resulting from the business operations of a society
in any year, as well as uncollectable loans or other overdue debts owing
to the society, may be charged to the reserve fund in whole or by
instalments;
(b) in the event that the reserve fund of a society is depleted or
reduced as a result of operating losses or uncollectable loans or other
accounts being charged against it, the amounts to be placed in the
reserve fund each year from the surplus arising from the business of the
society as provided in the by-laws shall be increased by an additional ten
per centum, if the Registrar so directs, or the Registrar may direct that
the entire surplus arising from the business of the society in each year
shall be placed in the reserve fund until the amount in that fund has
reached the amount that it stood at prior to the losses charged against it;
(c) no member shall have any claim against the reserve fund or
funds of a society prescribed by the Act and provided for in the by-laws
except in the case of closure of liquidation in accordance with section
one hundred and fifty-three of the Act. Use of reserve
fund

101 Subject to the approval of the Registrar, moneys placed in a
reserve fund may, until required for the purposes of a society, be
deposited in commercial banks in Zambia, the Post Office Savings
Bank, registered building societies, loan companies and trust companies
authorised to receive money on deposit, a federation registered with
objects in accordance with section ninety-one of the Act and authorised
to receive money on deposit, or invested in any stocks, bonds or
securities of the Government of Zambia.
Use of Petty Cash Fund Investment of
moneys in
reserve fund

102. (1) Subject to rule 68, in the case of a credit union, payments by a
society shall be made by cheque issued on a commercial bank or other
depository in which the funds of the society are placed, except for
payments out of a petty cash fund for designated purposes respecting the
business of the society. Restricted use
of petty cash
fund

(2) The amount of the petty cash fund and the purposes for which it
shall be used shall be only by authorisation by a resolution of the board

of directors and subject to the approval of the Registrar.

(3) Withdrawals from the bank or other depository for the petty cash
fund shall be made only as required, so that the amount in such fund
shall not exceed at any time the amount authorised by the directors and
the Registrar.

(4) The petty cash fund shall be in the sole custody of the Treasurer, the
Secretary-treasurer or manager, or his authorised assistant.
Inspection and Technical Advice

103. (1) Immediately after his inspection and audit of a co-operative
society, other than a credit union as in rule 98, the representative of the
Registrar or other duly authorised person who conducted such
inspection and audit shall meet with the board of directors to discuss
with them the condition of the society as he found it, and the need for
any immediate action to be taken by the directors and other officers to
improve operations and to protect the interests of members, or the need
for technical or other special advice to improve operations and to
achieve the objects of the society. Discussion of
inspection
report with
officers of a
society

(2) Discussion under sub-rule (1) shall include the condition of
accounts payable by the society, the condition of accounts receivable by
the society, including debts owing to the society by its members, and the
need for immediate action if required in connection with such accounts.

(3) A report of any discussion under sub-rule (1) shall be included in the
inspection and audit report to be sent to the Registrar for such further
action as he may deem necessary.

104. (1) When the Registrar, subject to the approval of the Director of
Co-operative Societies, arranges with the officers of a federation
registered with objects in accordance with section ninety-one of the Act,
to provide, where consistent with its objects, such technical or other
information and advice regarding the operations of a society which is a
member of such federation, as may be necessary to assist its officers and
members in the achievement of its objects and purposes, and to provide
to the society other services designed to facilitate the annual inspection
and examination of its affairs, such a society shall provide the Registrar
with such yearly and other returns and information as he may require for Special services
by co-operative
federations

the purposes of the Act.

(2) The adequacy of any annual inspection or examination or other
services provided to a society under sub-rule (1) shall be subject to the
approval of the Director of Co-operative Societies and the Registrar.

105. (1) When the Director of Co-operative Societies, subject to
instructions, if any, from the Minister, arranges with the proper officers
of any department or agency of the Government that such department or
agency undertake to provide such technical or other information and
advice regarding the operations of a society as may be necessary to
assist its officers and members in the achievement of its objects and
purposes, and, where appropriate, to provide to the society other
services designed to facilitate annual inspection and examination of its
affairs, such a society shall provide the Registrar with such yearly and
other returns and information as he may require for the purposes of the
Act.
Special services by
Government agencies

(2) The adequacy of any inspection or examination or other services
provided to a society under sub-rule (1) shall be subject to the approval
of the Director of Co-operative Societies and the Registrar.

106. (1) When the Registrar is of the opinion that one or more persons,
because of their knowledge, experience and position, will be able to
advise and assist the officers of a society in the achievement of its
objects and purposes, he may, subject to the approval of the Director of
Co-operative Societies, appoint such person or persons as advisory or ex
officio directors of the society for such period as he shall specify: Special services
by advisory
officers and
members

Provided that such advisory or ex officio directors shall have all the
rights and privileges of an elected director or a member except the right
to vote.

(2) When the by-laws of a society provide for the admission of advisory
or ex officio members to assist and advise the society in the achievement
of its objects and purposes, such advisory or ex officio members shall,
subject to the by-laws, have all the rights and privileges of members
except the right to vote.
Appointment of Auditor

107. (1) When the total assets of a society, except in the case of a credit
union in accordance with rule 96, exceed K200,000 as shown by its
latest financial statement, or such other amount as the Minister may
prescribe by statutory order from time to time, the Registrar may require
that the annual audit of the books and the accounts of such society shall
be conducted by a person publicly carrying on the profession of
accountant in Zambia. When
appointment
required

(2) The auditor referred to in sub-rule (1) may be appointed by the
Registrar or by the board of directors of the society with the approval of
the Registrar.

(3) When a federation is registered in accordance with section
ninety-one of the Act, and with objects that include the provision of
auditing services to its member societies, a society that requires the
services of an auditor in accordance with sub-rule (1) may be required to
become a member of such federation and the federation shall then be
requested by the Registrar to appoint the auditor for the society.

108. (1) Any society or kinds or classes of societies designated by the
Registrar from time to time may be required by him to make annually a
contribution to a fund for audit and inspection purposes. Audit fees
payable to
Registrar under
certain
conditions

(2) The contribution mentioned in sub-rule (1) shall not be required
from a society, including a credit union, which is required to use the
services of an auditor in accordance with rule 96 or 107.

(3) Until such time as a federation mentioned in rule 107 (3) is able to
provide auditing services and the audit fund or part thereof is credited to
such federation, the fund shall be administered by the Registrar on
behalf of contributing societies.

(4) So long as the Registrar administers the audit fund on behalf of
contributing societies, he shall report annually to the Director of
Co-operative Societies and to the Minister respecting the annual income
received as contributions, if any, to finance the audit of existing
societies, and the total amount in the fund from time to time.

(5) As soon as the fund has been credited to the federation mentioned in
sub-rule (3), the moneys in the said fund shall be used by such
federation to provide auditing services to societies in accordance with its
objects.

(6) The appointment of the auditor or auditors by the federation under
rule 107 and under this rule, and the adequacy of the services provided
to societies thereby, shall be subject to the approval of the Registrar.
Charges by Societies

109. (1) The form of register to be kept by the Registrar in accordance
with subsection (4) of section one hundred and twenty-nine of the Act
for the registration of charges shall be as in Form 8. Form oqf
register and
forms for
registration and
discharge

(2) The form of certificate to be issued by the Registrar in accordance
with subsection (5) of section one hundred and twenty-nine of the Act
shall be as in Form 9.

(3) The form of notification of a mortgage or charge to be sent to the
Registrar by a society in accordance with subsection (6) of section one
hundred and twenty-nine of the Act shall be as in Form 10.

(4) The form of notification of a series of debentures created by a
society to be sent to the Registrar under subsection (6) of section one
hundred and twenty-nine of the Act shall be as in Form 11.

(5) The form of certificate of entry of a memorandum of satisfaction to
be provided by the Registrar on request in accordance with section one
hundred and thirty-two of the Act shall be as in Form 12.

FIRST SCHEDULE

PRESCRIBED FORMS

FORM 1
(Section 10 (2))
(Rule 3 (1))

THE CO-OPERATIVE SOCIETIES ACT

APPLICATION FOR REGISTRATION OF A CO-OPERATIVE SOCIETY

1. We, the undersigned,

(insert name, address and occupation of at least ten persons, or of at least two officers of
each society if application is made by registered co-operative societies) desire to form a
co-operative society under the Co-operative Societies Act, and hereby apply for
registration.
2. The name of the proposed society is (insert name proposed)

3. The registered office of the society is to be at (insert proposed address)

and its postal address will be
4. Enclosed are three copies of the proposed by-laws which specify the objects of the
society.
5. These proposed by-laws were approved by persons willing to become members, at a
general meeting held at on ……………………………., 19 ……………
6. persons, including the undersigned, are now
willing to become members and have made the payment necessary for admission to
membership as prescribed in the enclosed by-laws.
7. The registration fee is enclosed.
8. We, the undersigned, have consented to direct the affairs of the proposed society as
required by section 111 (3) of the Co-operative Societies Act, until our successors are
elected at the first annual general meeting held after registration of the society.
Dated at the ……………………………….. day of ………………………..,
19 ……………

Witness …………………………………………………. ………………………………………………
……………………………………………………………… ………………………………………………
……………………………………………………………… ………………………………………………
……………………………………………………………… ………………………………………………
……………………………………………………………… ………………………………………………
……………………………………………………………… ………………………………………………
……………………………………………………………… ………………………………………………
Certified correct

Acting Chairman

Acting Secretary

FOR USE OF REGISTRAR ONLY
1. Application for registration approved

2. Approval deferred pending receipt of further information (rule 4)
3. Application refused with reasons therefor given to the Minister and to the applicants,
and registration fee refunded (rules 7 and 8)

FORM 2
(Sections 10 and 11)
(Rules 3 and 4)
THE CO-OPERATIVE SOCIETIES ACT

PRELIMINARY APPLICATION TO FORM A CO-OPERATIVE SOCIETY

In order that more information and advisory assistance may be given to those who desire to
organise a co-operative society, and to determine whether organisation and registration
appear economically or otherwise advisable, the following information is required where
applicable:
1. Location of proposed society
Give location and approximate size of area in which proposed society will provide services
to members (if other societies are to be members give their names and location)

2. Kind of co-operative society required
Describe briefly the main purpose for which the society is to be organised. (See Part
V, VI, VII, VIII, IX, X, XI or XII of the Co-operative Societies Act for objects.)

3. Reasons
Give reasons for forming the society (it is important to describe in detail)

4. Source of membership support
Briefly describe the main occupation, or employment, or residential area, or the trade union
or fraternal or other bond of association or occupation of the people expected to
become members (seeNo. 1)

5. Attitude towards community projects
Do the people referred to in No. 4 work well together in voluntary projects to benefit the
community or area in which they live, or the occupational, employment or
associational group to which they belong?

6. Expected membership
(a) Number ready to join now

(b) Estimated number of persons expected to join within the first year of operation

7. Leadership
Are there a few persons in the group desiring to organise who will give unselfishly of their
time to get the society started and assist in its operation? (List a few of them)

8. Office bearers
Are the persons mentioned in No. 7 prepared to act as directors or on other committees
and do they understand what their duties will be?
9. Management
If the society is registered will the services of a competent manager (or Treasurer or
Secretary-treasurer) be available?
(a) Name
(b) Experience and training

(c) Will he be able to keep or supervise the keeping of accurate books and records?

10. Financial participation by members
(a) Will members provide share capital or other funds to get their society started and
continue to give it financial support after operations commence?
(Members must gradually provide the basic capital required. Borrowings by a society for
seasonal or other operations are possible only if members are prepared to finance the
society they own and control.)
(b) Value of each share K ……………total expected to be paid on shares subscribed
when operations commence K ……………
(c) Total paid-up membership fees expected when operations commence K
total entrance fees to be paid when operations commence K ……………
(d) From what source of income will members provide the capital required? (e.g.
from salaries, wages, business, seasonal sale of farm produce, etc.)

NOTE: If proposed society is a credit union at least thirty persons should be prepared to
save regularly when operations commence, and number of potential savers should be at
least one hundred.
11. Educational meetings
Have educational meetings been held to discuss the proposed society, its operations and
its benefits to members if they support it?
(a) If so, how many?
(b) Average number in attendance
(c) Speaker

12. Discussion groups
Have study and discussion groups been organised to involve and inform the people who
wish to become members?
(a) If so, how many?
(b) How long have they been in operation?
(c) Have model by-laws been discussed?
(d) Discussion group leaders

13. Office space
If office space, a building or equipment are required for the purposes of the society, how
will these be obtained and financed?

14. Planning and technical advice
Has advice been obtained on whether planning for the proposed society seems adequate and
whether it has reasonable prospects for success if the members give it their support?

If so, give source of such advice
15. Consultation with Co-operative Officer
Has an officer of the Department been consulted on the need for the proposed society
and necessary preparation for organisation? (Give details) ……………………….

Signature
Postal address

INSTRUCTIONS
This preliminary application form and questionnaire should be completed on behalf of a
group interested in the formation of a society and forwarded to the Registrar of
Co-operative Societies. The Registrar may require additional information or recommend
further preparation for organisation to ensure that the proposed society will be of lasting
benefit to its members.

Register Number

FORM 3
(Section 12 (1))
(Rule 6)
THE CO-OPERATIVE SOCIETIES ACT

CERTIFICATE OF REGISTRATION

I CERTIFY THAT I have this day registered the
Limited as a co-operative society under the
Co-operative Socities Act.
The registered address of the society is

and its postal address is
Date

Registrar of Co-operative
Societies

FORM 4
(Sections 56 and 94)
(Rules 10, 12 and 48 (a))
APPLICATION FOR MEMBERSHIP

, 19 ……………
TO THE BOARD OF DIRECTORS (COMMITTEE),
LIMITED
I hereby apply for membership in the
Limited. On becoming a member I agree to conform to the by-laws and amendments
thereto, of the society
(or credit union), use its services faithfully, and be loyal to the society and to its members.
The sum of
K…………………is paid with this application, including (strike out where not applicable):
(a) entrance fee of
(b) membership fee of
(c) I subscribe for shares with payment thereon
of
Application endorsed by (Director or member in good standing or other person known to
the directors).

Signature of Applicant
Application approved by the board of directors (Committee) this
day of ……………………………….., 19 ……………

Secretary

FORM 4-SPECIAL
(Section 57 (a) re joint accounts and section 94)
(Rule 10)
APPLICATION FOR JOINT MEMBERSHIP AGREEMENT

The undersigned apply for a joint membership in the
Limited (hereinafter referred to as “the society”), and
upon approval of the applicants (who may be man and wife or other persons) in joint
membership by the society, do hereby agree each with the other and with the society, that
all sums now invested in shares and moneys placed on deposit in the society or hereinafter
paid in on shares and/or deposits, and all dividends and interest therefrom, shall be owned
by us jointly with the right of survivorship, and shall be subject to withdrawal by either of
us or the survivor of us, and the said payments upon withdrawal shall be valid and release
and discharge the society from any payments so made.
In case of death of any one or more of the said joint members all rights and privileges of
membership in all shares and deposits held jointly in the society shall be vested in the
survivor or survivors.
Date ……………………………………………………… ……………………………. ……………………..
……………………………………………………………… ……………………………………………………
Witness
Joint members

INSTRUCTIONS
This form is to be used to establish the rights of joint members and survivors. It can be
adapted to the needs of members of a society other than a credit union.

FORM 5
(Sections 61 and 114)
(Rule 50)
DECLARATION OF OFFICE FORM

Joint declaration of directors, committee men and all other officers and employees
of the
Limited
Located at
Postal address Zambia
TO WIT:
I, the undersigned officer or employee of the above-named society, do solemnly declare
that, in so far as the duty is assigned to me because of my office or employment-
(a) I will honestly and faithfully administer the affairs of the society in an efficient
and business-like manner;
(b) I will not knowingly violate or willingly permit to be violated any of the
provisions of the Co-operative Societies Act, the Co-operative Societies Rules or the
by-laws of the above-named society;
(c) as an elected officer (or employee where applicable) I am the owner in good
standing and in my own right of at least one share or paid-up membership in the society.
I further declare that-
(d) I will properly and honestly carry out the duties assigned to me and, consistent
with my duties as an officer or employee, hold in strict confidence all transactions of the
members of the society;
(e) I will study the Co-operative Societies Act, the Co-operative Societies Rules and
the by-laws under which the above-named society operates.
Signature Address
………………………………………………………………
………………………………………………………………
………………………………………………………………
And I make this declaration honestly believing it to be true, and knowing it is of the same
force and effect as if made under oath.
Declared before me by each of the above-named persons at
this day of ………………………………………….., 19 ……………

Signature
Commissioner for Oaths or
Notary
Public or District Secretary

INSTRUCTIONS
This declaration form is to be signed by all officers, directors, committee men and

employees upon their election or appointment to office.
Every society must keep this form for its records so that it will be available at the time of the
annual inspection and audit.c
If any employee is not a member this should be noted as he signs the declaration in view of
clause (c).

FORM 6
(Section 56)
(Rule 59 (2))
(For use of Registered Organisations)

RESOLUTION OF DIRECTORS (COMMITTEE) RESPECTING DEPOSIT ACCOUNT
SIGNING OFFICERS

, 19 ……………..
To the Treasurer of
Society, Limited.
The following resolution was passed at the meeting of the
(name of society or other organisation)
duly called and held on the day of ……………………….., 19 …………….
RESOLVED that

(names of officers) are hereby authorised for and in the name of
(name of society or other organisation)
hereinafter called the “Organisation”-
(a) to draw, accept, sign, endorse, issue, execute and make all or any bills of
exchange, promissory notes, cheques, orders for the payment of money and other
negotiable or transferable instruments;
(b )to pay and receive all moneys and give release for the same;
(c) generally for and in the name of the Organisation to transact with the said society
any business they may think fit.
Also that

(names of officers) or any one of them be and are hereby authorised on behalf of the
Organisation-
(d) to negotiate with, deposit with or transfer to the said society (but for credit of the
Organisation’s account only), all or any bills of exchange, promissory notes, cheques or
orders for the payment of money and other negotiable or transferable paper, and for the said
purpose to endorse the same or any of them on behalf of the Organisation, and also from
time to time to arrange, settle, balance and certify all books and accounts between the
Organisation and the society;
(e) to receive all paid cheques and vouchers, unpaid and unaccepted bills of exchange
and other negotiable or transferable instruments, and to sign the society’ form of settlement
of balances and release:
Provided that this resolution be sent to the society and remain in force until written notice to
the contrary shall have been given to the treasurer at the office of the society at which the
account of the Organisation is kept, and receipt of such notice duly acknowledged in
writing.

CERTIFIED A TRUE COPY
SEAL

Chairman

Secretary

INSTRUCTIONS
The foregoing resolution shall be completed by the proper officers of a municipality with a
corporate status that is admitted to membership in and does business with a credit union.

FORM 7
(Section 56)
(Rule 59 (3))
(For use of unicorporated Organisations)

RESOLUTION RESPECTING DEPOSIT ACCOUNTS AND SIGNING OFFICERS

(For clubs, religious groups, labour, fraternal and
similar organisations that are not registered)
RESOLVED:
(1) That
Society, Limited is hereby appointed depository of
(name of club, etc.) hereinafter called the
“Organisation”.
(2) That

(names of officers) or any one of the officers or persons in clause (3) hereof are/is hereby
authorised for and on behalf of the Organisation-
(a) to negotiate with, deposit with or transfer to the society (but for the credit of
the Organisation’s account only) all or any cheques, promissory notes, bills
of exchange, order for the payment of money and other paper negotiable or
otherwise, purporting to be signed or endorsed on behalf of the Organisation
by them or any one of them, or having the name of the Organisation
impressed thereon by rubber stamp or otherwise; and
(b) to arrange, settle, balance and certify all books and accounts between the
Organisation and the society, and to receive from the society a statement of
the account of the Organisation, together with all relative vouchers and all
unpaid bills lodged for collection by the Organisation and all items returned
unpaid and charged to the account of the Organisation, and to sign and
deliver to the society the society’s form of verification, settlement of balance
and release:
Provided, however, that the said officers may in writing appoint from time to time any
person or persons to receive from the society a statement of the account of the Organisation,
together with all vouchers and all unpaid bills lodged for collection by the Organisation and
all items returned unpaid and charged to the account of the Organisation, and to sign and
deliver to the society, the society’s form of verification, settlement of balance and release.
(3) That

(names of officers) are/is hereby authorised on behalf of the Organisation-
(a) to make, sign and draw all or any cheques or orders for the payment of
money against the account or accounts of the Organisation with the society,
but without power to overdraw the said account or accounts; and
(b) to obtain delivery from the society of all or any bonds, stocks and other
securities held by the society in safe keeping or otherwise for the account of

the Organisation, and give valid and binding receipts therefor.
(4) That all agreements, documents and instruments, whether negotiable or not, purporting
to be signed, made, drawn, accepted, executed or endorsed as hereinafter provided, shall be
valid and binding upon the Organisation, and the society is hereby authorised to act thereon
and give effect thereto.
(5) That this resolution be sent to the society and remain in force until written notice to the
contrary shall have been given to the treasurer at the office of the society at which the
account of the Organisation is kept, and receipt of such notice duly acknowledged in
writing.

CERTIFICATE
We, the undersigned, hereby certify that the foregoing resolution was duly passed at a
meeting of
(name of club, religious group, fraternal organisation, etc.) duly called and held on
the day of ………………………………………., 19 ……………, the whole
in accordance with the laws or regulations governing the said Organisation, and that the
said resolution is in full force and effect.
Given under our hands and seal of the said Organisation this
day of ………………………………., 19 …………….

Chairman or President

Secretary

INSTRUCTIONS
The foregoing resolution shall be completed by the authorised officers of a club, religious,
labour, farmer, fraternal or similar group that is not registered and does not have a corporate
status, but is admitted to membership in and does business with a credit union.

THE CO-OPERATIVE SOCIETIES RULES
FORM 8
(Section 129 (4))
(Rule 109 (1))
CHARGES REGISTER
The Register of Co-operative Societies of Zambia
Particulars of all mortgages and charges created by ………………………………………………………………………. Registration No …………………………………………

Registered Amount Short particulars of the Names of mortgagees or R e number Date of secured property mortgaged or persons entitled to the of charge creation K charged charge Back

THE CO-OPERATIVE SOCIETIES RULES
FORM 9
(Section 129 (2))
(Rule 109 (2))

CERTIFICATE OF REGISTRATION OF A CHARGE IN ACCORDANCE WITH
OF THE CO-OPERATIVE SOCIETIES ACT
THIS IS TO CERTIFY that a Mortgage on …………………………………………………………

dated the day of …………………………………., 19 ……………, and
created by
in favour of
for securing K and interest was this day registered pursuant to section
of the Co-operative Societies Act.
Given under my hand at Lusaka this day of …………………………,
19 ………………
Registered No. of Charge
Page Reference No

Registrar of Co-operative
Societies

THE CO-OPERATIVE SOCIETIES RULES
FORM 10
(Section 129 (6))
(Rule 109 (3))
PARTICULARS OF A MORTGAGE OR CHARGE CREATED
BY ………………………………………………………………………………………………………………………………

Date of the instrument creating or evidencing the Amount secured Short particulars of the Names with addresse s mortgage or charge and by the charge property mortgaged or description of the mortg a description thereof K charged person entitled to the c h

THE CO-OPERATIVE SOCIETIES RULES
FORM 11
(Section 129 (6))
(Rule 109 (4))
PARTICULARS OF A SERIES OF DEBENTURES CREATED
BY ………………………………………………………………………………………………………………………………

Amount of Date of the covering Total amount the present Dates of resolutions deed (if any) by which General secured by the issue of authorising the issue the security is created description whole series the series of the series or defined of the property d

THE CO-OPERATIVE SOCIETIES RULES
FORM 12
(Section 132)
(Rule 109 (5))

CERTIFICATE OF ENTRY OF A MEMORANDUM OF DISCHARGE
OF A MORTGAGE
THIS IS TO CERTIFY that I have this day entered on the Register of Mortgages a
Memorandum that the Mortgage on
dated the day of …………………………………, 19 …………., and
created by
in favour of
for securing K ……………. and interest, has been satisfied in full.
Given under my hand at Lusaka this day of …………………………
19 ……………….
Registered No. of Charge ……………………………………
Page Reference No. ……………………………………………

Registrar of Co-operative Societies

SECOND SCHEDULE
(Rule 3 and 8)

PRESCRIBED FEES

Fee units
1. Registration of society comprising an individual person .. .. .. ..
55
2. Registration of a co-operative union .. .. .. .. .. 111
3. Registration of a federation .. .. .. .. .. 278
4. Registration of amendments to each by-law .. .. .. .. ..
11
5. Inspection of by-laws in office of the Registrar-each inspection .. .. ..
28
6. Registration of change of name of a registered society .. .. .. ..
28
7. Registration of a charge.. .. .. .. .. .. 111
8. Replacement of lost certificate of any registration .. .. .. .. 30
(As amended by S.I. No. 4 of 1997)

SECTIONS 167 AND 172-EXEMPTIONS FROM THE
PROVISIONS
OF THE ACT
Government
Notice
381 of 1953

Orders by the Minister

Any society whose stated objects and business are primarily of a
charitable, cultural or social nature which wishes to register a by-law
providing that, in the event of dissolution and liquidation, the surplus
funds of the society shall be distributed for charitable, cultural or social
purposes through the Registrar, is hereby exempted from the provisions
of subsection (3) of section one hundred and fifty-three of the Act in so
far as that subsection refers to the distribution of surplus funds amongst
members (or their personal representatives) at the time of dissolution,
and shall remain so exempted so long as the registered by-laws of the
society contain such by-law as is mentioned above.

The society known as the Farmers’ Co-operative Society of Zambia
Limited is hereby exempted, in respect only of that class of share
defined in the by-laws of the said society as investment shares, from the
provisions of section one hundred and three of the Act. Government
Notice
326 of 1954

The society known as the Farmers’ Co-operative Society of Zambia
Limited is hereby exempted, in respect only of that class of share
defined in the by-laws of the said society as investment shares, from the
provisions of subsection (3) of section one hundred and fifty-three of the
Act. Government
Notice
208 of 1956

The society known as the Agricultural Society of Zambia is hereby
exempted from the provisions of subsection (4) of section twelve of the
Act. Government
Notice
250 of 1961

CHAPTER 398
THE MONEY-LENDERS ACT

ARRANGEMENT OF SECTIONS

Section
1. Short title

2. Interpretation
2A. Exemption
3. Licences to be taken out by money-lenders
4. Certificate required for grant of money-lender’s licence
5. Suspension and forfeiture of money-lender’s certificates
6. Names to be stated on documents issued by money-lenders
7. Restrictions on money-lending advertisements
8. Penalties for false statements and representations
9. Form of money-lender’s contracts
10. Prohibition of compound interest and provision as to defaults
11. Obligation of money-lender to supply information as to state of
loan and copies of documents relating thereto
12. Provisions as to bankruptcy proceedings for money-lender’s
loans
13. Appropriation of principal and interest
14. Reopening of transactions of money-lenders
15. Interest at a rate exceeding 48 per centum to be deemed harsh
and unconscionable
16. Courts to which proceedings on money-lending transactions
are to be taken
17. Prohibition of charge for expenses on loans by money-lenders
18. Limitation of time for proceedings in respect of money lent by
money-lenders
19. Special provisions as to pawnbrokers’ loans
20. Notice and information to be given on assignment of
money-lenders’ debts
21. Application of Act as respects assignees

SCHEDULE-Calculation of interest where the interest charged on a
loan is not expressed in terms of a rate

CHAPTER 398
MONEY-LENDERS 11 of 1938
15 of 1952
36 of 1970
13 of 1994
Government

Notices
279 of 1964
497 of 1964
Statutory
Instrument
5 of 1965

An Act to make provision with respect to persons carrying on business
as money-lenders; and to provide for matters incidental thereto.
[26th August, 1938]

1. This Act may be cited as the Money-lenders Act. Short title

2. In this Act, unless the context otherwise requires- Interpretation

“authorised name” and “authorised address” mean respectively the name
under which and the address at which a money-lender is authorised by a
certificate granted under this Act to carry on business as a
money-lender;

“business name” means the name or style under which any business is
carried on, whether in partnership or otherwise;

“company” means any body corporate being a money-lender;

“firm” means an unincorporate body of two or more individuals, or one
or more individuals and one or more corporations, or two or more
corporations, who have entered into partnership with one another with a
view to carrying on business for profit;

“interest” does not include any sum lawfully charged in accordance with
the provisions of this Act by a money-lender for or on account of costs,
charges or expenses, but, save as aforesaid, includes any amount, by
whatsoever name called, in excess of the principal, paid or payable to a
money-lender in consideration of or otherwise in respect of a loan;

“money-lender” includes every person whose business is that of
money-lending or who advertises or announces himself or holds himself
out in any way as carrying on that business, but shall not include-

(a) any pawnbroker in respect of business carried on by him in
accordance with the provisions of any law for the time being in force in
relation to pawnbrokers; or

(b) any body corporate in so far as it is empowered to lend money by
any Act or by any British Act; or

(c) any person bona fide carrying on the business of banking or
insurance or bona fide carrying on any business not having for its
primary object the lending of money, in the course of which and for the
purposes whereof he lends money; or

(d) any building society registered under the Building Societies Act;
or Cap. 412

(e) any body corporate for the time being exempted under section
two A;

“Permanent Secretary” means the Permanent Secretary, Ministry of
Finance;

“principal” means in relation to a loan, the amount actually lent to the
borrower.
(As amended by No. 15 of 1952, G.N. No. 279 of 1964,
S.I. No. 5 of 1965 and No. 36 of 1970)

2A. (1) The Minister may, by statutory order, exempt any body
corporate from the provisions of this Act, and such exemption may be
granted subject to such terms and conditions and in respect of such
period as the Minister may specify in the order. Exemption

(2) An order under this section may be revoked at any time.
(No. 36 of 1970)

3. (1) Except as hereinafter provided, every money-lender, whether
carrying on business alone or as a partner of a firm, shall take out
annually in respect of every address at which he carries on his business
as such, a licence (in this Act referred to as “a money-lender’s licence”) Licences to be
taken out by
money-lenders

which shall expire on the 31st December in every year, and there shall
be charged on every money-lender’s licence a fee of four hundred and
fifty fee units or, if the licence be taken out not more than six months
before the expiration thereof, three hundred fee units:

Provided that in respect of any address for which one partner in a firm of
money-lenders has duly taken out a money-lender’s licence, every other
partner in such firm shall, subject to the provisions of section four, be
issued with a money-lender’s licence free of charge for such address.

(2) Subject to the provisions of this Act, money-lenders’ licences shall
be in such form as the Minister may direct, and shall be issued by the
Permanent Secretary on payment of the licence fee, and regulations
made by the Minister, by statutory instrument, may make provision as to
the procedure to be followed in making application for money-lenders’
licences:

Provided that a money-lender’s licence shall be taken out by a
money-lender in his true name, and shall be void if it be taken out in any
other name, but every money-lender’s licence shall also show the
money-lender’s authorised name and authorised address.

(3) If any person-

(a) takes out a money-lender’s licence in any name other than his
true name; or

(b) carries on business as a money-lender without having in force a
proper money-lender’s licence authorising him so to do, or, being
licensed as a money-lender, carries on business as such in any name
other than his authorised name, or at any other place than his authorised
address or addresses; or

(c) enters into any agreement in the course of his business as a
money-lender with respect to the advance or repayment of money, or
takes any security for money, in the course of his business as a
money-lender, otherwise than in his authorised name;
he shall be guilty of an offence and shall be liable, on conviction by a
subordinate court of the first or second class, to a fine not exceeding
three thousand penalty units in respect of each offence:

Provided that on a second or subsequent conviction of any person (other
than a company) for an offence under this subsection, the court may, in
lieu of or in addition to ordering the offender to pay the fine aforesaid,
order him to be imprisoned for a term not exceeding three months, and
an offender being a company shall, on a second or subsequent
conviction, be liable to a fine not exceeding fifteen thousand penalty
units.
(As amended by G.N. No. 279 of 1964 and Act No. 13 of 1994)

4. (1) A money-lender’s licence shall be granted except to a person who
holds a certificate granted in accordance with the provisions of this
section authorising the grant of the licence to that person, and a separate
certificate shall be required in respect of every separate licence. Any
money-lender’s licence granted in contravention of this section shall be
void. Certificate
required for
grant of
money-lender’s
licence

(2) Certificates under this section (in this Act referred to as
“certificates”) shall be granted by the subordinate court of the first or
second class having jurisdiction in the district in which the
money-lender’s business is to be carried on.

(3) Every certificate granted to a money-lender shall show his true name
and the name under which, and the address at which, he is authorised by
the certificate to carry on business as such, and a certificate shall not
authorise a money-lender to carry on business at more than one address,
or under more than one name, or under any name which includes the
word “bank”, or otherwise implies that he carries on banking business,
and no certificate shall authorise a money-lender to carry on business
under any name except-

(a) his true name; or

(b) the name of a firm in which he is a partner, not being a firm
required by the Registration of Business Names Act to be registered; or Cap. 389

(c) a business name, whether of an individual or of a firm in which
he is a partner, under which he or the firm has, at the commencement of
this Act, been registered for not less than three years under the
Registration of Business Names Act. Cap. 389

(4) A certificate shall come into force on the date specified therein, and
shall expire on the next following 31st December.

(5) The Minister may, by statutory instrument, make regulations with
respect to the procedure to be followed in making applications for
certificates (including the notices to be given of intention to make such
an application), and be given of intention to make such an application),
and certificates shall be in such form as may be prescribed by
regulations so made.

(6) A certificate shall not be refused except on some one or more of the
following grounds:

(a) that satisfactory evidence has not been produced of the good
character of the applicant, and, in the case of a company, of the persons
responsible for the management thereof;

(b) that satisfactory evidence has been produced that the applicant,
or any person responsible or proposed to be responsible for the
management of his business as a money-lender, is not a fit and proper
person to hold a certificate;

(c) that the applicant, or any person responsible or proposed to be
responsible for the management of his business as a money-lender, is by
order of a court disqualified for holding a certificate;

(d) that the applicant has not complied with the provisions of any
regulations made under this section with respect to applications for
certificates.

(7) Any person aggrieved by the refusal of a subordinate court to grant a
certificate may appeal to the High Court.
(As amended by G.N. No. 279 of 1964)

5. (1) Where any person, being the holder of a certificate, is convicted
of any offence under this Act, or under section 2 or 4 of the Betting and
Loans (Infants) Act, 1892, of the United Kingdom, the court- Suspension and
forfeiture of
money-lenders’
certificates

(a) may order that any certificate held by that person, and in the case
of a partner in a firm by any other partner in the firm, shall either be
suspended for such time as the court thinks fit, or shall be forfeited, and
may also, if the court thinks fit, declare any such person, or any person
responsible for the management of the money-lending business carried
on by the person convicted, to be disqualified for obtaining a certificate
for life or for such less time as the court thinks fit; and

(b) shall cause particulars of the conviction and of any order made
by the court under this subsection to be endorsed on every certificate
held by the person convicted or by any other person affected by the
order, and shall cause copies of those particulars to be sent to the court
by whom any certificate so endorsed was granted and to the Permanent
Secretary:

Provided that-
(i) where, by order of a court, the person convicted is disqualified
for obtaining a certificate or his certificate is suspended or forfeited, he
shall have the same right of appeal against the order as against his
conviction or sentence, and the court making the order, may, if it thinks
fit, pending the appeal, defer the operation of the order;
(ii) where, by order of a court, some person other than the person
convicted is disqualified for obtaining a certificate or his certificate is
suspended or forfeited, he shall be served by the court with notice of
such order and if he gives notice of appeal within fourteen days of such
service, shall have the same right of appeal against such order as though
he were the person convicted, and the court shall, pending the service of
the notice, defer the operation of the order and may, if it thinks fit,
pending the appeal, further defer the operation of the order. Every notice
under this proviso shall be signed by the Judge or magistrate making the
order and shall be served in the manner provided for the service of a
summons by the Criminal Procedure Code. Cap. 88

(2) Any certificate required by a court for endorsement in accordance
with subsection (1) shall be produced, in such manner and within such
time as may be directed by the court, by the person by whom it is held,
and any person who, without reasonable causes, makes default in
producing any certificate so required shall, in respect of each offence, be
liable, on conviction by a subordinate court of the first or second class,
to a fine not exceeding one hundred and fifty penalty units for each day
during which the default continues.

(3) Where a certificate held by any person is ordered to be suspended or
to be forfeited under subsection (1), any money-lender’s licences
granted to that person, whether in pursuance of that or any other
certificate, shall be suspended durining the period for which the
certificate is ordered to be suspended or become void, as the case may
be.
(As amended by G.N. No. 279 of 1964
and Act No. 13 of 1994)

6. (1) Without prejudice to the provisions of the last foregoing section
and to the provisions of section eighty-five of the Companies Act and to
the provisions of section nineteen of the Registration of Business Names
Act, a money-lender shall not, for the purposes of his business as such,
issue or publish, or cause to be issued or published, any advertisement,
circular, business letter or other similar document which does not show
in such manner as to be not less conspicuous than any other name, the
authorised name of the money-lender, and any money-lender who acts
in contravention of this subsection shall be liable, on conviction by a
subordinate court of the first or second class, to a fine not exceeding six
hundred penalty units in respect of each offence. Names to be
stated on
documents
issued by
money-lenders.
Cap. 388
Cap. 389

(2) If a money-lender, for the purposes of his business as such, issues or
publishes, or causes to be issued or published, any advertisement,
circular or document of any kind whatsoever containing expressions
which might reasonably be held to imply that he carries on banking
business, he shall, on conviction by a subordinate court of the first or
second class, be liable to a fine not exceeding three thousand penalty
units

Provided that on a second or subsequent conviction of any person (other
than a company) for an offence under this subsection, the court may, in
lieu of or in addition to ordering the offender to pay the fine aforesaid,
order him to be imprisoned for a term not exceeding three months, and
an offender being a company shall on a second or subsequent conviction
be liable to a fine not exceeding fifteen thousand penalty units:
(As amended by Act No. 13 of 1994)

7. (1) No person shall knowingly send or deliver or cause to be sent or
delivered to any person, except in response to his written request, any
circular or other document advertising the name, address or telephone Restrictions on
money-lending
advertisements

number of a money-lender, or containing an invitation-

(a) to borrow money from a money-lender;

(b) to enter into any transaction involving the borrowing of money
from a money-lender;

(c) to apply to any place with a view to obtaining information or
advice as to borrowing any money from a money-lender.

(2) Subject as hereinafter provided, no person shall publish or cause to
be published in any newspaper or other printed paper issued periodically
for public circulation, or by means of any poster or placard, an
advertisement advertising any such particulars, or containing any such
invitation, as aforesaid:

Provided that an advertisement in conformity with the requirements of
this Act relating to the use of names on money-lenders’ documents may
be published by or on behalf of a money-lender in any newspaper or in
any such paper as aforesaid or by means of a poster or placard exhibited
at any authorised address of the money-lender, if it contains no addition
to the particulars necessary to comply with the said requirements, except
any of the following particulars, that is to say, any authorised address at
which he carries on business as a money-lender and the telegraphic
address and telephone number thereof, any address at which he formerly
carried on business, a statement that he lends money with or without
security, and of the highest and lowest sums that he is prepared to lend,
and a statement of the date on which the business carried on by him was
first established.

(3) No money-lender or any person on his behalf shall employ any
agent or canvasser for the purpose of inviting any person to borrow
money or to enter into any transaction involving the borrowing of
money from a money-lender, or demand or receive, directly or
indirectly, any sum or other valuable consideration by way of
commission or otherwise for introducing or undertaking to introduce to
a money-lender any person desiring to borrow money.

(4) Where any document issued or published by or on behalf of a
money-lender purports to indicate the terms of interest upon which he is
willing to make loans or any particular loan, the document shall either

express the interest proposed to be charged in terms of a rate per centum
per annum or show the rate per centum per annum represented by the
interest proposed to be charged as calculated in accordance with the
provisions of the Schedule.

(5) Any person acting in contravention of any of the provisions of this
section shall be guilty of an offence and shall, in respect of each offence,
be liable, on conviction by a subordinate court of the first or second
class, to imprisonment for a term not exceeding three months or to a fine
not exceeding three thousand penalty units or to both.

(6) Where it is shown that a money-lending transaction was brought
about by a contravention of any of the provisions of this section, the
transaction shall, notwithstanding that the money-lender was duly
licensed under this Act, be illegal, unless the money-lender proves that
the contravention occurred without his consent or connivance.
(As amended by Act No. 13 of 1994)

8. If any money-lender, or any manager, agent or clerk of a
money-lender, or if any person being a director, manager, or other
officer of any corporation carrying on the business of a money-lender,
by any false, misleading, or deceptive statement, representation, or
promise, or by any dishonest concealment of material facts, fraudulently
induces or attempts to induce any person to borrow money or to agree to
the terms on which money is or is to be borrowed, he shall be guilty of
an offence, and shall be liable, on conviction by a subordinate court of
the first or second class, to imprisonment for a term not exceeding two
years or to a fine not exceeding fifteen thousand penalty units, or to
both.
(As amended by Act No. 13 of 1994) Penalties for
false statements
and
representations

9. (1) No contract for the repayment by a borrower of money lent to
him or to any agent on his behalf by a money-lender after the
commencement of this Act, or for the payment by him of interest on
money so lent, and no security given by the borrower or by any such
agent as aforesaid in respect of any such contract, shall be enforceable,
unless a note or memorandum in writing of the contract be made and
signed personally by the borrower, and unless a copy thereof be
delivered or sent to the borrower within seven days of the making of the
contract; and no such contract or security shall be enforceable if it is
proved that the note or memorandum aforesaid was not signed by the
borrower before the money was lent or before the security was given, as Form of
money-lenders’
contracts

the case may be.

