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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Duties of company directors in Tanzania: the need for legislative reform
Author:Luoga, F.A.D.M.
Periodical:Eastern Africa Law Review
Notes:biblio. refs.
Geographic terms:Tanzania
East Africa
Subjects:company law
economic law
Abstract:The Companies Ordinance (Cap. 212) in Tanzania contains no general statutory provision prescribing the duties of directors. The Ordinance falls short of incorporating the principles of trusteeship and agency that provide a basis for the liability or duties of directors. Tanzanian domestic laws are far behind when it comes to control of the conduct of directors, even assuming the courts in Tanzania were to adopt the relevant common law principles (according to which company directors have a duty to act bonafide in the interest of the company, a duty of care, skill and diligence, and a duty to avoid a conflict between personal and company interests). The question, therefore, is not whether there should be a reform of the law, but rather, which approach should be adopted in effecting reform, the legislative or the judicial. The author maintains that the legislative approach is viable in Tanzania. At the same time the judiciary can be very functional in controlling the conduct of directors. Furthermore, in order to institute effective control over the conduct of directors, the two mainstreams of directors, company directors serving in private and public companies, and directors in public corporations or parastatal organizations, a peculiarity of the Tanzanian situation, must be merged. Notes, ref.