(2) The note or memorandum aforesaid shall contain all the terms of the
contract, and in particular shall show the date on which the loan is made,
the amount of the principal of the loan, and either the interest charged on
the loan expressed in terms of a rate per centum per annum, or the rate
per centum per annum represented by the interest charged as calculated
in accordance with the provisions of the Schedule.

10. Subject as hereinafter provided, any contract made after the
commencement of this Act for the loan of money by a money-lender
shall be illegal in so far as it provides directly or indirectly for the
payment of compound interest or for the rate or amount of interest being
increased by reason of any default in the payment of sums due under the
contract: Prohibition of
compound
interest and
provision as to
defaults

Provided that provision may be made in writing by any such contract
that, if default is made in the payment upon the due date of any sum
payable to the money-lender under the contract, whether in respect of
principal or interest, the money-lender shall be entitled to charge simple
interest on that sum from the date of the default until the sum is paid, at a
rate not exceeding the rate payable in respect of the principal apart from
any default, and any interest so charged shall not be reckoned for the
purposes of this Act as part of the interest charged in respect of the loan.

11. (1) In respect of every contract for the repayment of money lent by
a money-lender, whether made before or after the commencement of
this Act, the money-lender shall, on any reasonable demand in writing
being made by the borrower at any time during the continuance of the
contract and on tender by the borrower of the sum of ten ngwee for
expenses, supply to the borrower or, if the borrower so requires, to any
person specified in that behalf in the demand, a statement signed by the
money-lender or his agent showing- Obligation of
money-lender
to supply
information as
to state of loan
and copies of
documents
relating thereto

(a) the date on which the loan was made, the amount of the principal
of the loan and the rate per centum per annum of interest charged; and

(b) the amount of any payment already received by the
money-lender in respect of the loan and the date on which it was made;
and

(c) the amount of every sum due to the money-lender, but unpaid,
and the date upon which it became due, and the amount of interest
accrued due and unpaid in respect of every such sum; and

(d) the amount of every sum not yet due which remains outstanding,
and the date upon which it will become due.

(2) A money-lender shall, on any reasonable demand in writing by the
borrower, and on tender of a reasonable sum for expenses, supply a copy
of any document relating to a loan made by him or any security therefor,
to the borrower, or, if the borrower so requires, to any person specified
in that behalf in the demand.

(3) If a money-lender to whom a demand has been made under this
section fails, without reasonable excuse, to comply therewith within one
month after the demand has been made, he shall not, so long as the
default continues, be entitled to sue for or recover any sum due under the
contract on account either of principal or interest, and interest shall not
be chargeable in respect of the period of the default, and if such default
is made or continued after proceedings have ceased to lie in respect of
the loan, the money-lender shall be liable, on conviction by a
subordinate court of the first or second class, to a fine not exceeding one
hundred and fifty penalty units for every day on which the default
continues.
(As amended by Act No. 13 of 1994)

12. (1) Where a debt due to a money-lender in respect of a loan made
by him after the commencement of this Act includes interest, that
interest shall, for the purposes of the provisions of the Bankruptcy Act
relating to the presentation of a bankruptcy petition, voting at meetings,
compositions and schemes of arrangement, and dividend, be calculated
at a rate not exceeding five per centum per annum, but nothing in the
foregoing provision shall prejudice the right of the creditor to receive
out of the estate, after all the debts proved in the estate have been paid in
full, any higher rate of interest to which he may be entitled. The
provisions of this subsection shall, in relation to such a debt as aforesaid,
have effect in substitution for the provisions of subsection (1) of section
sixty-eight of the Bankruptcy Act. Provisions as to
bankruptcy
proceedings for
money-lenders’
loans.
Cap. 82

(2) No proof of a debt due to a money-lender in respect of a loan made
by him shall be admitted for any of the purposes of the Bankruptcy Act, Cap. 82

unless the affidavit verifying the debt is accompanied by a statement
showing in detail-

(a) the amount of the sums actually lent to the debtor and the dates
on which they were lent, and the amount of every payment already
received by the money-lender in respect of the loan and the date on
which every such payment was made; and

(b) the amount of the balance which remains unpaid, distinguishing
the amount of the principal from the amount of interest included therein,
the appropriation between principal and interest being made in
accordance with the provisions of this Act where the interest is not
expressed by the contract for the loan in terms of a rate; and

(c) where the amount of interest included in the unpaid balance
represents a rate per centum per annum exceeding five per centum, the
amount of interest which would be so included if it were calculated at
the rate of five per centum per annum.

(3) The Chief Justice may, with the concurrence of the Minister, by
statutory instrument, make general regulations for carrying into effect
the objects of this section.
(As amended by G.N. No. 279 of 1964)

13. Where, by a contract for the loan of money by a money-lender, the
interest charged on the loan is not expressed in terms of a rate, any
amount paid or payable to the money-lender under the contract (other
than simple interest charged in accordance with the proviso to section
ten) shall be appropriated to principal and interest in the proportion that
the principal bears to the total amount of the interest, and the rate per
centum per annum represented by the interest charged as calculated in
accordance with the provisions of the Schedule shall be deemed to be
the rate of interest charged on the loan. Appropriation
of principal and
interest

14. (1) Where proceedings are taken in any court by a money-lender for
the recovery of any money lent after the commencement of this Act, or
the enforcement of any agreement or security made or taken after the
commencement of this Act, in respect of money lent either before or
after the commencement of this Act, and there is evidence which
satisfies the court that the interest charged in respect of the sum actually
lent is excessive, or that the amounts charged for expenses, inquiries,
fines, bonus, premium, renewals, or any other charges, are excessive, Reopening of
transactions of
money lenders

and that, in either case, the transaction is harsh and unconscionable, or is
otherwise such that a court of equity would give relief, the court may
reopen the transaction, and take an account between the money-lender
and the person sued, and may, notwithstanding any statement or
settlement of account or any agreement purporting to close previous
dealings and create a new obligation, reopen any account already taken
between them, and relieve the person sued from payment of any sum in
excess of the sum adjudged by the court to be fairly due in respect of
such principal, interest and charges, as the court, having regard to the
risk and all the circumstances, may adjudge to be reasonable; and if any
such excess has been paid, or allowed in account, by the debtor, may
order the creditor to repay it; and may set aside, either wholly or in part,
or revise, or alter, any security given or agreement made in respect of
money lent by the money-lender, and if the money-lender has parted
with the security may order him to indemnify the borrower or other
person sued.

(2) Any court in which proceedings might be taken for the recovery of
money lent by a money-lender shall have and may, at the instance of the
borrower or surety or other person liable, exercise the like powers as
may be exercised under this section, where proceedings are taken for the
recovery of money lent, and the court shall have power, notwithstanding
any provision or agreement to the contrary, to entertain any application
under this Act by the borrower or surety, or other person liable,
notwithstanding that the time for repayment of the loan, or any
instalment thereof, may not have arrived.

(3) On any application relating to the admission or amount of a proof by
a money-lender in any bankruptcy proceedings, the court may exercise
the like powers as may be exercised under this section when
proceedings are taken for the recovery of money.

(4) The foregoing provisions of this section shall apply to any
transaction which, whatever its form may be, is substantially one of
money-lending by a money-lender.

(5) Nothing in the foregoing provisions of this section shall affect the
rights of any bona fide assignee or holder for value without notice.

(6) Nothing in this section shall be construed as derogating from the
existing powers or jurisdiction of any court.

15. (1) Where, in any proceedings in respect of any money lent by a
money-lender after the commencement of this Act or in respect of any
agreement or security made or taken after the commencement of this
Act in respect of money lent either before or after the commencement of
this Act, it is found that the interest charged exceeds the rate of
forty-eight per centum per annum, or the corresponding rate in respect
of any other period, the court shall, unless the contrary is proved,
presume for the purposes of section fourteen, that the interest charged is
excessive and that the transaction is harsh and unconscionable, but this
provision shall be without prejudice to the powers of the court under that
section where the court is satisfied that the interest charged, although not
exceeding forty-eight per centum per annum, is excessive. Interest at a rate
exceeding 48
per centum to
be deemed
harsh and
unconscionable

(2) Where a court reopens a transaction of a money-lender under section
fourteen, the court may require the money-lender to produce any
certificate granted to him in accordance with the provisins of this Act,
and may cause such particulars as the court thinks desirable to be
endorsed on any such certificate, and a copy of the particulars to be sent
to the court by whom the certificate was granted.

(3) The powers of a court under section fourteen with respect to the
reopening of the transactions of money-lenders shall extend to any
transaction effected under a special contract made in accordance with
the provisions of section 24 of the Pawnbrokers Act, 1872, of the United
Kingdom, and accordingly, for the purposes of section fourteen, the
provisions of paragraph (a) of the definition of the term “money-lender”
in section two shall not apply with respect to any such transaction.

(4) The powers of a court under subsection (2) of section fourteen may,
in the event of the bankruptey of the borrower, be exercised at the
instance of the trustee in bankruptcy, notwithstanding that he may not be
a person liable in respect of the transaction.

(5) The powers of a court under subsection (2) of section fourteen may
be exercised notwithstanding that the money-lender’s right of action for
the recovery of the money lent is barred.

16. Subject as hereinafter provided, no action by a money-lender for
the recovery of money lent by him or for enforcing any agreement or Courts to which
proceedings on

security relating to any such money shall be brought in any subordinate
court other than a subordinate court of the first class: money-lending
transactions are
to be taken

Provided that the Minister may, with the concurrence of the Chief
Justice, by order direct that any subordinate court specified in the order
shall have the same jurisdiction as respects such actions as aforesaid as
it would have had but for the provisions of this section, and any such
order may contain provisions with respect to the making of rules for
regulating the procedure to be followed in the case of any such action.
(As amended by G.N. No. 279 of 1964)

17. Any agreement between a money-lender and a borrower or
intending borrower for the payment by the borrower or intending
borrower to the money-lender of any sum on account of costs, charges
or expenses incidental to or relating to the negotiations for or granting of
the loan or proposed loan shall be illegal, and if any sum is paid to a
money-lender by a borrower or intending borrower as for or on account
of any such costs, charges or expenses, that sum shall be recoverable as
a debt due to the borrower or intending borrower, or, in the event of the
loan being completed, shall, if not so recovered, be set off against the
amount actually lent and that amount shall be deemed to be reduced
accordingly. Prohibition of
charge for
expenses on
loans by
money-lenders

18. (1) No proceedings shall lie for the recovery by a money-lender of
any money lent by him after the commencement of this Act or of any
interest in respect thereof, or for the enforcement of any agreement
made or security taken after the commencement of this Act in respect of
any loan made by him, unless the proceedings are commenced before
the expiration of twelve months from the date on which the cause of
action accrued: Limitation of
time for
proceedings in
respect of
money lent by
money-lenders

Provided that-
(i) if during the period of twelve months aforesaid or at any time
within any subsequent period during which proceedings may by virtue
of this proviso be brought, the debtor acknowledges in writing the
amount due and gives a written undertaking to the money-lender to pay
that amount, proceedings for the recovery of the amount due may be
brought at any time within a period of twelve months from the date of
the acknowledgment and undertaking;
(ii) the time limited by the foregoing provisions of this section for

the commencement of proceedings shall not begin to run in respect of
any payments from time to time becoming due to a money-lender under
a contract for the loan of money until a cause of action accrues in respect
of the last payment becoming due under the contract;
(iii) if at the date on which the cause of action accrues or on which
any such acknowledgment and undertaking as as aforesaid is given by
the debtor, the person entitled to take the proceedings is non compos
mentis, the time limited by the foregoing provisions of this section for
the commencement of proceedings shall not begin to run until that
person ceases to be non compos mentis or dies, whichever first occurs;
and
(iv) if at the date on which the cause of action accrues or on which
any such acknowledgment and undertaking as aforesaid is given by the
debtor, the debtor is not within the Republic, the time limited by the
foregoing provisions of this section for the commencement of
proceedings shall not begin to run until he returns within the Republic:
Provided that where the cause of action has accrued against two
or more joint debtors, the time limited by the foregoing provisions of
this section for the commencement of proceedings shall commence to
run from the date on which the cause of action accrued in the case of any
one or more of such joint debtors who is or are within the Republic on
such date, notwithstanding that some other one or more of such joint
debtors is or are without the Republic on such date, but the person
entitled to take the proceedings shall not be barred from commencing
such proceedings against any joint debtor or joint debtors, who was or
were without the Republic on the date on which the cause of action
accrued, after his or their return within the Republic, by reason only that
judgment has already been recovered against any one or more of such
joint debtors who was or were within the Republic at the date aforesaid.

(2) Without prejudice to the powers of a court under section fourteen, if
at the time when proceedings are taken by a money-lender in respect of a
default in the payment of any sum due to him under a contract for the
loan of money, any further amount is outstanding under the contract but
not yet due, the court may determine the contract and order the principal
outstanding to be paid to the money-lender with such interest thereon, if
any, as the court may allow up to the date of payment.

19. (1) The provisions of sections nine, seventeen and eighteen shall
not apply in relation to any loan by a pawnbroker on a pledge, or in
relation to any debt in respect of such a loan, or any interest thereon,
notwithstanding that the loan is not made in the course of the business
carried on by the pawnbroker in accordance with any law for the time Special
provisions as to
pawnbrokers’
loans

being in force in relation to pawnbrokers, so long as the following
conditions are complied with in respect of the loan:

(a) the pawnbroker shall deliver or send to the pawner within seven
days a note or memorandum containing all the terms of the contract, and
in particular showing the date on which the loan is made, the amount of
the principal of the loan, the interest charged on the loan expressed in
terms of a rate per centum per annum, and any other charges payable by
the pawner under the contract, and the rate of interest charged shall not
exceed the rate of twenty per centum per annum;

(b) subject as hereinafter provided, the pawner shall not be charged
any sum on account of costs, charges, or expenses incidental to or
relating to the negotiations for or the granting of the loan or proposed
loan, except a charge for the preparation of documents relating to the
loan not exceeding the sum of ten ngwee, and a charge equal to the
actual amount of any stamp duty paid by the pawnbroker upon any such
document:

Provided that a pawnbroker shall not be deemed to have failed to
comply with the foregoing conditions by reason of his having made in
good faith and in accordance with the terms of the contract for the loan-
(i) a reasonable charge in respect of the storage or care of any
pledge which is not physically delivered to him or which, although so
delivered, is of such weight or size that it would not under the Postal
Regulations for the time being in force be received for transmission by
parcel post; or
(ii) a charge for interest at a rate not exceeding twenty per centum
per annum upon any sum reasonably expended by the pawnbroker in
respect of the storage or care of the pledge; or
(iii) a charge not exceeding ten ngwee for rendering any account of
the sale of any pledge; or
(iv) a charge not exceeding ten ngwee in respect of any inspection of
the pawnbroker’s books.

(2) Any charge authorised by this section for the preparation of
documents relating to a loan, or in respect of stamp duty upon any such
document, may be deducted by the pawnbroker from the amount of the
loan, and, if so deducted, shall be deemed for the purposes of this Act to
be included in the principal.

20. (1) Where any debt in respect of money lent by a money-lender
whether before or after the commencement of this Act or in respect of
interest on any such debt or the benefit of any agreement made or
security taken in respect of any such debt or interest is assigned to any
assignee, the assignor (whether he is the money-lender by whom the
money was lent or any person to whom the debt has been previously
assigned) shall, before the assignment is made- Notice and
information to
be given on
assignment of
money-lender’
debts

(a) give to the assignee notice in writing that the debt, agreement or
security is affected by the operation of this Act; and

(b) supply to the assignee all information necessary to enable him to
comply with the provisions of this Act relating to the obligation to
supply information as to the state of loans and copies of documents
relating thereto;
and any person acting in contravention of any of the provisions of this
section shall be liable to indemnify any other person who is prejudiced
by the contravention, and shall also be guilty of an offence, and shall in
respect of each offence be liable, on conviction by a subordinate court of
the first or second class, to imprisonment for a term not exceeding two
years or to a fine not exceeding fifteen thousand penalty units, or to
both.

(2) In this section, “assigned” means assigned by any assignment inter
vivos other than an assignment by operation of law, and “assignor” and
“assignee” have corresponding meanings.
(As amended by Act No. 13 of 1994)

21. (1) Subject as hereinafter provided, the provisions of this Act shall
continue to apply as respects any debt to a money-lender in respect of
money lent by him after the commencement of this Act or in respect of
interest on money so lent or of the benefit of any agreement made or
security taken in respect of any such debt or interest, notwithstanding
that the debt or the benefit of the agreement or security may have been
assigned to any assignee, and, except where the context otherwise
requires, references in this Act to a money-lender shall accordingly be
construed as including any such assignee as aforesaid: Application of
Act as respects
assignees

Provided that, notwithstanding anything in this Act-
(i) any agreement with, or security taken by, a money-lender in

respect of money lent by him after the commencement of this Act, shall
be valid in favour of any bona fide assignee or holder for value without
notice of any defect due to the operation of this Act, and of any person
deriving title under him; and
(ii) any payment or transfer of money or property made bona fide by
any person, whether acting in a fiduciary capacity or otherwise, on the
faith of the validity of any such agreement or security, without notice of
any such defect shall, in favour of that person, be as valid as it would
have been if the agreement or security had been valid; and
(iii) the provisions of this Act limiting the time for proceedings in
respect of money lent shall not apply to any proceedings in respect of
any such agreement or security commenced by a bona fide assignee or
holder for value without notice that the agreement or security was
affected by the operation of this Act, or by any person deriving title
under him;
but in every such case the money-lender shall be liable to indemnify the
borrower or any other person who is prejudiced by virtue of this section,
and nothing in this proviso shall render valid an agreement or security in
favour of, or apply to proceedings commenced by, an assignee or holder
for value who is himself a money-lender.

(2) Nothing in this section shall render valid for any purpose any
agreement, security, or other transaction which would, apart from the
provisions of this Act, have been void or unenforceable.

SCHEDULE
(Sections 7, 9 and 13)

CALCULATION OF INTEREST WHERE THE INTEREST CHARGED ON A LOAN
IS NOT EXPRESSED IN TERMS OF A RATE

1. The amount of principal outstanding at any time shall be taken to be the balance
remaining after deducting from the principal the total of the portions of any payments
appropriated to principal in accordance with the provisions of this Act.
2. The several amounts taken to be outstanding by way of principal during the several
periods ending on the dates on which payments are made shall be multiplied in each case by
the number of calendar months during which those amounts are taken to be respectively
outstanding, and there shall be ascertained the aggregate amount of the sum so produced.
3. The total amount of the interest shall be divided by one-twelfth part of the aggregate
amount mentioned in paragraph 2, and the quotient, multiplied by one hundred, shall be
taken to be the rate of interest per centum per annum.
4. If, having regard to the intervals between successive payments, it is desired so to do, the
calculation of interest may be made by reference to weeks instead of months, and in such a
case the foregoing paragraphs shall have effect as though in paragraph 2 the word “weeks”
were substituted for the words “calendar months”, and in paragraph 3 the words
“one-fifty-second” were substituted for the words “one-twelfth”.
5. Where any interval between successive payments is not a number of complete weeks or
complete months, the foregoing paragraphs shall have effect as though one day were
one-seventh part of a week or one-thirtieth part of a month, as the case may be.

SUBSIDIDARY LEGISLATION
MONEY-LENDERS

SECTION 3-THE MONEY-LENDERS (APPLICATION
FOR LICENCE) REGULATIONS
Regulations by the Minister Government
Notices
76 of 1938
279 of 1964

1. These Regulations may be cited as the Money-lenders (Application
for Licence) Regulations. Title

2. An applicant for a money-lender’s licence shall send to the
Permanent Secretary by registered post the certificate authorising the
grant to him of a licence or, if he so desires, he may attend personally at
the office of the Permanent Secretary and produce the said certificate.
On payment of the prescribed fee and if satisfied that the certificate is in
order, the Permanent Secretary shall issue licence to the applicant. Such
licence shall be in the form set out in the Schedule.
(As amended by No. 279 of 1964) Method of
application

SCHEDULE
(Regulation 2)

THE MONEY-LENDERS ACT

THE MONEY-LENDERS (APPLICATION FOR LICENCE) REGULATIONS

LICENCE
(Section 3)

Fee Paid
is hereby licensed to carry on
business as a money-lender at
under the name or style of
This licence shall expire on the 31st December, 19 …………….

Permanent Secretary, Ministry of
Finance
LUSAKA,
Date ……………………………………………………….
(As amended by No. 279 of 1964)

SECTION 4-THE MONEY-LENDERS (APPLICATION
FOR
CERTIFICATE) REGULATIONS
Regulations by the Minister Government
Notice
77 of 1938
Statutory
Instruments
10 of 1964
5 of 1965

1. These Regulations may be cited as the Money-lenders (Application
for Certificate) Regulations. Title

2. Any person intending to apply for a certificate under section four of
the Act (hereinafter referred to as “a certificate”) shall lodge with the
court having competent jurisdiction in the district in which the applicant
intends to carry on business a statement in Form 1 in the Schedule. Form to be
lodged with
court

3. When a time has been fixed for the hearing of the application, such
person-
(a) shall serve personally or by registered post, not less than two
weeks before the date fixed for the hearing of the application, a copy of
the statement referred to in regulation 2 upon the officer in charge of the
police for the district wherein the premises to which the application will
relate are situate, or if there be no such officer, upon the Inspector
General of Police, and shall at the same time inform him in writing of
the date fixed for the hearing of the application; Steps to be
taken by
applicant

(b) shall, unless the application relate merely to a renewal of a
certificate, publish, on a date not more than four weeks nor less than two
weeks before the date fixed for the hearing of the application, a notice in
the Gazette and such notice shall set forth his true name, the name in
which and the address at which he desires to be authorised to carry on
business as a money-lender, and the court and time at which the
application is to be heard;
(c) shall attend in person the court in which the statement has been
lodged, and may be called upon to answer on oath such questions as the
court may think necessary.

4. The court after hearing objections, if any, shall, if satisfied that no
good grounds exist for refusing the certificate for which application has
been made, issue a certificate in Form 2 in the Schedule. Certificate

5. A police officer not below the rank of Sub Inspector may, acting on
the general or special instructions of the Inspector General of Police or
on information received, by appearance in person before the court in
which the application is being made, oppose the grant of a certificate.
(As amended by No. 10 of 1964
and No. 5 of 1965) Police may
oppose
application

6. Applications for certificates by two or more partners in a firm shall
be made on the same day unless the court otherwise allows. Applications by
partners

SCHEDULE

PRESCRIBED FORMS

THE MONEY-LENDERS ACT

THE MONEY-LENDERS (APPLICATION FOR CERTIFICATE)
REGULATIONS
FORM 1
(Regulation 2)

STATEMENT

1. The name of applicant. (If the applicant is a company, the name of the company should
be stated here.)
2. Private address of applicant, or, in the case of a company, the registered address of the
company.
3. Name under which it is desired to carry on business as a money-lender.
4. Address at which it is desired to carry on business.
The address to be entered is the address of the head office or branch in respect of which the
application is being made. A separate application to the appropriate court must be made in
respect of each branch.
5. True names and addresses of partners, if any.
6. Name of person or persons (other than owners or partners) responsible or proposed to be
responsible for the management of the business. In the case of a company, the names of the
directors, treasurer and secretary should be given.
7. Date of any previous certificate under the Money-lenders Act, and name and address
authorised by such certificate.
8. If registered under the Registration of Business Names Act, date of registration and
name and address under which registered. Cap.
389

9. Particulars of any convictions under the Money-lenders Act, of the applicant, his
partner, or any person responsible or proposed to be responsible for the management of the
business.
10. Particulars of any order under section 5 of the Money-lenders Act, suspending or
forfeiting any certificate of, or disqualifying from obtaining a certificate, the applicant or
his partner or any person responsible or proposed to be responsible for the management of
the business.
11. Particulars of any refusal of a certificate to the applicant, or his partner or any person
responsible or proposed to be responsible for the management of the business.
Dated……………………………………………………………………

Signature of Applicant The
applicant
must be
prepared,
if
necessary,
to produce
these
certificates

THE MONEY-LENDERS ACT

THE MONEY-LENDERS (APPLICATION FOR CERTIFICATE)
REGULATIONS
FORM 2
(Regulation 4)

CERTIFICATE

I, the undersigned, do hereby
certify that I do authorise the grant to A.B. of
of a money-lender’s licence to carry on the business of a money-lender, under the style and
title of (here insert authorised name) at (here insert authorised address). This certificate
shall come into force on the day of ………………………….. 19 ……………..
and shall expire on the day of ………………………….. 19 ……………..
Dated this day of ………………………….. 19 ……………..
(Stamp of Court)

Magistrate

SECTION 2A-THE MONEY-LENDERS (BODIES
CORPORATE) (EXEMPTION) ORDER
Order by the Minister Statutory
Instrument
127 of
1973
227 of
1973
80 of 1977

1. This Order may be cited as the Money-lenders (Bodies Corporate)
(Exemption) Order. Title

2. The bodies corporate named in the Schedule are hereby granted
exemption from the provisions of the Money-lenders Act. Exemptions

SCHEDULE
(Regulation 2)

1. Agricultural Finance Company.
2. Barclays Overseas Development Corporation, Limited.
3. Commonwealth Development Finance Company, Limited.
4. Industrial Finance Company.
5. Standard Chartered Merchant Bank Limited.
(As amended by S.I. No. 227 of 1973
and 80 of 1977)

CHAPTER 399
THE HIRE-PURCHASE ACT

ARRANGEMENT OF SECTIONS

PART I
PRELIMINARY

Section
1. Short title
2. Application
3. Interpretation

PART II
GENERAL PROVISIONS RELATING TO AGREEMENTS

4. Application of Part II
5. Provisions as to agreements
6. Supply of copies to purchaser
7. Provisions to be included in agreements
8. Invalidity of certain provisions
9. Purchaser entitled to certain information
10. Removal of goods
11. Removal of goods from Zambia
12. Conditions and warranties implied in agreements
13. Appropriation of payments made in respect of agreements
14. Negotiable instruments
15. Right of purchaser to be reinstated after return of goods to
seller
16. Right of purchaser to pay outstanding balance of purchase
price.
17. Passing of ownership
18. Right of purchaser to terminate hire-purchase agreement
19. Special provisions as to installation charges

20. Disposal of goods upon termination of agreement
21. Powers of the court
22. Waiver of rights by purchaser
23. Agreements binding on liquidator or trustee of owner
24. Bankruptcy of purchaser

PART III
FINANCIAL PROVISIONS RELATING TO
AGREEMENTS

Section
25. Initial payments and periods for repayment
26. Time limit for certain actions
27. Control of purchase price

PART IV
MISCELLANEOUS

28. Exemptions
29. Saving

SCHEDULE-Initial payments and periods for payment

CHAPTER 399
HIRE-PURCHASE
An Act to make provision for the regulation of
hire-purchase agreements and certain instalment sales,
and for other purposes incidental to the foregoing.
[8th March, 1957] Federal Acts
34 of 1956
14 of 1959
Acts No.
16 of 1969
13 of 1994
Government
Notices
439 of 1963
336 of 1964
497 of 1964
Statutory
Instrument
462 of 1969
257 of 1973
63 of 1976

PART I
PRELIMINARY

1. This Act may be cited as the Hire-Purchase Act. Short title

2. The provisions of this Act shall not apply to any agreement under
which the Government is the seller or, subject to the provisions of
subsection (2) of section twenty-nine, to any agreement made before the
commencement of this Act.
(As amended by G.N. No. 439 of 1963) Application

3. (1) In this Act, unless the context otherwise requires-
“agreement” means a hire-purchase agreement or an instalment sale
agreement;
“cash price”, in relation to any goods, means the price at which the
goods may be purchased outright for cash;
“goods” means any movable property which may lawfully form the
subject-matter of a contract of hire or sale;
“hire-purchase agreement” means-
(a) any contract whereby goods are sold subject to the condition that
notwithstanding delivery of the goods the ownership in such goods shall
not pass except in terms of the contract and the purchase price is to be
paid in two or more instalments;
(b) any contract which provides for the hiring of goods whereby the
hirer has the right-
(i) to purchase such goods after two or more instalments have
been paid in respect thereof; or
(ii) after two or more instalments have been paid in respect
thereof, to continue or renew from time to time such hiring at a nominal
rental, or to continue or renew from time to time the right to be in
possession of the goods, without any further payment or against
payment of a nominal amount periodically or otherwise; Interpretation

whether or not the agreement may at any time be terminated by
either party or one of the parties;
(c) any other contract which has, or contracts which together have,
the same import as either or both the contracts defined in paragraph (a)
or (b) of this definition, whatever form such contract or contracts may
take;
“instalment” includes any cash amount payable in terms of paragraph
(a) of subsection (1) of section twenty-five and, where no cash amount is

payable in terms of that paragraph, the amount of any deposit or initial
payment payable under an agreement;

“instalment sale agreement” means any contract of sale under which-
(a) the ownership in the goods sold passes either before or upon
delivery;
(b) the purchase price is to be paid in instalments, of which one or
more are payable after delivery; and
(c) the seller is entitled to the return of the goods sold if the
purchaser fails to comply with any provision thereof;
and includes any other contract which has, or contracts which
together have, the same import, whatever form such contract or
contracts may take;
“purchase price” means the total sum payable by the purchaser under an
agreement, including any sum payable by him by way of a deposit or
other initial payment, or credited or to be credited to him under such
agreement on account of any such deposit or payment, whether that sum
is to be or has been paid to the seller or to any other person or is to be or
has been discharged by a payment of money or by the transfer or
delivery of goods or by any other means, but excluding any sum
payable-
(a) as compensation or damages for breach of the agreement;
(b) for licence or registration fees;
(c) for any insurance premiums which have been paid to insure the
goods sold under the agreement;
(d) by way of interest upon instalments which are in arrear; or
(e) in respect of any installation as defined in subsection (2) of
section nineteen;
“purchaser” means the person who, in terms of any agreement, is the
purchaser or hirer, as the case may be, and includes his successors in
title;
“seller” means the person who, in terms of any agreement, is the seller or
the lessor, as the case may be, and includes his successors in title;
“writing”-
(a) in relation to an agreement in a form the provisions of which this
Act requires shall be set out in printed or typed letters, means printing or
typewriting; and
(b) in relation to an agreement which is not in a form such as is
referred to in paragraph (a), means writing as defined in section three of Cap. 2

the Interpretation and General Provisions Act.

(2) References in sections five, seven and twenty-five to “contain”, “set
out” and “provide” shall, without derogation from the provisions of
paragraph (a) of subsection (1) of section five, be construed as
references to “contain expressly in writing”, “set out expressly in
writing” and “provide expressly in writing” respectively.

(3) Where a seller has agreed that any part of the purchase price may be
discharged otherwise than by the payment of money, any such discharge
shall, for the purposes of this Act, be deemed to be a cash payment of
that part of the purchase price.
(As amended by No. 14 of 1959)

PART II
GENERAL PROVISIONS RELATING TO AGREEMENTS

4. Except for the provisions of sections five, twenty-three and
twenty-four, which shall apply to every agreement or, as the case may
be, to the parties to every agreement, the provisions of this Part shall not
apply to an agreement under which the purchase price exceeds the sum
of three thousand kwacha.
(No. 14 of 1959) Application of
Part II

5. (1) Every agreement shall- Provisions as to
agreements

(a) be reduced to writing and signed by or on behalf of all the parties
to the agreement;

(b) contain a statement of the cash price.

(2) If an agreement does not comply with the provisions of subsection
(1)-

(a) the goods which are the subject of the agreement shall be

deemed to have been sold to the purchaser-
(i) without any reservation as to the ownership of the goods or, as
the case may be, without any stipulation as to the seller’s right to the
return of the goods; and
(ii) on credit at a price, payable in the same manner as that stipulated
in the agreement, which is twenty-five per centum less than the purchase
price; and

(b) the seller shall not be entitled to enforce any contract of
suretyship, indemnity or guarantee relating to the agreement except, in
the case of an agreement which has been the subject of a cession or
assignment, against a surety or guarantor who was the original seller
under the agreement:

Provided that if, in any action arising out of the agreement, the court is
satisfied that the purchaser would not, but for the provisions of this
subsection, have been prejudiced by the fact that the agreement does not
comply with the provisions of subsection (1), the court may, subject to
such conditions that it thinks just and equitable to impose, order the
parties to carry out the terms of the agreement as if the agreement had
complied with the provisions of subsection (1).
(As amended by No. 14 of 1959)

6. (1) It shall be the duty of the seller to hand or send by registered post
to the purchaser a copy of any agreement entered into between them as
soon as possible after it has been entered into. If a seller fails so to
supply such a copy, the purchaser may hand or send to him by registered
post a written request for the supply of such a copy, and any seller who,
within fourteen days of the receipt of such a request, fails to hand such a
copy to the purchaser, or send it to him by registered post, shall be guilty
of an offence. Supply of
copies to
purchaser

(2) Any person who is guilty of an offence under the provisions of
subsection (1) shall be liable to a fine not exceeding one thousand five
hundred penalty units or, in default of payment, to imprisonment for a
period not exceeding thirty days.
(As amended by Act No. 13 of 1994)

7. (1) Every agreement shall set out- Provisions to be
included in

agreements

(a) (i) the amount of the purchase price of the goods;

(ii) the amount paid or to be paid by the purchaser
under the provisions of paragraph (a) of subsection (1) of section
twenty-five;

(iii) the amount of each of the instalments by which
the purchase price is to be paid;

(iv) the mode of payment of such instalments;

(v) the date or mode of determining the date on
which each instalment is payable; and

(vi) the rate of interest, which shall not exceed the
maximum rate of interest referred to in subsection (2) of section eight,
chargeable upon an instalment in arrear;

(b) a description of the goods let, sold or delivered under the
agreement and of any goods delivered to the seller under the provisions
of paragraph (a) of subsection (1) of section twenty-five which is
sufficient to identify them;

(c) the terms as to the reservation and passing of ownership of the
goods or as to the seller’s right to the return of the goods, as the case may
be.

(2) No seller shall, on or after the third anniversary of the
commencement of this Act, use any form of agreement the provisions of
which, whatever their nature, are not set out in clearly legible printed or
typed letters of substantially the same size.

(3) If an agreement does not comply with the provisions of subsection
(1) or, on or after the 8th March, 1960, with the provisions of subsection
(2)-

(a) the goods which are the subject of the agreement shall be
deemed to have been sold to the purchaser-

(i) without any reservation as to the ownership of the goods or, as
the case may be, without any stipulation as to the seller’s right to the
return of the goods; and
(ii) on credit at a price, payable in the same manner as that stipulated
in the agreement, which is twenty-five per centum less than the purchase
price; and

(b) the seller shall not be entitled to enforce any contract of
suretyship, indemnity or guarantee relating to the agreement except, in
the case of an agreement which has been the subject of a cession or
assignment, against a surety or guarantor who was the original seller
under the agreement:

Provided that if, in any action arising out of the agreement, the court is
satisfied that the purchaser would not, but for the provisions of this
subsection, have been prejudiced by the fact that the agreement does not
comply with the provisions of subsection (1), the court may, subject to
such conditions that it thinks just and equitable to impose, order the
parties to carry out the terms of the agreement as if the agreement had
complied with the provisions of subsection (1).
(As amended by No. 14 of 1959)

8. (1) A provision of an agreement shall not be of any force or effect if
it provides whether expressly or impliedly that- Invalidity of
certain
provisions

(a) the seller or any person acting on his behalf is authorised to enter
upon any premises for the purpose of taking possession of goods which
are the subject of any agreement, or is relieved from liability for any
such entry;

(b) the right conferred on a purchaser by this Act to determine the
agreement is excluded or restricted;

(c) any liability, in addition to the liability imposed by this Act, is
imposed on a purchaser by reason of the termination of the agreement
by him under this Act;

(d) a purchaser, after the termination of the agreement in any
manner whatsoever, is subject to a liability which exceeds the liability to
which he would have been subject if the agreement had been terminated

by him under this Act;

(e) any person acting on behalf of a seller in connection with the
formation or conclusion of an agreement is to be treated as or deemed to
be the agent of the purchaser;

(f) a seller is to be relieved from liability for the acts or defaults of
any person acting on his behalf in connection with the formation or
conclusion of an agreement;

(g) the purchaser shall pay interest on an instalment in arrear at a
rate which exceeds the maximum rate of interest referred to in
subsection (2).

(2) The maximum rate of interest chargeable under an agreement on an
instalment in arrear shall be the rate per centum per annum specified by
the Minister in fixing, in terms of section twenty-seven, the maximum
amount by which the purchase price under agreements of the class in
question may exceed the cash price, which was so specified at the date
of the agreement.
(As amended by No. 14 of 1959)

9. (1) If a purchaser hands or sends by registered post a request therefor
to the seller and tenders to the seller a sum of fifty ngwee for expenses,
the seller shall, within thirty days after the tender is received by him,
hand or send by registered post to the purchaser all or any of the
following particulars as the purchaser may specify: Purchaser
entitled to
certain
information

(a) a statement signed by or on behalf of the seller, showing-
(i) the amount paid under the agreement by or on behalf of the
purchaser and the date of each payment;
(ii) the amount due under the agreement and unpaid, the date upon
which each unpaid instalment became due and the amount of each such
instalment; and
(iii) the amount which is to become payable under the agreement, the
date or mode of determining the date upon which each future instalment
is to become payable and the amount of each such instalment;

(b) a copy of the agreement.

(2) In the event of a failure without reasonable cause to comply with
subsection (1), then, while the default continues-

(a) no person shall be entitled to enforce the agreement against the
purchaser or to enforce any contract of suretyship, indemnity or
guarantee relating to the agreement, and the seller shall not be entitled to
enforce any right to recover the goods from the purchaser; and

(b) no security given by the purchaser in respect of money payable
under the agreement or given by a surety or guarantor in respect of
money payable under such a contract of suretyship, indemnity or
guarantee as aforesaid shall be enforceable by any holder thereof against
the purchaser, surety or guarantor, as the case may be;

and, if the default continues for a period exceeding thirty days, the
defaulter shall be guilty of an offence and liable to a fine not exceeding
one thousand five hundred penalty units or, in default of payment, to
imprisonment for a period not exceeding thirty days.
(As amended by Act No. 13 1994)

10. (1) It shall be lawful for the seller of goods under a hire-purchase
agreement to stipulate- Removal of
goods

(a) that the purchaser shall record his address in such agreement;
and

(b) that, if before the ownership of the goods has passed to the
purchaser, the purchaser changes such address or at any time removes or
allows such goods or any part thereof to be removed from any premises
for keeping at other premises, he shall, prior to such change of address
or removal, notify the seller or his agent in writing of all or any of the
following particulars:
(i) his new address;
(ii) the premises to which such goods have been removed;
(iii) the name and address of the landlord, if any, of such new
premises;
but no such stipulation shall require the purchaser to notify the seller
more than forty-eight hours before such change or removal.

(2) If any purchaser fails to comply with any stipulation made in terms
of subsection (1), he shall be guilty of an offence and liable to a fine not
exceeding one thousand five hundred penalty units or, in default of
payment, to imprisonment for a period not exceeding thirty days. In any
prosecution for a contravention of the provisions of subsection (1), it
shall be a sufficient defence if the purchaser satisfies the court that his
failure to comply with any such stipulation was due to circumstances
over which he had no control.

(3) If the seller of goods under a hire-purchase agreement has given
written notice of his ownership thereof to the landlord of the premises
where such goods are kept, such landlord shall not have any hypothec or
right of distress over such goods for rental.
(As amended by Act No. 13 of 1994)

11. (1) It shall be lawful for the seller of goods under a hire-purchase
agreement to stipulate that the purchaser shall not remove or permit the
removal of the goods from Zambia without the consent of the seller. Removal of
goods from
Zambia

(2) If a purchaser, in breach of a stipulation made in terms of subsection
(1) and with intent to deprive the seller of his ownership of the goods or
to defeat the rights of the seller to obtain any payment due to him under
the agreement, removes or permits the removal of the goods from
Zambia, he shall be guilty of an offence and liable to a fine not
exceeding three thousand penalty units or to imprisonment for a period
not exceeding three months, or to both.

(3) If a hire-purchase agreement contains a stipulation such as is
referred to in subsection (1) and the seller believes that the goods sold
under the hire-purchase agreement have been removed or are being
removed or are about to be removed from Zambia without his consent,
he may bring an action for the return of the goods.

(4) A seller referred to in subsection (3) may, before bringing the action
referred to in that subsection or while his action is pending, make an
application, in which the purchaser or other person substantially
interested in the goods shall be made respondent, to a court for an order
for the attachment of the goods.

(5) An application for an order referred to in subsection (4) may be
made, on summons or notice to the respondent or ex parte, to a court
having jurisdiction in the area in which the respondent or the goods
proposed to be attached may be or through which the goods are likely to
be removed.

(6) The rules of court governing applications on summons or notice or,
as the case may be, applications ex parte in interlocutory proceedings of
a like nature to an application referred to in subsection (4) which are in
force in the court to which such an application is made shall, subject to
the provisions of subsections (7) to (9), mutatis mutandis, apply to that
application.

(7) A court which makes an order ex parte for the attachment of goods
in terms of this section may require the applicant to give such security
for damages as may be caused by the order as the court may think fit.

(8) An order referred to in subsection (7)-

(a) may be discharged or varied by the court on cause shown by any
person affected by the order and on such terms as to costs as the court
may think fit; and

(b) shall ipso facto be discharged upon the giving of security by the
respondent for the amount of the value of the goods to which the order
relates, together with costs.

(9) If goods are attached by order of a court other than the court in
which the action for the return of the goods is brought, the court which
made the order of attachment shall cause copies of the application, order
and proceedings, together with the goods attached or, as the case may
be, the security given for their release, to be transmitted to the court in
which the action is brought.
(As amended by No. 14 of 1959, G.N. No. 439 of 1963
and Act No. 13 of 1994)

12. (1) In every agreement there shall be- Conditions and
warranties
implied in

agreements

(a) an implied warranty that the purchaser shall have and enjoy quiet
possession of the goods;

(b) an implied condition on the part of the seller that he is not and
will not be precluded from passing the ownership of the goods to the
purchaser at the time when the ownership is to pass;

(c) an implied warranty that the goods shall be free from any charge
or encumbrance in favour of any third party at the time when the
ownership is to pass;
and such warranties and conditions shall be implied notwithstanding
any agreement to the contrary.

(2) Every agreement shall be deemed to contain any warranties or
conditions implied in a contract for the sale of goods.

(3) The seller shall not be entitled to rely on any provision in the
agreement excluding or modifying any warranty or condition referred to
in subsection (2) unless he proves that, before the agreement was made,
the provision was brought to the notice of the purchaser and its effect
made clear to him.
(As amended by G.N. No. 439 of 1963)

13. A purchaser who is liable to make payments to the same seller in
respect of two or more agreements shall, notwithstanding any agreement
to the contrary, be entitled, on making any payment in respect of the
agreements which is not sufficient to discharge the total amount then
due under all the agreements, to appropriate the sum so paid by him in or
towards the satisfaction of the sum due under any one of the agreements,
or in or towards the satisfaction of the sums due under any two or more
of the agreements, in such proportions as he thinks fit, and, if he fails to
make any such appropriations, the payment shall by virtue of this
section be appropriated towards the satisfaction of the sums due under
the respective agreements in the proportions which those sums bear to
one another.
(As amended by Act No. 13 of 1994) Appropriation
of payments
made in respect
of agreements

14. (1) If a seller takes from a purchaser any negotiable instrument Negotiable

(other than a dated cheque which is not a post-dated cheque) in respect
of any instalment or part of an instalment payable under the provisions
of an agreement, the seller shall not have any right to recover any such
instalment or part of an instalment in terms of the agreement, and any
such seller shall be confined, in respect of the recovery of such
instalment or part of an instalment, to his rights of action, if any, in
relation to such negotiable instrument, so, however, that nothing in this
subsection contained shall affect any other rights of such seller under the
agreement or this Act. instruments

(2) If any negotiable instrument (other than a dated cheque which is not
a post-dated cheque) is given or drawn by a purchaser in respect of any
liability under an agreement, the seller shall when he takes it from the
purchaser-

(a) write clearly on the face of such negotiable instrument the words
“Issued in connection with a hire-purchase agreement” or “Issued in
connection with an instalment sale agreement”, as may be appropriate;
and

(b) write clearly at the top of the first page of such agreement the
words “A negotiable instrument has been issued in connection with this
agreement” or “Negotiable instruments have been issued in connection
with this agreement”, as may be appropriate.

(3) Nothing contained in subsection (2) shall prevent the seller from
writing on either the negotiable instrument or the agreement in question
such further words as may serve to identify with greater particularity the
negotiable instrument or agreement to which he refers.

(4) Any seller who fails to comply with the provisions of subsection (2)
shall be guilty of an offence and liable to a fine not exceeding one
thousand five hundred penalty units or, in default of payment, to
imprisonment for a period not exceeding thirty days.
(As amended by Act No. 13 of 1994)

15. (1) If the seller has, as a result of the failure of the purchaser to pay
any instalment of the purchase price due under any agreement,
recovered possession, otherwise than by an order of a court, of any
goods to which the agreement relates, the purchaser shall, unless he
himself has terminated the agreement, be entitled, if he pays all arrear Right of
purchaser to be
reinstated after
return of goods
to seller

instalments of the purchase price due under the agreement within a
period of twenty-one days after the seller recovered possession of the
goods, to the return of the goods at the seller’s place of business or, if he
has no place of business or if the purchaser so requests, at the premises
in which the goods are kept, and to be reinstated in his rights under the
agreement.

(2) The seller shall, after the return of the goods under subsection (1), be
entitled to recover the reasonable expenses incurred by him in the taking
and storing of such goods.

16. A purchaser shall at all times be entitled to pay any instalment of
the purchase price before it is due and shall, if he pays the whole of the
purchase price remaining unpaid in one amount, be entitled to the
reduction of each instalment not due at the said date of payment by an
amount calculated at the rate of five per centum per annum on such
instalment in respect of the period by which the payment of such
instalment is accelerated. Right of
purchaser to
pay outstanding
balance of
purchase price

17. The ownership in any goods which are the subject of a
hire-purchase agreement shall pass to the purchaser upon payment of all
sums payable by him in terms of the agreement. Passing of
ownership

18. (1) A purchaser shall, at any time before the final payment under a
hire-purchase agreement falls due, be entitled, upon the return to the
seller of any goods which are the subject of the agreement, to terminate
the agreement by giving notice of termination in writing to any person
entitled or authorised to receive the sums payable under the agreement. Right of
purchaser to
terminate
hire-purchase
agreement

(2) On the termination of a hire-purchase agreement by the purchaser in
terms of subsection (1), the purchaser shall be liable, without prejudice
to any liability which has accrued before the termination-

(a) to pay to the seller-
(i) the amount, if any, by which one-half of the purchase price
exceeds the sum of-
A. all instalments in respect of the purchase price paid by the
purchaser before the date of the termination; and
B. all installments in respect of the purchase price in arrear at
the date of the termination; or

(ii) if an amount less than the sum referred to in sub-paragraph (i) is
payable under the agreement on its termination by the purchaser in
terms of subsection (1), the amount payable under the agreement; and

(b) if the purchaser has failed to take reasonable care of the goods, to
pay to the seller damages in respect of his failure.

(3) Nothing in this section shall prejudice any right of a purchaser to
terminate a hire-purchase agreement otherwise than by virtue of this
section.
(As amended by No. 14 of 1959)

19. (1) Where under any hire-purchase agreement the seller is required
to carry out any installation and the agreement specifies the amount to
be paid in respect of the installation, the reference in subsection (2) of
section eighteen to one-half of the purchase price shall be construed as a
reference to the aggregate of the said amount and one-half of the
purchase price. Special
provisions as to
installation
charges

(2) For the purposes of this section, “installation” means-

(a) the installing of any gas or water pipe, or the installing of any
line or other means of conveying, transmitting, distributing or supplying
electricity;

(b) the fixing of goods to which the agreement relates to the
premises where they are to be used, and the alteration of premises to
enable any such goods to be used thereon; and

(c) where it is reasonably necessary that any such goods should be
constructed or erected on the premises where they are to be used, any
work carried out for the purpose of such construction or erection.

20. (1) If any agreement is lawfully terminated or rescinded at the
instance of the seller after he has been paid fifty per centum of the
purchase price, the seller shall not, save with the written consent of the
purchaser, be entitled to recover possession of the goods which are the
subject-matter of such agreement, but the goods shall be sold by a
person appointed on the application of the seller by a magistrate, who, in
making the appointment, shall have regard to the information available Disposal of
goods upon
termination of
agreement

to him as to the whereabouts of the goods and may give directions as to
the advertisement and place, date and method of sale. Before making
any appointment in terms of this subsection, the magistrate shall
ascertain whether or not any negotiable instrument has been given or
drawn by the purchaser in respect of any instalment or part of an
instalment payable under the provisions of the agreement in question
and, if any such instrument has been so given or drawn, the magistrate
shall not appoint a person to sell the goods unless he is satisfied that-

(a) every such negotiable instrument has been cancelled or returned
to the purchaser; or

(b) the seller has made arrangements to indemnify the purchaser
against any liability on the part of the purchaser in respect of such
instrument which may be in excess of the amount outstanding under the
agreement after the disposal of the proceeds of the sale of the goods in
terms of this section.

(2) The seller shall give notice of such appointment to the purchaser by
handing it to him or sending it to him by registered post at his last known
address.

(3) If the purchaser fails within fourteen days of such notice to deliver
the goods to the person so appointed, the seller shall be entitled to
recover possession of the goods, and the provisions of this section shall
not apply in relation to such goods.

(4) After the sale, the person selling the goods shall, after deducting his
reasonable costs, pay to the seller the purchase price and all other
moneys payable in terms of the agreement, less the total amount of any
payments actually made thereunder, and shall pay over the balance of
the proceeds of the sale to the purchaser.

(5) In the event of the net proceeds of the sale being insufficient to
discharge the amount outstanding under the agreement, the seller may
recover such amount from the purchaser.

(6) If any dispute arises as to the amount payable to the purchaser or the
seller, the person selling such goods shall deposit the amount in dispute
with a magistrate, who shall retain such amount pending action brought

by either party to the agreement against the other, and the person who
sold the goods shall be discharged from any further liability in the
matter.

(7) Where a hire-purchase agreement has been terminated under this
section, the purchaser shall, if he has failed to take reasonable care of the
goods, be liable to pay damages for the failure.
(As amended by No. 14 of 1959)

21. (1) In any action by the seller for the return of any goods to which
any agreement relates, the court may, without prejudice to any other
power and subject to the provisions of sections eighteen and twenty- Powers of the
court

(a) make an order for the return of the goods to the seller, subject to
repayment by the seller of so much of the purchase price received by
him as the court may deem just;

(b) make an order for the return of a part of the goods to the seller
and-
(i) in the case of an instalment sale agreement, for the retention by
the purchaser of the remainder of the goods; or
(ii) in the case of a hire-purchase agreement, for the transfer to the
purchaser of the seller’s title to the remainder of the goods;

(c) make an order-
(i) in the case of an instalment sale agreement, for the retention by
the purchaser of part of the goods; or
(ii) in the case of a hire-purchaser agreement, for the transfer to the
purchaser of the seller’s title to part of the goods;
and an order referred to in paragraph (e) in respect of the remainder of
the goods;

(d) make an order referred to in paragraph (b), subject to-
(i) repayment by the seller of so much of the purchase price
received by him; or
(ii) payment by the purchaser of so much of the unpaid balance of
the purchase price;

as the court may deem just; or

(e) make an order requiring the goods to be sold by public auction
by a person appointed by the court, within a period stated in the order,
or, if the parties so agree, by private treaty.

(2) No order shall be made in terms of sub-paragraph (ii) of paragraph
(d) of subsection (1) unless the purchaser satisfies the court that the
order will be carried out forthwith.

(3) In making any order in terms of this section, the court may, if any
negotiable instrument has been given or drawn by the purchaser in
respect of any instalment or part of an instalment payable under the
provisions of the agreement in question, order that the seller shall-

(a) cancel such negotiable instrument or return it to the purchaser; or

(b) indemnify the purchaser against any liability on the part of the
purchaser in respect of such negotiable instrument.

(4) Any order referred to in paragraph (e) of subsection (1) shall state-

(a) the total amount found by the court to be payable under the
agreement;

(b) the amount fixed by the court as damages for any failure by the
purchaser to take reasonable care of the goods;

(c) the total amount of payments so found to have been made
thereunder;

(d) the party by whom the costs incidental to the sale shall be borne;
and

(e) any directions given by the court as to advertisement and the
place, date and method of the sale of the goods;
and the court may, when making any such order, at the same time order
the purchaser to pay to the seller the deficiency referred to in subsection
(6), if any.

(5) If any goods are sold in pursuance of an order referred to in
paragraph (e) of subsection (1), the person appointed by the court or, in
the case of a sale by private treaty, the seller shall, after deducting-

(a) any costs incidental to the sale awarded by the court against the
purchaser;

(b) any other costs so awarded; and

(c) the total amount stated in the order to be payable under the
agreement, less the total amount of payments so stated to have been
made thereunder;
pay over the balance of the proceeds of the sale to the purchaser. Any
costs incidental to the sale which have been so awarded shall be a first
charge upon the proceeds of the sale.

(6) If the net proceeds of the sale are insufficient to discharge the
purchaser’s liability in respect of any costs referred to in subsection (5)
and his liability under the agreement, the seller may recover the
deficiency from the purchaser.

(7) If damages have been awarded against the seller in the proceedings,
the amount thereof or so much of such amount as the court may
determine shall be deemed to have been paid by the purchaser in respect
of the purchase price of the goods, and thereupon the damages shall be
remitted either in whole or in part.

(8) On the institution of an action referred to in subsection (1) and
pending the conclusion of the proceedings, the court shall, in addition to
any other powers, have power, upon the application of the seller, to
make such orders as the court may deem just for the purpose of
protecting the goods from damage or depreciation, including orders
restricting or prohibiting the use of the goods or giving directions as to
their custody.

22. No waiver by any purchaser of any right under this Act shall be of
any force or effect. Waiver of rights
by purchaser

23. If a company is being wound up under the provisions of the Agreements

Companies Act, or the estate of a person is sequestrated under an
enactment in force in Zambia relating to bankruptcy, any agreement
entered into by such company or person as owner shall remain of full
force and effect and shall be binding on the liquidator of such company
or the trustee of such estate, as the case may be: binding on
liquidator or
trustee of
owner.
Cap. 388

Provided that nothing in this section shall affect the powers of the court
to set aside any disposition of property made by way of undue
preference.
(As amended by G.N. No. 439 of 1963
and G.N. No. 336 of 1964)

24. (1) In this section, “trustee’s expenses”, in relation to goods which
are the subject of an agreement entered into by a purchaser referred to in
paragraph (a) of subsection (2), means- Bankruptcy of
purchaser

(a) the trustee’s remuneration in respect of the goods; and

(b) the costs incurred by the trustee in conserving the goods; and

(c) all other expenses of liquidation or administration incurred by
the trustee in connection with the goods.

(2) (a) If, under the provisions of the Bankruptcy Act, a purchaser is
adjudged or otherwise declared bankrupt, the goods which are the
subject of the agreement entered into by the purchaser shall,
notwithstanding the terms of the agreement, vest in his trustee: Cap. 82

Provided that if the goods are used by the trustee on behalf of the
purchaser’s estate, the trustee shall pay to the seller, as a cost in the
administration of the estate, each instalment in respect of the purchase
price which becomes due under the agreement during the period the
goods are so used.

(b) The trustee of a purchaser referred to in paragraph (a) shall pay to
the seller out of the proceeds of the sale of the goods referred to in that
paragraph, reduced by the amount of the trustee’s expenses and the cost
of realising the goods, so far as there are proceeds available, an amount
equal to the balance of the unpaid purchase price together with all other
sums due to the seller under the agreement.

(c) If the full amount due to the seller in terms of paragraph (b) is unpaid
by reason of the insufficiency of the proceeds of the sale of the goods,
the seller shall, unless he relies for the satisfaction of the payment due to
him solely on the proceeds of the sale of the goods, have a claim in the
bankruptcy in respect of the balance.

(3) (a) The trustee of a purchaser referred to in paragraph (a) of
subsection (2) shall give not less than twenty-eight days’ notice in
writing to the seller of the date on which he proposes to sell the goods
which are the subject of the agreement.

(b) The trustee shall, if required in writing by the seller not less than
seven days before the date referred to in paragraph (a), deliver the goods
to the seller on the prepayment by the seller of the cost of delivery and
the trustee’s expenses.

(c) On the delivery of the goods to the seller, the seller shall thereupon
have, in respect of the goods, a lien or right of retention with all the
rights of a creditor holding a security under any enactment or the
common law in force in Zambia.

(d) In proving a claim in bankruptcy a seller referred to in this
subsection shall state in his affidavit or other document of claim the
nature, particulars and value of his security.

(4) If the purchaser is a company which is in course of being wound up
under the provisions of the Companies Act, the provisions of
subsections (2) and (3) shall apply as if the company were an individual
adjudged or otherwise declared bankrupt and the liquidator of the
company were the trustee of the purchaser. Cap. 388

(5) The provisions of this section shall, notwithstanding the provisions
of section two, apply in relation to an agreement under which the
Government is the seller.
(No. 14 of 1959 as amended by G.N. No. 439 of 1963
and G.N. No. 336 of 1964)

PART III
FINANCIAL PROVISIONS RELATING TO
AGREEMENTS

25. (1) Every agreement under which the purchase price exceeds
twenty kwacha shall provide- Initial payments
and periods for
repayment

(a) that payment shall be made in money (which for this purpose
shall include a cheque) or in goods before any of the goods which are the
subject of the agreement are delivered to the purchaser of a sum equal at
least to that percentage of the cash price which is specified in the third
column of the Schedule for the particular class of goods sold under the
agreement; and

(b) subject to the provisions of subsection (6), that the period within
which the full purchase price is payable shall not exceed the period
specified in the fourth column of the Schedule for the particular class of
goods sold under the agreement.

(2) The period referred to in paragraph (b) of subsection (1) shall be
reckoned from the date of the payment made in terms of paragraph (a) of
that subsection:

Provided that, if the agreement provides for the delivery of the goods
which are the subject of the agreement from a place outside Zambia to a
purchaser who at the time of delivery is outside Zambia, the period
shall, at the election of the seller, be reckoned from the date on which
the goods are first imported into Zambia.

(3) If an agreement does not comply with the provisions of subsection
(1) or payment has not been made in terms of paragraph (a) of that
subsection-

(a) the goods which are the subject of the agreement shall be
deemed to have been sold to the purchaser-
(i) without any reservation as to the ownership of the goods or, as
the case may be, without any stipulation as to the seller’s right to the

return of the goods; and
(ii) on credit at a price, payable in the same manner as that stipulated
in the agreement, which is twenty-five per centum less than the purchase
price; and

(b) the seller shall not be entitled to enforce any contract of
suretyship, indemnity or guarantee relating to the agreement except, in
the case of an agreement which has been the subject of a cession or
assignment, against a surety or guarantor who was the original seller
under the agreement.

(4) No payment in cash shall, to the extent to which it is made out of
moneys borrowed directly or indirectly from or through the seller or any
person whose business or part of whose business it is by arrangement
with the seller to advance money for payments under agreements with
the seller, and no payment in goods shall, to the extent to which the
amount thereof exceeds the normal market price for the goods, be
deemed to be a payment for the purposes of paragraph (a) of subsection
(1).

(5) (a) The Minister may, by statutory order, vary or amend the
Schedule, re-classify the categories of goods set out in the Schedule, add
new categories of goods to, or delete any categories of goods from, the
Schedule.

(b) Any variation or amendment of the Schedule made by the Minister
under the provisions of paragraph (a) may provide for-
(i) different percentages of the cash price payable under the
provisions of paragraph (a) of subsection (1); or
(ii) different periods within which the full purchase price is payable
under the provisions of paragraph (b) of subsection (1);
for different classes of purchasers.

(c) For the purposes of paragraph (b), the purchasers may be classified
in different categories on the ground that they are citizens of Zambia or
not citizens of Zambia, Zambian bodies corporate or non-Zambian
bodies corporate, Zambian partnerships or non-Zambian partnerships.

(d) No variation or amendment of the Schedule by the Minister shall

affect the operation of any agreement entered into prior to the date of
publication of such variation or amendment.

(6) Subject to the provisions of subsection (7), the obligation imposed
on a purchaser to pay instalments under an agreement shall,
notwithstanding anything contained in this Act or in the agreement, be
suspended for any period during which the purchaser-

(a) is employed in terms of subsection (1) of section one hundred
and ninety-three or subsection (1) of section two hundred and two of the
Defence Act, otherwise than as a member of the Regular Force referred
to in subsection (1) of section four of that Act; or Cap. 106

(b) is fully engaged on police duties as a member of a police reserve
established by the Zambia Police Reserve Act. Cap. 117

(7) The obligation of a purchaser to pay instalments under an agreement
shall not be suspended in terms of subsection (6)-

(a) for more than a continuous period of one hundred and twenty
days; or

(b) in the case of a purchaser referred to in paragraph (a) or (b) of
subsection (6), unless and until the purchaser has been employed in
terms of subsection (1) of section one hundred and ninety-three or
subsection (1) of section two hundred and two of the Defence Act, or, as
the case may be, has been engaged on police duties as a member of a
police reserve for a continuous period of at least fourteen days. Cap. 106

(8) (a) In this section, unless the context otherwise requires-
“Zambian body corporate” means a body corporate which is
incorporated under the laws of Zambia and-
(i) is certified under the hand of the Minister to be controlled by the
State; or
(ii) A. whose membership is composed exclusively of persons who
are citizens of Zambia; and
B. whose directors are exclusively citizens of Zambia; and
C. which is not controlled, by any means, directly or indirectly,
outside Zambia, or by persons who are not citizens of Zambia or who

are associated in the capital structure thereof with persons who are not
citizens of Zambia;
“Zambian partnership” means a partnership which is composed
exclusively of persons who are citizens of Zambia;
“non-Zambian body corporate” means a body corporate other than a
Zambian body corporate;
“non-Zambian partnership” means a partnership other than a Zambian
partnership.

(b) For the purposes of this subsection, persons shall be deemed to
control a body corporate notwithstanding that other persons are
associated with them in the control thereof, if they can override those
other persons.
(As amended by No. 14 of 1959, G.N. No. 439 of 1963
and Act No. 16 of 1969)

26. (1) A seller shall have no right to institute a suit or action for- Time limit for
certain actions

(a) the return of goods to which an agreement relates; or

(b) the recovery of a portion of the purchase price due under an
agreement;
after the lapse of the period prescribed by subsection (2).

(2) The period after the lapse of which no suit or action referred to in
subsection (1) may be brought shall be the period, fixed by or under
subsection (3), which was so fixed at the time the right to institute the
suit or action first accrued.

(3) The period to which the provisions of subsection (2) relate shall be-

(a) such number of days, not less than one hundred and fifty, as the
Minister may by statutory notice fix; or

(b) if no period is fixed in terms of paragraph (a), three hundred and
sixty-five days;

commencing on the day following the last day of the appropriate period
within which this Act requires the full purchase price to be paid.

(4) In determining for the purposes of paragraph (a) or, as the case may
be, paragraph (b) of subsection (3) the number of days which have
elapsed, there shall not be taken into account any period during which-

(a) the purchaser was absent from Zambia; or

(b) service of summons issued by the seller for the return of any
goods or the recovery of any portion of the purchase price could not be
effected owing to the whereabouts of the purchaser being unknown or
owing to the purchaser wilfully evading service or owing to his absence
from Zambia; or

(c) the seller was a minor or was of unsound mind; or

(d) the obligation of the purchaser to pay instalments was suspended
in terms of subsection (6) of section twenty-five.

(5) The provisions of this section shall not apply if at any time before
the end of the period of limitation prescribed by subsection (2) the seller
or purchaser-

(a) is adjudged or otherwise declared bankrupt; or

(b) makes an assignment to or composition with his creditors; or

(c) being a company, is wound up or placed under judicial
management; or

(d) dies.
(No. 14 of 1959 as amended by G.N. No. 439 of 1963)

27. (1) The Minister shall, for all classes of agreement and goods, by
statutory notice, fix the maximum amount, to be determined by
reference to the rate per centum per annum referred to in subsection (2),
by which the purchase price under an agreement may exceed the cash
price. Control of
purchase price

(2) The rate per centum per annum to which the provisions of
subsection (1) relate shall be a rate per centum per annum, specified by
the Minister in the notice referred to in that subsection, of the balance of
the cash price remaining unpaid before the due date of each instalment.

(3) The Minister may, in fixing the maximum amount referred to in
subsection (1), make different provision in respect of different classes of
agreements and different classes of goods.

(4) A provision in an agreement shall be of no effect in so far as it
provides for the payment of a purchase price exceeding the cash price by
more than the appropriate amount fixed in terms of subsection (1) at the
date of the agreement, and the amount of each instalment payable under
an agreement containing such a provision shall be decreased
accordingly.
(No. 14 of 1959 as amended by G.N. No. 439 of 1963)

PART IV
MISCELLANEOUS

28. The Minister may, by statutory notice, order that any agreement or
class of agreements entered into by any body corporate established
directly by a law of Zambia or by the Federation of Rhodesia and
Nyasaland (Dissolution) Order in Council, 1963, shall be exempted
from any of the provisions of this Act.
(As amended by G.N. No. 439 of 1963) Exemptions
App.2

29. (1) Subject to the provisions of subsection (2), the Hire-Purchase
Act, Chapter 236 of the 1952 Edition of the Laws, is hereby repealed. Saving

(2) Notwithstanding the provisions of subsection (1), agreements made
before the commencement of this Act shall continue to be subject to the
legislation to which they were subject immediately prior to such date
and, for that purpose, such legislation shall be deemed to remain in
force.

SCHEDULE
(Section 25)

INITIAL PAYMENTS AND PERIODS FOR
PAYMENT

Percentage Period
of cash to be within which
paid before purchase price
Class of goods are is payable
Goods Description of Goods delivered (months)
A Agricultural and irrigation machinery 20 30
and equipment and any other goods
mainly used for agricultural purposes
where an agricultural officer has certified
the intended use of such goods
B Motor assisted cycles; motor cars 33
1/3 24
including estate cars and station wagons);
motor cycles; motor cycle combinations;
motor scooters
C Ambulances; hearses; lorries; road 33
1/3 30
passenger vehicles designed to seat
more than eight persons; vans designed
for commercial purposes; vanettes
D Motor vehicles other than those re- 33
1/3 24
ferred to in Class B and Class C
E Commercial, industrial and mining 20 36
plant and machinery; earth moving
equipment
F Accounting, adding, calculating and 25 18
cash register machines; aircraft air-
conditioning units; bicycles; boats;
cameras; caravans (non-motorised);
duplicating machines; floor polishers;
furniture; geysers; invalid tricycles;
lawn mowers; marine engines (in-
cluding outboard motors); pianos;
radios; radiograms; refrigerators;
sewing machines; stoves; tape re-
corders; television sets; television-
radiogram sets; vacuum cleaners;
washing machines
G Any other goods 25 18
(As amended by S.I. No. 462 of 1969 , No. 257 of 1973 and No. 63 of 1976)

SUBSIDIARY LEGISLATION

HIRE-PURCHASE CAP. 399

SECTION 26-THE HIRE-PURCHASE (LIMITATION
OF TIME) (VARIATION) NOTICE Federal
Government
Notice
224 of 1958

Notice by the Minister

1. This Notice may be cited as the Hire-Purchase (Limitation of Time)
(Variation) Notice. Title

2. The number of days from the end of the period within which the full
purchase price is payable under an agreement within which a suit or
action shall be instituted for the return of any goods to which the
agreement relates or for the recovery of any portion of the purchase
price due under the agreement is hereby increased to three hundred and
sixty-five days. Time limit for
certain actions

THE HIRE-PURCHASE
(FINANCE CHARGES) NOTICE
Statutory Instrument
33 of 1985

Notice by the Minister

1. This Notice may be cited as the Hire-Purchase (Finance Charges)
Notice. Title

2. For all classes of agreement, the purchase price shall not exceed the
cash price by more than the aggregate of the following:
(a) reasonable accountancy costs, credit control and collection
expenses and other administrative costs connected with the agreement,
other than the sums excluded from the purchase price in terms of
sub-section (1) of section three of the Act; and
(b) interest, on the balance of the cash price remaining unpaid
before the due date of each instalment, at a rate- Purchase price

(i) in respect of new goods, of 7.19 per centum; or

(ii) in respect of used goods, of 9.54 per centum;
over the bank interest rate as determined by the Bank of Zambia
from time to time.

SECTION 28-EXEMPTION FROM PART III OF THE
HIRE-PURCHASE ACT Federal
Government
Notice
58 of 1957
Government
Notice
439 of 1963

Notice by the Minister

It is hereby ordered that any agreement entered into by the body
corporate specified in the Schedule shall be exempted from the
provisions of Part III of the Act.

SCHEDULE

Central African Power Corporation

(G.N. No. 439 of 1963)

SECTION 25-THE HIRE-PURCHASE (SCHEDULE)
(VARIATION) ORDER Statutory
Instrument
63 of 1976

Order by the Minister

1. This Order may be cited as Hire-Purchase (Schedule) (Variation)
Order. Title

2. The Schedule to the Hire-Purchase Act is varied and amended so as
to read as follows: Variation of
Schedule to
Cap. 691

SCHEDULE
(Section 25)

INITIAL PAYMENTS AND PERIODS OF PAYMENT

Percentage Period
of cash to be within which
paid before purchase price
Class of goods are is payable
Goods Description of Goods delivered (months)
A Agricultural and irrigation machinery 20 30
and equipment and any other goods
mainly used for agricultural purposes
where an agricultural officer has certified
the intended use of such goods
B Motor assisted cycles; motor cars 33
1/3 24
(including estate cars and station wagons);
motor cycles; motor cycle combinations;
motor scooters
C Ambulances; hearses; lorries; road 33
1/3 30
passenger vehicles designed to seat
more than eight persons; vans designed
for commercial purposes; vanettes
D Motor vehicles other than those re- 33
1/3 24
ferred to in Class B and Class C
E Commercial, industrial and mining 20 36
plant and machinery; earth moving
equipment
F Accounting, adding, calculating and 25 18
cash register machines; aircraft; air-
conditioning units; bicycles; boats;
cameras; caravans (non-motorised);
duplicating machines; floor polishers;
furniture; geysers; invalid tricycles;
lawn mowers; marine engines (in-
cluding outboard motors); pianos;
radios; radiograms; refrigerators;
sewing machines; stoves; tape re-
corders; television sets; television-
radiogram sets; vacuum cleaners;
washing machines
G Any other goods 25 18

3. The Hire-Purchase (Schedule) (Variation) Order, 1973, is hereby
revoked. Revocation of
S.I. No. 257 of
1973

SECTION 28-THE HIRE-PURCHASE (EXEMPTION)
ORDER

Statutory
Instrument
32 of 1989

Order by the Minister

1. This Order may be cited as Hire-Purchase (Exemption) Order. Title

2. Any agreement entered into by the body corporate specified in Part
I of the Schedule for the hire-purchase of the aircraft specified in Part II
of the Schedule shall be exempted from the provisions of the Act. Exemption

SCHEDULE
(Paragraph 2)

PART I

MINES AIR SERVICES LIMITED

PART II

Aircraft being hire-purchased:
Type of Aircraft (i) Beech 300 S/N FA166, Reg. 9J-AFI
(ii) Beech 1900 S/N UC43, Reg. 9J-AFJ
Value of Aircraft US $3,000,000 (Beech 300)
US $3,800,000 (Beech 1900)

CHAPTER 400
THE PATENTS ACT

ARRANGEMENT OF SECTIONS

PART I
PRELIMINARY

Section
1. Short title
2. Interpretation

PART II
ADMINISTRATION

3. Establishment of Patent Office
4. Appointment of officers
5. Seal.
6. Register of patents

PART III
INTERNATIONAL PROVISIONS

7. Convention arrangements
8. Convention applications
9. Special provisions as to vessels, aircraft and land vehicles
10. Protection of inventions communicated under international
agreements
10A. ARIPO Patents

PART IV
APPLICATIONS GENERALLY

11. Persons entitled to make application
12. Form of application
13. Complete and provisional specifications

14. Contents of specification
15. Effective date of claims of complete specification
16. Examination of applications and specifications
17. Ante-dating and post-dating of applications
Section
18. Refusal of application in certain cases
19. Powers of Registrar if specification or application defective
20. Lapsing of applications
21. Acceptance and publication of complete specification
22. Opposition to grant of patent
23. Substitution of applicants
24. Provisions for secrecy of certain inventions

PART V
GRANT, EFFECT AND TERM OF PATENT

25. Grant and sealing of patent
26. Amendment of patent granted to deceased applicant
27. Date of patent
28. Extent, effect and form of patent
29. Term of patent
30. Extension of patent
31. Patents of addition
32. Renewal of patents
33. Restoration of lapsed patents
34. Protective provisions to be inserted in order for restoration of
patent
35. Endorsement of patent “licences of right”
36. Cancellation of endorsement made under section 35
37. Compulsory licence in case of abuse or insufficient use of
patent rights
38. Inventions relating to food or certain other commodities
39. Supplementary provisions as to licences
40. Use of patented inventions for services of the State

41. Special provisions as to State use during emergency
42. Reference of disputes as to State use

PART VI
SPECIAL PROVISIONS RELATING TO
SPECIFICATIONS, ANTICIPATION AND RIGHTS IN
INVENTIONS

43. Amendment of specification by Registrar
44. Amendment of specification with leave of High Court
Section
45. Restrictions on recovery of damages in certain cases
46. Savings for anticipation
47. Co-ownership of patents
48. Disputes as to inventions made by employees
49. Avoidance of certain restrictive conditions in contracts
50. Revocation of patents
51. Consequences of revocation on grounds of fraud
52. Surrender of patents

PART VII
INFRINGEMENTS

53. Procedure and conditions in action for infringement
54. Relief for infringement of partially valid specification
55. Restrictions on recovery of damages for infringement
56. Remedy for groundless threats of infringement proceedings
57. Power of Court to make declaration as to non-infringement.
57A. Definition of Court

PART VIII
ASSIGNMENTS AND CORRECTIONS

58. Provisions as to assignments
59. Power of Registrar to authorise corrections

60. Rectification of register

PART IX
FUNCTIONS OF REGISTRAR IN RELATION TO
CERTAIN EVIDENCE, DOCUMENTS AND POWERS

61. Evidence of certain entries and documents
62. Requests for information as to patent or patent application
63. Loss or destruction of patent
64. Exercise of discretionary powers of Registrar
65. Proceedings before Registrar
66. Advertisements to be approved by Registrar

PART X
PATENT AGENTS

Section
67. Patent agents and their functions
68. Qualification and registration of patent agents
69. Removal of names from register of patent agents
70. Privileges of legal practitioners
71. Entitlement to practise as patent agent
72. Prohibition of certain acts by patent agents

PART XI
APPEALS

73. Appeals from Registrar
74. Repealed by Act No. 18 of 1980

75. Repealed by Act No. 18 of 1980

76. Repealed by Act No. 18 of 1980

77. Repealed by Act No. 18 of 1980

78. Appeals to Supreme Court
79. Repealed by Act No. 18 of 1980

80. Time for appeals
81. Rules of court
82. References to High Court by Registrar

PART XII
OFFENCES AND PENALTIES

83. Falsification of certain documents
84. Deceiving or influencing the Registrar or an officer
85. Witness giving false evidence
86. Prohibition on trafficking in patents by officers in Patent
Office
87. Unauthorised claim of patent right
88. Unauthorised use of certain words
89. Penalties

PART XIII
MISCELLANEOUS

Section
90. Lodging and authentication of documents
91. Oaths and affirmations
92. Expenses of administration
93. Provisions as to fees
94. Saving for certain forfeitures
95. Patent Journal
96. Regulations

PART XIV
APPLICATION AND TRANSITIONAL PROVISIONS

97. Application of Act

CHAPTER 400

PATENTS
An Act to make provision relating to patents for inventions and for other
purposes incidental thereto.
[1st April, 1958] Federal Acts
13 of 1957
12 of 1959
36 of 1960
1 of 1962
Act No.
26 of 1987
Act No.
18 of 1980
Act No.
13 of 1994
Government
Notices
185 of 1964
497 of 1964
Statutory
Instrument
175 of 1965

PART I
PRELIMINARY

1. This Act may be cited as the Patents Act. Short title

2. (1) In this Act, unless the context otherwise requires-
“applicant” includes a person in whose favour a direction has been given
under section twenty-three, or his legal representative;
“article” includes any substance or material, and any equipment,
machinery or apparatus, whether affixed to land or not;
“assignee” means-
(a) the person who has derived his title to the invention for Zambia
directly or indirectly from the inventor thereof or from the latter’s
assignee; or
(b) the legal representative of such person;
“Convention” means the Union Convention of Paris, dated the 20th
March, 1883, for the Protection of Industrial Property, revised at Interpretation
Cap. 30

Brussels on the 14th December, 1900, at Washington on the 2nd June,
1911, at The Hague on the 6th November, 1925, and at London on the
2nd June, 1934, and any revision thereof to which the *former
Federation of Rhodesia and Nyasaland or the former Protectorate of
Northern Rhodesia may have acceded or to which the **Republic may
accede in terms of section seven;
“convention application” means an application made by a person
referred to in paragraph (c) of section eleven;
“convention country”, in relation to any provision of this Act, means a
country (including any colony, protectorate or territory subject to the
authority or under the suzerainty of that country, or any territory over
which a mandate or trusteeship is exercised) which the Minister has,
with a view to the fulfilment of the provisions of the Convention, by
statutory notice, declared to be a convention country;
* Acceded with effect from 1st April, 1958. (F.G.N. No. 39 of 1958.)
** Acceded with effect from 24th October, 1964. (G.N. No. 1751 of
1965.)
“date of lodging”, in relation to any document lodged under this Act,
means the date on which the document is lodged or, where it is deemed
by virtue of any provision of this Act to have been lodged on any
different date, the date on which it is deemed to have been lodged;
“effective date” means, in relation to-
(a) an application which has been ante-dated or post-dated under
this Act, the date to which that application has been so ante-dated or
post-dated;
(b) an application in a convention country, the date on which the
application in respect of the relevant invention was made in the
convention country in question or is in terms of the laws of that country
deemed to have been so made;
(c) any other application, the date on which that application was
lodged at the Patent Office;
“examiner” means an examiner appointed under section four;
“exclusive licence” means a licence from a patentee which confers on
the licensee, or on the licensee and persons authorised by him, to the
exclusion of all other persons (including the patentee), any right in
respect of the patented invention, and “exclusive licensee” shall be
construed accordingly;
“invention” means any new and useful art (whether producing a physical
effect or not), process, machine, manufacture or composition of matter
which is not obvious, or any new and useful improvement thereof which
is not obvious, capable of being used or applied in trade or industry and

includes an alleged invention;
“inventor” means the person who actually devised the invention and
includes the legal representative of an inventor, but does not include a
person to whom an invention has been communicated either from within
or outside Zambia;
“legal practitioner” means a person admitted or otherwise entitled to
practise as a barrister and solicitor in terms of the Legal Practitioners
Act;
“legal representative” means-
(a) the liquidator or receiver of a company;
(b) the representative recognised by law of any person who has died,
become bankrupt, assigned his estate, is an infant or a minor, or of
unsound mind, or is otherwise under a disability;
“new”, in relation to an invention, means, subject to the provisions of
sections eight, ten and forty-six, that, on or before the effective date of
application for a patent in respect thereof, the invention was not-
(a) known or used anywhere in the former Federation of Rhodesia
and Nyasaland or, after the 1st January, 1964, in the former Protectorate
of Northern Rhodesia or, after the 24th October, 1964, in the Republic
(hereinafter in this definition referred to as “the said territories”) by
anyone other than the applicant or his agent, or the person or persons
from or through whom such applicant has derived his right or title
(secret knowledge or secret user otherwise than on a commercial scale
being excluded);
(b) worked anywhere in the said territories otherwise than by way of
reasonable technical trial or experiment by the applicant or any person
or persons from or through whom such applicant has derived his right or
title;
(c) described in a patent specification available to public inspection
in accordance with the Patents (Southern Rhodesia) Act, Chapter 208 of
the 1948 Edition of the Laws, the Registration of United Kingdom
Patents Act, Chapter 205 of the 1957 Edition of the Laws (hereinafter in
this section referred to as “such legislation”) or this Act and bearing a
date less than fifty years prior to such effective date;
(d) described in writing in any publication of which there was a
copy anywhere in the said territories at the effective date of the
application, or in a publication printed and published outside the said
territories less than fifty years prior to such date;
(e) claimed in any complete specification for a patent which was
lodged in accordance with such legislation or this Act and which, though
not available to public inspection at the effective date of the application,

was deposited pursuant to an application for a patent which is, or will be,
of prior date to the date of any patent which may be granted in respect of
the said invention;
“patent” means letters patent for an invention granted for Zambia under
section twenty-five;
“patent agent” means a person who is registered as such in terms of
subsection (1) of section sixty-eight;
“patent of addition” means a patent granted under section thirty-one;
“Patent Office” means the Patent Office established under section three;
“patented article” means any article in respect of which a patent has been
granted and is for the time being in force;
“patentee” means the person for the time being entered on the register as
grantee or proprietor of a patent;
“published” means made available to the public and, without prejudice
to the generality of the foregoing provision, a document shall be
deemed, for the purposes of this Act, to be published if it can be
inspected as of right by members of the public, whether upon payment
of a fee or otherwise;
“register” means the register of patents kept at the Patent Office under
section six;
“register of patent agents” means the register of patent agents kept under
subsection (1) of section sixty-eight;
“Registrar” means the Registrar of Patents appointed under section four;
“specification” means a provisional or a complete specification, as the
circumstances may require, referred to in section fourteen;

(2) A reference in this Act to the date of a patent shall be construed as a
reference to the appropriate date specified in subsection (1) of section
twenty-seven.
(As amended by No. 12 of 1959, G.N. No. 185 of 1964 ,
S.I. No. 175 of 1965 and Act No. 18 of 1980)

PART II
ADMINISTRATION

3. There shall be established under the direction of the Minister an Establishment

office to be called the Patent Office. of Patent Office

4. There shall be-
(a) a Registrar of Patents who shall exercise the powers and perform
the duties assigned to the Registrar by this Act and shall be responsible
for its administration;
(b) one or more Deputy Registrars of Patents who shall, subject to
the control of the Registrar, have all the powers conferred by this Act
upon the Registrar;
(c) such examiners and other officers as may be necessary for
carrying out the provisions of this Act. Appointment of
officers

5. There shall be a seal of the Patent Office, and impressions thereof
shall be judicially noticed. Seal

6. (1) There shall be kept at the Patent Office a register of patents, in
which shall be entered- Register of
patents

(a) particulars of patents in force, of assignments and transmissions
of patents and of licences under patents; and

(b) notice of all matters which are required by or under this Act to be
entered in the register and of such other matters affecting the validity or
proprietorship of patents as the Registrar thinks fit.

(2) All registers of patents established and kept under the Patents
(Southern Rhodesia) Act, Chapter 208 of the 1948 Edition of the Laws,
or the Registration of United Kingdom Patents Act, Chapter 205 of the
1957 Edition of the Laws (hereinafter in this section referred to as “such
legislation”) shall, under arrangements made by the Registrar with the
approval of the Minister, be incorporated with and form part of the
register established under subsection (1), so, however, that such
arrangements shall in no way be deemed to extend the term and effect of
any patent registered in such registers beyond the term and effect
provided in respect of such patent by such legislation under which it was
granted.

(3) Subject to the provisions of this Act, the register of patents shall, at
all convenient times, be open to inspection by the public, and certified

copies, sealed with the seal of the Patent Office, of any entry in the
register shall be given to any person requiring them on payment of the
prescribed fee.

(4) The register of patents shall be prima facie evidence of any matters
required or authorised by or under this Act to be entered therein.

(5) No notice of any trust, whether expressed, implied or constructive,
shall be entered in the register, and the Registrar shall not be affected by
any such notice.

PART III
INTERNATIONAL PROVISIONS

7. If the Republic accedes to the Convention and any revision thereof
as a country of the Union for the Protection of Industrial Property
constituted thereunder, the *Minister shall, by Gazette notice, declare
that Zambia has become such a country with effect from the date stated
in such notice.
(As amended by G.N. No. 185 of 1964
and S.I. No. 175 of 1965) Convention
arrangements

* Republic of Zambia declared to be a country of the Union with effect
from 24th October, 1964, by G.N. No. 1751 of 1965.

8. (1) Subject to the provisions of section eleven, any person who
qualifies under Article 2 or 3 of the Convention and who has applied for
protection for an invention in a convention country or his legal
representative or assignee (if such assignee is also so qualified) shall be
entitled to a patent for his invention under this Act in priority to other
applicants if application therefor is made in terms of this Act within
twelve months after the effective date of the first application for
protection in the first convention country in which he made such
application or, where more than one such application for protection has
been made, from the effective date of the first such application, and the
patent shall have the same date as the effective date of the application in
such convention country but the term of the patent shall run from the Convention
applications

date on which the complete specification is lodged at the Patent Office:

Provided that-
(i) nothing in this subsection shall entitle the patentee to recover
damages for infringements occurring prior to the date on which his
complete specification is advertised as having been accepted in Zambia;
(ii) no patent granted on a convention application lodged within
twelve months after the date stated in terms of section seven shall bear a
date or be effective from a date prior to the date so stated.

(2) Where, after the lodging of the first application in the first
convention country in respect of any invention, a subsequent application
is lodged in that country in respect of the same invention, such
subsequent application shall be regarded as the first application in that
country in respect of that invention, if at the time of the lodging thereof-

(a) the previous application has been withdrawn, abandoned or
refused without having been open to public inspection; and

(b) no priority rights have been claimed by virtue of such previous
application; and

(c) no rights are outstanding in that convention country in
connection with such previous application.

(3) An application which has been withdrawn, abandoned or refused
shall not, after the lodging of the subsequent application, be capable of
supporting a claim for priority rights under this section.

(4) Where all the rights of each of two or more applicants referred to in
subsection (1) who have made application for protection of inventions in
any one or more convention countries have become vested in the same
person, those applications shall for the purposes of subsection (4) of
section thirteen be deemed to have been made by the same applicant.

(5) Where an applicant referred to in subsection (1) has applied for
protection for any invention by an application which, in accordance with
the law of any convention country, is equivalent to an application duly
made in that convention country, he shall be deemed for the purposes of
this section to have applied in that convention country.

(6) In determining for the purposes of this Act whether an invention
described or claimed in a specification lodged in the Patent Office is the
same as that for which protection has been applied for in a convention
country, regard shall be had to the disclosure contained in the whole of
the documents put forward at the same time as and in support of the
application in the convention country, being documents of which copies
have been lodged at the Patent Office within such time and in such
manner as may be prescribed.

(7) A patent granted in Zambia for an invention upon an application
made in terms of this section shall not be invalidated by reason only of-

(a) the invention having been known or used or published in Zambia
or elsewhere on or after the effective date of the application in the
convention country in which application was first made; or

(b) the granting in Zambia after the effective date of the application
in the convention country of a patent of another person for the same
invention:

Provided that-
(i) the effective date of the patent of such other person shall not be
prior to the effective date in Zambia of the convention application; and
(ii) the convention patentee shall be entitled to have the patent of
such other person revoked upon due application under and in
compliance with the provisions of section fifty.

(8) An application for a patent under this section shall be made in the
same manner as for an application in terms of section twelve, save that
the application shall be accompanied by a complete specification.

(9) For the purposes of this Act, matter shall be deemed to have been
disclosed in an application for protection in a convention country if it
was claimed or disclosed (otherwise than by way of disclaimer or
acknowledgment of prior art) in that application or in documents
submitted by the applicant for protection in support of and at the same
time as that application, but no account shall be taken of any disclosure
by any such document unless a copy of the document is lodged at the
Patent Office with the convention application or within such period as

may be prescribed after the lodging of that application.
(As amended by No. 36 of 1960
and G.N. No. 185 of 1964)

9. (1) Where a vessel or aircraft registered in a convention country or a
land vehicle owned by a person ordinarily resident in such a country
comes into Zambia temporarily or accidentally only, the rights
conferred by a patent for an invention shall not be deemed to be
infringed by the use of the invention- Special
provisions as to
vessels, aircraft
and land
vehicles

(a) in the body of the vessel or in the machinery, tackle, apparatus or
other accessories thereof, so far as the invention is used on board the
vessel and for its actual needs only; or

(b) in the construction or working of the aircraft or land vehicle or of
the accessories thereof;
as the case may be.

(2) This section shall not affect the provisions of section sixteen of the
Aviation Act (which exempts certain aircraft from seizure on patent
claims).
(As amended by G.N. No. 185 of 1964) Cap. 444

10. (1) Subject to the provisions of this section, the Minister may, by
statutory instrument, make regulations for securing that, where an
invention has been communicated in accordance with any agreement or
arrangement made by or on behalf of the Government with the
government of any country for the supply or mutual exchange of
information or articles- Protection of
inventions
communicated
under
international
agreements

(a) an application for a patent for an invention so communicated
made by a person, his legal representative or assignee, entitled under
section eleven to make such application, shall not be prejudiced, and a
patent granted on such an application shall not be invalidated by reason
only that the invention has been communicated as aforesaid or that in
consequence thereof-
(i) the invention has been published, made, used, exercised or
vended; or
(ii) an application for a patent has been made by any other person, or
a patent has been granted on such an application;

(b) any application for a patent made in consequence of such a
communication as aforesaid by a person who is not entitled so to do
under section eleven may be refused and any patent granted on such an
application may be revoked.

(2) Regulations made under subsection (1) may provide that the
publication, making, use, exercise or vending of an invention or the
making of any application for a patent in respect thereof shall, in such
circumstances and subject to such conditions or exceptions as may be
prescribed by the regulations, be presumed to have been in consequence
of such a communication as is mentioned in that subsection.

(3) The powers of the Minister under this section, so far as they are
exercisable for the benefit of persons from whom inventions have been
communicated to the Government by the government of any country,
shall only be exercised if and to the extent that the Minister is satisfied
that substantially equivalent provision has been or will be made under
the law of that country for the benefit of persons whose inventions have
been communicated by the Government to the government of that
country.

(4) References in subsection (3) to the communication of an invention
to or by the Government or the government of any country shall be
construed as including references to the communication of the invention
by or to any person authorised in that behalf by the government in
question.
(As amended by G.N. No. 185 of 1964)

10A. (1) In this section- ARIPO
Industrial
patents

(a) “ARIPO” means the African Regional Industrial Property
Organisation, formerly known as the Industrial Property Organisation
for English-Speaking Africa (ESARIPO), which was established, under
the former name, by an agreement adopted at Lusaka on 9th December,
1976; and

(b) “ARIPO Protocol” means the Protocol on Patents and Industrial
Designs within the Framework of ARIPO, adopted at Harare on 10th

December, 1982.

(2) Where a patent has been granted by ARIPO under section 3 (7) of
the ARIPO Protocol and the Registrar has not objected, under section 3
(6) of the Protocol, to the patent having effect in Zambia, the patent shall
for all purposes be deemed to have been granted under this Act.

(3) A patent shall not be deemed to have been granted under this section
if, under section 3 (6) of the ARIPO Protocol, the Registrar objects to its
having effect in Zambia.
(As amended by Act No. 26 of 1987)

PART IV
APPLICATIONS GENERALLY

11. Application for a patent for an invention may be made by any of
the following persons, that is to say:
(a) a person claiming to be the inventor of the invention who owns
the invention in respect of Zambia;
(b) an assignee;
(c) a person entitled under subsection (1) of section eight;
(d) the legal representative of any person who immediately before
his death or disability was entitled to make such application;
and may be made by any above-mentioned person either alone or jointly
with any other person.
(As amended by G.N. No. 185 of 1964) Persons entitled
to make
application

12. (1) Every application for a patent shall- Form of
application

(a) be made in the prescribed form, which must be signed by the
applicant or by a person authorised to sign on his behalf;

(b) be lodged at the Patent Office in the prescribed manner;

(c) state an address for service in Zambia to which all notices and
communications may be sent; and

(d) in so far as they are not already stated for the purposes of
paragraph (c), state the full postal, residential and business addresses of
the applicant.

(2) An assignee or legal representative making or joining in an
application shall furnish such proof of title or authority as the Registrar
may require or as may be prescribed.

(3) Every application form shall-

(a) state that the applicant owns the invention in respect of Zambia;

(b) give the full name of the inventor; and

(c) where the inventor is not the applicant or one of the applicants,
contain a declaration that the applicant believes him to be the inventor.

(4) Every convention application, in addition to the requirements set out
in subsection (3), shall state-

(a) the convention country in which such application for protection
was made;

(b) its number;

(c) the effective date of such application; and

(d) the respect in which the applicant in the convention country and
in Zambia qualifies under Article 2 or 3 of the Convention.
(As amended by G.N. No. 185 of 1964)

13. (1) Every application for a patent, other than a convention
application, shall be accompanied by either a complete specification or a
provisional specification and every convention application shall be
accompanied by a complete specification. Complete and
provisional
specifications

(2) If a complete specification does not accompany an application, it
shall be lodged within twelve months after the date of lodging of the
application or within such further period, not exceeding three months, as
the Registrar may in writing allow upon payment of the prescribed fee,
and if the provisions of this subsection are not complied with the
application shall lapse.

(3) Where two or more applications accompanied by provisional
specifications have been lodged in respect of inventions which are
cognate or of which one is a modification of another, a single complete
specification may, subject to the provisions of this section and section
fourteen, be lodged in pursuance of those applications, or, if more than
one complete specification has been lodged, may with the leave of the
Registrar be proceeded with in respect of those applications.

(4) Where applications for protection have been made in one or more
convention countries in respect of two or more inventions which are
cognate or of which one is a modification of another, a single
convention application may, subject to the provisions of sections eleven
and fourteen, be made in respect of those inventions at any time within
twelve months from the effective date of the earliest of the said
applications for protection.

(5) In considering the validity of applications made in terms of
subsection (3) or (4) and in determining other relevant matters under this
Act, the Registrar shall have regard to the effective dates of the
applications or the convention applications concerned relating to the
several matters claimed in the specification, and the requirements of
subsection (4) of section twelve shall, in the case of any such
application, apply separately to the applications for protection in respect
of each of the said inventions.

(6) Where an application for a patent, not being a convention
application, is accompanied by a specification purporting to be a
complete specification, the Registrar may, if the applicant so requests at
any time before the acceptance of the specification, direct that it shall be
treated for the purposes of this Act as a provisional specification and
proceed with the application accordingly.

(7) Where a complete specification has been lodged in pursuance of an
application for a patent accompanied by a provisional specification or
by a specification treated by virtue of a direction under subsection (6) as
a provisional specification, the Registrar may, if the applicant so
requests at any time before the acceptance of the complete specification,
cancel the provisional specification and post-date the application to the
date of lodging of the complete specification.

14. (1) Every specification shall indicate whether it is a provisional or a
complete specification and shall commence with a title sufficiently
indicating the subject to which the relevant invention relates. Contents of
specification

(2) A provisional specification shall fairly describe the invention.

(3) A complete specification shall-

(a) fully describe the invention and the manner in which it is to be
performed;

(b) disclose the best method of performing the invention known to
the applicant at the time when the specification is lodged at the Patent
Office; and

(c) end with a claim or claims defining the subject-matter for which
protection is claimed.

(4) The claim or claims of a complete specification must relate to a
single invention, must be clear and succinct, and must be fairly based on
the matter disclosed in the specification.

(5) Every specification shall be accompanied by drawings if required by
the Registrar, and such drawings shall be deemed to be part of the
specification, but if drawings which accompanied a provisional
specification are sufficient for the purpose of a complete specification, it
shall suffice if that complete specification refers to such drawings.

(6) Subject to the foregoing provisions of this section, a complete
specification lodged at the Patent Office after a provisional

specification, or with a convention application, may include claims in
respect of developments of or additions to the invention which was
described in the provisional specification or, as the case may be, in
respect of which application for protection was made in a convention
country, being developments of or additions in respect of which the
applicant would be entitled to make a separate application for a patent:

Provided that an application shall, in so far as the complete specification
contains claims in respect of any such developments or additions, be
deemed to have been made on the date on which the complete
specification was lodged at the Patent Office.

(7) Where a complete specification claims a new substance, the claim
shall be construed as not extending to that substance when found in
nature.

15. (1) Every claim of a complete specification shall have effect from
the date prescribed by this section in relation to that claim and a patent
shall not be invalidated by reason only of the publication or use of the
invention, so far as claimed in any claim of the complete specification,
on or after the effective date of that claim, or by the grant of another
patent upon a specification claiming the same invention in a claim of the
same or later effective date. Effective date
of claims of
complete
specification

(2) Where the complete specification is lodged in pursuance of a single
application preceded by a provisional specification or by a specification
which is treated by virtue of a direction under subsection (6) of section
thirteen as a provisional specification, and the claim is fairly based on
the matter disclosed in that specification, the effective date of that claim
shall be the effective date of the application.

(3) Where the complete specification is lodged or proceeded with in
pursuance of two or more applications accompanied by such
specifications as are mentioned in subsection (2), and the claim is fairly
based on the matter disclosed in one of those specifications, the effective
date of that claim shall be the effective date of the application
accompanied by that specification.

(4) Where the complete specification is lodged in pursuance of a
convention application and the claim is fairly based on the matter

disclosed in the application for protection in a convention country or,
where the convention application is founded upon more than one such
application for protection, in one of those applications, the effective date
of that claim shall be the effective date of the relevant application for
protection.

(5) Where, under the foregoing provisions of this section, any claim of a
complete specification would, but for this provision, have two or more
effective dates, the effective date of that claim shall be the earlier or
earliest of those dates.

(6) In any case to which subsection (2), (3), (4) or (5) does not apply, the
effective date of a claim shall be the date of lodging of the complete
specification in Zambia.
(As amended by G.N. No. 185 of 1964)

16. (1) The Registrar shall examine every application for a patent and
every specification accompanying such application or lodged at the
Patent Office in pursuance of such application, in order to ascertain- Examination of
applications and
specifications

(a) whether such application or specification complies with the
requirements of this Act;

(b) in the case of a complete specification lodged after a provisional
specification, or of a convention application, whether the invention
claimed is substantially the same as that disclosed in the provisional
specification or in the application lodged in the convention country, as
the case may be.

(2) Any examination or investigation required in terms of subsection (1)
may, on the direction of the Registrar, be undertaken by an examiner
who shall report his findings on any such examination or investigation
to the Registrar.

(3) An examination or investigation required by the provisions of this
Act shall not be deemed to warrant the validity of any patent, and no
liability shall be incurred by the Government, the Minister, the Registrar
or any officer of the Patent Office by reason of or in connection with any
such examination or investigation or report or other proceeding
consequent thereon.

(As amended by G.N. No. 185 of 1964)

17. (1) At any time after an application has been lodged under this Act
and before acceptance of the complete specification, the Registrar may,
at the request of the applicant and upon payment of the prescribed fee,
direct that the application shall be post-dated to such date as may be
specified in the request: Ante-dating and
post-dating of
applications

Provided that-
(i) no application shall be post-dated under this subsection to a date
later than six months from the date on which it was actually lodged or
would, but for this subsection, be deemed to have been so lodged; and
(ii) a convention application shall not be post-dated under this
subsection to a date later than the last date on which, under the
provisions of this Act, the application could have been made.

(2) Where an application or specification lodged under this Act is
amended before acceptance of the complete specification, the Registrar
may direct that the application or specification shall be post-dated to the
date on which it is amended or, if it has been returned to the applicant, to
the date on which it is again lodged under this Act.

(3) Where, at any time after an application or specification has been
lodged at the Patent Office and before acceptance of the complete
specification, a fresh application or specification is lodged in respect of
any part of the subject-matter of the first-mentioned application or
specification, the Registrar may direct that the fresh application or
specification shall be antedated to a date not earlier than the date of
lodging of the first-mentioned application or specification.

(4) An appeal shall lie from any decision of the Registrar under
subsection (2) or (3).

18. (1) If it appears to the Registrar in the case of any application for a
patent- Refusal of
application in
certain cases

(a) that it is frivolous on the ground that it claims as an invention
anything obviously contrary to well-established natural laws; or

(b) that the use of the invention in respect of which the application is
made would be contrary to law or morality; or

(c) that it claims as an invention a substance capable of being used
as food or medicine which is a mixture of known ingredients possessing
only the aggregate of the known properties of the ingredients, or that it
claims as an invention a process producing such a substance by mere
admixture;
he may refuse the application.

(2) If it appears to the Registrar that any invention in respect of which
an application for a patent is made might be used in any manner contrary
to law, he may refuse the application unless the specification is amended
by the insertion of such disclaimer in respect of that use of the invention,
or such other reference to the illegality thereof, as the Registrar thinks
fit.

(3) An appeal shall lie from any decision of the Registrar under this
section.

19. (1) If, in the case of a complete specification lodged in pursuance of
an application for a patent, which application was accompanied by a
provisional specification, the result of any examination or investigation
made in terms of section sixteen is adverse to the applicant in regard to
any matter referred to in that section, or it is found that the invention
described in the complete specification is not substantially the same as
that described in the provisional specification or that the complete
specification includes an invention not included in the provisional
specification, the Registrar may, subject to the provisions of subsection
(6) of section fourteen- Powers of
Registrar if
specification or
application
defective

(a) refuse to accept the complete specification until it has been
amended to his satisfaction;

(b) with the consent of the applicant, cancel the provisional
specification and direct that the application be post-dated to the date
upon which the complete specification was lodged at the Patent Office;
or

(c) where the complete specification includes an invention not

included in the provisional specification, allow the application to be
proceeded with in so far as the invention included both in the
provisional and in the complete specification is concerned and allow an
application for the additional invention included in the complete
specification to be made and authorise the application for such
additional invention, if lodged at the Patent Office within such period as
he may determine, to be dated with the date on which the complete
specification was lodged at the Patent Office.

(2) If the case of a convention application it is found that the invention
claimed is not substantially the same as that claimed in the application
made in the convention country in question, the Registrar may, subject
to the provisions of subsection (6) of section fourteen-

(a) refuse to accept the application until it has been amended to his
satisfaction; or

(b) with the consent of the applicant, treat the application as an
application in terms of section twelve.

(3) If in the case of a convention application it is found that the
specification lodged in Zambia includes an invention not included in the
specification lodged in the convention country, the Registrar may allow
the application to be proceeded with in so far as the invention included
in both the convention and the Zambian specification is concerned, and
allow an application for the additional invention to be made and
authorise such application, if lodged at the Patent Office within the
period he may determine, to be dated with the date on which the
Zambian specification was lodged at the Patent Office.

(4) An appeal shall lie from any decision of the Registrar under this
section.
(As amended by G.N. No. 185 of 1964)

20. (1) If a complete specification is not accepted within thirty months
from the date of lodging of an application, the application shall lapse
unless- Lapsing of
applications

(a) an appeal has been lodged in respect of the application;

(b) the time within which such appeal may be lodged has not
expired; or

(c) the delay in accepting the specification was not due to any
neglect or default on the part of the applicant:

Provided that where an application is made for an extension of time for
the acceptance of a complete specification, the Registrar shall, on
payment of the prescribed fee, grant an extension of time to the extent
applied for, but not exceeding three months.

(2) If, at the expiration of the period allowed under the provisions of
subsection (1), an appeal to the High Court is pending under any of the
provisions of this Act in respect of the application (or, in the case of an
application for a patent of addition, either in respect of that application
or in respect of the application for the patent for the main invention) or
the time within which such an appeal could be brought in accordance
with the provisions of Part XI, apart from any future extension of time
thereunder, has expired, then-

(a) where such an appeal is pending, or is brought within the time
aforesaid or before the expiration of any extension of that time granted,
in the case of the first extension, on an application made within that time
or, in the case of a subsequent extension on an application made before
the expiration of the last previous extension, the said period shall be
extended until such date as the High Court determine;

(b) where no such appeal is pending or is so brought, the said period
shall continue until the end of the time aforesaid, or, if any extension of
that time is granted as aforesaid, until the expiration of the extension or
the last extension so granted.

(As amended by No. 12 of 1959, S.I. No. 175 of 1965
and Act No. 18 of 1980)

21. (1) Subject to the provisions of section twenty, the complete
specification may be accepted by the Registrar at any time after the
applicant has complied with the requirements imposed upon him by this
Act: Acceptance and
publication of
complete
specification

Provided that the applicant may give notice to the Registrar requesting
him to postpone acceptance until such date, not being later than eighteen
months from the date of lodging of the application, as may be specified
in the notice and the Registrar may postpone acceptance accordingly.

(2) On the acceptance of a complete specification, the Registrar shall
give notice to the applicant who shall, within the prescribed period or
within such further period as the Registrar may allow, advertise in the
prescribed manner the fact that the specification has been accepted and,
unless the acceptance of the specification is so advertised, the
application shall lapse.

(3) Upon advertisement under the provisions of subsection (2), the
application form, the specification and other documents essential to
obtain acceptance lodged in pursuance thereof shall be open to public
inspection.

(4) After the date of the publication as prescribed in subsection (2) of
notice of acceptance of a complete specification and until the sealing of
a patent in respect thereof, the applicant shall have the like privileges
and rights as if a patent for the invention had been sealed on the date of
the publication of such notice.

22. (1) Any person interested, including the State, may, within three
months from the date of the advertisement of the acceptance of a
complete specification or within such further period as the Registrar, on
application made to him within the said period of three months, may
allow, or, with the consent of the applicant, at any time before the
sealing of the patent, oppose the grant of a patent in accordance with the
provisions of this section by giving written notice to the Registrar of
opposition to such grant on any of the following grounds and no others,
namely: Opposition to
grant of patent

(a) that the applicant is not a person entitled under section eleven to
make the application;

(b) that the application is in fraud of the rights of the person giving
such notice or of any persons under or through whom he claims;

(c) that the invention does not relate to an art (whether producing a

physical effect or not), process, machine, manufacture or composition of
matter, which is capable of being applied in trade or industry;

(d) subject to the provisions of section thirty-one, that the invention
is obvious in that it involves no inventive step having regard to what was
common knowledge in the art at the effective date of the application;

(e) that the invention is not useful;

(f) that the complete specification does not fully describe and
ascertain the invention and the manner in which it is to be performed;

(g) that the claims of the complete specification do not sufficiently
and clearly define the subject-matter for which protection is claimed;

(h) that the complete specification does not disclose the best method
of performing the invention known to the applicant at the time when the
specification was lodged at the Patent Office;

(i) that the application contains a material misrepresentation;

(j) that the invention described or claimed in the complete
specification is not the same as that described in the provisional
specification, and-
(i) in so far as it is not described in the provisional specification,
was not new at the date when the complete specification was lodged at
the Patent Office; or
(ii) forms the subject of a pending application made in Zambia for a
patent the effective date of which is prior to the date on which the
complete specification was lodged at the Patent Office;

(k) in the case of a convention application, that the specification
describes or claims an invention other than that for which protection has
been applied for in the convention country and that such other invention
either-
(i) forms the subject of an application for a patent in Zambia which,
if granted, would bear a date in the interval between the lodging of the
application in the convention country and the effective date of the
application in Zambia; or
(ii) is not an invention as defined in this Act;

(l) that the invention was not new at the effective date of the
application;

(m) that the specification includes claims which, in terms of
subsection (1) of section eighteen, should have been refused.

(2) A copy of any notice given under subsection (1), and of any
statement which in terms of subsection (3) accompanies such notice,
shall be served by the objector on the applicant for the patent.

(3) Any notice of opposition given under subsection (1) shall state the
grounds on which the objector intends to oppose the grant of the patent,
and shall be accompanied by a statement setting out particulars of the
facts alleged in support of the said grounds, and proof of service on the
applicant concerned of a copy of such notice and of such statement shall
be furnished to the Registrar.

(4) If the applicant wishes to contest the opposition, he shall, within
such time as is prescribed, or such further time as the Registrar may
allow, lodge at the Patent Office a counter-statement setting out
particulars of the grounds upon which the opposition is to be contested.

(5) A copy of any such counter-statement lodged at the Patent Office
shall be served by the applicant on the objector concerned.

(6) Particulars delivered may from time to time be amended by leave of
the Registrar.

(7) No evidence shall be admitted in proof of any ground on which
particulars have not been delivered as aforesaid, except by leave of the
High Court.

(8) When, in relation to any opposition, the foregoing provisions of this
section have been complied with to the extent therein required, the
Registrar shall hand all relevant papers to the registrar of the High Court
who shall arrange for the matter to be heard by that Court in the manner
prescribed and the Patents Tribunal may make such order therein as it
deems just.

(9) Upon being notified of the order of the High Court by the registrar
thereof, the Registrar shall take such further action therein as may be
necessary.
(As amended by G.N. No. 185 of 1964, S.I. No. 175 of 1965
and Act No 18 of 1980)

23. (1) If the Registrar is satisfied, on a claim made in the prescribed
manner at any time before a patent has been granted, that by virtue of
any assignment or agreement made by the applicant or one of the
applicants for a patent, or by operation of law, the claimant would, if the
patent were then granted, be entitled thereto or to the interest of an
applicant therein, or to an undivided share of the patent or of that
interest, the Registrar may, subject to the provisions of this section,
direct that the application shall proceed in the name of the claimant or in
the names of the claimant and the applicant or the other joint applicant
or applicants, as the case may require. Substitution of
applicants

(2) No such direction as aforesaid shall be given by virtue of any
assignment or agreement made by one of two or more joint applicants
for a patent except with the consent of the other joint applicant or
applicants.

(3) No such direction as aforesaid shall be given by virtue of any
assignment or agreement for the assignment of the right to an invention
unless-

(a) the invention is identified thereinby reference to the number of
the application for the patent;

(b) there is produced to the Registrar an acknowledgement by the
person by whom the assignment or agreement was made that the
assignment or agreement relates to the invention in respect of which that
application is made; or

(c) the rights of the claimant in respect of the invention have been
finally established by a decision of the High Court or any court to which
an appeal against such a decision has been brought.

(4) Where one of two or more joint applicants for a patent has died at
any time before the patent has been granted, the Registrar, if satisfied of

such decease, may alter the application by substituting the legal
representative of such deceased applicant and shall thereafter seal the
application in the names of the surviving applicants and of such legal
representative unless, upon a request in that behalf made by the survivor
or survivors, and with the consent of such legal representative, the
Registrar directs that the application shall proceed and be sealed in the
name of the survivor or survivors alone.

(5) If any dispute arises between joint applicants for a patent whether or
in what manner the application should be proceeded with, the Registrar
may, upon application made to him in the prescribed manner by any of
the parties, and after giving to all parties concerned an opportunity to be
heard, give such directions as he thinks fit for enabling the application to
proceed in the name of one or more of the parties alone or for regulating
the manner in which it shall be proceeded with, or for both those
purposes, as the case may require.

(6) An appeal shall lie from any decision of the Registrar under this
section.
(As amended by Act No. 18 of 1980)

24. (1) In this section the expression “competent authority” means the
Minister designated as a competent authority by the President in the
Gazette. Provisions for
secrecy of
certain
inventions

(2) Where, before or after the commencement of this Act, an application
for a patent has been made in respect of an invention, and it appears to
the Registrar that the invention is one of a class notified to him by a
competent authority as relevant for defence purposes, he may give
directions for prohibiting or restricting the publication of information
with respect to the invention, or the communication of such information
to any person or class of persons specified in the directions, and while
such directions are in force the application may, subject to the
directions, proceed up to the acceptance of the complete specification,
but the acceptance shall not be advertised nor the specification
published, and no patent shall be granted in pursuance of the
application.

(3) Where the Registrar gives any such directions as aforesaid, he shall
give notice of the application and of the directions to the competent

authority, and thereupon the following provisions shall have effect, that
is to say:

(a) the competent authority shall, upon receipt of such notice,
consider whether the publication of the invention would be prejudicial
to the defence of the Republic and unless a notice under paragraph (c)
has previously been given by that authority to the Registrar, shall
reconsider that question before the expiration of nine months from the
date of lodging of the application for the patent and at least once in every
subsequent year;

(b) for the purpose aforesaid, the competent authority may, at any
time after the complete specification has been accepted or, with the
consent of the applicant, at any time before the complete specification
has been accepted, inspect the application and any documents furnished
to the Registrar in connection therewith;

(c) if upon consideration of the invention at any time it appears to
the competent authority that the publication of the invention would not,
or would no longer, be prejudicial to the defence of the Republic, that
authority shall give notice to the Registrar to that effect;

(d) on the receipt of any such notice the Registrar shall revoke the
directions and may, subject to such conditions, if any, as he thinks fit,
extend the time for doing anything required or authorised to be done by
or under this Act in connection with the application, whether or not that
time has previously expired.

(4) When directions have been given under this section, if any use of the
invention is made during the continuance in force of such directions by
or on behalf of or to the order of a Government department, the
provisions of section forty shall apply in relation to that use as if a patent
had been granted for the invention.

(5) If an applicant for a patent has suffered loss or damage by reason of
his invention having been kept secret in pursuance of a direction under
subsection (2), the Minister, with the consent of the Minister responsible
for finance, shall pay to him such reasonable compensation as is agreed
upon, or, in default of agreement, as may be determined by the High
Court on a reference under subsection (1) of section forty-two.

(6) Where a patent is granted in pursuance of an application in respect

of which directions have been given under this section, no renewal fees
shall be payable in respect of any period during which those directions
were in force.

(7) If any person fails to comply with any direction given under this
section, he shall be guilty of an offence.
(As amended by G.N. No. 185 of 1964, S.I. No. 175 of 1965
and Act No 18 of 1980)

PART V
GRANT, EFFECT AND TERM OF PATENT

25. (1) If the conditions precedent to the grant of a patent, as prescribed
in this Act, have been complied with and there is no opposition to such
grant or, in the event of such opposition, the final determination is in
favour of the grant of a patent, a patent shall be granted to the applicant,
or, in the case of an application by two or more persons jointly, to the
applicants jointly, and the Registrar shall cause the patent to be sealed
with the seal of the Patent Office: Grant and
sealing of
patent

Provided that-
(i) where an applicant under a joint application has died, the patent
may, with the consent of his heir or legal representative, be granted to
the survivors of the joint applicants;
(ii) where an applicant has agreed in writing to assign the invention
or a share in the invention or, in the case of an application by two or
more persons jointly, his interest in the invention, to another person, the
patent may, upon proof of the agreement to the satisfaction of the
Registrar, be granted to and in the name of the assignee either solely or
jointly with the applicant or, in the case of an application by two or more
persons jointly, to and in the name of the assignee jointly with the other
applicants or their assignees.

(2) A patent shall be sealed as soon as may be, but not later than
twenty-two months after the date of lodging of the application therefor:

Provided that-

(i) where the Registrar or the High Court has allowed an extension
of the time within which a complete specification may be lodged or
accepted, a corresponding extension of the time for the sealing of the
relevant patent shall be allowed;
(ii) where the sealing is delayed by an appeal or by opposition to the
grant of the patent, the patent may be sealed at such time as the Registrar
may determine;
(iii) where the patent is to be granted to the heir or legal
representative of an applicant who has died before the expiration of the
time which would otherwise be allowed for sealing the patent, the patent
may be sealed at such later time as the Registrar may decide;
(iv) the Registrar may, on payment of the prescribed fee, extend the
period of twenty-two months for such further time as may be prescribed;
(v) where it is proved to the satisfaction of the Registrar that
hardship would arise in connection with the prosecution of the
corresponding application for a patent in any country outside Zambia
unless the period for the sealing of such patent is extended, that period
may be extended from time to time by the Registrar to such periods as
appear to him to be necessary in order to prevent the hardship arising, if
an application in that behalf is made to him and the prescribed fee is paid
within the first-mentioned period or, in the case of a subsequent
application under this paragraph, within the period to which such
first-mentioned period was extended on the last preceding application.
(As amended by G.N. No. 185 of 1964
and Act No 18 of 1980)

26. Where, at any time after a patent has been sealed in pursuance of an
application under this Act, the Registrar is satisfied that the person to
whom the patent was granted had died, or, in the case of a body
corporate, had ceased to exist, before the patent was sealed, he may
amend the patent by substituting for the name of that person the name of
the person entitled thereto according to law, and the patent shall have
effect, and shall be deemed always to have had effect, accordingly. Amendment of
patent granted
to deceased
applicant

27. (1) Subject to the provisions of this Act, the date of a patent shall
be- Date of patent

(a) in the case of a patent granted under this Act, the effective date
of the application therefor;

(b) in the case of a patent granted under the Patents (Southern

Rhodesia) Act, Chapter 208 of the 1948 Edition of the Laws, the date the
patent was sealed;

(c) in the case of a patent registered under the Registration of United
Kingdom Patents Act, Chapter 205 of the 1957 Edition of the Laws, the
date of the patent in the United Kingdom;

(d) in the case of a patent granted under the *Patents (Transitional
Provisions) Act, 1958, the date specified in paragraph (b) or (c), as the
case may be.
*Repealed by Act No. 15 of 1965

(2) The date of a patent referred to in paragraph (a) or (d) of subsection
(1) shall be entered in the register.

(3) The date of a patent referred to in paragraph (a) or (d) of subsection
(1) shall be inserted in the patent.
(No. 12 of 1959 as amended by G.N. No. 185 of 1964
and S.I. No. 175 of 1965)

28. (1) Subject to the provisions of this Act, a patent shall have the
same effect against the State as it has against a subject. Extent, effect
and form of
patent

(2) A patent shall be in such form as may be prescribed.

(3) A patent shall be granted for one invention only, but it shall not be
competent for any person in an action or other proceeding to take any
objection to a patent on the ground that it has been granted for more than
one invention.

(4) The effect of a patent shall be to grant to the patentee, subject to the
provisions of this Act and the conditions of the patent, full power, sole
privilege and authority by himself, his agents and licensees during the
term of the patent to make, use, exercise and vend the invention within
Zambia in such a manner as to him seems meet, so that he shall have and
enjoy the whole profit and advantage accruing by reason of the
invention during the term of the patent.
(As amended by G.N. No. 185 of 1964

and S.I. No. 175 of 1965)

*Repealed by Act No. 15 of 1965.

29. The term of every patent shall, subject to the provisions of this Act,
be-
(a) in the case of a patent granted under this Act, sixteen years from
the date of lodging of the complete specification at the Patent Office;
(b) in the case of a patent granted under the Patents (Southern
Rhodesia) Act, Chapter 208 of the 1948 Edition of the Laws, fourteen
years from the date the patent was sealed;
(c) in the case of a patent registered under the Registration of United
Kingdom Patents Act, Chapter 205 of the 1957 Edition of the Laws, the
term of the relevant United Kingdom patent;
(d) in the case of a patent granted under the Patents (Transitional
Provisions) Act, 1958, the period specified in paragraph (b) or (c), as the
case may be.
(No. 12 of 1959 as amended by G.N. No. 185 of 1964
and S.I. No. 175 of 1965) Term of patent

30. (1) A patentee or an exclusive licensee may, after advertising in the
prescribed manner, apply to the Registrar for an extension of the term of
the relevant patent on any one or more of the following grounds,
namely: Extension of
patent

(a) that he has not derived adequate remuneration from that patent;

(b) that by reason of hostilities between the Republic or any country
of the Commonwealth and any foreign state, he has suffered loss or
damage including-
(i) loss or damage arising out of action taken in pursuance of an
official request to keep secret the specification of the invention to which
the patent relates; and
(ii) loss of opportunity for dealing in or developing the invention on
account of-
A. the fact that he or his employees were engaged in work of
national importance; or
B. lack of supplies or loss of markets as a result of such
hostilities, wherever such lack or loss occurs.

(2) Any such application may be made-

(a) in the case of an application under paragraph (a) of subsection
(1), not more than twelve and not less than six months before the date of
expiration of the term of the patent in question or at such later time,
being not later than the date of expiration of the patent, as the Registrar
may allow; and

(b) in the case of an application under paragraph (b) of subsection
(1), at any time before the date of expiration of the patent or within two
years after the date on which hostilities ceased, whichever is the later
date.

(3) Any person may within the prescribed time give written notice to the
Registrar and the applicant of objection to any such extension, and the
Registrar shall fix a date for the hearing of the application and shall
advise the applicant and any objector of the date so fixed.

(4) The Registrar may, after hearing the applicant and any person who
may have objected to the extension, refuse the application or order the
extension of the term of the patent in question for such period and
subject to such conditions as it may deem fit or, if the patent has already
lapsed, order the issue of a new patent for such a period and subject to
such conditions:

Provided that no such extension shall be granted-
(i) on the grounds mentioned in paragraph (a) of subsection (1) for
a term exceeding five years or, in what the Registrar may deem to be
exceptional circumstances, ten years; or
(ii) on the grounds mentioned in paragraph (b) of subsection (1), for
a term exceeding the period of hostilities.

(5) The provisions of section thirty-four shall mutatis mutandis apply in
respect of any extension of the term of a patent granted as a result of an
application under paragraph (b) of subsection (1):

Provided that in the application of those provisions the reference in that
section to a period of three months from the date on which any renewal

fee referred to therein was due shall be construed as a reference to the
date on which any patent whereof the term is extended under this section
lapsed by effluxion of time.

(6) An extension of the term of a patent under this section shall be
endorsed on the relevant patent by the Registrar and recorded in the
register.

(7) Except where the Registrar otherwise decides, an application based
on the grounds specified in paragraph (b) of subsection (1) shall not be
considered if the patentee or exclusive licensee is a subject of such
foreign state as is referred to in that paragraph or is a company the
business whereof is managed or controlled by such subjects or is carried
on wholly or mainly for the benefit or on behalf of such subjects,
notwithstanding that the company may be registered in accordance with
the provisions of the Companies Act. Cap. 388

(8) An appeal shall lie from any decision of the Registrar under this
Section.
(As amended by G.N. No. 185 of 1964; S.I. No. 175 of 1965
and Act No. 18 of 1980)

31. (1) Subject to the provisions of this section, where an application
for a patent is pending or has been granted thereon for an invention
(hereinafter referred to as the main invention) and the applicant or
patentee applies for a further patent in respect of any improvement in or
modification of the main invention, the Registrar may, if the applicant
so requests, grant a patent for the improvement or modification as a
patent of addition. Patents of
addition

(2) Subject to the provisions of this section, where an invention, being
an improvement in or modification of another invention, is the subject of
an independent patent and the patentee in respect of that patent is also
the patentee in respect of the patent for the main invention, the Registrar
may, if the patentee so requests, by order revoke the patent for the
improvement or modification and grant to the patentee a patent of
addition in respect thereof, bearing the same date as the date of the
patent so revoked.

(3) A patent shall not be granted as a patent of addition unless the date

of lodging of the complete specification was the same as or later than the
date of lodging of the complete specification in respect of the main
invention.

(4) A patent of addition shall not be sealed before the sealing of the
patent for the main invention, and if the period within which, but for this
provision, the sealing of a patent of addition could be made under
section twenty-five expires before the period within which the sealing of
the patent for the main invention may be so made, the sealing of the
patent of addition may be made at any time within the last-mentioned
period.

(5) A patent of addition shall remain in force for as long as the patent for
the main invention shall remain in force, including any extension of the
term thereof but no longer, and no fees shall be payable for renewal of a
patent of addition:

Provided that, where the patent for the main invention is revoked, the
Registrar or the High Court, as the case may be, may order that the
patent of addition shall become an independent patent, and the fees
payable in respect of such independent patent and the times for the
payment thereof shall be determined according to the date of the former
patent of addition, but the normal term of the independent patent shall
not extend beyond the date on which the patent for the main invention
would have expired if it had not been revoked.

(6) The grant of a patent of addition shall be conclusive evidence that
the invention is a proper subject for such a patent, and shall not be
refused, nor shall any such patent be liable to be revoked or invalidated,
on the ground only that the invention claimed in the complete
specification does not involve any inventive step having regard to the
main invention, so, however, that the provisions of this subsection shall
not apply to an independent patent referred to in the proviso to
subsection (5).

(7) A patent for a main invention and its patent of addition shall not be
capable of assignment apart from one another.

(8) An appeal shall lie from any decision of the Registrar under this
section.

(As amended by Act No. 18 of 1980)

32. (1) Subject to the provisions of this section, every patent, including
a patent granted or registered under the Registration of United Kingdom
Patents Act, Chapter 205 of the 1957 Edition of the Laws, or the Patents
(Southern Rhodesia) Act, Chapter 208 of the 1948 Edition of the Laws,
or the Patents (Transitional Provisions) Act, 1958, shall lapse if the fees
prescribed for its renewal are not paid within the prescribed times. Renewal of
patents

(2) The Registrar may, upon application of the patentee and subject to
the payment of such additional fees as may be prescribed, extend the
time for payment of a fee referred to in subsection (1) for a period not
exceeding six months.
(No. 12 of 1959 as amended by No. 36 of 1960,
G.N. No. 185 of 1964 and S.I. No. 175 of 1965)

33. (1) Where a patent has lapsed owing to the failure of the patentee to
pay any prescribed fee within the prescribed time, the patentee may in
the prescribed manner apply to the Registrar for the restoration of the
patent. Restoration of
lapsed patents

(2) If the Registrar is satisfied that such failure was unintentional, and
that no undue delay has occurred in making the application, he shall
direct the patentee to advertise the application in the prescribed manner,
and thereupon any person may within such time as may be prescribed
give notice in the prescribed manner of opposition to the restoration of
the patent.

(3) If there is no opposition to such restoration, the Registrar shall, on
payment of the unpaid renewal fees, make an order restoring the patent.

(4) Where notice of opposition is given, the Registrar shall notify the
applicant thereof and shall, after the expiration of the prescribed period
and after hearing the applicant and the objector, decide the matter and
make an order either restoring the patent, subject to the provisions of
section thirty-four, or dismissing the application.

(5) An appeal shall lie from any decision of the Registrar under this
section.

34. In every order restoring a lapsed patent made under section
thirty-three, there shall be inserted for the protection of persons who
may have availed themselves of the subject-matter of the patent after a
lapse of a period of three months from the date on which the renewal fee
was due, the following provisions, namely, that the patentee shall not
commence or prosecute any action or other proceedings or recover
damages:
(a) in respect of any infringement of the patent which has taken
place after the lapse of the said period and before the date of the order;
(b) in respect of any use of the subject-matter of the patent at any
time after the date of the order by the employment of any means or
composition of matter actually made within or imported into Zambia, or
in respect of any process put into operation in Zambia in infringement of
the patent after the lapse of the said period and before the date of the
order, or in respect of the sale, purchase or use of any article which is the
product of the use of the said means, composition of matter or process:
Provided that the employment of the said means, composition
of matter or process shall be limited to the person by or for whom the
said means, composition of matter or process was so made, imported or
put into operation, his legal representative, his successors or assigns, or
his vendees, as the case may be;
(c) in respect of the employment at any time after the date of the
order of any further means, composition of matter or process, being a
reproduction or improvement of the means, composition of matter or
process referred to in paragraph (b) or in respect of the sale, purchase or
use of any article which is the product of the said further means,
composition of matter or process:
Provided that the employment of the said further means,
composition of matter or process shall be limited to a person entitled to
use as aforesaid the means, composition of matter or process specified in
that paragraph.
(As amended by G.N. No. 185 of 1964) Protective
provisions to be
inserted in order
for restoration
of patent

35. (1) At any time after the sealing of a patent the patentee may apply
to the Registrar for the patent to be endorsed with the words “licences of
right” and where such an application is made, the Registrar shall notify
the application to any person entered on the register as entitled to an
interest in the patent and if satisfied, after giving any such person an
opportunity to be heard, that the patentee is not precluded by contract
from granting licences under the patent, cause the patent to be endorsed
accordingly, so, however, that no such endorsement shall be made in Endorsement of
patent “licences
of right”

respect of an exclusive licence.

(2) Where a patent is endorsed under this section-

(a) any person shall, at any time thereafter, be entitled as of right to a
licence under the patent upon such terms as may, in default of agreement
and subject to the provisions of subsection (3), be settled by the
Registrar on the application of the patentee or the person requiring the
licence;

(b) the Registrar may, on the application of the holder of any licence
granted under the patent before the endorsement, order the licence to be
exchanged for a licence to be granted by virtue of the endorsement upon
terms to be settled as aforesaid;

(c) if in proceedings for infringement of the patent, otherwise than
by the importation of goods, the defendant undertakes to take a licence
upon terms to be settled by the Registrar as aforesaid, no interdict or
injunction shall be granted against him, and the amount, if any,
recoverable against him by way of damages shall not exceed double the
amount which would have been payable by him as licensee if such a
licence had been granted before the earliest infringement;

(d) the renewal fees payable in respect of the patent after the date of
the endorsement shall be one-half of the renewal fees which would be
payable if the patent were not so endorsed.

(3) In settling the terms of the licence for the purposes of paragraph (a)
or (b) of subsection (2), the Registrar shall-

(a) take cognizance of the provisions of section thirty-eight with
respect to a patent falling under that section; and

(b) provide, inter alia, for the following matters:
(i) the period of the licence;
(ii) the terms of renewal, if any;
(iii) the amount of and method for payment of royalties;
(iv) arrangements for cancellation of the licence upon application
made to him by the patentee after failure by the licensee to pay royalties
or to observe any other conditions included in the licence by the

Registrar, who is hereby authorised to include such conditions, so,
however, that no such licence may be cancelled unless the licensee, after
reasonable notice given to him by the patentee, has failed to observe
such conditions.

(4) The licensee under any licence granted by virtue of the endorsement
of a patent under this section shall, unless in the case of a licence the
terms of which are settled by agreement the licence otherwise expressly
provides, be entitled to call upon the patentee to take proceedings to
prevent any infringement of the patent, and if the patentee refuses or
neglects to do so within two months after being so called upon, the
licensee may institute proceedings for the infringement in his own name
as if he were patentee, making the patentee a defendant:

Provided that a patentee so added as defendant shall not be liable for any
costs unless he enters an appearance and takes part in the proceedings.

(5) An application for the endorsement of a patent under this section
shall contain a statement, to be verified in such manner as may be
prescribed, that the patentee is not precluded by contract from granting
licences under the patent, and the Registrar may require from the
applicant such further evidence as he may think necessary.

(6) An application made under this section for the endorsement of a
patent of addition shall be treated as an application for the endorsement
of the patent for the main invention also, and an application made under
this section for the endorsement of a patent in respect of which a patent
of addition is in force shall be treated as an application for the
endorsement of the patent of addition also, and where a patent of
addition is granted in respect of a patent already endorsed under this
section, the patent of addition shall also be so endorsed:

Provided that no royalty shall be paid by a licensee in respect of such
endorsement.

(7) All endorsements of patents under this section shall be entered in the
register and shall be published in the prescribed manner.

(8) An appeal shall lie from any decision of the Registrar under this

section.

36. (1) Within such time as may be prescribed after a patent has been
endorsed under section thirty-five, the patentee may apply to the
Registrar for cancellation of the endorsement and where such an
application is made and the balance paid of all renewal fees which
would have been payable if the patent had not been endorsed, the
Registrar may, if satisfied that there is no existing licence under the
patent or that all licensees under the patent consent to the application,
cancel the endorsement accordingly. Cancellation of
endorsement
made under
section 35

(2) Within the prescribed period after a patent has been endorsed as
aforesaid, any person who claims that the patentee is, and was at the
time of the endorsement, precluded by a contract in which the claimant
is interested from granting licences under the patent may apply to the
Registrar for cancellation of the endorsement.

(3) Where the Registrar is satisfied, on application made under
subsection (2), that the patentee is and was precluded as aforesaid, he
shall cancel the endorsement, and thereupon the patentee shall be liable
to pay, within such period as may be prescribed, a sum equal to the
balance of all renewal fees which would have been payable if the patent
had not been endorsed, and if that sum is not paid within that period the
patent shall cease to have effect at the expiration of that period.

(4) Where the endorsement of a patent is cancelled under this section,
the rights and liabilities of the patentee with respect to it shall thereafter
be the same as if the endorsement had not been made.

(5) An applicant shall advertise in the prescribed manner any
application made by him under this section and within the prescribed
period after such advertisement-

(a) in the case of an application under subsection (1), any person
interested; and

(b) in the case of an application under subsection (2), the patentee
and either additionally or alternatively any person interested;
may give notice to the Registrar of opposition to the cancellation.

(6) Where any such notice of opposition is given, the Registrar shall fix
a date for the hearing of the application and shall advise in writing the
parties of the date so fixed, and shall, after giving the applicant and the
opponent an opportunity to be heard, give such decision on the
application as he may consider just.

(7) An application made under this section for the cancellation of the
endorsement of a patent of addition shall be treated as an application for
the cancellation of the endorsement of the patent for the main invention
also, and an application made under this section for the cancellation of
the endorsement of a patent in respect of which a patent of addition is in
force shall be treated as an application for the cancellation of the
endorsement of the patent of addition also.

(8) An appeal shall lie from any decision of the Registrar under this
section.

37. (1) Subject to the provisions of subsection (14), any person
interested who can show that he has been unable to obtain a licence
under a patent on reasonable terms may, after the expiration of a period
of three years subsequent to the date on which that patent was sealed or
four years subsequent to the date on which the application in respect
thereof was lodged, whichever period last expires, apply to the Registrar
in the prescribed manner for a compulsory licence on the ground that the
reasonable requirements of the public with respect to the invention in
question have not been or will not be satisfied. Compulsory
licence in case
of abuse or
insufficient use
of patent rights

(2) Every application under this section shall set out fully the nature of
the applicant’s interest, the facts on which he bases his case and the relief
he seeks, and shall be accompanied by an affidavit verifying the facts set
out in such application.

(3) If, after consideration of any such application, the Registrar is
satisfied that the applicant has a bona fide interest, and that a prima facie
case for relief has been made out, he shall direct the applicant to serve
copies of the application and of the relevant affidavit upon the patentee
and upon any other person appearing from the register to be interested in
the patent, and to advertise the application in the prescribed manner.

(4) If the patentee or any other person wishes to oppose the grant of a
licence under this section, he may, within the prescribed period or
within such further period as the Registrar may on application allow,
deliver to the Registrar a counter-statement, verified by affidavit, setting
out fully the grounds on which the application is opposed, and shall at
the same time serve upon the applicant copies of the counter-statement.

(5) When, in relation to an application or an opposition thereto, the
foregoing provisions of this section have been complied with to the
extent therein required, the Registrar shall send all relevant papers to the
High Court, and that court shall arrange for the matter to be heard in the
manner prescribed and, subject to the provisions of this section, the
High Court may make such order therein as it deems just.

(6) The reasonable requirements of the public referred to in subsection
(1) shall be deemed not to have been satisfied in any of the following
circumstances, namely:

(a) if the patented invention, being an invention capable of being
worked in Zambia, is not being worked therein on a commercial scale
and there is no satisfactory reason for such non-working:

Provided that, if an application for a compulsory licence is
made on this ground and the High Court is of the opinion that the time
which has elapsed since the sealing of the patent has by reason of the
nature of the invention or for any other reason been insufficient to
enable the invention to be worked within Zambia on a commercial scale,
the High Court may make an order adjourning the hearing of the
application for such period as will in its opinion be sufficient for that
purpose;

(b) if the working of the invention within Zambia on a commercial
scale is being prevented or hindered by the importation of the patented
article by the patentee or persons claiming under him, or by persons
directly or indirectly purchasing from him or by persons against whom
the patentee is not taking or has not taken proceedings for infringement;

(c) if the demand for the patented article in Zambia is not being met
to an adequate extent and on reasonable terms;

(d) if by reason of the refusal of the patentee to grant a licence or

licences upon reasonable terms, the trade or industry of Zambia or the
trade of any person or class of persons trading in Zambia, or the
establishment of any new trade or industry in Zambia, is being
prejudiced, and it is in the public interest that a licence or licences
should be granted;

(e) if any trade or industry in Zambia, or any person or class of
persons engaged therein, is being prejudiced by unfair conditions
attached by the patentee, whether before or after the commencement of
this Act, to the purchase, hire, licence or use of the patented article, or
the using or working of the patented process;

(f) if any condition which under the provisions of section forty-nine
is null and void as being in restraint of trade and contrary to public
policy, has been inserted in any contract made in relation to the sale or
lease of or any licence to use or work any article or process protected by
the patent:

Provided that, for the purpose of determining whether there has been
any abuse of the monopoly rights under a patent, due regard shall be had
to the fact that patents are granted not only to encourage invention but
also to secure that inventions shall so far as possible be worked on a
commercial scale in Zambia without undue delay.

(7) The High Court may order the grant to the applicant of a licence on
such terms as it may think expedient, including a term precluding the
licensee from importing into Zambia any goods whereof the importation
by persons other than the patentee or persons claiming under him, would
be an infringement of the patent.

(8) If in respect of an application under this section the High Court is
satisfied that the invention which is the subject of the application is not
being worked on a commercial scale within Zambia, and is such that it
cannot be so worked without the expenditure of capital for the raising of
which it will be necessary to rely on the patent monopoly, it may, unless
the patentee or those claiming under him will undertake to find such
capital, order the grant to the applicant or any other person, or to the
applicant jointly with one or more other persons, if able and willing to
provide such capital, of an exclusive licence on such terms as the High
Court may think just, but subject as hereinafter provided.

(9) The terms of any exclusive licence ordered to be granted under
subsection (8) shall, with due regard to the risks to be undertaken by the
licensee in providing the capital and working the invention, be so
framed as-

(a) to secure to the patentee the maximum royalty compatible with
the successful working of the invention within Zambia on a commercial
scale and at a reasonable profit;

(b) to guarantee to the patentee a minimum yearly sum by way of
royalty, if and so far as it is reasonable to do so;
and in addition to any other terms of the licence or order, the licence and
the order shall be made revocable at the discretion of the High Court if
the licensee fails to-
(i) work the invention within the time specified in the order;
(ii) expend the amount specified in the licence as being the amount
which he is able and willing to provide for the purpose of working the
invention on a commercial scale within Zambia; or
(iii) pay to the patentee the royalties payable in terms of the licence.

(10) In deciding to whom an exclusive licence is to be granted, the High
Court shall, unless good reason is shown to the contrary, prefer an
existing licensee to a person who, according to the register, has no
interest in the patent.

(11) The order directing the grant of an exclusive licence under this
section shall operate to divest the patentee of any right which he may
have as patentee to work or use the invention, and to revoke all existing
licences, unless otherwise provided in the order, and may, if considered
fair and equitable by the High Court, be made subject to the condition
that the licensee shall give proper compensation to be fixed by the High
Court for any money or labour expended by the patentee or any existing
licensee in developing or working the invention.

(12) A licensee under this section shall be entitled to call upon the
patentee concerned to institute any proceedings which may be necessary
to prevent infringement of the patent in question and shall in all other
respects have the same rights as any other licensee, and if the patentee
fails within two months after being called upon by the licensee, or
within such further period as the High Court may allow, to institute any

such proceedings, the licensee may himself institute such proceedings as
if he were the patentee, making the patentee a defendant, but the
patentee shall not be liable for any costs in connection with such
proceedings unless he enters an appearance and takes part in those
proceedings.

(13) The existence of a compulsory licence granted solely on the
ground that an invention is not being worked in Zambia on a
commercial scale shall not preclude the grant of further licences
(including compulsory licences) in respect of that invention, but the
holder of any compulsory licence shall not be entitled to transfer that
licence or grant a sub-licence thereunder except to a person to whom the
business, or the part of the business in connection with which the rights
under the licence were exercised, has been transferred.

(14) Except in the case of a licence to be granted under subsection (8),
no licence shall be granted in terms of this section or of section
thirty-eight while the relevant patent remains endorsed “licences of
right” under section thirty-five.

(15) For the purposes of this section, the expression “patented article”
includes any article made by a patented process.
(As amended by No. 36 of 1960, G.N. No. 185 of 1964
and Act No. 18 of 1980)

38. (1) Subject to the provisions of subsection (14) of section
thirty-seven and without prejudice to the other foregoing provisions of
this Act, where a patent is in force in respect of- Inventions
relating to food
or certain other
commodities

(a) a substance capable of being used as food or medicine, or in the
production of food or medicine;

(b) a process for producing such a substance as aforesaid; or

(c) any invention capable of being used as or as part of a surgical or
curative device;
the High Court shall, on application made to it by any person interested,
order the grant to the applicant of a licence under the patent on such
terms as it thinks fit unless it appears to the Court that there are good

reasons for refusing the application.

(2) In setting the terms of licences under this section, the High Court
shall endeavour to secure that food, medicines, and surgical and curative
devices shall be available to the public at the lowest prices consistent
with the patentees deriving a reasonable advantage from their patent
rights.

(3) A licence granted under this section shall entitle the licensee to
make, use, exercise and vend the invention as a food or medicine, or for
the purposes of the production of food or medicine or as part of a
surgical or curative device, but for no other purposes.
(As amended by Act No. 18 of 1980)

39. (1) Any order under this Act for the grant of a licence shall, without
prejudice to any other method of enforcement, have effect as if it were
an agreement executed by the patentee and all other necessary parties
granting a licence in accordance with the order. Supplementary
provisions as to
licences

(2) No order shall be made in pursuance of any application under
section thirty-seven which would be at variance with the provisions of
the Convention.

40. (1) Notwithstanding anything in this Act, any Government
department or any person authorised in writing by the Minister may
make, use or exercise any invention disclosed in any specification
lodged at the Patent Office for the service of the State in accordance
with the provisions of this section. Use of patented
inventions for
services of the
State

(2) If and so far as the invention has, before the effective date of the
relevant claim of the completed specification, been duly recorded by or
tried by or on behalf of a Government department or a person authorised
in terms of subsection (1), otherwise than in consequence of the
communication thereof directly or indirectly by the patentee or any
person from whom he derives title, any use of the invention by virtue of
this section may be made by such Government department or person
free of any royalty or other payment to the patentee.

(3) If and so far as the invention has not been so recorded or tried as

aforesaid, any use of the invention made by virtue of this section at any
time after the acceptance of the complete specification in respect of the
patent, or in consequence of any such communication as aforesaid, shall
be made upon such terms as may be agreed upon, either before or after
the use, between the Minister and the patentee with the approval of the
Minister responsible for finance, or as may in default of agreement be
determined by the High Court on a reference under subsection (1) of
section forty-two.

(4) The authority of the Minister in respect of an invention may be
given under this section either before or after the patent is granted and
either before or after the acts in respect of which the authority is given
are done, and may be given to any person, whether or not he is
authorised directly or indirectly by the patentee to make, use, exercise or
vend the invention.

(5) Where any use of an invention is made by or with the authority of
the Minister under this section, then, unless it appears to him that it
would be contrary to the public interest so to do, the Minister shall
notify the patentee as soon as practicable after the use is begun, and
furnish him with such information as to the extent of the use as he may
from time to time require.

(6) For the purposes of this section, section forty-one and section
forty-two, any use of an invention for the supply to the government of
any country outside Zambia, in pursuance of any agreement or
arrangement between the Government and the government of that
country, of articles required for the defence of that country shall be
deemed to be a use of the invention for the services of the State, and the
power of a Government department or a person authorised by the
Minister under this section to make, use and exercise an invention shall
include power-

(a) to sell such articles to the government of any country in
pursuance of any such agreement or arrangement as aforesaid; and

(b) to sell to any person any articles made in the exercise of the
powers conferred by this section which are no longer required for the
purpose for which they were made.

(7) The purchaser of any articles sold in the exercise of powers

conferred by this section, and any person claiming through him, shall
have power to deal with them in the same manner as if the patent were
held on behalf of the President.

(8) The Minister may, by statutory instrument, make regulations
governing the rights of third parties in relation to any use of a patented
invention, or an invention in respect of which an application for a patent
is pending, made for the services of the State in terms of this section or
section forty-one.
(As amended by G.N. No. 185 of 1964, S.I. No. 175 of 1965
and Act No. 18 of 1980)

41. (1) For the purposes of this section, the expression “period of
emergency” means any period beginning on such date as may be
declared by the Minister by statutory notice to be the commencement,
and ending on such date as may be so declared to be the termination, of a
period of emergency. Special
provisions as to
State use during
emergency

(2) During any period of emergency the powers exercisable in relation
to an invention by a Government department or a person authorised by
the Minister under section forty, shall include power to make, use,
exercise and vend the invention for any purpose which appears to the
Minister necessary or expedient-

(a) for the efficient prosecution of any war in which the Republic
may be engaged;

(b) for the maintenance of supplies and services essential to the life
of the community;

(c) for securing a sufficiency of supplies and services essential to
the well-being of the community;

(d) for promoting the productivity of industry, commerce and
agriculture;

(e) for fostering and directing exports and reducing imports or
imports of any classes, from all or any countries and for redressing the
balance of trade;

(f) generally for ensuring that the whole resources of the
community are available for use, and are used, in a manner best
calculated to serve the interests of the community; or

(g) for assisting the relief of suffering and the restoration and
distribution of essential supplies and services in any part of Her
Britannic Majesty’s dominions or any foreign countries that are in grave
distress as the result of war;
and any reference in that section or in section forty-two to the services of
the State shall be construed as including a reference to the purposes
aforesaid.
(As amended by G.N. No. 185 of 1964
and S.I. No. 175 of 1965)

42. (1) Any dispute as to- Reference of
disputes as to
State use

(a) the exercise by a Government department or a person authorised
by the Minister of the powers conferred by section forty;

(b) the terms for the use of an invention for the services of the State
thereunder;

(c) the compensation payable upon a reference to the High Court
under subsection (5) of section twenty-four; or

(d) the right of any person to receive any part of a payment
determined in terms of paragraph (b) or (c);
may be referred to the High Court by any party to the dispute in such
manner as may be prescribed.

(2) In any proceedings under this section to which a Government
department is a party, the Minister may-

(a) if the patentee is a party to the proceedings, apply for revocation
of the patent upon any ground upon which a patent may be revoked
under section fifty;

(b) in any case, put in issue the validity of the patent without

applying for its revocation.

(3) If in such proceedings as aforesaid any question arises whether an
invention has been recorded or tried as mentioned in section forty, or has
been used by or on behalf of or to the order of a Government department
under subsection (4) of section twenty-four, and the disclosure of any
document recording the invention, or of any evidence of the trial or use
thereof, would, in the opinion of the Minister, be prejudicial to the
public interest, the disclosure may be made confidentially to counsel
appearing for the other party or to an independent expert agreed upon by
the parties.

(4) In determining under this section any dispute between a
Government department and any person as to terms for the use of an
invention for the services of the State, the High Court shall have regard
to any benefit or compensation which that person or any person from
whom he derives title may have received, or may be entitled to receive,
directly or indirectly from any Government department in respect of the
invention in question.
(As amended by S.I. No. 175 of 1965
and Act No. 18 of 1980)

PART VI
SPECIAL PROVISIONS RELATING TO
SPECIFICATIONS, ANTICIPATION AND RIGHTS IN
INVENTIONS

43. (1) An applicant for a patent or a patentee may, at any time by
request in writing lodged at the Patent Office, seek leave to amend either
his provisional or his complete specification, including drawings
forming part thereof, and shall in making any such request state the
nature of the proposed amendment and the reasons therefor. Amendment of
specification by
Registrar

(2) Where there are joint applicants or patentees, the request shall be
made by them jointly or by one or more of them with the written consent
of the other or others, and in the case of disagreement between them the
Registrar may, if satisfied that one or more of them should be allowed to
proceed alone and subject to such conditions as he may impose, permit
the request to be made without the consent of the others:

Provided that all parties interested shall be notified by the applicant of
the request and be entitled to be heard before any decision is given
thereon.

(3) An amendment of an accepted complete specification shall be
allowed only if it is by way of disclaimer, correction or explanation, and
no amendment of any specification, except by way of correcting an
obvious mistake, shall be allowed if the result would be that the
specification as amended would claim or describe matter not in
substance disclosed in the specification before amendment, or would
include any claim not wholly within the scope of a claim included in the
specification before amendment.

(4) The request for an amendment of an accepted complete
specification and its nature shall be advertised by the applicant in the
prescribed manner, and at any time within three months of the
advertisement, or such further time as the Registrar, subject to such
conditions as he may impose, may allow, any person may give notice at
the Patent Office of opposition to the amendment.

(5) Notice of opposition shall be given in the prescribed manner to the
Registrar and to the person making the request, and the Registrar shall
hear the person making the request and the person who has given notice
of opposition and determine whether and subject to what conditions, if
any, the amendment ought to be allowed.

(6) Where a complete specification has not been accepted or, if it has
been accepted, no notice of opposition has been given or any such notice
has been withdrawn, the Registrar shall determine whether and subject
to what conditions, if any, the amendment ought to be allowed.

(7) No request for amendment under this section shall be allowed if and
so long as any proceedings are pending for infringement or revocation
of the patent in question.

(8) An appeal shall lie from any decision of the Registrar under this
section.

44. In any action for infringement of a patent or any proceedings
before the High Court for the revocation of a patent, that court may,
subject to the provisions of subsection (3) of section forty-three, allow
the patentee to amend his complete specification in such manner and
subject to such terms as to costs, advertisement or otherwise as that
court may think fit, and, if in any such proceedings for revocation the
High Court decides that the patent is invalid, it may allow the
specification to be amended under this section instead of revoking the
patent.
(As amended by Act No. 18 of 1980) Amendment of
specification
with leave of
High Court

45. Where an amendment of a specification by way of disclaimer,
correction or explanation has been allowed under this Act after the
publication of the specification, no damages shall be awarded in any
proceedings in respect of the use of the invention before the date of the
decision allowing the amendment, unless the High Court is satisfied that
the specification as originally published was framed in good faith and
with reasonable skill and knowledge.
(As amended by Act No. 18 of 1980) Restrictions on
recovery of
damages in
certain cases

46. (1) A patent shall not be refused or held to be invalid by reason only
of the fact that the invention in respect of which the patent is applied for
or was granted or any part thereof was published, used or known prior to
the effective date of the application, if the applicant or the patentee, as
the case may be, proves that the knowledge was acquired or the
publication or use was made without his knowledge or consent, and that
the knowledge acquired or the matter published or used was derived or
obtained from him, and, if he learnt of the disclosure, use or knowledge
before the effective date of his application for the patent, that he applied
for and obtained protection for his invention with all reasonable
diligence after learning of the disclosure: Savings for
anticipation

Provided that the protection afforded by this section shall not extend to a
patentee or an applicant for a patent who has or whose predecessors in
title have prior to the effective date of the application worked the
invention in the former Federation of Rhodesia and Nyasaland or, after
the 1st January, 1964, in the former Protectorate of Northern Rhodesia
or, after the 24th October, 1964, in the Republic commercially,
otherwise than for the purpose of reasonable technical trial thereof.

(2) An invention claimed in a complete specification shall not be
deemed to have been anticipated by reason only of the communication
of the invention to a Government department or to any person
authorised by the Minister to investigate the invention or its merits, or of
anything done by any person whomsoever in consequence of such a
communication, for the purpose of the investigation.
(As amended by G.N. No. 185 of 1964
and S.I. No. 175 of 1965)

47. (1) Where a patent is granted to two or more persons, each of those
persons shall, unless an agreement to the contrary is in force, be entitled
to an equal undivided share in the patent. Co-ownership
of patents

(2) Subject to the provisions of this section, where two or more persons
are registered as patentees then, unless an agreement to the contrary is in
force, each of those persons shall be entitled by himself or his agents, to
make, use, exercise and vend the patented invention for his own benefit
without accounting to the other or others.

(3) Subject to the provisions of subsections (6), (7) and (8) and to any
agreement for the time being in force, a licence under a patent shall not
be granted, and a share in a patent shall not be assigned, except with the
consent of all persons, other than the licensor or assignor, who are
registered as patentees.

(4) Where a patented article is sold by one of two or more persons
registered as patentees, the purchaser and any person claiming through
him shall in respect of such article be entitled to deal with it in the same
manner as if it had been sold by a sole patentee.

(5) Subject to the provisions of this section, the rules of law applicable
to the ownership and devolution of movable or personal property
generally shall apply in relation to patents as they apply in relation to
other incorporeal rights or choses in action.

(6) Where two or more persons are registered as patentees, the Registrar
may, upon application made to him in the prescribed manner by any of
those persons, give such directions in accordance with the application as
to the sale or lease of the patent or any interest therein, the grant of

licences under the patent or the exercise of any right under subsections
(1) to (5) in relation thereto, as he thinks fit.

(7) If any person registered as patentee fails to execute any instrument
or to do any other thing required for the carrying out of any direction
given under this section within fourteen days after being requested in
writing so to do by any of the other persons so registered, the Registrar
may, upon application made to him in the prescribed manner by any
such other person, give directions empowering any person to execute
that instrument or to do that thing in the name and on behalf of the
person in default.

(8) Before giving directions in pursuance of an application under
subsection (6) or (7), the Registrar shall give an opportunity to be heard-

(a) in the case of an application under subsection (6), to the other
person or persons registered as patentees;

(b) in the case of an application under subsection (7), to the person
in default.

(9) An appeal shall lie from any decision of the Registrar under this
section.

(10) No directions shall be given under this section so as to affect the
mutual rights or obligations of trustees or of the legal representatives of
a deceased person, or their rights or obligations as such.

48. (1) Where a dispute arises between an employer and a person who
is or was at the material time his employee as to the rights of the parties
in respect of an invention made by the employee either alone or jointly
with other employees or in respect of any patent granted or to be granted
in respect thereof, the Registrar may, upon application made to him in
the prescribed manner by either of the parties, and after giving to each of
them an opportunity to be heard, determine the matter in dispute, and
may make such orders for giving effect to his decision as he considers
expedient. Disputes as to
inventions
made by
employees

(2) In proceedings before the High Court between an employer and a
person who is or was at the material time his employee, or upon an

application made to the Registrar under subsection (1), the High Court
or Registrar, as the case may be, may, unless satisfied that one or other
of the parties is entitled, to the exclusion of the other, to the benefit of an
invention made by the employee, by order provide for the
apportionment between them of the benefit of the invention, and of any
patent granted or to be granted in respect thereof, in such manner as the
High Court or Registrar considers just.

(3) A decision of the Registrar under this section shall have the same
effect as between the parties and persons claiming under them as a
decision of the High Court.

(4) An appeal shall lie from any decision of the Registrar under this
section.

49. (1) It shall not be lawful in any contract made after the
commencement of this Act in relation to the sale or lease of or a licence
to use or work any article or process protected by a patent to insert a
condition the effect of which will be-
Avoidance of certain
restrictive conditions in
contracts

(a) to prohibit or restrict the purchaser, lessee or licensee from using
any article or class of articles, whether patented or not, or any patented
process, supplied or owned by any person other than the seller, lessor or
licensor or his nominee; or

(b) to require the purchaser, lessee or licensee to acquire from the
seller, lessor or licensor or his nominee any article or class of articles not
protected by the patent;
and any such condition shall be null and void, as being in restraint of
trade and contrary to public policy:

Provided that this subsection shall not apply if-
(i) the seller, lessor or licensor proves that at the time the contract
was entered into, the purchaser, lessee or licensee had the option of
purchasing the article or obtaining a lease or licence on reasonable terms
without such conditions as aforesaid; and
(ii) the contract entitles the purchaser, lessee or licensee to relieve
himself of his liability to observe any such condition on giving the other
party three months’ notice in writing and on payment, if the Registrar so
directs, of compensation for such relief, in the case of a purchase of such

sum, or in case of a lease or licence of such rent or royalty for the residue
of the term of the contract, as may be fixed by the Registrar.
An appeal shall lie from any decision of the Registrar under proviso (ii).

(2) Any contract relating to the lease of or licence to use or work any
patented article or patented process may, at any time after the patent or
all the patents by which the article or process was protected in Zambia at
the time of the making of the contract has or have ceased to be in force,
and notwithstanding anything to the contrary in the same or in any other
contract, be determined by either party on giving three months’ notice in
writing to the other party.

(3) Nothing in this section shall-

(a) affect any condition in a contract whereby any person is
prohibited from selling any goods other than those of a particular
person;

(b) be construed as validating any contract which would, apart from
this section, be invalid;

(c) affect any right of determining a contract or condition in a
contract exercisable independently of this section;

(d) affect any condition in a contract for the lease of or a licence to
use a patented article, whereby the lessor or licensor reserves to himself
or his nominee the right to supply such new parts of the patented article
as may be required to put or keep it in repair.
(As amended by G.N. No. 185 of 1964)

50. (1) Application for revocation of a patent may be made to the High
Court by any person interested, including the State, upon any one or
more of the grounds on which the grant of a patent might have been
opposed, but subject to the provisions of subsection (2), of proviso (ii) to
paragraph (b) of subsection (7) of section eight, and of paragraph (b) of
subsection (1) of section ten, on no other grounds. Revocation of
patents

(2) Where an order for the granting of a licence under the patent has
been made in pursuance of an application under section thirty-seven any
person interested may, at any time after the expiration of two years from

the date of that order, apply to the High Court for the revocation of the
patent upon any of the grounds specified in subsection (6) of the said
section thirty-seven; and if upon such application the High Court is
satisfied-

(a) that any of the said grounds are established; and

(b) that the purpose for which an order may be made in pursuance of
an application under the said section thirty-seven could not be achieved
by the making of any further order under that section;
it may order the patent to be revoked.

(3) Any such application shall state the grounds on which the applicant
relies, and shall be accompanied by a statement setting out particulars of
the facts alleged in support of the said grounds, and a copy of the
application and of the statement shall be served by the applicant on the
patentee and proof of such service shall be furnished to the Registrar.

(4) If the patentee wishes to contest the application made in terms of
subsection (1) or subsection (2), he shall, within such time as may be
prescribed or such further time as the High Court may allow, lodge at
the Patent Office a counter-statement setting out particulars of the
grounds upon which the application is contested and deliver to the
applicant a copy of that statement.

(5) Except by leave of the High Court, no evidence shall be admitted in
proof of any ground, particulars of which are not delivered as aforesaid.

(6) Particulars delivered may from time to time be amended by leave of
the High Court.

(7) The High Court shall appoint a time for the hearing of any such
application, and shall thereafter decide whether the patent shall be
revoked or whether and, if so, subject to what amendments, if any, of the
specification or claims thereof, the patent shall be upheld:

Provided that the High Court-
(i) shall not allow any amendment of the specification or claims as
aforesaid if it is established to its satisfaction that the original complete

specification and claims were not framed in good faith and with
reasonable skill and knowledge; and
(ii) may, in the exercise of its discretion as to costs, take into
consideration the conduct of the patentee in framing his original
specification and claims and permitting them to remain as so framed.

(8) An order for the revocation of a patent under this section may be
made so as to take effect either unconditionally or, in the event of failure
to comply, within such reasonable period as may be specified in the
order, with such conditions as may be imposed by the order with a view
to achieving the purposes aforesaid, and the High Court may, on
reasonable cause shown in any case, by subsequent order, extend any
period so specified.
(As amended by S.I. No. 175 of 1965
and Act No. 18 of 1980)

51. (1) Where a patent is revoked on the ground of fraud, or a patent
fraudulently obtained has been surrendered and revoked, or the grant of
a patent has been refused under the provisions of paragraph (b) of
subsection (1) of section twenty-two, the High Court may, on the
application of the person entitled to the invention for Zambia or his legal
representative, made in accordance with the provisions of this Act,
direct the grant to him of a patent for the whole or any part of the
invention, bearing the same date as the patent so revoked or as would
have been borne by the patent which has been refused, if the grant
thereof had not been refused. Consequences
of revocation on
grounds of
fraud

(2) Where in proceedings before the High Court in connection with
opposition to the grant of a patent, the High Court has found that an
invention was in part obtained from the objector and has required that
the specification be amended by the exclusion of that part of the
invention, the High Court may direct that, on the application of the
inventor or any person claiming through or under him made in
accordance with the provisions of this Act within three months after the
date of the direction or within such further period as the High Court may
allow, a patent for that excluded part of the invention bearing the date of
and having the same effective date as the opposed application be granted
to the applicant concerned.

(3) No action shall be brought for any infringement of a patent
committed-

(a) in the case of a patent granted under subsection (1), before the
date of sealing thereof; or

(b) in the case of a patent granted under subsection (2), before the
date of advertisement of acceptance of the complete specification
lodged in pursuance of the application for such patent.
(As amended by G.N. No. 185 of 1964
and Act No. 18 of 1980)

52. (1) A patentee may at any time by notice given to the Registrar offer
to surrender his patent. Surrender of
patents

(2) Where such an offer is made, the patentee shall advertise the offer in
the prescribed manner, and within the prescribed period after such
advertisement any person interested may give notice to the Registrar of
opposition to the surrender.

(3) Where any such notice of opposition is duly given, the Registrar
shall notify the patentee.

(4) If the Registrar is satisfied, after hearing the patentee and any
opponent, if desirous of being heard, that the patent may properly be
surrendered, he may accept the offer and by order revoke the patent.

(5) An appeal shall lie from any decision of the Registrar under this
section.

PART VII
INFRINGEMENTS

53. (1) An action for infringement of a patent may only be instituted by
the patentee or the exclusive licensee. Such action shall be heard and
determined by the Court and, subject to the provisions of any rules made
under section eighty-one, the following provisions shall apply in
connection therewith, namely: Procedure and
conditions in
action for
infringement

(a) any ground upon which a patent may be revoked under this Act
may be relied upon by way of defence;

(b) the defendant may, by way of counter-claim in the action, apply
for the revocation of the patent;

(c) the plaintiff shall, with his statement of claim or declaration or
on the order of the Court at any subsequent time, deliver full particulars
of the infringement complained of;

(d) the defendant shall, with his statement of defence or plea or on
the order of the Court at any subsequent time, deliver particulars of any
objections on which he relies in support thereof;

(e) at the hearing no evidence shall, except by leave of the Court, be
admitted of any infringement or on any objections of which particulars
have not been so delivered;

(f) the Court may allow the patentee to amend his specification,
subject to such terms as to costs, advertisement or otherwise as it may
impose and to the provisions of subsection (3) of section forty-three.

(2) In any action under this section where an exclusive licensee is the
plaintiff, the patentee shall, unless he is joined as plaintiff in such action,
be added as defendant:

Provided that a patentee so added as defendant shall not be liable for any
costs unless he enters an appearance and takes part in the proceedings.

(3) If the patentee is the plaintiff in any such action, he shall give notice
thereof to the exclusive licensee under the patent in question and any
such licensee shall be entitled to intervene as a co-plaintiff and to
recover any damages he may have suffered as a result of the
infringement.

(4) No action under this section shall lie in respect of an infringement
which took place before the publication referred to in subsection (2) of
section twenty-one.

(5) In an action for infringement of a patent, the plaintiff shall be
entitled to relief by way of injunction or interdict and damages and the
Court may, on application, make such order for an injunction, interdict,
damages, inspection or account and impose such terms and give such
directions as it may deem fit.

(6) In an action for infringement of a patent in respect of an invention
which relates to the protection of a new substance, any substance of the
same chemical composition and constitution shall in the absence of
proof to the contrary be deemed to have been produced by the patented
process.
(As amended by G.N. No. 185 of 1964)

54. Where, in any action for the infringement of a patent, the Court
finds that any claim in the specification in respect of which the
infringement is alleged is valid, but that any other claim thereunder is
invalid, then, notwithstanding the provisions of section fifty-three, the
following provisions shall apply, namely:
(a) unless the Court is satisfied that the invalid claim was not framed
in good faith and with reasonable skill and knowledge, the Court shall,
subject to its discretion as to costs and as to the date from which
damages should be reckoned, and to such terms as to amendment of the
specification as it may deem desirable, grant relief in respect of any
valid claim which is or has been infringed, without regard to the
invalidity of any other claim in the specification and, in exercising such
discretion, the Court may take into consideration the conduct of the
patentee in inserting the invalid claim in the specification or permitting
that claim to remain there;
(b) if the Court is so satisfied, it shall not grant any relief by way of
damages or costs, but may grant such other relief in respect of any valid
claim which is or has been infringed as to it seems just and may impose
such terms as to amendment of the specification as a condition of
granting any such relief as it may deem desirable;
(c) if a counter-claim for revocation of the patent has been made in
the action on the ground of invalidity of any claim in the specification,
the Court may postpone the operation of any order made thereon for
such time as may be requisite to enable the patentee to effect any
amendment of the specification pursuant to terms imposed by the Court
and may attach such other conditions to any order to be made on the
counter-claim as the Court may deem desirable. Relief for
infringement of
partially valid
specification

55. (1) In proceedings for the infringement of a patent, damages shall
not be awarded against a defendant who proves that, at the date of the
infringement, he was not aware, and had no reasonable grounds for
supposing and had no reasonable means of making himself aware, that
the patent existed, and the application to an article of the word “patent”,
“patented”, or any word or words expressing or implying that a patent
has been obtained for the article, shall not constitute such grounds or
means unless the number and year of the patent accompanied the word
or words in question. Restrictions on
recovery of
damages for
infringement

(2) If proceedings are taken in respect of infringement of a patent
committed after the failure to pay any fee within the prescribed time and
before any extension of time for such payment, the Court may, if it
thinks fit, refuse to award any damages in respect of such infringement.

(3) Nothing in this section shall affect the power of the Court to grant an
injunction or interdict in any proceedings for the infringement of a
patent.

56. (1) Where any person (whether entitled to or interested in a patent
or an application for a patent or not) by circulars, advertisements or
otherwise threatens any other person with proceedings for infringement
of a patent, any person aggrieved thereby may in the prescribed manner
bring an action against him in the Court for any such relief as is
mentioned in subsection (2). Remedy for
groundless
threats of
infringement
proceedings

(2) Unless in any action brought by virtue of this section the defendant
proves that the acts in respect of which proceedings were threatened
constitute or, if done, would constitute, an infringement of a patent or of
rights arising from the publication of a complete specification in respect
of a claim of the specification not shown by the plaintiff to be invalid,
the plaintiff shall be entitled to the following relief, that is to say:

(a) a declaration to the effect that the threats are unjustifiable;

(b) an injunction or interdict against the continuance of the threats;
and

(c) such damages, if any, as he has sustained thereby.

(3) For the avoidance of doubt, it is hereby declared that a mere
notification of the existence of a patent does not constitute a threat of
proceedings within the meaning of this section.

(4) The defendant in any such action as aforesaid may apply, by way of
counter-claim in the action, for any relief to which he would be entitled
in a separate action in respect of any infringement by the plaintiff of the
patent to which the threats relate.
(As amended by G.N. No. 185 of 1964)

57. (1) A declaration that the use by any person of any process, or the
making or use or sale by any person of any article, does not or would
not constitute an infringement of a claim of a patent may be made by
the Court in proceedings between that person and the patentee or the
holder of an exclusive licence under the patent, notwithstanding that no
assertion to the contrary has been made by the patentee or licensee, if it
is shown- Power of Court
to make
declaration as to
non-infringement

(a) that the plaintiff has applied in writing to the patentee or licensee
for a written acknowledgment to the effect of the declaration claimed,
and has furnished him with full particulars in writing of the process or
article in question; and

(b) that the patentee or licensee has refused or neglected to give such
an acknowledgment.

(2) The costs of all parties in proceedings for a declaration brought by
virtue of this section shall be ordered as the Court may deem fit:

Provided that a patentee or holder of an exclusive licence under the
patent shall not be liable for any costs unless he enters an appearance
and takes part in the proceedings.

(3) The validity of a claim of the specification of a patent shall not be
called in question in proceedings for a declaration brought by virtue of
this section, and accordingly the making or refusal of such a declaration
in the case of a patent shall not be deemed to imply that the patent is
valid.

(4) Proceedings for a declaration may be brought by virtue of this
section at any time after the date of the notice of the acceptance of the
complete specification in pursuance of an application for a patent, and
references in this section to the patentee shall be construed accordingly.
(As amended by G.N. No. 185 of 1964)

57A. In this Part, unless the context otherwise requires, Court means
the High Court.
(As amended by Act No. 18 of 1980) Definition of
Court

PART VIII
ASSIGNMENTS AND CORRECTIONS

58. (1) Subject to the provisions of subsection (7) of section thirty-one,
the rights granted to a patentee by a patent shall be capable of
assignment and of devolution by operation of law and of being
mortgaged and pledged. Provisions as to
assignments

(2) Where any person becomes entitled by assignment, transmission or
operation of law to a patent or to a share in a patent, or becomes entitled
as mortgagee, licensee or otherwise to any other interest in a patent, he
may apply to the Registrar in the prescribed manner for the registration
of his title as proprietor or co-proprietor, or, as the case may be, of notice
of his interest, in the register, and the Registrar shall, upon proof of such
entitlement to his satisfaction, register such title or notice against the
patent accordingly.

(3) Except for the purposes of an application to rectify the register under
the provisions of this Act, a document in respect of which no entry has
been made in the register under subsection (2) shall not be admitted in
any proceedings as evidence of the title of any person to a patent, or a
share of or interest in a patent, unless the High Court or Supreme Court
otherwise directs.
(As amended by G.N. No. 185 of 1964 and Act No. 18 of 1980)

59. (1) The Registrar may authorise- Power of

Registrar to
authorise
corrections

(a) the correction of any clerical error or omission, or error in
translation in any patent, application for a patent or document lodged in
pursuance of such an application, or in the register;

(b) the amendment otherwise of any documents for the amending of
which no express provision is made in this Act;

(c) the condonation or correction of any irregularity in procedure in
any proceedings before him, if such condonation or correction is not
detrimental to the interests of any person.

(2) A correction may be made in pursuance of this section, either upon a
request in writing accompanied by the prescribed fee or without such a
request.

(3) Where it is proposed to make a correction otherwise than upon such
a request, the Registrar shall give notice of the proposal to the patentee
or the applicant for the patent, as the case may be, and to any other
person who appears to him to be concerned, and shall give any such
person an opportunity of being heard before the correction is made.

(4) Where a request is made for the correction of any such clerical error
or omission and it appears to the Registrar that the correction would
materially alter the scope of the document to which the request relates,
the Registrar may require notice of the request to be advertised in the
prescribed manner and to be served upon such persons as he considers
necessary.

(5) Any opposition to the request for such correction may be lodged and
shall be dealt with by the Registrar in the manner prescribed.

(6) An appeal shall lie from any decision of the Registrar under this
section.

60. (1) The High Court may, on the application of any person Rectification of

aggrieved, order the register to be rectified by the making of any entry
therein or the variation or deletion of any entry therein. register

(2) The High Court may determine any question which it may be
necessary or expedient to decide in connection with the rectification of
the register.

(3) Notice of any application to the High Court under this section shall
be given in the prescribed manner to the Registrar and all interested
parties, and the Registrar and all such parties shall be entitled to appear
and be heard on the application.

(4) Any order made by the High Court under this section shall be served
on the Registrar in the prescribed manner, and the Registrar shall, on the
receipt of the notice, rectify the register accordingly.
(As amended by Act No. 18 of 1980)

PART IX
FUNCTIONS OF REGISTRAR IN RELATION TO
CERTAIN EVIDENCE, DOCUMENTS AND POWERS

61. (1) A certificate purporting to be signed by the Registrar and
certifying that any entry which he is authorised by or under this Act to
make has or has not been made, or that any other thing which he is so
authorised to do has or has not been done, shall be prima facie evidence
of the matters so certified. Evidence of
certain entries
and documents

(2) A copy of any entry in any register or of any document kept in the
Patent Office or of any patent, or an extract from any such register or
document, certified by the Registrar and sealed with the seal of the
Patent Office, shall be admitted in evidence without further proof and
without production of the original.

62. The Registrar shall, on the request of any person and on payment of
the prescribed fee, furnish copies of any documents which are open to
public inspection and which are lodged at the Patent Office or
particulars from the register, or furnish a certificate in respect thereof. Requests for
information as
to patent or
patent

application

63. Where the Registrar is satisfied that a patent has been lost or
destroyed or cannot be produced, he may at any time cause a duplicate
thereof to be sealed on payment of such fees as may be prescribed. Loss or
destruction of
patent

64. (1) Without prejudice to any provisions of this Act requiring the
Registrar to hear any party to proceedings thereunder, or to give to any
such party an opportunity to be heard, the Registrar shall give to any
applicant for a patent, or for amendment of a specification, an
opportunity to be heard before exercising adversely to the applicant any
discretion vested in the Registrar by or under this Act. Exercise of
discretionary
powers of
Registrar

(2) Subject to the provisions of subsection (2) of section eighty, where
by this Act any time is specified within which any act or thing is to be
done, the Registrar may, save where it is expressly otherwise provided,
extend the time, either before or after its expiration, if he is satisfied that
the failure to comply with the provisions relating to such time has not
been or will not be due to any neglect or default on the part of the person
concerned.

65. (1) Evidence in any proceedings before the Registrar under this Act
shall be given by affidavit, so, however, that the Registrar may, if he
thinks fit in any particular case, take oral evidence on oath in lieu of or in
addition to such evidence as aforesaid, and may allow any witness to be
cross-examined on his affidavit or oral evidence. Proceedings
before Registrar

(2) The powers, rights and privileges of the Registrar in proceedings
before him under this Act shall be the same as those conferred upon
commissioners by the Inquiries Act and the provisions of that Act shall,
mutatis mutandis, apply in relation to the hearing and determination of
any matter before the Registrar under this Act and to any person
summoned to give evidence or giving evidence before him.
(As amended by G.N. No. 185 of 1964) Cap. 41

66. No advertisement or notice, other than a notice issued under the
authority of the President or the Minister, shall be published by any
person under the provisions of this Act unless it is in the prescribed form
and the Registrar has approved the contents of such advertisement or
notice, and no advertisement or notice which has not been so approved Advertisements
to be approved
by Registrar

shall have any force or effect for the purposes of this Act.
(As amended by G.N. No. 185 of 1964)

PART X
PATENT AGENTS

67. (1) Subject to the provisions of this Act, a patent agent may act as
agent on behalf of any person in connection with any matter or
proceeding before the Registrar under this Act and may draw and sign
all documents and make all communications between an applicant and
the Patent Office and may represent an applicant at all attendances
before the Registrar. Patent agents
and their
functions

(2) A patent agent shall not be guilty of an offence under the provisions
of any written law in force in Zambia prohibiting the preparation for
reward of certain documents by persons not legally qualified, by reason
only of the preparation by him of any document relating to patents for
use in the Patent Office or required in any proceedings under this Act
before the Registrar or the High Court.
(As amended by G.N. No. 185 of 1964
and Act No. 18 of 1980)

68. (1) The Registrar shall keep a register of patent agents in which the
name of every person, immediately upon his being accepted for
registration, shall be registered, showing against his name such
particulars as the Registrar shall from time to time deem necessary, and
the Registrar shall enter in such register of patent agents all changes
relating to registrations. Qualification
and registration
of patent agents

(2) Any person ordinarily resident in Zambia who-

(a) has passed the prescribed examinations;

(b) produces proof that he is a Fellow in good standing of the
Chartered Institute of Patent Agents, incorporated by Royal Charter on
the 11th August, 1891;

(c) produces proof that he is a British Oversea Member in good
standing of such Institute;

(d) produces proof that he holds any qualification recognised by the
Minister as being equivalent to the qualifications required for the
purposes of paragraph (a), (b) or (c); or

(e) is a legal practitioner and satisfies the Registrar that prior to the
commencement of this Act he has, within Zambia, performed the
functions of a patent agent as set out in section sixty-seven and has
publicly described himself as a patent agent in Zambia;
may make application to the Registrar in the prescribed manner to be
registered as a patent agent, and the Registrar shall arrange such
registration if he is satisfied that there is no good reason why it should
not be arranged and that the applicant is not a person whose name could
be removed from the register of patent agents under paragraph (b), (c) or
(f) of subsection (1) of section sixty-nine;

Provided that a public officer who has been employed in the Patent
Office shall not be registered as a patent agent or be permitted to practise
as such until at least twelve months have expired since he ceased to be
so employed.

(3) An appeal shall lie from any decision of the Registrar made under
the provisions of subsection (2).
(As amended by No. 36 of 1960, G.N. No. 185 of 1964
and S.I. No. 175 of 1965)

69. (1) The Registrar may remove from the register of patent agents the
name of any patent agent upon proof to his satisfaction that such patent
agent- Removal of
names from
register of
patent agents

(a) has died;

(b) has become of unsound mind;

(c) has been adjudged or otherwise declared bankrupt under any
written law or enactment in force in Zambia, or has made an assignment
to or composition with his creditors;

(d) has ceased to reside in Zambia, or has ceased to maintain a place
of business therein;

(e) has applied for his name to be so removed;

(f) has, after being convicted, in Zambia or elsewhere, of the crime
of theft, fraud, forgery or uttering a forged document or perjury, been
sentenced to serve a term of imprisonment without the option of a fine,
whether such sentence is suspended or not, and has not received a free
pardon;

(g) having been entitled to practise as a legal practitioner, or to be
registered as a patent agent, has ceased to be so entitled; or

(h) having been entitled to practise as a legal practitioner, or a patent
agent, has ceased to practise as such.
An appeal shall lie from any decision of the Registrar made under the
provisions of this subsection.

(2) Subject to the provisions of this section and such procedure as may
be prescribed, the High Court may order the Registrar to remove the
name of any patent agent from the register of patent agents or may
suspend any patent agent from practising as such for such time as it
thinks fit if it is satisfied, after due inquiry, that such person has been
guilty of conduct discreditable to a patent agent or has been guilty of a
breach of any regulations prescribed for the conduct of patent agents.

(3) Repealed by Act No. 18 of 1980.

(4) Any institute or other organisation recognised by the Minister as
being representative of the patent agents in Zambia shall be entitled to
be represented, to adduce evidence and to be heard by the High Court
before it makes any order in terms of subsection (2).

(5) Where the name of any patent agent has been removed from the
register of patent agents under the provisions of subsection (1) or (2), his
name shall not be restored to that register except by direction of the High
Court, which may further direct that such restoration shall be made
either without fee or on payment of such fee, not exceeding the

registration fee, as it may fix, and the Registrar shall restore the name
accordingly.
(As amended by No. 1 of 1962
and G.N. No. 185 of 1964)

70. Every person entitled to practise as a legal practitioner in Zambia
may practise as a patent agent and perform the functions set out in
section sixty-seven without being registered as a patent agent, but no
such person shall be entitled to be so registered except under the
provisions of section sixty-eight. Privileges of
legal
practitioners

(As amended by G.N. No. 185 of 1964)

71. (1) No person shall practise as a patent agent unless he is registered
as such or is, by virtue of section seventy, entitled so to practise. Entitlement to
practise as
patent agent

(2) A person shall be deemed to practise as a patent agent if he performs
any of the functions of a patent agent set out in section sixty-seven or if
he carries on within Zambia the business of applying for or obtaining for
others patents in Zambia or elsewhere.

(3) No person who is not a legal practitioner or registered as a patent
agent shall describe himself as, or hold himself out to be, a patent agent
or any term implying such a meaning, nor shall he permit himself to be
so described or held out.

(4) Any person who contravenes the provisions of this section shall be
guilty of an offence.
(As amended by G.N. No. 185 of 1964)

72. (1) No patent agent shall have an interest either as a partner or
manager or otherwise in more than one firm of patent agents in Zambia. Prohibition of
certain acts by
patent agents

(2) No patent agent shall practise under a name or title which includes
the name of any person who is not or was not-

(a) in his lifetime ordinarily resident in Zambia; or

(b) registered as a patent agent under the provisions of this Act.

(3) No person shall practise as a patent agent if he is a party to-

(a) a contract of partnership; or

(b) an arrangement providing for the sharing or paying over of any
professional fees;
relating to the business of a patent agent with any person who is
prohibited from practising as a patent agent.

(4) Any person who contravenes the provisions of this section shall be
guilty of an offence.
(No. 1 of 1962 as amended by G.N. No. 185 of 1964)

PART XI
APPEALS

73. Where this Act provides for appeals from decisions of the
Registrar, all such appeals shall be made to the High Court in
accordance with the provisions of this Part.
(As amended by Act No. 18 of 1980) Appeals from
Registrar

74. Repealed by Act No. 18 of 1980.

75. Repealed by Act No. 18 of 1980.

76. Repealed by Act No. 18 of 1980.

77. Repealed by Act No. 18 of 1980.

78. (1) Any party to proceedings before the High Court may appeal in
accordance with rules made under this Part from any order or decision of
that court to the Supreme Court. Appeals to
Supreme Court

(2) Upon the hearing of an appeal under the provisions of this section,
the Supreme Court may, without prejudice to its other powers-

(a) confirm, set aside or vary the order or decision in question;

(b) remit the proceedings to the High Court with such instructions
for further consideration, report, proceedings or evidence as the
Supreme Court may think fit to give;

(c) exercise any of the powers which could have been exercised by
the High Court in the proceedings in connection with which the appeal
is brought;

(d) make such order it may think just as to the costs of the appeal or
of earlier proceedings in the matter before the High Court.
(As amended by G.N. No. 185 of 1964
and Act No. 18 of 1980)

79. Repealed by Act No. 18 of 1980.

80. (1) Appeals under this Part, whether from decisions of the Registrar
or orders or decisions of the High Court shall be brought within three
months after the date of the decision or order in question, or within such
further time as the High Court or the Supreme Court to which the appeal
is brought may allow upon application by the appellant concerned. Time for
appeals

(2) The powers of the Registrar as to extensions of time under
subsection (2) of section sixty-four shall not apply in relation to times
for bringing appeals under this Part.
(As amended by Act No. 18 of 1980)

81. The Chief Justice may, by statutory instrument, make rules
regulating the practice and procedure relating to appeals or references to
the High Court or the Supreme Court, as the case may be, as to- Rules of court

(a) the time within which any requirement of the rules is to be
complied with;
(b) the costs and expenses of and incidental to any proceedings;
(c) the fees to be charged in respect of such proceedings; and
(d) the summary determination of any appeal which appears to the
High Court or Supreme Court, as the case may be, to be frivolous or
vexatious or to be brought for the purpose of delay.
(As amended by Act No. 18 of 1980)

82. Where any matter to be decided by the Registrar under this Act
appears to him to involve a point of law or to be of unusual importance
or complexity, he may, after giving notice to the parties, refer such
matter to the High Court for a decision and shall, thereafter, in relation
to such matter, act in accordance with the decision of that court or any
decision substituted therefor on appeal to the Supreme Court.
(As amended by Act No. 18 of 1980) References to
High Court by
Registrar

PART XII
OFFENCES AND PENALTIES

83. If any person makes or causes to be made a false entry in any
register kept under this Act, or a writing falsely purporting to be a copy
of an entry in any such register, or produces or tenders or causes to be
produced or tendered in evidence any such writing, knowing the entry or
writing to be false, he shall be guilty of an offence. Falsification of
certain
documents

84. (1) Any person who- Deceiving or
influencing the
Registrar or an
officer

(a) for the purpose of deceiving the Registrar or any other officer of
the Patent Office in the execution of the provisions of this Act; or

(b) for the purpose of procuring or influencing the doing or omission
of anything in relation to this Act or any matter thereunder;

makes or submits a false statement or representation, whether orally or
in writing, knowing the same to be false, shall be guilty of an offence.

(2) Any person who, having innocently made a false statement or
representation, whether orally or in writing, for the purpose of procuring
or influencing the doing or omission of anything in relation to this Act or
any matter thereunder and who, on becoming aware that such statement
or representation was false, fails to advise the Registrar forthwith of
such falsity, shall be guilty of an offence.
(No. 12 of 1959)

85. Any person who, after having been sworn, or having in lieu thereof
made an affirmation or declaration, wilfully gives false evidence before
the Registrar High Court concerning the subject-matter of the
proceeding in question, knowing such evidence to be false or not
knowing or believing it to be true, shall be guilty of an offence.
(As amended by Act No. 18 of 1980) Witness giving
false evidence

86. (1) Any officer of the Patent Office who buys, sells, acquires, or
traffics in any invention or patent or any right under a patent shall be
guilty of an offence. Prohibition on
trafficking in
patents by
officers in
Patent Office

(2) Every purchase, sale or acquisition, and every assignment of any
invention or patent, by or to any such officer shall be null and void.

(3) Nothing in this section contained shall apply to the inventor or to
any acquisition by bequest or devolution in law.

87. If any person falsely represents that any article sold by him is a
patented article, he shall be guilty of an offence, and for the purposes of
this provision a person who sells an article having stamped, engraved or
embossed thereon or otherwise applied thereto the word “patent” or
“patented” or any other word expressing or implying that the article is
patented, shall be deemed to represent that the article is a patented
article. Unauthorised
claim of patent
right

88. If any person other than a person appointed in terms of section four
uses on his place of business, or on any document issued by him, or
otherwise, the words “Patent Office”, or any other words suggesting that
his place of business is, or is officially connected with, the Patent Office,
he shall be guilty of an offence. Unauthorised
use of certain
words

89. Any person who is guilty of an offence under this Act shall be
liable to a fine not exceeding fifteen thousand penalty units or to
imprisonment for a period not exceeding three years, or to both.
(As amended by Act No. 13 of 1994) Penalties

PART XIII
MISCELLANEOUS

90. (1) Any application, notice or document authorised or required
under this Act to be lodged, made or given at the Patent Office, or to the
Registrar or any other person, may be delivered by hand or sent by
registered post. Lodging and
authentication
of documents

(2) No authentication shall be required in respect of any document
lodged in the Patent Office under the provisions of this Act and used in
proceedings before the Registrar.
(As amended by Act No. 18 of 1980)

91. Any person who is required under the provisions of this Act to take
any oath or swear to the truth of any affidavit may, in lieu thereof, make
an affirmation or declaration in accordance with the written law relating
to affirmations or declarations in Zambia.
(As amended by G.N. No. 185 of 1964) Oaths and
affirmations

92. All moneys necessary for the purposes of this Act shall be paid out
of moneys appropriated for the purpose by Parliament.
(As amended by G.N. No. 185 of 1964
and S.I. No. 175 of 1965) Expenses of
administration

93. (1) Where under the provisions of this Act- Provisions as to
fees

(a) a fee is payable in respect of the performance of any act by the
Registrar, the Registrar shall not perform that act until the fee has been
paid;

(b) a fee is payable in respect of the doing of any act by any person
other than the Registrar, the act shall be deemed not to have been done
until the fee has been paid; or

(c) a fee is payable in respect of the lodging of a document, the
document shall be deemed not to have been lodged until the fee has been
paid.

(2) All fees shall be paid at the Patent Office in such manner as the
Registrar, with the approval of the Minister, may accept.

94. Nothing in this Act shall affect the right of the State or of any
person deriving title directly or indirectly from the State to sell or use
articles forfeited under the provisions of any written law in force in
Zambia.
(As amended by G.N. No. 185 of 1964
and S.I. No. 175 of 1965) Saving for
certain
forfeitures

95. (1) The Minister may, when he deems fit, direct the publication by
the Registrar of a journal, to be referred to as the Patent Journal,
containing particulars of applications for patents and other proceedings
or matters arising under the provisions of this Act, together with such
reports of cases and other relevant matters as the Minister may deem fit. Patent Journal

(2) The Registrar shall make provision for selling copies of the Patent
Journal at such price and in such manner as the Minister may direct.

96. (1) The Minister may, by statutory instrument, make regulations
prescribing anything which under this Act is to be prescribed and
generally for the better carrying out of the objects and purposes of this
Act or to give force or effect to its provisions or for its better
administration. Regulations

(2) Without derogation from the generality of the provisions of
subsection (1), regulations made by the Minister may provide for-

(a) the form of applications for patents and of any specifications,
drawings or other documents which may be lodged at the Patent Office,
and the furnishing of copies of any such documents;

(b) the procedure to be followed in connection with any application
or request to the Registrar, or any proceeding before him, and the
authorising of the rectification of irregularities of procedure;

(c) the service of notices and other documents required to be served
in connection with proceedings under this Act;

(d) examinations for the qualification of patent agents in terms of
this Act, the recognition for such purpose of qualifications obtained
either in or outside Zambia, and the fees to be paid in connection with
the registration of patent agents;

(e) the conduct of the business of the Patent Office;

(f) other fees payable under this Act, and fees which may be
charged in relation to the conduct of patent business by patent agents
and legal practitioners performing the functions of patent agents;

(g) authorising the publication and the sale of copies of
specifications, drawings and other documents in the Patent Office, and
of indexes to and abridgements of such documents;

(h) the professional conduct of patent agents.
(As amended by G.N. No. 185 of 1964)

PART XIV
APPLICATION AND TRANSITIONAL PROVISIONS

97. Save as is otherwise provided in this Act, the provisions of this Act Application of

shall, so far as they are applicable, apply in relation to-
(a) any patent granted or registered under the Registration of United
Kingdom Patents Act, Chapter 205 of the 1957 Edition of the Laws, or
the Patents (Southern Rhodesia) Act, Chapter 208 of the 1948 Edition of
the Laws (hereinafter in this section referred to as “such legislation”);
and
(b) any application in respect of a patent made under such
legislation: Act

Provided that a patent referred to in this section shall not be liable to
revocation except upon some ground upon which it would have been
liable to revocation in terms of such legislation.
(No. 12 of 1959 as amended by G.N. No. 185 of 1964)

SUBSIDIARY LEGISLATION

PATENTS
SECTION 2-THE PATENTS (CONVENTION
COUNTRIES) NOTICE Federal
Government
Notice
374 of 1963

1. This Notice may be cited as the Patents (Convention Countries)
Notice. Title

2. The countries specified in the First Schedule shall be convention
countries. Convention
countries

3. Every country specified in the Second Schedule being a colony,
protectorate or territory, subject to the authority or under the suzerainty
of a country declared to be a convention country in terms of paragraph 2,
or a territory over which a mandate or trusteeship is exercised, shall be a
convention country. Dependencies
of convention
countries

FIRST SCHEDULE
(Paragraph 2)

CONVENTION COUNTRIES

1. Algeria
2. Argentina
3. Australia
4. Austria
5. Bahamas
6. Bangladesh
7. Barbados
8. Belarus
9. Belgium
10. Benin
11. Bolivia
12. Brazil
13. Bulgaria
14. Burkina Faso
15. Burundi
16. Cameroon
17. Canada
18. Central African Republic
19. Chad
20. Chile
21. China
22. Congo
23. Cote d’Ivoire
24. Croatia
25. Cuba
26. Cyprus
27. Czech Republic
28. Democratic People’s
Republic of
korea
29. Denmark
30. Egypt
31. Finland
32. France
33. Gabon
34. Gambia
35. Germany
36. Ghana 38. Guinea
39. Guinea-Bissau
40. Haiti
41. Holy See
42. Hungary
43. Iceland
44. Indonesia
45. Iraq
46. Ireland
47. Israel
48. Italy
49. Japan
50. Jordan
51. Kazakhstan
52. Kenya
53. Lebanon
54. Latvia
55. Lesotho
56. Libya
57. Liechtenstein
58. Luxembourg
59. Madagascar
60. Malawi
61. Malaysia
62. Mali
63. Malta
64. Mauritania
65. Mauritius
66. Mexico
67. Monaco
68. Mongolia
69. Morocco
70. Netherlands
71. New Zealand
72. Niger
73. Norway
74. Philippines
75. Poland 76. Portugal
77. Republic of Korea
78. Republic of Macedonia
(the
former Yugoslav
Republic)
79. Republic of Moldova,
80. Romania
81. Russian Federation
82. Rwanda
83. San Marino
84. Senegal
85. Slovakia
86. Slovenia
87. South Africa
88. Spain
89. Sri Lanka
90. Sudan
91. Suriname
92. Swaziland
93. Sweden
94. Switzerland
95. Togo
96. Trinidad and Tobago
97. Tunisia
98. Turkey
99. Uganda
100. Ukraine
101. United Kingdom
102. United Republic of
Tanzania
103. United States of
America
104. Uruguay
105. Uzbekistan
106. Viet Nam
107. Yugoslavia
108. Zaire

37. Greece 109. Zimbabwe

SECOND SCHEDULE
(Paragraph 3)

DEPENDENCIES OF CONVENTION COUNTRIES
1. Dependency Convention Country
(a) Norfolk Island Australia
(b) Faroe-Islands Denmark
(c) Departments of Guyane, France
Guadeloupe, Martinique
and Reunion and the
overseas territories of
New Caledonia,
French Polynesia,
St. Pierre and Miquelon,
Wallis and Futuna Islands
and the French Southern
and Antarctic Territories
(d) Hong Kong and United Kingdom
Isle of Man
(e) Cook Islands, Niue and New Zealand
Tokelau
(f) Surinam and the Netherlands Netherlands
Antilles
(g) Puerto Rico and all other United States of
territories and possessions America
of the United States of
America
2. All other territories not included under (1) of this Schedule and which are dependencies of the convention countries named in
the First Schedule.

SECTION 3-THE PATENT OFFICE
(ESTABLISHMENT) ORDER
Order by the Minister Statutory
Instrument
325 of
1968

1. This Order may be cited as the Patent Office (Establishment) Order. Title

2. The Patent Office is hereby established at the place described in the
Schedule. Establishment
of Patent Office

SCHEDULE
(Paragraph 2)

The Fourth Floor of the old Bank of Zambia
Building situated at plot no. 9-10 Cairo Road,
Lusaka.

THE PATENTS REGULATIONS [ARRANGEMENT OF
REGULATIONS]

PART I
PRELIMINARY

Regulation
1. Title
2. Interpretation

PART II
APPLICATION FOR PATENTS
AND SPECIFICATIONS

3. Appropriate application forms to be used
4. Assignee or legal representative to establish right to act
5. Cognate application
6. Division of application if not cognate
7. Evidence in support of convention application
8. Division of convention application
9. Extension of period for lodging complete specification
10. Request for post-dating an application

PART III
DRAWINGS

11. When supplied, drawings to accompany specification
12. Drawing paper
13. Size of sheets, etc.

14. Preparation of drawings
15. Identification of drawings
16. Descriptive matter
17. Drawings not to be creased
18. Drawings lodged with provisional specification

PART IV
EXAMINATION OF
APPLICATIONS AND
ACCEPTANCE
OF COMPLETE
SPECIFICATIONS

19. Examination procedure under section 16
20. Extension of time under section 20
Regulation
21. Extension of time under section 21
22. Publication of acceptance
23. Inspection of application, specification and drawings

PART V
OPPOSITION TO GRANT OF
PATENT

24. Notice of opposition
25. Counter-statement
26. Filing of evidence by objector
27. Filing of evidence by applicant
28. Extension of time under regulations 25, 26 and 27
29. Proof of service of notices, statements, etc.

30. Supply of documents, etc., to High Court

PART VI
SUBSTITUTION OF
APPLICANTS, ETC.

31. Procedure under subsection (1) of section 23
32. Procedure under subsection (5) of section 23

PART VII
SEALING AND FORM OF
PATENT AND RENEWAL FEES

33. Request for sealing
34. Time for sealing under subsection (2) of section 25
35. Form of patent
36. Amendment of patent
37. Payment of renewal fees
38. Renewal fees may be paid in advance
39. Extension of time for payment
40. Certificate of payment

PART VIII
RESTORATION OF LAPSED
PATENTS

41. Application
42. Notice of opposition
43. Hearing

PART IX

VOLUNTARY ENDORSEMENT
OF PATENTS “LICENCES OF
RIGHTS”

Regulation
44. Application under subsection (1) of section 35
45. Application under subsection (2) of section 35
46. Advertisement of endorsement
47. Cancellation of endorsement under subsection (1) of section 36
48. Cancellation of endorsement under subsection (2) of section 36
49. Advertisement and opposition

PART X
COMPULSORY LICENCES

50. Application under section 37
51. Preliminary consideration by Registrar
52. Opposition
53. Supply of documents, etc., to High Court

PART XI
AMENDMENT OF
SPECIFICATION

54. Application to amend unaccepted specification
55. Application to amend accepted complete specification
56. Certified copy of original specification to accompany
application
57. Opposition
58. New specification and drawings as amended may be required

PART XII
DIRECTIONS TO CO-OWNERS

59. Application under subsection (6) of section 47
60. Application under subsection (7) of section 47

PART XIII
DISPUTES AS TO INVENTIONS
MADE BY EMPLOYEES

61. Application under subsection (1) of section 48
62. Hearing

PART XIV
SURRENDER OF PATENT

Regulation
63. Form of offer to surrender a patent
64. Opposition

PART XV
REGISTER OF PATENTS

65. Register to record grant of patents
66. Alteration of entries
67. Registration of assignments, etc.
68. Copies of documents
69. Correction of errors
70. Advertisement
71. Opposition
72. Certified copies of entries, etc.

73. Lost patents

PART XVI
PATENT AGENTS

74. Application for registration

PART XVII
MISCELLANEOUS

75. Prescribed fees
76. Prescribed forms
77. Size, etc., of documents
78. Address for service
79. Method and proof of service
80. Lodging of documents
81. Power of Registrar to fix time and place of proceedings
82. Agency
83. Refusal to recognise agent
84. Signature of documents
85. Amendment of documents
Regulation
86. Power of Registrar to waive requirements
87. Order of High Court or Supreme Court
88. Days and hours of business

FIRST SCHEDULE-Fees payable to the Office

SECOND SCHEDULE-Form of patent

THIRD SCHEDULE-Prescribed forms

SECTION 96-THE PATENTS REGULATIONS Federal

Regulations by the Minister Government
Notices
251 of 1957
206 of 1959
55 of 1960
363 of 1960
203 of 1962
Act 57 of
1964
Statutory
Instruments
497 of 1964
38 of 1981
147 of 1990
54 of 1995
Act No.
13 of 1994

PART I
PRELIMINARY

1. These Regulations may be cited as the Patents Regulations. Title

2. In these Regulations, unless the context otherwise requires- Interpretation

“agent” means a patent agent registered as such in terms of section
sixty-eight, and includes a legal practitioner;

“Office” means the Patent Office;

“section” means a section of the Act;

“Court” means the High Court

PART II

APPLICATION FOR PATENTS
AND SPECIFICATIONS

3. (1) An application, other than a convention application, shall be
made in Form No. 1. Appropriate
application
forms to be
used

(2) A convention application shall be made in Form No. 2.

(3) An application for a patent of addition shall be made in Form No. 3.

(4) An application in terms of subsection (2) of section thirty-one for
the grant of a patent of addition instead of an independent patent shall be
made in Form No. 4.

(5) Every application (other than a convention application) shall be
accompanied by either a provisional specification in duplicate in Form
No. 5 or a complete specification shall be accompanied in Form No. 6;
and every convention application shall be accompanied by a complete
specification in duplicate in Form No. 6.

4. An application for a patent by an assignee or the legal representative
of a person who was the owner of an invention when he died shall be
accompanied by the deed of assignment or the probate of the will of the
deceased or the letters of administration, as the case may be, or a
certified copy thereof, and such further evidence and proof of the
applicant’s title as the Registrar may require. Assignee or
legal
representative
to establish
right to act

5. Where, in pursuance of subsection (3) of section thirteen, the
Registrar allows a single complete specification to be proceeded with in
respect of two or more applications in respect of which two or more
complete specifications have been lodged, the single complete
specification may include any matter disclosed in any of the said
specifications and shall be deemed to have been lodged on such date, not
earlier than the earliest date on which all the matter disclosed in the said
single complete specification has been disclosed to the Office in or in Cognate
application

connection with the applications, as the Registrar may direct.

6. Where a complete specification has been lodged pursuant to two or
more applications accompanied by provisional specifications for
inventions which the applicant believes to be cognate or modifications
one of another and the Registrar is of the opinion that such inventions
are not cognate or modifications one of another, the Registrar may allow
the complete specification to be divided into such number of complete
specifications as may be necessary to enable the applications to be
proceeded with as two or more separate applications for patents. Division of
application if
not cognate

7. (1) In addition to the specification lodged with every convention
application, there shall be lodged with the application, or within six
months thereafter, a copy of the specification and drawings or
documents lodged in respect of the relevant first application or
applications for protection in a convention country, duly certified by the
official chief or head of the patent office of the convention country, or
otherwise verified to the satisfaction of the Registrar. Evidence in
support of
convention
application

(2) If any specification or other document relating to the application is
in a foreign language, it shall be accompanied by a translation thereof in
the English language verified to the satisfaction of the Registrar.

8. Where a single convention application has been made in respect of
all or part of the inventions in respect of which two or more applications
for protection have been made in one or more convention countries, the
Registrar may, if he is satisfied that the claims of the specification
lodged with the said convention application relate to more than one
invention, allow one or more further applications to be lodged and the
specification to be divided into such number of specifications as may be
necessary to enable two or more separate convention applications to be
proceeded with, and may direct that the said applications be deemed to
have been lodged on the date of lodging of the original application. Division of
convention
application

9. A request in terms of subsection (2) of section thirteen for an
extension of time for lodging a complete specification shall be made in
Form No. 7. Extension of
period for
lodging
complete
specification

10. A request in terms of subsection (1) of section seventeen for the
post-dating of an application shall be made in Form No. 8. Request for
post-dating an
application

PART III
DRAWINGS

11. Drawings, when supplied, shall accompany the provisional or
complete specification to which they refer, except in the case provided
for by regulation 18. A true copy of the original drawings shall be
lodged at the same time as the original drawings. When supplied,
drawings to
accompany
specification

12. (1) Drawings shall be made on pure white tough drawing paper, not
thinner than 100 sheets to the inch, of smooth surface and good quality,
and without colour or washes, in such a way as to admit of being clearly
reproduced on a reduced scale by photography. Drawing paper

(2) Mounted drawings may not be used.

13. (1) Drawings shall be on sheets which measure 13 inches from top
to bottom and are either 8 inches or 16 inches wide, and shall be made
on one side of the paper only and have 1 1/2 inches clear binding margin
on the left-hand side of the sheet and a 1/2 inch clear margin on the top,
bottom and right-hand side of the sheet. Size of sheets,
etc.

(2) If there are more figures than can be shown on one of the smaller
sized sheets, two or more of these sheets shall be used unless the large
size is required by the size of any one figure.

(3) An exceptionally large figure may be continued on subsequent
sheets.

(4) No more sheets shall be employed than are necessary.

(5) The figures shall be numbered consecutively without regard to the
number of sheets, and shall as far as possible be arranged in numerical
order, separated by a sufficient space to keep them distinct.

(6) Where figures on a number of sheets form in effect a single
complete figure, they shall be so arranged that the complete figure can
be assembled without concealing any part of another figure.

14. Drawings shall be prepared in accordance with the following
requirements:
(a) they shall be executed in durable black or very dark markings;
(b) each line shall be firmly and evenly drawn, sharply defined, and
of the same strength throughout;
(c) section lines, lines for effect, and shading lines shall be as few as
possible, and shall not be closely drawn;
(d) shading lines shall not contrast excessively in thickness with the
general lines of the drawing;
(e) sections and shading shall not be represented by solid black or
washes;
(f) they shall be on a scale sufficiently large to show the invention
clearly, and only so much of the apparatus, machine or article may
appear as effects this purpose;
(g) if the scale is given, it shall be drawn and not denoted by words,
and no dimensions may be marked on the drawings;
(h) where convenient, the figures shall be drawn in an upright
position in regard to the top and bottom of the sheet;
(i) subject to any special directions of the Registrar in any particular
case, reference letters and numerals and index letters and numerals used
in conjunction therewith shall be bold, distinct and not less than 1/8 inch
in height; the same letters or numerals shall be used in different views of
the same parts; and where the reference letters or numerals are shown
outside the parts referred to, they shall be connected with the said parts
by fine lines. Preparation of
drawings

15. (1) Drawings shall bear- Identification of
drawings

(a) in the left-hand top corner the name of the applicant and, in the

case of drawings lodged with a complete specification after one or more
provisional specifications, the numbers and years of the applications;

(b) in the right-hand top corner the number of sheets of drawings
sent and the consecutive number of each sheet, and the words “original”
or “true copy”, as the case may require;

(c) in the right-hand bottom corner the signature of the applicant or
his agent.

(2) The title of the invention shall not appear on the drawings.

16. (1) No descriptive matter shall appear on constructional drawings,
but drawings in the nature of flow sheets may bear descriptive matter to
show the materials used and the chemical or other reactions or
treatments effected in carrying out the invention. Descriptive
matter

(2) Drawings showing a number of instruments or units of apparatus
and their interconnections, either mechanical or electrical, where each
such instrument or unit is shown only symbolically, may bear such
descriptive matter as is necessary to identify the instruments or units or
their interconnections.

(3) Such descriptive matter shall be in black or very dark markings on
both the original and the true copy drawings and on the latter the letters
shall be not less than 1/4 inch in height.

(4) No drawing or sketch, other than a graphic chemical formula or a
mathematical formula, symbol or equation, shall appear in the verbal
part of the specification and if such a formula, symbol or equation is
used therein a copy thereof, prepared in the same manner as original
drawings, except that it may be a hand-made drawing on tracing-cloth,
shall be furnished if the Registrar so directs.

17. Drawings shall be delivered at the Office free from folds, breaks or
creases which would render them unsuitable for reproduction by
photography. Drawings not to
be creased

18. If an applicant desires to adopt the drawings lodged with his Drawings

provisional specification as the drawings or part of the drawings for his
complete specification, he shall refer to them in the complete
specification as those lodged with the provisional specification. lodged with
provisional
specification

PART IV
EXAMINATION OF
APPLICATIONS AND
ACCEPTANCE OF
COMPLETE SPECIFICATIONS

19. (1) When the Registrar, in making the investigation under section
sixteen, finds that the application or specification does not comply with
the requirements of subsection (1), the Registrar may refuse to accept
the application or require the application or the specification which
accompanied it to be amended in such manner as may be necessary. Examination
procedure under
section 16

(2) The Registrar may appoint a hearing if he considers it desirable to
do so, having regard to the time remaining for putting the application in
order or other circumstances of the case.

(3) When a hearing is appointed, the applicant shall be given fourteen
days’ notice of the appointment or such shorter notice as appears to the
Registrar to be reasonable in the circumstances and shall as soon as
possible notify the Registrar whether he will attend the hearing.

(4) After hearing the applicant, or without a hearing if the applicant has
not attended or has notified that he does not desire to be heard, the
Registrar may direct or permit such amendment of the specification as
will be to his satisfaction, and may refuse to accept the specification
unless such amendment is made within such period as he may fix.

20. An application under section twenty for extension of time for
accepting a complete specification shall be given in Form No. 9. Extension of
time under
section 20

21. A notice under the proviso to subsection (1) of section twenty-one
requesting postponement of the acceptance of a complete specification
to a date, not being later than eighteen months from the date of lodging
of the application, shall be given in Form No. 10. Extension of
time under
section 21

22. (1) When notice of acceptance of a complete specification has been
given by the Registrar in terms of subsection (2) of section twenty-one,
the applicant shall advertise the acceptance in the Patent Journal within
one month of the date of such acceptance or within such further time as
the Registrar may allow. Publication of
acceptance

(2) At any time prior to the publication of the acceptance of a complete
specification the Registrar may, if he thinks fit, on application made in
Form No. 11, cancel such acceptance.
(As amended by F.G.N. No. 55 of 1960)

23. The fee for inspecting an application, specification and drawings
shall be as set out in item 49 of the First Schedule. Inspection of
application,
specification
and drawings

PART V
OPPOSITION TO GRANT OF
PATENT

24. A notice of opposition to the grant of a patent shall be given in
Form No. 12. Notice of
opposition

25. The period within which a counter-statement may be lodged by
the applicant shall be two months from the date of receipt by him of
the notice of opposition. If such counter-statement is not lodged
within the said period or within such further period as the Registrar
may allow, the application shall be deemed to be abandoned. Counter-statement

26. The objector may, within two months from the receipt of the copy
of the counter-statement, file evidence in accordance with the provisions
of section sixty-five in support of his case and shall serve on the
applicant a copy thereof. Filing of
evidence by
objector

27. Within two months from the receipt of the copy of the objector’s
evidence or, if the objector does not file any evidence, within two
months from the expiration of the time within which the objector’s
evidence might have been filed, the applicant may file evidence in
accordance with the provisions of section sixty-five in support of his
case and shall serve on the objector a copy of the evidence; and within
two months from the receipt of the copy of the applicant’s evidence, the
objector may file evidence confined to matters strictly in reply and shall
serve on the applicant a copy of the evidence. Filing of
evidence by
applicant

28. The Registrar may extend the periods mentioned in regulations 25,
26 and 27 if a request in writing for such extension is made at any time
within the said periods or extended periods. Extension of
time under
regulations 25,
26 and 27

29. Proof of service of all notices, statements or other documents
referred to in these Regulations shall be furnished to the Registrar. Proof of service
of notices,
statements, etc.

30. (1) When the foregoing provisions of this Part have been complied
with, the Registrar shall hand all relevant papers to the registrar of the
High Court. Supply of
documents, etc.,
to High Court

(2) Copies of all documents, other than specifications, referred to in the
notice of opposition or in any statement or evidence filed in connection
with the opposition shall be furnished for the use High Court, unless the
High Court otherwise directs.

PART VI
SUBSTITUTION OF

APPLICANTS, ETC.

31. (1) A claim under subsection (1) of section twenty-three that an
application for a patent shall proceed in the name of the claimant or in
the names of the claimant and the applicant or the other joint applicant
or applicants shall be made in Form No. 13 and shall be accompanied by
a copy of any assignment or agreement upon which the claim is based,
which copy shall be certified by the claimant, the applicant or the agent
of either of them, as the case may be. Procedure
under
subsection (1)
of section 23

(2) If so required by the Registrar, the original assignment or agreement
shall also be produced for his inspection and he may also call for such
other proof of title or written consent as he may require.

32. (1) An application under subsection (5) of section twenty-three by
any party to a joint application for the directions of the Registrar as to
the name of the party, or the manner in which an application for a patent
shall be proceeded with, shall be made in Form No. 14 and shall be
accompanied by a statement setting out fully the facts upon which the
applicant relies and the directions which he seeks. Procedure
under
subsection (5)
of section 23

(2) A copy of the application and statement shall be sent by the
Registrar to each other joint applicant (the applicant shall supply a
sufficient number of copies for that purpose) and thereafter the Registrar
shall appoint a time for the hearing of the case and shall give the parties
at least fourteen days’ notice of the appointment.

(3) After hearing the party or parties desiring to be heard or, if none of
the parties desires to be heard, then without a hearing, the Registrar shall
in accordance with the provisions of subsection (5) of section
twenty-three give directions as he thinks fit for enabling the application
to proceed in the name of one or more of the parties or for regulating the
manner in which it shall be proceeded with or for both those purposes,
according as the case may require.

PART VII

SEALING AND FORM OF
PATENT AND RENEWAL FEES

33. An application for the sealing of a patent shall be made in Form
No. 15. Request for
sealing

34. (1) An application for an extension of time under proviso (iv) to
subsection (2) of section twenty-five shall be made in Form No. 16 and
the period of extension shall not exceed three months. Time for
sealing under
subsection (2)
of section 25

(2) An application under proviso (v) to subsection (2) of section
twenty-five for a further extension of time shall be made in Form No. 17.

35. A patent shall be in the form set out in the Second Schedule or in
such form modified as directed by the Registrar to meet the
circumstances. Form of patent

36. An application under section twenty-six for the amendment of a
patent shall be made in Form No. 18 and shall be accompanied by
evidence verifying the statements therein and by the letters patent. Amendment of
patent

37. If it is desired at the expiration of the third year of the term of a
patent or of any succeeding year during the term of the patent to keep the
patent in force, the renewal fees set out in item 18 of the First Schedule
shall be paid by lodging Form No. 19 before the expiration of that year: Payment of
renewal fees

Provided that where the sealing of the patent is delayed beyond the
periods set out herein, by reason of opposition or the application having
been kept secret or an extension under proviso (v) to subsection (2) of
section twenty-five having been granted, the renewal fees may be paid at
the time the patent is sealed. The Registrar may in his discretion grant an
extension of time not exceeding six months from the date of sealing for
payment of such fees.
(As amended by F.G.N. No. 206 of 1959
and F.G.N. No. 363 of 1960)

38. All or any of the prescribed renewal fees may be paid in advance. Renewal fees
may be paid in
advance

39. An application for extension of time for payment of any renewal fee
shall be made in Form No. 20. Extension of
time for
payment

40. On due compliance with the terms of regulation 37, the Registrar
shall issue a certificate in Form No. 21 that the prescribed fee has been
duly paid, and he shall cause to be entered in the register the fact that the
fee has been paid and the date of payment as stated on the certificate. Certificate of
payment

PART VIII
RESTORATION OF LAPSED
PATENTS

41. (1) An application under section thirty-three for the restoration of a
patent shall be made in Form No. 22 and shall be accompanied by
evidence by affidavit in support of the statements made in the
application. Application

(2) The Registrar shall direct the patentee to advertise the application (if
in compliance with subsection (2) of section thirty-three) in two
consecutive issues of the Patent Journal .
(As amended by F.G.N. No. 206 of 1959 and F.G.N. No. 55 of 1960)

42. (1) At any time within two months of the advertisement of the
application, any person may give notice of opposition thereto in Form
No. 23. Notice of
opposition

(2) Such notice shall be accompanied by a copy thereof together with a
statement, in duplicate, setting out fully the nature of the objector’s

interest and the facts upon which he relies.

(3) Upon notice of opposition being given, the provisions of regulation
25 to 29 shall mutatis mutandis apply in respect of the proceedings held
before the Registrar under section thirty-three.

43. (1) On completion of the evidence (if any), or at such other time as
the Registrar may see fit, the Registrar shall appoint a time for the
hearing of the application and shall give the parties at least fourteen
days’ notice of the appointment. Hearing

(2) After hearing the party or parties desiring to be heard or, if none of
the parties desires to be heard, then without a hearing, the Registrar shall
decide the matter and notify his decision to the parties.

PART IX
VOLUNTARY ENDORSEMENT
OF PATENTS “LICENCES OF
RIGHT”

44. An application under subsection (1) of section thirty-five for
endorsement of a patent “licences of right” shall be made in Form No. 24
and shall be accompanied by evidence verifying the statement in the
application and by the letters patent. Application
under
subsection (1)
of section 35

45. (1) An application under paragraph (a) or b) of subsection (2) of
section thirty-five for settlement of the terms of a licence under a patent
endorsed “licences of right” shall be made in Form No. 25 and shall be
accompanied by a copy thereof and a statement, in duplicate, setting out
fully the facts upon which the applicant relies and the terms of the
licence which he is prepared to accept or grant. Application
under
subsection (2)
of section 35

(2) A copy of the application and statement shall be sent by the
Registrar to the patentee or the person requiring a licence, as the case

may be, who, if he does not agree to the terms set out in the statement,
shall within two months of the receipt of such copies file a
counter-statement setting out fully the grounds of the objection and
serve a copy thereof on the applicant.

(3) The Registrar shall give such directions as he may think fit with
regard to the filing of evidence and the hearing of the parties.

46. Upon the endorsement of a patent in terms of section thirty-five, the
Registrar shall direct the applicant to publish notification thereof
forthwith in the Patent Journal.
(As amended by F.G.N. No. 55 of 1960) Advertisement
of endorsement

47. An application under subsection (1) of section thirty-six for the
cancellation of an endorsement shall be made in Form No. 26 and shall
be accompanied by evidence verifying the statement in the application
and by a memorandum in Form No. 19 with fees to the amount of the
balance of all renewal fees which would have been payable if the patent
had not been endorsed. Cancellation of
endorsement
under
subsection (1)
of section 36

48. (1) An application under subsection (2) of section thirty-six for the
cancellation of an endorsement shall be made in Form No. 27 within six
months after the patent has been endorsed and shall be accompanied by
a copy thereof and a statement, in duplicate, setting out fully the nature
of the applicant’s interest and the facts upon which he relies. Cancellation of
endorsement
under
subsection (2)
of section 36

(2) The period within which renewal fees shall be paid on cancellation
of an endorsement in terms of subsection (3) of section thirty-six shall
be one month from the date of cancellation.

49. (1) Every application under subsection (1) or (2) of section
thirty-six shall be advertised by the applicant in the Patent Journal and
the period within which notice of opposition to the cancellation of an
endorsement may be given under subsection (5) of section thirty-six
shall be two months after the advertisement. Advertisement
and opposition

(2) Such notice shall be given in Form No. 28 and shall be accompanied
by a copy thereof and a statement, in duplicate, setting out fully the facts
upon which the opponent relies, and, in the case of opposition to an

application under subsection (1) of section thirty-six, the nature of his
interest.

(3) A copy of the notice and of the statement shall be sent by the
Registrar to the applicant for cancellation of the endorsement and
thereafter the Registrar shall appoint a time for the hearing of the
application and shall give the parties at least fourteen days’ notice of the
appointment.

(4) After hearing the party or parties desiring to be heard or, if none of
the parties desires to be heard, then without a hearing, the Registrar shall
give such decision on the application as he may consider just.
(As amended by F.G.N. No. 55 of 1960)

PART X
COMPULSORY LICENCES

50. An application under section thirty-seven for a licence under a
patent shall be made in Form No. 29. Application
under section
37

51. (1) If upon consideration of the evidence the Registrar is satisfied
that the application falls within section thirty-seven, he shall direct the
applicant to serve copies of the application and of the relevant affidavit
upon the patentee and upon any other person appearing from the register
to be interested in the patent and to advertise the application in one issue
of the Patent Journal in such form as he may approve. Preliminary
consideration
by Registrar

(2) If the Registrar is not so satisfied, he shall notify the applicant
accordingly and, unless within one month the applicant requests to be
heard in the matter, the Registrar shall refuse the application.
(As amended by F.G.N. No. 55 of 1960)

52. (1) At any time within two months from the date of the
advertisement, or within such further time as the Registrar may allow, Opposition

the patentee or any other person who wishes to oppose the application
shall deliver to the Registrar a counter-statement, verified by affidavit,
setting out fully the grounds on which the application is opposed, and
shall at the same time serve upon the applicant a copy of the
counter-statement and of such affidavit.

(2) Proof of service shall be furnished to the satisfaction of the
Registrar.

53. When the foregoing provisions of this Part have been complied
with, the Registrar shall hand all relevant papers to the registrar of the
High Court. Supply of
documents, etc.,
to High Court

PART XI
AMENDMENT OF
SPECIFICATION

54. (1) An application for leave to amend a provisional specification or
a complete specification which has not been accepted, except when the
amendment is made to meet an objection by the Registrar, shall be made
in Form No. 30. Application to
amend
unaccepted
specification

(2) The Registrar shall, if he thinks fit, appoint a time for a hearing of
the application and shall give the applicant at least twenty-one days’
notice of such appointment. If the applicant desires to be heard he must,
not later than seven days prior to the date of the hearing or within such
further time as the Registrar may allow, notify the Registrar to that
effect.

(3) After hearing the applicant or, if the applicant does not desire to be
heard, then without a hearing, the Registrar shall decide the case and
notify his decision to the applicant.

55. An application for leave to amend an accepted complete
specification shall be made in Form No. 31 and the application and the Application to
amend accepted

nature of the proposed amendment shall be advertised by the applicant
in the Patent Journal in the manner provided for in Form No. 32.
(As amended by F.G.N. No. 55 of 1960) complete
specification

56. An application for leave to amend a specification shall be
accompanied by a copy, certified by the applicant or his agent, of the
original specification, or of those pages of specification or drawings in
which the proposed amendment appears, clearly showing in red ink the
amendment sought. Certified copy
of original
specification to
accompany
application

57. (1) Any person wishing to oppose an application for amendment
under regulation 55 shall give notice to the Registrar in Form No. 33. Opposition

(2) Such notice shall be accompanied by a statement setting out fully
the nature of the objector’s interest, the facts upon which he relies and
the relief he seeks.

(3) A copy of the notice and of any statement which accompanies such
notice shall be served by the objector on the applicant.

(4) Upon notice of opposition being given, the provisions of regulations
25 to 29 and of regulation 43 shall mutatis mutandis apply in respect of
the proceedings hold before the Registrar under section forty-three.

58. (1) When leave to amend a specification is given the applicant
shall, if the Registrar so requires and within a time to be fixed by him,
lodge a new specification and drawings as amended. New
specification
and drawings as
amended may
be required

(2) Where an application for leave to amend a specification is made
pursuant to an order of the High Court, such application shall be
accompanied by a copy of such order certified by the registrar of or the
High Court the Supreme Court, as the case may be.

PART XII

DIRECTIONS TO CO-OWNERS

59. (1) An application for directions under subsection (6) of section
forty-seven by any one or more of the proprietors of a patent shall be
made in Form No. 34 and shall be accompanied by a statement setting
out fully the facts upon which the applicant relies and the directions
which he seeks. Application
under
subsection (6)
of section 47

(2) A copy of the application and of the statement shall be sent by the
Registrar to each of the other proprietors of the patent, and the applicant
shall supply a sufficient number of copies for that purpose.

(3) Thereafter the Registrar shall appoint a time for the hearing of the
case and shall give the parties at least fourteen days’ notice of the
appointment.

(4) After hearing the party or parties desiring to be heard or, if none of
the parties desires to be heard, then without a hearing, the Registrar shall
give directions in accordance with the provisions of subsection (6) of
section forty-seven.

60. (1) An application for directions under subsection (7) of section
forty-seven shall be made in Form No. 35 and shall be accompanied by a
copy thereof and a statement, in duplicate, setting out fully the facts
upon which the applicant relies and the directions which he seeks. Application
under
subsection (7)
of section 47

(2) A copy of the application and of the statement shall be sent by the
Registrar to the person in default.

(3) Thereafter the provisions of sub-regulations (3) and (4) of regulation
59 shall apply.

PART XIII

DISPUTES AS TO INVENTIONS
MADE BY EMPLOYEES

61. (1) An application under subsection (1) of section forty-eight to
determine a dispute as to rights in respect of an invention or in respect of
a patent granted or to be granted in respect thereof shall be made in
Form No. 36 and shall be accompanied by a copy thereof together with a
statement, in duplicate, setting out fully the facts of the dispute and the
relief which is sought. Application
under
subsection (1)
of section 48

(2) A copy of the application and of the statement shall be sent by the
Registrar to the other party to the dispute, who within three months after
receipt thereof shall file a counter-statement, in duplicate, setting out
fully the grounds on which he disputes the right of the applicant to the
relief sought.

(3) The Registrar shall send a copy of this counter-statement to the
applicant and thereafter, subject to such directions as the Registrar may
think fit to give, the provisions of regulations 26 to 29 shall mutatis
mutandis apply in respect of proceedings held before the Registrar, and
references to the objector shall be substituted for references to the
applicant and references to the applicant for references to the other
party.

62. (1) Should the Registrar decide to hear the application, he shall
thereafter appoint a time for the hearing and shall give the parties at least
fourteen days’ notice of the appointment. Hearing

(2) After hearing the party or parties desiring to be heard or, if none of
the parties desires to be heard, then without a hearing, the Registrar shall
determine the matter in dispute and make such orders for giving effect to
his decision as he considers expedient.

PART XIV

SURRENDER OF PATENT

63. A notice of an offer by a patentee under section fifty-two to
surrender his patent shall be given in Form No. 37 and shall be
advertised by the patentee in one issue of the Patent Journal . Form of offer to
surrender a
patent

(As amended by F.G.N. No. 55 of 1960)

64. (1) At any time within two months from such advertisement, any
person may give notice of opposition to the Registrar in Form No. 38,
which shall be accompanied by a copy thereof and a statement, in
duplicate, setting out fully the nature of the opponent’s interest, the facts
upon which he relies and the relief which he seeks. Opposition

(2) A copy of the notice and of the statement shall be sent by the
Registrar to the patentee.

(3) Upon such notice of opposition being given and a copy thereof sent
to the patentee, the provisions of regulations 25 to 29 and of regulation
43 shall mutatis mutandis apply and references to the patentee shall be
substituted for references to the applicant.

PART XV
REGISTER OF PATENTS

65. (1) In addition to the particulars referred to in the Act, the Registrar
shall cause to be entered in the register the name, address and nationality
of the patentee as the grantee thereof, the title of the invention, the date
of the patent and the date of the sealing thereof, together with the full
postal address for service. Register to
record grant of
patents

(2) The Registrar may at any time enter in the register such other
particulars as he may deem necessary.

66. (1) A request by a patentee for the alteration of a name, nationality,
address, or address for service entered in the register in respect of his
patent shall be made in Form No. 39. Alteration of
entries

(2) Before acting on a request to alter a name or nationality, the
Registrar may require such proof of the alteration as he may think fit.

(3) If the Registrar is satisfied that the request may be allowed, he shall
cause the register to be altered accordingly.

67. (1) An application for the registration of the title of any person
becoming entitled by assignment to a patent or to a share in a patent
shall be made in Form No. 40 by the person becoming so entitled. Registration of
assignments,
etc.

(2) Application may be made in Form No. 41 for entry in the register of
notification of an interest by way of mortgage, licence or otherwise.

68. (1) A copy of any document which is referred to in an application
under regulation 67, duly certified to the satisfaction of the Registrar,
shall be produced to the Registrar with the application. Copies of
documents

(2) Unless the Registrar otherwise directs, the original of any other
document so referred to shall be produced to him with the application,
and a certified copy of any such document shall be lodged therewith,
and such original document shall be returned to the person who
produced it.

69. A request under section fifty-nine for the correction of a mistake in
the register, in any patent, or application for a patent or any document
lodged in pursuance of such application, or in proceedings in connection
with any patent, shall be made in Form No. 42. Correction of
errors

70. Where the Registrar requires notice of the nature of the proposed
correction to be advertised in terms of subsection (4) of section
fifty-nine, the advertisement shall be made by publication in the Patent
Journal of the request and the nature of the proposed correction.
(As amended by F.G.N. No. 55 of 1960) Advertisement

71. (1) Where such application is advertised in terms of regulation 70,
notice of opposition may at any time within two months from the date of
publication be given in Form No. 43. Opposition

(2) Upon notice of opposition being given, the provisions of regulations
25 to 29 and of regulation 43 shall mutatis mutandis apply in respect of
the proceedings held before the Registrar under section fifty-nine.

72. Copies of any entry in the register, or copies of, or extracts from,
patents, specifications and other public documents in the Office, or of or
from registers and other records kept there, certified by the Registrar,
may be furnished by the Registrar on payment of the fees prescribed in
the First Schedule. Certified copies
of entries, etc.

73. An application under section sixty-three for a further patent to be
sealed shall be made in Form No. 44 and shall be accompanied by
evidence setting out fully and verifying the circumstances in which the
patent was lost or destroyed or cannot be produced. Lost patents

PART XVI
PATENT AGENTS

74. An application to be registered as a patent agent in terms of
subsection (2) of section sixty-eight shall be-
(a) made by affidavit on Form No. 45 sworn before a commissioner
for oaths;
(b) accompanied by- Application for
registration

(i) documentary proof that the applicant is entitled to be registered;

(ii) the appropriate fee.
(F.G.N. No. 203 of 1962)

PART XVII
MISCELLANEOUS

75. The fees to be paid in respect of the grant of patents and
applications therefor and in respect of other matters relating to patents
arising under the Act shall be those prescribed in the First Schedule. Prescribed fees

76. The forms set out in the Third Schedule shall be used in all cases to
which they are applicable and may be modified as directed by the
Registrar. Prescribed
forms

77. (1) All documents and copies of documents, except drawings,
lodged at the Office shall, unless the Registrar otherwise directs, be
written, typewritten, lithographed or printed in the English language- Size, etc., of
documents

(a) upon strong white paper of a size approximately 13 inches by 8
inches, leaving a margin of at least 1 1/2 inches on the left-hand part
thereof;

(b) in legible characters with a dark, indelible ink;

(c) with the lines widely spaced;

(d) except in the case of affidavits, on one side only.

(2) Duplicates of any documents shall at any time be lodged, if required
by the Registrar.

(3) Duplicate documents required under these Regulations may be
carbon copies of the original documents:

Provided that they shall be on paper of good quality and the typing shall
be black and distinct.

78. Every person concerned in any proceedings to which these
Regulations relate, and every patentee, shall furnish to the Registrar an
address for service in Zambia and that address may be treated for all
purposes connected with such proceedings or patent as the address of
the person concerned in the proceedings or the patentee. Address for
service

79. (1) Where any notice, application or other document is required to
be served on any person under the provisions of the Act, such service
may be effected by the delivery of a copy thereof either- Method and
proof of service

(a) at the address for service furnished to the Registrar in terms of
these Regulations; or

(b) to such person personally, or to his duly authorised agent; or

(c) at his residence or place of business or employment, to some
responsible person there residing or employed.

(2) Service effected by any person in accordance with the provisions of
this regulation shall be proved by a certificate made in Form No. 46 and
such certificate shall be filed with the Registrar.

80. Any notice, application or other document sent to the Office by
post shall not be deemed to have been given, made or lodged until it is
actually received in the Office. Lodging of
documents

81. The Registrar may in any proceedings held before him decide the
hours, times and places at which he will sit and he may adjourn any
proceedings for such time and to such place as he may think fit. Power of
Registrar to fix
time and place
of proceedings

82. (1) Any application, request or notice which is required or
permitted under this Act to be made or given to the Registrar, and all
other communications between an applicant or a person making a
request or giving a notice and the Registrar, and between the patentee
and the Registrar or any other person, may be signed, made or given by
or through an agent: Agency

Provided that the Registrar is satisfied that the agent has been duly
authorised so to act on behalf of such applicant, person or patentee.

(2) No power of attorney or any form of authorisation need be filed at
the Office or exhibited to the Registrar in connection with any matter or
proceeding under these Regulations unless the Registrar otherwise
directs.

83. The Registrar may refuse to recognise as agent in respect of any
proceedings under this Act a person who neither resides nor maintains a
place of business in Zambia. Refusal to
recognise agent

84. (1) A document purporting to be signed for or on behalf of a
partnership shall contain the names of all the partners in full and may be
signed by a partner, or by any other person who satisfies the Registrar
that he is authorised to sign the document. Signature of
documents

(2) A document purporting to be signed for or on behalf of a body
corporate shall be signed by a director or by the secretary or other
principal officer of the body corporate, or by any other person who
satisfies the Registrar that he is authorised to sign the document.

85. Any document lodged in any proceedings before the Registrar
may, if the Registrar thinks fit, be amended, and any irregularity in
procedure may be rectified on such terms as he may direct. Amendment of
documents

86. (1) Where, under these Regulations, any person is required to do
any act or thing, or any document or evidence is required to be produced
or lodged, the Registrar may, upon the production of such evidence and
subject to such terms and conditions as he thinks fit, modify or dispense
with the doing of the act or thing or the production or lodging of the
document or evidence if he is satisfied that it is reasonable so to do. Power of
Registrar to
waive
requirements

(2) The Registrar may allow an application for a patent or a provisional
or complete specification, although not in accordance with these
Regulations, to be left on such terms and conditions as he thinks fit,
modify or dispense with the doing of the act or thing or the production or
lodging of the document or evidence if he is satisfied that it is reasonable
so to do.

(2) The Registrar may allow an application for a patent or a provisional
or complete specification, although not in accordance with these
Regulations, to be left on such terms and conditions as he thinks fit. In
any such case the Registrar shall require the applicant to comply with
these Regulations within the time specified by him. Until the prescribed
requirements are complied with, no further action shall be taken by the
Registrar in respect of the application.

87. (1) Where an order relating to a patent has been made by the
Supreme Court or by the High Court, the person in whose favour such
order has been made shall forthwith file at the Office an office copy of
such order together with an application in Form No. 47. Order of
Supreme Court
or High Court

(2) The specification shall thereupon be amended or the register
rectified or the purport of such order shall otherwise be duly entered in
the register, as the case may be.

88. The Office shall be open to the public and the register shall be open
to inspection on payment of the fee specified in item 47 of the First
Schedule, every weekday, except Saturday, between the hours of nine
and one, and two and half-past three; except on public holidays. Days and hours
of business

FIRST SCHEDULE
(Regulation 75)

TARIFF OF FEES PAYABLE TO THE REGISTRAR OF PATENTS
WITH EFFECT FROM 1ST MAY, 1995

The following fees shall be paid in respect of applications, registrations and other matters
under the Act. Such fees must in all cases be paid before or at the time of doing the matter in
respect of which they are to be paid.
Amount Amount
Payable by Payable by
Local Foreign Corre-
Firms, Firms, spond-
Corpora- Corporations ing
tions and and Form
Item Matter or Proceeding Individuals Individuals No.
Fee units US$
1. On application for a patent (Non-convention)20,0 100.00 1
2. On convention application, in respect of each
application for protection in a convention
country 20,0 100.00 2
3. On application for a patent of addition 20.0 100.00 3
4. On application for grant of a patent of addition
of an independent patent 40,0 150.00 4
5. On lodging specification-
(i) provisional 5,0 10.00 5
(ii) complete 10,0 15.00 6
6. For extension of the period for lodging complete
specification 2,0 5.00 7
7. On request for post-dating of an application
under section 17 (1) 2,0 5.00 8
8. On request for extension of time under section
20, where the extension requested-
(i) does not exceed one month 2,0 5.00 9
(ii) exceeds one month but does not exceed
two months 4,0 10.00 9
(iii) exceeds two months 12,0 20.00 9

9. For each extension of time under section 212,0 5.00 10
10. On application for withdrawal of acceptance 2,0 5.00
11
11. On notice of opposition to grant of patent by
objector 5,0 7.00 12
12.On a claim under section 23 (1) for application
to proceed in name of claimants 2,0 5.00 13
13.On application for directions under section 23 (5) 10,0 15.00
14
14. On request for sealing of a patent (grant and
publication fee) 50,0 200.00 15
15.On application for extension of the period for
requesting the sealing of a patent under paragraph
(iv) of the proviso to section 25 (2), where the
extension requested-
(i) does not exceed one month 2,0 5.00 16
(ii) exceeds one month but does not exceed
two months 4,0 10.00 16
(iii) exceeds two months 12,0 15.00 16
16.On application for extension of the period for
requesting the sealing of a patent under paragraph
(v) of the proviso to section 25 (2), where the
extension requested-
(i) does not exceed one month 2,0 5.00 17
(ii) exceeds one month-for each month
after the first 2,0 5.00 17
17.On application under section 26 for amendment
of patent 5,0 10.00 18
18. On application for certificate of payment of
renewal fee-
(i) before the expiration of the third year
from the date of commencement of the
term of a patent referred to in section
29 and in respect of the fourth year5,0 50.00 19
(ii) before the expiration of the fourth year
of the term of a patent and in respect
of the fifth year 7,5 60.00 19
(iii) before the expiration of the fifth year
of the term of a patent and in respect

of the sixth year 10,0 70.00 19
(iv) before the expiration of the sixth year
of the term of a patent and in respect
of the seventh year 12,5 80.00 19
(v) before the expiration of the seventh year
of the term of a patent and in respect
of the eighth year 15,0 90.00 19
(vi) before the expiration of the eighth year
of the term of a patent and in respect
of the nineth year 17,5 100.00 19
(vii) before the expiration of the nineth year
of the term of a patent and in respect
of the tenth year 20,0 110.00 19
(viii) before the expiration of the tenth year
of the term of a patent and in respect
of the eleventh year 22,5 120.00 19
(ix) before the expiration of the eleventh year
of the term of a patent and in respect
of the twelfth year 25,0 130.00 19
(x) before the expiration of the twelfth year
of the term of a patent and in respect
of the thirteenth year 27,5 140.00 19
(xi) before the expiration of the thirteenth
year of the term of a patent and in
respect of the fourteenth year 30,0 150.00 19
(xii) before the expiration of the fourteenth
year of the term of a patent and in
respect of the fifteenth year 32,5 160.00 19
(xiii) beyond the fifteenth year of the term
of a patent and in respect of the
sixteenth year 35,0 170.00 19
(xiv) beyond the sixteenth year of the term
of a patent and in respect of each year
of the extension 37,5 180.00 19
PROVIDED THAT only one-half of the above fees
shall be payable on patents endorsed
“Licences of Right”
19.On extension of the period for payment of renewal
fees, where the extension requested-
(i) does not exceed one month 2,0 5.00 19
(ii) exceeds one month but does not exceed

two months 4,0 10.00 19
(iii) exceeds two months but does not exceed
three months 6,0 12.00 19
(iv) exceeds three months but does not exceed
four months 8,0 15.00 19
(v) exceeds four months but does not exceed
five months 10,0 20.00 19
(vi) exceeds five months but does not exceed
six months 12,0 22.00 19
Where the extensions is for more than six
months, the fee prescribed in clause (vi)
is payable, and in addition, for each month
or part of a month thereafter during the
period of the extension 2,0 5.00 19
20. Certificate of payment of renewal fee – –
21
21.On application for restoration of lapsed patent 25,0 50.00
21
22. On notice of opposition to application for
restoration of lapsed patent 15,0 35.00 23
23. On application for endorsement of patent
“Licences of Right” 5,0 5.00 24
24. On application for settlement of terms of
licence under patent endorsed “Licences of
Right” 10,0 20.00 25
25. On application by patentee for cancellation
of endorsement of patent “Licences of
Right” (section 36 (1)) 15,0 35.00 26
26. On application for cancellation of
endorsement of patent “Licences of Right”
(section 36 (2)) 5,0 10.00 27
27. On notice of opposition to cancellation of
endorsement of patent “Licences of Right” 5,0 10.00 28
28.On application for compulsory licence under
section 37 7,5 12.00 29
29.On application for amendment of provisional
specification or complete specification not yet
accepted 10.0 20.00 30
30. On application for amendment of complete
specifications after acceptance up to sealing-

(i) by applicant 10,0 20.00
(ii) after sealing by patentee 20,0 40.00 31
31. Form of advertisement of request to amend
specification 2,0 5.00 32
32. On notice of opposition to amendment
by objector 3,0 6.50 33
33. On application for direction under 47 (6) 5,0 10.00 34
34. On application for direction under 47 (7) 5,0 10.00 35
35. On application under section 48 (1) to determine
disputes 10,0 20.00 36
36. On offer to surrender a patent under section 52 6,0 11.50
37
37. On notice of opposition to surrender a patent 2,0 5.00
38
38. For altering name, nationality, address or
address for service in register for each patent2,0 5.00 39
39. On application for registration of an assignment
under section 58 4,0 8.50 40
40. On request to enter notice of interest in register 4,0 8.50
41
41. On request to correct a clerical error-
(i) up to sealing 2,0 5.00 42
(ii) after sealing 5,0 10.00 42
42. On notice of opposition to the correction of a
clerical error 7,5 16.50 43
43. For duplicate of patent 7,5 30.50 44
44. On application for registration as patent agent 5,0 10.00
45
45. Certificate of service 2,0 5.00 46
46. Application for entry of order of court or tribunal 5,0 10.00
47
47. General form of advertisementAs fixed by the 48
Registrar from
time to time
48. For certifying office copies, MSS., or photographic
or printed matter other than duplicate patent-
(i) under seal 10,0 20.00

(ii) other 5,0 10.00
49. For general search of records of 30 minutes
duration or part thereof 5,0 10.00
50. For inspecting documents or making copies of
documents in respect of each application or file
or patent 5,0 10.00
51. For photographic copy of any specification or Contract price as
other document (other than a patent form) or fixed by the
drawing-per sheet Minister from
time to time
(NOTE: The same charge is maintained
regardless of whether or not Patent
Office equipment is used to produce
such copies)
52. For photographic copy of a document which
is a Double the charge
patent form as described under the Third Schedule in item No. 51
of the Patents Regulations
(NOTE: The same charge is maintained regardless of whether or not Patent Office
equipment is used to produce such copies)
(As amended by S.I. No. 38 of 1981, Act No. 13 of 1994)

SECOND SCHEDULE
(Regulation 35)

FORM OF PATENT

KENNETH DAVID KAUNDA, President of the Republic of Zambia: To all whom these
presents shall come, Greeting:
WHEREAS
(hereinafter called the patentee) has, pursuant to the Patents Act, made application for
Letters Patent for an invention for
and has made a declaration that he is the owner of that invention and that there is no lawful
ground of objection to the grant of a patent to him and has by a complete specification fully
described and ascertained the said invention.
NOW THEREFORE, the patentee is granted full power, sole privilege, and authority that
the patentee by himself, his agent, or licensees, and no others, may at all times hereafter
during the term herein mentioned make, use, exercise, and vend the said invention within
the Republic of Zambia in such manner as to him seems meet, and the patentee shall have
and enjoy the whole profit and advantage from time to time accruing by reason of the said
invention during the term of Sixteen Years from…..
PROVIDED ALWAYS that these Letters Patent shall be granted subject to the provisions
of the said Act.
IN WITNESS WHEREOF these Letters Patent have been sealed as of the
day of one thousand nine hundred and ……………………………………
Dated this day of ……………………………………… 19 …………….
Seal of Patent Office

Registrar of Patents

THIRD SCHEDULE
(Regulation 76)

PRESCRIBED FORMS

Corresponding
Form Matter Fee
Item No.
1. Application for a patent (non-convention) .. .. .. .. ..
1
2. Convention application for a patent .. .. .. .. ..
2
3. Application for a patent of addition .. .. .. .. ..
.. 3
4. Application for the grant of a patent of addition instead of an
independent patent .. .. .. .. .. .. 4
5. Provisional specification.. .. .. .. .. .. –
6. Complete specification .. .. .. .. .. .. 5
7. Application for extension of time for lodging a complete
specification .. .. .. .. .. .. .. 6
8. Request for the post-dating of an application .. .. .. ..
.. 7
9. Application for extension of time for acceptance of a complete
specification .. .. .. .. .. .. .. 8
10. Request for postponement of acceptance of complete specification ..
.. 9
11. Application for withdrawal of acceptance .. .. .. .. ..
10
12. Notice of opposition to grant of patent .. .. .. .. ..
11
13. Claim under section 23 (1) of the Act to proceed as an applicant
or co-applicants .. .. .. .. .. .. .. 12
14. Application for directions under section 23 (5) of the Act as to
proceeding with an application for a patent in case of dispute
between joint applicants .. .. .. .. .. .. 13
15. Request for the sealing of a patent.. .. .. .. .. ..
14
16. Application under proviso (iv) to section 25 (2) of the Act for an
extension of the period for making a request for sealing of a
patent .. .. .. .. .. .. .. 15
17. Application under proviso (v) to section 25 (2) of the Act for an

extension of the period for making a request for sealing of a
patent .. .. .. .. .. .. .. 16
18. Application under section 26 of the Act for the amendment of a
patent .. .. .. .. .. .. .. 17
19. Payment of renewal fee .. .. .. .. .. .. 18
20. Application for extension of the period for payment of renewal fee 19
21. Certificate of payment of renewal fee .. .. .. .. ..

22. Application for the restoration of a lapsed patent .. .. .. ..
21
23. Notice of opposition to an application for the restoration of a lapsed
patent .. .. .. .. .. .. .. 21
24. Voluntary application for endorsement of patent “Licen- ces of Right” .. ..
.. 23
25. Application under section 35 (2) (a) or (b) of the Act for settlement
of terms of licence under patent endorsed “Licences of Right” .. .. ..
24
26. Application under section 36 (1) of the Act by patentee for
cancellation of endorsement of a patent “Licences of Right” .. .. ..
25
27. Application under section 36 (2) of the Act by any person interested
for cancellation of endorsement of patent “Licences of Right” .. .. ..
26
28. Notice of opposition by patentee or by any person interested to
cancellation of endorsement of a patent “Licenses of Right” .. .. ..
27
29. Application for compulsory licence under section 37 of the Act .. ..
.. 28
30. Application under section 43 of the Act for amendment of a
provisional specification or of a complete specification not
yet accepted .. .. .. .. .. .. .. 29
31. Application under section 43 of the Act for amendment of complete
specification after acceptance.. .. .. .. .. 30
32. Application to amend specification .. .. .. .. ..
.. 31
33. Notice of opposition to amendment of specification under
section 43 (5) of the Act .. .. .. .. .. .. 3
34. Application for directions under section 47 (6) of the Act .. .. ..
.. 33
35. Application for directions under section 47 (7) of the Act .. .. ..
.. 34
36. Application under section 48 (1) of the Act to determine a dispute
between employer and employee as to rights in an invention .. .. ..

35
37. Offer to surrender a patent under section 52 (1) of the Act .. .. ..
.. 36
38. Notice of opposition under section 52 (2) of the Act to offer to
surrender a patent .. .. .. .. .. .. 37
39. Request for alteration of a name or nationality or an address or an
address for service in the register of patents .. .. .. .. 38
40. Application for registration of assignment .. .. .. .. ..
39
41. Request to enter in the register of patents a notice of an interest in
a patent .. .. .. .. .. .. .. 40
42. Request for correction of clerical error .. .. .. .. ..
41
43. Notice of opposition to the correction of a clerical error .. .. ..
.. 42
44. Application for duplicate of Letters Patent.. .. .. .. ..
43
45. Application for registration as a patent agent under section 68 of
the Act .. .. .. .. .. .. .. 44
46. Certificate of service .. .. .. .. .. .. ..

47. Application for entry of order of Supreme or High Court .. .. ..
.. 46
48. General form of advertisement .. .. .. .. .. ..

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 1
Sections 11, 12
Regulation 3 (1)

THE PATENTS ACT
Fee units: 24

APPLICATION FOR A PATENT (NON-CONVENTION)

I/We (1) (1) State
full name
and address
of
applicant(s)

being a national/nationals of
do hereby declare that I am/we are the owner(s) of an invention in respect of the Republic of
Zambia (2) by having invented it/by having acquired it by assignment, which invention is
described in the accompanying (2) provisional/complete specification under the title (3)

(2) Delete
if not
applicable

(3) Here
insert title
of
invention

that (2) I am/we are the assignee(s)/legal representative(s) of (4)

who claim(s) to be the inventor(s) thereof, and that to the best of my/our knowledge and
belief there is no lawful ground of objection to the grant of a patent to me/us on this
application and I/we pray that a patent may be granted to me/us for the invention.
Dated this day of ………………………………….,19 …………… (4) Here
insert
name(s) of
inventor(s)

(5)

My/Our address for service in Zambia:
(5) To be
signed by
the
applicant(s)
or his/their
agent

The Registrar,
The Patent Office,
Lusaka,
Zambia.

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 2
Sections 8, 11, 12
Regulation 3 (2)

THE PATENTS ACT
Fee units: 24

CONVENTION APPLICATION FOR A PATENT

(This is a comprehensive form and points inappropriate to a
particular application should be deleted)

I/We (1)

(1) State
full name
and address
of
applicant(s)

being a national/nationals of
do hereby declare that I am/we are the owner(s) of an invention in respect of the Republic of
Zambia (2) by having invented it/by having acquired it by assignment, which invention
is entitled (3) (2) Delete
if not
applicable
(3) Here
insert title
of
invention

and which invention is described in the accompanying complete specification, and that (2)
I am/we are the assignee(s)/legal representative(s) of (4)

who claim(s) to be the inventor(s) thereof; that an application or applications for
protection for the invention or inventions has or have been made in the following country or
countries and on the following effective date or dates, namely: (4) Here
insert
name(s) of
inventor(s)

in (5) …………………………………………………….. on (6) ……………………………………………………
numbered (7) ………………………………………………………….
in (5) on (6) …………………………………………………… (5) Here
insert the
name of
the

numbered (7) ………………………………………………………….
in (5) on (6) ……………………………………………………
numbered (7) …………………………………………………………. convention
country in
which the
first
application
was made
(6) Here
insert the
official
date of the
first
application
in a
convention
country

country/countries qualify under (8) Article 2/3 of the Convention by reason of being (8) a
national of/
domiciled in/having a place of business in a member state, namely
, and that I/we qualify under the said (8)
Article 2/3 by reason of being (8) a national of/domiciled in/having a place of business in
a member state, namely
and that to the best of my/our knowledge and belief there is no lawful ground of objection
to the grant of a patent to me/us on this application and that I/we pray that a patent may be
granted to me/us for the invention in priority to other applicants, and that such patent shall
have the date (6)
and (8) I/we declare the said invention(s) is/are an improvement in or modification of (7) Here
insert
official
number of
first
application
in
convention
countryand
that the said
application
or each of
the said
applications
was the first
application
in a
convention
country in
respect of
the relevant
invention
by me/us or
by any
person from
whom I/we
derive title,
and that the
applicant(s)
in the

above-
mentioned
(8) Delete
whichever
does not
apply

my/our invention for which a patent was applied for/granted under No. (9)
, and (8) I/we pray that a patent may be granted to me/us
for the said invention(s) as a patent of addition and request that the term of such further
patent may be the same as that of the patent for the main invention or so much of that term
as is unexpired.
Dated this day of …………………………………….,19 ……………. (9) Insert
number of
main
patent or
patent
application

(10)

My/Our address for service in Zambia:

The Registrar,
The Patent Office,
Lusaka,
Zambia. (10) To be
signed by
the
applicant(s)
or his/their
agent

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 3
Sections 11, 12, 31 (1)
Regulation 3 (3)

THE PATENTS ACT
Fee units: 40

APPLICATION FOR A PATENT OF ADDITION

I/We (1)

(1) State
full name
and address
of
applicant(s)

being a national/nationals of
do hereby declare that I am/we are the owner(s) of an invention the title of which is (2)

(2) Here
insert title
of
invention

and that I am/we are the (3) assignee(s)/legal representative(s) of (4)

who claim(s) to be the inventor(s) thereof; that the said invention is an improvement in or
modification of my/our invention for which a patent was applied for/granted under
(3) Delete
if not
applicable
(4) Here
insert
name(s) of
inventor(s)

No. (5) ;
that to the best of my/our knowledge and belief there is no lawful ground of objection to the
grant of a patent to me/us on this application and I/we pray that a patent may be granted to
me/us for the said invention as a patent of addition and request that the term of such further
patent may be the same as that of the patent for the main invention or so much of that term
as is unexpired
Dated this day of …………………………………….,19 ……………. (5) Here
insert
number of
main
patent or
patent
application

(6)
(6) To be
signed by

My/Our address for service in Zambia:

The Registrar,
The Patent Office,
Lusaka,
Zambia. the
applicant(s)
or his/their
agent

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 4
Sections 11, 12, 31 (2)
Regulations 3 (4)

THE PATENTS ACT
Fee unit:

APPLICATION FOR THE GRANT OF A PATENT OF ADDITION
cINSTEAD OF AN INDEPENDENT PATENT

I/We (1)

being a national/nationals of
hereby request that patent No.
of which I am/we are the patentee(s) be revoked and that instead thereof a patent of
addition to patent No. of which I am/we are also the patentee(s)
be granted to me/us, such patent of addition to bear the same date as the patent so revoked.(1) State
full name
and
address of
patentee(s)

Dated this day of …………………………………….,19 …………….
(2)

My/Our address for service in Zambia:

The Registrar,
The Patent Office,
Lusaka,
Zambia. (2) To be
signed by
patentee(s)
or his/their
agent

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 5
Regulation 3 (5)

THE PATENTS ACT

PROVISIONAL SPECIFICATION

(1)

(1) State
title
verbally
agreeing
with that in
the
application
form

(2) I/We .

do hereby declare this invention to be described in the following statement: (2) State
full name,
description
and address
of
applicant(s)
as in
application
form

(3)

(3) Here begin
description of the
invention. The
continuation of
the specification
should be upon
paper of foolscap
size on one side
only, with the
lines well spaced
and with a margin
of one inch and a
half on the
left-hand part of
the paper. The

specification must
be signed by the
applicant(s) or
his/their agent on
the last sheet and
dated (thus):
“Dated
this …………………..
day
of …………………..
19 …………..”

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 6
Regulation 3 (5)

THE PATENTS ACT
Fee unit: 1

COMPLETE SPECIFICATION
(To be furnished in duplicate)

(1)

(1) State
title
verbally
agreeing
with that in
the
application
form

(2) I/We

do hereby declare this invention, the manner in which and the method by which it is to be
performed, to be particularly described and ascertained in and by the following statement:
(2) State
full name,
description
and address
of
applicant(s)
as in
application
form

(3)

(3) Here begin full
description of
invention. The
continuation of
the specification
should be upon
paper of foolscap
size on one side
only, with the
lines well spaced
and with a margin
of one inch and a

NOTE.-The claims must relate to a single invention, must be clear and succinct and
must be fairly based on the matter disclosed in the specification. They should form
in brief a clear statement of that which constitutes the invention. Applicants should
be careful that their claims include neither more nor less than they desire to protect
by their patent. Any unnecessary multiplicity of claim or prolixity of language
should be avoided. Claims should not be made for the efficiency or advantages of
the invention. half on the
left-hand part of
the paper. The
completion of the
description should
be followed by the
words “Having
now particularly
described and
ascertained
my/our said
invention and in
what manner the
same is to be
performed, I/we
declare that what
I/we claim is:”
(after which
should be written
the claim or
claims numbered
consecutively)
(see note below).
The specification
and the duplicate
thereof must be
signed by the
applicant(s) or
his/their agent on
the last sheet and
dated (thus):
“Dated
this …………………..
day
of …………………..
19 …………..”

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 7
Section 13 (2)
Regulation 9

THE PATENTS ACT
Fee unit: 01

APPLICATION FOR EXTENSION OF TIME FOR LODGING A COMPLETE
SPECIFICATION

I/We (1)

hereby, in respect of application No. , request
an extension of time until
in which to lodge a complete specification. (1) State
name and
address of
applicant(s)

Dated this day of …………………………………….. 19 …………..
(2)

(2) To be
signed by
applicant(s)
or his/their
agent

My/Our address for service in Zambia:

The Registrar,
The Patent Office,
Lusaka,
Zambia.

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 8
Section 17 (1)
Regulation 10

THE PATENTS ACT
Fee unit: 1

REQUEST FOR THE POST-DATING OF AN APPLICATION

I/We (1)

hereby request that application No. lodged
on the of …………………………………………… 19 ……………
be deemed to have been made on the following date, namely, the day
of ………………………………………….. 19 ………………
Dated this day of ……………………………………… 19 …………… (1) State
name and
address of
applicant(s)

(2)

My/Our address for service in Zambia:

The Registrar,
The Patent Office,
Lusaka,
Zambia. (2) To be
signed by
applicant(s)
or his/their
agent

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 9
Section 20 (1)
Regulation 20

THE PATENTS ACT
Fee units: 1, 2, 3

APPLICATION FOR EXTENSION OF TIME FOR ACCEPTANCE
OF A COMPLETE SPECIFICATION

I/We hereby apply for months’ extension
of time for acceptance of the complete specification upon application No.
dated …………………………………………………………..
Dated this day of ……………………………………… 19 ……………

(1)

My/Our address for service in Zambia:

The Registrar,
The Patent Office,
Lusaka,
Zambia.

(1) To be
signed by
applicant(s)
or his/their
agent

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 10
Section 21 (1)
Regulation 21

THE PATENTS ACT
Fee unit: 1

REQUEST FOR POSTPONEMENT OF ACCEPTANCE OF
COMPLETE SPECIFICATION

I/We hereby request a postponement of the acceptance of the complete specification of
application No. dated
to a date not later than the
expiration of months from the date of lodging of
the application.
Dated this day of ……………………………………… 19 ……………

(1)

My/Our address for service in Zambia:

The Registrar,
The Patent Office,
Lusaka,
Zambia.
(F.G.N. No. 206 of 1959) (1) To be
signed by
applicant(s)
or his/their
agent

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 11
Regulation 22 (2)

THE PATENTS ACT
Fee unit: 1

APPLICATION FOR WITHDRAWAL OF ACCEPTANCE

I/We (1)

apply for withdrawal of the acceptance of the specification of patent application No.

My/Our reasons for desiring such withdrawal are as follows: (1) State
name and
address of
applicant(s)

(2)

Dated this day of ……………………………………… 19 …………… (2) The
circumstances
and grounds
must be stated
in full

(3)

My/Our address for service in Zambia:

The Registrar,
The Patent Office,
Lusaka,
Zambia.
(3) To be
signed by
the
applicant(s)
or his/their
agent

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 12
Section 22 (1)
Regulation 24

THE PATENTS ACT
Fee unit: 1 (1) State
full name
and
address

NOTICE OF OPPOSITION TO GRANT OF PATENT

I/We (1)

hereby give notice of opposition to the grant of Letters Patent upon application
No. applied for by ………………………………………………….

upon the ground (2)

Dated this day of ……………………………………… 19 …………… (2) State
upon which
of the
grounds of
opposition
permitted by
section 22 the
grant is
opposed and
identify all
specifications
and other
publications
relied upon

(3)

My/Our address for service in Zambia:
(3) To be
signed by
objector(s)
or his/their
legal

The Registrar,
The Patent Office,
Lusaka,
Zambia. practitioner

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 13
Section 23 (1)
Regulation 31 (1),

THE PATENTS ACT
Fee unit 1

CLAIM UNDER SECTION 23 (1) OF THE ACT TO PROCEED
AS AN APPLICANT OR CO-APPLICANTS

I/We (1) (1) State
name of
claimant(s)

hereby request that patent application No. (2) dated
made by (2) State the
number and
date of the
application
for patent

(3)
(3) State
name of
applicant(s)
for patent

may proceed in the name(s) of (4)

(4) Here
insert name,
address and
nationality
of the
person or
persons in
whose
name(s) it is
requested
that the
application
shall
proceed

I/We claim to be entitled to proceed as applicant(s) for the patent by virtue of (5)

(5) Give the
particulars
of such
document,
giving its
date and the
parties to the
same, and
showing
how the
claim here
made is
substantiated

And in proof whereof I/we transmit the accompanying (6)

My/Our address for service in Zambia:

(6) State the
nature of the
document.
The certified
copy should
be written,
typewritten
or printed on
foolscap
paper

(7)
(7) To be
signed by
claimant(s)
or his/their
agent

I/We (8)

consent to the above request.
The Registrar,
The Patent Office,
Lusaka,
Zambia. (8) To be
signed by
the
applicant(s)
or his/their
agent

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 14
Section 23 (5)
Regulation 32

THE PATENTS ACT
Fee unit: 1

APPLICATION FOR DIRECTIONS UNDER SECTION 23 (5) OF THE ACT AS TO
PROCEEDING WITH AN APPLICATION FOR A PATENT IN CASE OF DISPUTE
BETWEEN JOINT APPLICANTS

I (1)

(1) State
full name
and
address

being a joint applicant with (2)

in the application for a patent No hereby
declare that a dispute has arisen between us and request that an order of the Registrar be
made giving directions for enabling the application to proceed.
Particulars of the matter in dispute are given in the annexed statement setting out the facts
upon which I rely and the relief which I seek.
Dated this day of ……………………………………… 19 …………… (2) State
name and
address of
other
applicant(s)

(3)

My address for service in Zambia:

NOTE.-The application must be accompanied by a statement of case and by copies of the
application and statement as required by regulation 32.
The Registrar,
The Patent Office,
Lusaka,
Zambia. (3) To be
signed by
applicant
or his
agent

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 15
Section 25 (1)
Regulation 33

THE PATENTS ACT
Fee units: 40

REQUEST FOR THE SEALING OF A PATENT

I/We (1)

request that a patent may be sealed on my/our application No

of 19 …………….., and I/we hereby transmit the prescribed fee for sealing, and further
request that the following may be entered on the register as my/our address for service in
Zambia:

Dated this day of ……………………………………… 19 …………… (1) State
name of
applicant(s)

(2)

The Registrar,
The Patent Office,
Lusaka,
Zambia. (2) To be
signed by
the
applicant(s)
or his/their
agent

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 16
Section 25 (2)
Regulation 34 (1)

THE PATENTS ACT
Fee units: 123

APPLICATION UNDER PROVISO (IV) TO SECTION 25 (2) OF THE ACT FOR AN
EXTENSION OF THE PERIOD FOR MAKING A REQUEST FOR SEALING OF A
PATENT

I/We hereby apply for months’ extension
of time for the sealing of a patent upon application No.
dated
Dated this day of ……………………………………… 19 ……………

(1)

My/Our address for service in Zambia:

The Registrar,
The Patent Office,
Lusaka,
Zambia. (1) To be
signed by
the
applicant(s)
or his/their
agent

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 17
Section 25 (2)
Regulation 34 (2)

THE PATENTS ACT
Fee unit: 1

APPLICATION UNDER PROVISO (V) TO SECTION 25 (2) OF THE ACT FOR AN
EXTENSION OF THE PERIOD FOR MAKING A REQUEST FOR SEALING OF A
PATENT

I/We hereby apply for (1) months’ extension
of the period for the sealing of a patent upon application No.
The circumstances and the grounds upon which the extension is applied for are as follows:(1) Not
more than
six months’
extension
may be
applied for
at one time

(2)

I/We hereby declare that- (2) The
circumstances
and grounds
must be stated
in detail

(a) an extension of time of three months for making a request for sealing has been
allowed under proviso (iv) to section 25 (2) of the Act and has not yet expired;
(b) an extension of time of months for making a
request for sealing has been allowed under proviso (v) to section 25 (2) of the Act and has
not yet expired.
(a) and (b)
Delete the
words
which are
not
applicable

Dated this day of ……………………………………… 19 ……………
(3)

My/Our address for service in Zambia:

(3) To be
signed by
the
applicant(s)
or his/their
agent

The Registrar,
The Patent Office,
Lusaka,
Zambia.

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 18
Section 26
Regulation 36

THE PATENTS ACT
Fee units: 1

APPLICATION UNDER SECTION 26 OF THE ACT FOR THE AMENDMENT OF A
PATENT

I/We (1)

hereby request that Letters Patent No.
granted to

(1) State
name and
address

may be amended by substituting the name of (2)

for the name of the grantee.
Dated this day of ……………………………………… 19 …………… (2) State
name and
address of
person to
whom
patent
should
have been
granted

(3)

My/Our address for service in Zambia:

NOTE.-Application to be accompanied by evidence verifying the statements made therein
and by the Letters Patent.
The Registrar,
The Patent Office, (3) To be
signed by
the
applicant(s)
or his/their
agent

Lusaka,
Zambia.

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 19
Section 29 (4)
Regulations 37, 47

THE PATENTS ACT
Fee units: 10-30 depending on period

PAYMENT OF RENEWAL FEE

I/We (1) (1) State
name of
person(s)
tendering
the fee

hereby transmit the fee prescribed for the continuation in force of (2)

Patent No. for a further period of
and request that the
(2) Here
insert
name of
patentee(s)

Certificate of Payment may be sent to me/us at (3)

Dated this day of ……………………………………… 19 ……………
NOTE.-If the address given above is not that entered in the register as the patentee’s address
for service and it is desired to amend the entry in the register, application therefor must be
made in Patents Form No. 39.
The Registrar,
The Patent Office,
Lusaka,
Zambia. (3) Here
insert full
address to
which
certificate
is to be
sent

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 20
Section 29 (4)
Regulation 39

THE PATENTS ACT
Fee units: 1-5

APPLICATION FOR EXTENSION OF THE PERIOD FOR PAYMENT OF RENEWAL
FEE

I/We hereby apply for an extension of month(s)
of the period prescribed for payment of the years’
renewal fee upon my/our Patent No

(1)

Dated this day of ……………………………………… 19 …………… (1) Here
insert
name and
full
address to
which
receipt is
to be sent

(2)

The Registrar,
The Patent Office,
Lusaka,
Zambia. (2) To be
signed by
the
applicant(s)
or his/their
agent

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 21
Regulation 40

THE PATENTS ACT

CERTIFICATE OF PAYMENT OF RENEWAL FEE

Letters Patent No
This is to certify that
did this day of ………………………………………., 19 ……………
make the prescribed payment of K
in respect of a period of
from

Registrar of Patents
The Registrar,
The Patent Office,
Lusaka,
Zambia.

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 22
Section 33
Regulation 41

THE PATENTS ACT
Fee units: 24

APPLICATION FOR THE RESTORATION OF A LAPSED PATENT

I/We
of
being the owner(s) of Patent No. , hereby apply
for an order for the restoration of the said patent.

The circumstances which have led to the failure to pay the renewal fee of (1) (1) Here
state
amount of
fee

on or before the (2) (2) State
last day
when fee
was due

are as follows: (3)

Dated this day of ……………………………………… 19 …………… (3) State
circumstances.
The
application
must be
accompanied
by one or
more
affidavits
setting out
fully all the
material facts
on which the
applicant(s)
base(s)

his/their case

(4)

My/Our address for service in Zambia:

The Registrar,
The Patent Office,
Lusaka,
Zambia. (4) To be
signed by
the
applicant(s)
or his/their
agent

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 23
Section 33 (4)
Regulation 42

THE PATENTS ACT
Fee units: 12

NOTICE OF OPPOSITION TO AN APPLICATION FOR THE RESTORATION OF A
LAPSED PATENT

I/We (1)

hereby give notice of opposition to the application for restoration of Patent No. (1) Here
state full
name and
address of
objector(s)

for the following reasons (2) …………………………………………

Dated this day of ……………………………………… 19 …………… (2) Here
state reasons
for
opposition.
The notice
must be
accompanied
by a copy
thereof
together with
a statement,
in duplicate,
setting out
fully the
nature of the
objector’s(s’)
interest and
the facts
upon he
relies/they
rely

(3)
(3) To be
signed by
the

My/Our address for service in Zambia:

The Registrar,
The Patent Office,
Lusaka,
Zambia.
objector(s)
or his/their
agent

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 24
Section 35 (1)
Regulation 44

THE PATENTS ACT
Fee units: 1

VOLUNTARY APPLICATION FOR ENDORSEMENT OF PATENT “LICENCES OF
RIGHT”

I/We (1)

being the owner(s) of Patent No. , hereby request
that the said patent may be endorsed “Licences of Right”. I am/We are not precluded by
contract from granting licences under the patent.
Dated this day of ……………………………………… 19 …………… (1) State
name and
address of
patentee(s)

(2)

My/Our address for service in Zambia:

NOTE.-The application must be accompanied by evidence verifying the statement in the
application and by the Letters Patent.
The Registrar,
The Patent Office,
Lusaka,
Zambia. (2) To be
signed by
the
patentee(s)
or his/their
agent

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 25
Section 35 (2)
Regulation 45

THE PATENTS ACT
Fee unit 1

APPLICATION UNDER SECTION 35 (2) (A) OR (B) OF THE ACT FOR
SETTLEMENT
OF TERMS OF LICENCE UNDER PATENT ENDORSED “LICENCES OF RIGHT”

I/We (1)

hereby apply for settlement of the terms of a licence to be granted under Patent No.

I am/We are the-
(a) patentee(s);
(b) person(s) requiring a licence;
(c) holder(s) of a licence under the patent granted before endorsement.
I/We (d) request that an order may be made entitling me/us to exchange my/our existing
licence for a licence to be granted upon the terms as settled.
Dated this day of ……………………………………… 19 …………… (1) State
name and
address of
applicant(s)

(2)

My/Our address for service in Zambia:

NOTE.-The application must be compled in duplicate and by a statement of case in
duplicate. by a statement of case in duplicate.
The Registrar, (2) To be
signed by
the
applicant(s)
or his/their
agent

The Patent Office,
Lusaka,
Zambia.

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 26
Section 36 (1)
Regulation 47

THE PATENTS ACT
Fee unit: 1
APPLICATION UNDER SECTION 36 (1) OF THE ACT BY PATENTEE FOR
CANCELLATION OF ENDORSEMENT OF A PATENT “LICENCES OF RIGHT”

I/We (1)

being the owner(s) of Patent No , hereby request
that the endorsement of the said patent as “Licences of Right” may be cancelled, and I/we
enclose Patents Form No. 19 bearing the balance of all renewal fees which would have been
payable if the patent had not been endorsed. (1) State
name and
address of
patentee(s)

I/We declare (a) that there is no existing licence under the patent; or (b) all the licensees
consent to this application.
Dated this day of ……………………………………… 19 …………… (a), (b)
Delete
whichever
is not
applicable

(2)

My/Our address for service in Zambia:

NOTE.-The application must be accompanied by evidence in support of the application.
The Registrar,
The Patent Office,
Lusaka,
Zambia. (2) To be
signed by
the
patentee(s)
or his/their
agent

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 27
Section 36 (2)
Regulation 48

THE PATENTS ACT
Fee unit: 1
APPLICATION UNDER SECTION 36 (2) OF THE ACT BY ANY PERSON
INTERESTED FOR CANCELLATION OF ENDORSEMENT OF PATENT “LICENCES
OF RIGHT”

I/We (1)

hereby claim that the endorsement of Patent No
“Licences of Right” is and was at the time of the endorsement contrary to a contract in
which I am/we are interested and I/we request that such endorsement may be cancelled. (1) State
name and
address of
applicant(s)

Dated this day of ……………………………………… 19 ……………
(2)

My/Our address for service in Zambia:

NOTE.-The application must be completed in duplicate and accompanied by a statement
of case in duplicate.
The Registrar,
The Patent Office,
Lusaka,
Zambia. (2) To be
signed by
the
applicant(s)
or his/their
agent

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 28
Section 36 (5)
Regulation 49

THE PATENTS ACT
Fee unit: 1

NOTICE OF OPPOSITION BY PATENTEE OR BY ANY PERSON INTERESTED TO
CANCELLATION OF ENDORSEMENT OF A PATENT “LICENCES OF RIGHT”

I/We (1)

hereby give notice of opposition to the application for the cancellation of the endorsement
“Licences of Right” in respect of Patent No.
Dated this day of ……………………………………… 19 …………… (1) State
name and
address of
opponent(s)

(2)

My/Our address for service in Zambia:

NOTE.-The notice must be accompanied by a copy thereof and a statement of case in
duplicate.
The Registrar,
The Patent Office,
Lusaka,
Zambia. (2) To be
signed by
the
opponent(s)
or his/their
agent

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 29
Section 37
Regulation 50

THE PATENTS ACT
Fee unit: 1

APPLICATION FOR COMPULSORY LICENCE UNDER SECTION 37 OF THE ACT

I/We (1)

hereby apply for an order of the High Court for a licence to be granted to me/us in respect
of Patent No for the following
reasons:
(1) State
name and
address of
applicant(s)

(2)

Dated this day of ……………………………………… 19 …………… (2) State the
nature of the
applicant’s(s’)
interest, the
facts upon
which he
relies/they
rely and the
grounds upon
which the
application is
made

(3)

My/Our address for service in Zambia:

NOTE.-The application must be accompanied by evidence verifying the statements set out
in the application. (3) To be
signed by
the
applicant(s)
or his/their
legal
practitioner

The Registrar,
The Patent Office,
Lusaka,
Zambia.

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 30
Section 43
Regulation 54

THE PATENTS ACT
Fee unit: 1

APPLICATION UNDER SECTION 43 OF THE ACT FOR AMENDMENT OF A
PROVISIONAL SPECIFICATION OR OF A COMPLETE SPECIFICATION NOT YET
ACCEPTED

I/We (1)

seek leave to amend the provisional/complete specification of Patent Application
No. as shown in red ink in the certified copy of
the original specification hereunto annexed.
My/Our reasons for making this amendment are in detail as follows: (1) State
full name
and address
of
applicant(s)

(2)

Dated this day of ……………………………………… 19 …………… (2) State
full
particulars
of the
reasons for
seeking
amendment

(3)

My/Our address for service in Zambia:

The Registrar,
The Patent Office,
Lusaka,
Zambia. (3) To be
signed by
the
applicant(s)
or his/their
agent

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 31
Section 43
Regulation 55

THE PATENTS ACT
Fee units: 1-5

APPLICATION UNDER SECTION 43 OF THE ACT FOR AMENDMENT OF
COMPLETE SPECIFICATION AFTER ACCEPTANCE

I/We (1)

seek leave to amend the specification of Letters Patent No. /
Patent Application No. as shown in red ink in the certified
copy of the original specification hereunto annexed.
(1) Here
state full
name and
address of
applicant(s)

I/We (2)
declare that no action for infringement or proceedings for the revocation of the Letters
Patent in question are pending.
My/Our reasons for making this amendment are as follows: (2) These
words are
to be
struck out
when
Letters
Patent
have not
been
sealed

(3)

Dated this day of ……………………………………… 19 …………… (3) State
full
particulars
of the
reasons for
making
amendment

(4)

My/Our address for service in Zambia: (4) To be
signed by
applicant(s)

The Registrar,
The Patent Office,
Lusaka,
Zambia. or
patentee(s)
or his/their
agent

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 32
Section 43
Regulation 55

THE PATENTS ACT
Fee unit: 1

APPLICATION TO AMEND SPECIFICATION

(Form of advertisement of request to amend specification)

I/We (1)

(1) State
full name
and address
of
applicant(s)

seek leave to amend by way of (2)
the specification of Letters Patent/Patent Application No. (2) State
whether by
way of
disclaimer,
correction
or
explanation

for (3)

A copy of the original specification, showing in red ink the proposed amendment, is now
open to public inspection at the Patent Office.
A notice of opposition (in Patents Form No. 33) may be filed at the Patent Office within
three months from the date of this advertisement.
Dated this day of ……………………………………… 19 …………… (3) Title of
invention

(4)
(4) To be
signed by
applicant(s)
or his/their
agent

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 33
Section 43 (5)
Regulation 57

THE PATENTS ACT
Fee unit: 1
NOTICE OF OPPOSITION TO AMENDMENT OF SPECIFICATION
UNDER SECTION 43 (5) OF THE ACT

I/We (1)

hereby give notice of opposition to the proposed amendment of the specification of Letters
Patent/Patent Application No , for the following reasons:

(1) State
full name
and
address of
objector(s)

(2)

Dated this day of ……………………………………… 19 …………… (2) Here
state
reasons of
opposition

(3)

My/Our address for service in Zambia:

The Registrar,
The Patent Office,
Lusaka,
Zambia. (3) To be
signed by
objector(s)
or his/their
agent

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 34
Section 47 (6)
Regulation 59

THE PATENTS ACT
Fee unit: 1

APPLICATION FOR DIRECTIONS UNDER SECTION 47 (6) OF THE ACT

I/We (1)

hereby apply for the following directions in respect of Patent No. (1) State
name and
address of
patentee(s)

(2)

Dated this day of ……………………………………… 19 …………… (2) State
the
directions
sought

(3)

My/Our address for service in Zambia:

NOTE.-The application must be accompanied by a statement of case and by copies of the
application and statement as required by regulation 59.
The Registrar,
The Patent Office,
Lusaka,
Zambia. (3) To bez
signed by
the
patentee(s)
seeking
directions
or his/their
agent

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 35
Section 47 (7)
Regulation 60

THE PATENTS ACT
Fee unit: 1
APPLICATION FOR DIRECTIONS UNDER SECTION 47 (7) OF THE ACT

I/We (1) (1) State
name and
address of
patence of
joint
patentees

hereby apply for directions in respect of the failure of (2)

to comply with the directions of the Registrar given under section 47 (6) of the Act on the
day of ………………………….., 19 …………… in the following manner: (2) State
name of
person in
default

(3)

Dated this day of ……………………………………… 19 …………… (3) State
the
directions
sought

(4)

My/Our address for service in Zambia:

NOTE.-The application must be accompanied by a copy thereof and a statement of case in
duplicate.
The Registrar,
The Patent Office,
Lusaka,
Zambia. (4) To be
signed by
the
patentee(s)
or his/their
agent

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 36
Section 48 (1)
Regulation 61

THE PATENTS ACT
Fee unit: 1

APPLICATION UNDER SECTION 48 (1) OF THE ACT TO DETERMINE A DISPUTE
BETWEEN EMPLOYER AND EMPLOYEE AS TO RIGHTS IN AN INVENTION

I/We (1)

hereby declare that in respect of the rights in the invention for which an application for a
patent was made by (1) State
name and
address of
applicant(s)

and numbered , (2) and upon which a patent
No. has been granted, a dispute has arisen between me/us (2) Delete
if a patent
has not
been
granted

and (3)

and I/we hereby apply to the Registrar/High Court to determine the dispute.
The facts of the dispute and the relief which I/we seek are set out fully in the accompanying
statement.
Dated this day of ……………………………………… 19 …………… (3) State
name and
address of
other party
to dispute

(4)

My/Our address for service in Zambia:

(4) To be
signed by
the
applicant(s)
or his/their
agent

NOTE.-Application must be accompanied by a copy thereof and a statement in duplicate
setting out the facts of the dispute and the relief which is sought.
The Registrar,
The Patent Office,
Lusaka,
Zambia.

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 37
Section 52 (1)
Regulation 63

THE PATENTS ACT
Fee unit: 1

OFFER TO SURRENDER A PATENT UNDER SECTION 52 (1) OF THE ACT

I/We (1)

hereby offer to surrender Patent No.
I/We declare that no action for infringement, proceeding for revocation or proceeding in
which the validity of the patent or of a clause in the complete specification is disputed, is
pending.
My/Our reasons for making this offer are:

Dated this day of ……………………………………… 19 …………… (1) State
full name
and
address of
patentee(s)

(2)

My/Our address for service in Zambia:

The Registrar,
The Patent Office,
Lusaka,
Zambia. (2) To be
signed by
the
patentee(s)
or his/their
agent

REPUBLIC OF ZAMBIA

PATENTS FORM NO. 38
Section 52 (2)
Regulation 64

THE PATENTS ACT
Fee unit: 1

NOTICE OF OPPOSITION UNDER SECTION 52 (2) OF THE ACT
TO OFFER TO SURRENDER A PATENT

I/We (1)

hereby give notice of opposition to the offer to surrender Patent No. (1) State
full name
and address
of
opponent(s)

for the following reasons (2)

Dated this day of ……………………………………… 19 …………… (2) State
briefly the
reasons for
opposition

(3)

My/Our address for service in Zambia:

NOTE.-The application must be accompanied by a copy thereof and a statement of case in
duplicate.
The Registrar,
The Patent Office,
Lusaka,
Zambia. (3) To be
signed by
the
opponent(s)
or his/their
agent

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 39
Section 6
Regulation 66

THE PATENTS ACT
Fee unit: 1

REQUEST FOR ALTERATION OF A NAME OR NATIONALITY OR AN ADDRESS
OR AN ADDRESS FOR SERVICE IN THE REGISTER OF PATENTS

In the matter of Patent No.

I/We (1) (1) State
full name
and address
of
applicant(s)

hereby request that the (2) name, nationality, address, address for service, now upon the (2) Strike
out words
not
applicable

register of patents may be altered to (3)

Dated this day of ……………………………………… 19 …………… (3) Insert
name,
nationality,
address or
address for
service, as
the case
may be

(4)

My/Our address for service in Zambia:

NOTE.-Where the request is for alteration in a name or nationality, proof of the alteration (4) To be
signed by
the
applicant(s)
or his/their
agent

must be furnished.
The Registrar,
The Patent Office,
Lusaka,
Zambia.

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 40
Section 58 (2)
Regulation 67 (1)

THE PATENTS ACT
Fee unit: 1

APPLICATION FOR REGISTRATION OF ASSIGNMENT

I/We (1) (1) State
full name
and address
of
applicant(s)

hereby request that you will enter my/our name in the register of patents as
proprietor/co-
proprietor of Patent No. at present
registered in the name of (2)

(2) Here
give name
of registered
proprietor(s)

I/We claim to be so entitled by virtue of (3)

(3) Here
specify the
particulars
of each
document,
giving its
date, and the
parties to the
same, and
showing
how the
claim here
made is
substantiated

And in proof whereof I/we transmit the accompanying (4)

with a certified copy thereof.
Dated this day of ……………………………………… 19 …………… (4) Here
insert the
nature of
the
document

(5)

My/Our address for service in Zambia:

The Registrar,
The Patent Office,
Lusaka,
Zambia. (5) To be
signed by
the
applicant(s)
or his/their
agent

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 41
Section 58 (2)
Regulation 67 (2)

THE PATENTS ACT
Fee unit: 1

REQUEST TO ENTER IN THE REGISTER OF PATENTS A NOTICE OF AN
INTEREST IN A PATENT

I/We (1)

hereby request that you will enter in the register of patents a notice of the following interest
in a patent: (1) State
full name
and address
of
applicant(s)

I/We claim to be entitled (2)

to an interest in Patent No. at present registered (2) Here
insert the
nature of
the claim,
whether by
way of
licence or
otherwise

in the name of (3)
(3) Here
give the
name of
registered
proprietor(s)

by virtue of (4)

(4) Here
specify the
particulars
of such
document,
giving its
date, and the
parties to the

same, and
showing
how the
claim here
made is
substantiated

And in proof whereof I/we transmit the accompanying (5)

with a certified copy thereof.
Dated this day of ……………………………………… 19 …………… (5) Here
insert the
nature of
the
document

(6)

My/Our address for service in Zambia:

The Registrar,
The Patent Office,
Lusaka,
Zambia. (6) To be
signed by
the
applicant(s)
or his/their
agent

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 42
Section 59 (2)
Regulation 69

THE PATENTS ACT
Fee units: 1-2

REQUEST FOR CORRECTION OF CLERICAL ERROR

I/We (1)

(1) State
full name
and ddress
of
applicant(s)

hereby request that the clerical error(s) in the (2)

relating to Application Patent No indicated in red
ink in the annexed copy of the said (2)
or shown as follows:

may be corrected.
Dated this day of ……………………………………… 19 …………… (2) State
whether in
application,
specification,
entry in
register,
patent or the
particular
relevant
document

(3)

My/Our address for service in Zambia:

The Registrar,
The Patent Office,
Lusaka,
Zambia. (3) To be
signed by
the
applicant(s)
or his/their
agent

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 43
Section 59 (5)
Regulation 71

THE PATENTS ACT
Fee unit: 1

NOTICE OF OPPOSITION TO THE CORRECTION OF A CLERICAL ERROR

I/We (1)

hereby give notice of opposition to the correction of an alleged clerical error in

which said correction has been applied for by

The grounds upon which the said correction is opposed are as follows:

Dated this day of ……………………………………… 19 …………… (1) State
full name
of
objector(s)

(2)

My/Our address for service in Zambia:

The Registrar,
The Patent Office,
Lusaka,
Zambia. (2) To be
signed by
the
objector(s)
or his/their
agent

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 44
Section 63
Regulation 73

THE PATENTS ACT
Fee unit: 1

APPLICATION FOR DUPLICATE OF LETTERS PATENT

I/We (1)

(1) State
full name
and address
of
applicant(s)

have to inform you that the Letters Patent dated (2)
No. ………………………………………………….. granted to (2) State
date,
number
and full
name of
grantee(s)

for an invention the title of which is (3)

has been lost or destroyed, or cannot be produced in the following circumstances: (3) Insert
title of
invention

(4)

I/We beg therefore to apply for the issue of a duplicate of such Letters Patent. (4) State full
circumstances
of the case,
which must
be verified by
evidence

(5)

Dated this day of ……………………………………… 19 …………… (5) State
interest
possessed
by
applicant(s)
in the

patent

(6)

My/Our address for service in Zambia:

The Registrar,
The Patent Office,
Lusaka,
Zambia.

(6) To be
signed by
the
patentee(s)
or his/their
agent

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 45
Section 68
Regulation 74

THE PATENTS ACT
Fee unit: 5

APPLICATION FOR REGISTRATION AS A PATENT AGENT UNDER SECTION 68
OF THE ACT

I (1)

do hereby make oath and say as follows: (1) State
full name
and
address

I am ordinarily resident in Zambia and have been so resident since (2)

I possess the following qualifications which entitle me to be registered as a patent agent in
terms of section 68 of the Act: (2) State
date of
entry into
Zambia

(3)

I desire to be registered as a patent agent.

Sworn before me at
this day of ……………………………………….., 19 …………….

Commissioner for Oaths
(As amended by F.G.N. No. 203 of 1962) (3) Here
insert full
particulars of
qualifications

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 46
Regulation 79

THE PATENTS ACT

CERTIFICATE OF SERVICE

I/We (1)

(1) State
name and
address

hereby certify that at (2)

on the day of …………………………………………, 19 ……………,
at …………………………………….., o’clock in the noon, I/we served the
following documents upon
(2) State
precisely
where the
service
was
effected

by (3)

Dated this day of ……………………………………… 19 …………… (3) Here
describe
the method
of service

(4)

The Registrar,
The Patent Office,
Lusaka,
Zambia.

(4) To be
signed by
the person
effecting
service

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 47
Regulation 87

THE PATENTS ACT
Fee unit: 1

APPLICATION FOR ENTRY OF ORDER OF SUPREME COURT OR HIGH COURT

I/We (1)

in respect of Patent/Patent Application No. hereby
transmit an office copy of an order by the High Court/by the Supreme Court with (1) State
name and
address of
applicant(s)

reference to (2)

Dated this day of ……………………………………… 19 …………… (2) Here
state
purport of
the order

(3)

My/Our address for service in Zambia:

The Registrar,
The Patent Office,
Lusaka,
Zambia. (3) To be
signed by
the
applicant(s)
or his/their
agent

REPUBLIC OF ZAMBIA
PATENTS FORM NO. 48
Sections 21 (2),
30 (1), 36 (5),
52 (2), 59 (4)
Regulation 76

THE PATENTS ACT

GENERAL FORM OF ADVERTISEMENT

Notice is hereby given that in terms of section of
the Patents Act

Dated this day of ……………………………………… 19 ……………

(1)

NOTE.-The contents of this advertisement must be approved by the Registrar in terms of
section 66.
(As amended by Act No. 13 of 1994) (1) Name
and address
of
applicant(s)
or his/their
agent

SECTION 81-THE PATENTS (APPEALS) RULES
Regulations by the Chief Justice Statutory
Instrument
No. 9 of
1984

1. These Rules may be cited as the Patents (Appeals) Rules. Title

2. Subject to any specific provisions of the Act, the High Court
(Appeals) (General) Rules, 1984, shall apply to any appeal to the High
Court brought pursuant to the provisions of the Act. Appeals to High
Court

3. Subject to any specific provisions of the Act, the Supreme Court
Rules shall apply to any appeal to the Supreme Court brought pursuant
to the provisions of the Act. Appeals to
Supreme Court.
Cap. 25

CHAPTER 401
THE TRADE MARKS ACT

ARRANGEMENT OF SECTIONS

PART I
PRELIMINARY

Section
1. Short title
2. Interpretation

PART II
ADMINISTRATION

3. Establishment of Trade Marks Office
4. Seal
5. Appointment of officers
6. Register of trade marks

PART III

EFFECT OF REGISTRATION AND THE ACTION FOR
INFRINGEMENT

7. No action for infringement of unregistered trade mark
8. Registration to be in respect of particular goods
9. Right given by registration in Part A and infringement thereof
10. Right given by registration in Part B and infringement thereof
11. Infringement by breach of certain restrictions
12. Saving for vested rights
13. Saving for use of name, address or description of goods

PART IV
REGISTRABILITY AND VALIDITY OF
REGISTRATION

14. Distinctiveness requisite for registration in Part A
15. Capability of distinguishing requisite for registration in Part B
16. Prohibition of registration of deceptive, etc., matter
Section
17. Prohibition of registration of identical and resembling trade
marks
18. Registration in Part A to be conclusive as to validity after seven
years
19. Registration s