Uncategorized
TOWARDS A SHARED UNDERSTANDING ON CORPORATE MATTERS – CONVERTING CONNECTIONS TO COMMUNITY POWER – MAWERE IN CONVERSATION WITH MR. REUBEN MUKAVHI
Published
1 year agoon
- Hello Sir. So I have been doing some thinking. My job in insolvency has shown me that there is a huge business opportunity in the private equity of financially distressed companies in Zimbabwe that is there for the taking. Companies that are in financial distress are put under corporate rescue proceedings in our country, and a Practitioner is appointed to craft and implement a rescue plan. In the majority of cases, the plans include a search for an investor to take over ownership of the company and settle the creditors. There lies the opportunity!!! The company is invariably insolvent, with assets being less than the liabilities. This entails that shareholders’ equity is usually in the negative. This also entails that both the shareholders and the creditors stand to lose (sometimes everything) in the likely event of a liquidation . The shareholders can thus be bought out for a nominal price, because they were going to not get anything anyway in the event of a liquidation. The approach is to negotiate a haircut settlement with creditors, the floor dividend being what they would get in the event of a liquidation. I have observed that in the majority of cases, the final acquisition price will be quite favorable for the investor. Once the acquisition is concluded, turnaround strategies will be crafted and implemented to put the company on a sustainable growth trajectory. Coming from a low base , it should be relatively easy to bring the company back to profitability. I believe that in 5 years time, the company would be a successful entity again. The company could then be disposed of for a higher price than the acquisition price to earn a capital gain. In-between , the investor is earning dividends, is making use of any excess cash flows, and maybe earning other fees. In the event that an acquisition has not been able to become successful, then liquidation will be the exit route, with the investor getting out whatever can be got out and move on. Assuming that a portfolio would be built along this line, then exits will be matched with entrants in order to keep the portfolio size and structure optimal. I was just wondering if you would be interested in doing this kind of business in Zimbabwe? I have talked to one insolvency Practitioner in Zimbabwe who is very interested in the idea. The suggestion is that a special purpose vehicle could be set up, with seed money to start the business. Preferably, you could be the majority shareholder in the SPV so that you provide the greater chunk of the seed capital. I am currently working at Master of High Court, but I am very much willing to leave and work full time for the SPV to ensure its success. This is the summary of my idea. Please find time to assess it and make a decision. I should be very happy to hear from you soon.
- MONDAYMutumwa Mawere sent the following messages at 5:05 PMView Mutumwa’s profileMutumwa Mawere 5:05 PM[1/9, 2:20 PM] mdmawere1: Tried to call. My name is Mutumwa Mawere and got your name in the group. I am a businessman and thought that we could know each other in case you wished to broaden and deepen your reach as a lawyer. [1/9, 2:29 PM] +27 76 206 9172: I am having a busy day [1/9, 2:29 PM] +27 76 206 9172: And I see what you discussing is not something I have interest on [1/9, 2:29 PM] mdmawere1: Ok no pressure on you. [1/9, 2:31 PM] mdmawere1: What areas are you interested in and it never hurts to know each other for no one can anticipate another sovereign person’s interests. No one need disturb why is working in motion. [1/9, 2:34 PM] mdmawere1: [1/9, 2:33 PM] Mr Edward Samakomva: It’s okay lets let leave it there [1/9, 2:33 PM] mdmawere1: I thought we are trying to learn and not dictate. [1/9, 3:04 PM] mdmawere1: [1/9, 2:35 PM] Mr Edward Samakomva: Correct the attitude I have no interest! [1/9, 2:36 PM] mdmawere1: Do you agree that interest is based on shared understanding? What if she thinks that we have an agenda? [1/9, 2:37 PM] Mr Edward Samakomva: People may not see the vision I let deal with those showing interest [1/9, 2:38 PM] Mr Edward Samakomva: Correct [1/9, 2:38 PM] mdmawere1: Do you agree that you and me have no knowledge of problems faced by practitioners in relation to service delivery? [1/9, 2:39 PM] Mr Edward Samakomva: It’s possible the first post she saw given her employer [1/9, 2:42 PM] mdmawere1: Why engage in speculation instead of engagement? I don’t have any interest in helping lawyers to be craft competence. [1/9, 3:26 PM] mdmawere1: Never rescue a sleeping snake. Many lawyers operate in the anticipatory world like models expecting the next call to come from an agent. The consumers are the ones who pay the price from mediocre traditional business models where being admitted like being a President gives one a licence to attack clients with unacceptable service delivery. The system protects the supply side and not the consumer. [1/9, 5:01 PM] mdmawere1: [1/9, 3:49 PM] mdmawere1: Thanks for helping to prove a point that it is not easy to build a community of mutual aid benefit but easier to create a company where luck is the driver. [1/9, 4:08 PM] Mr Edward Samakomva: It ought to be difficult because we won’t see things from the same angle and there could be a whole plethora of other reasons.. Fear of the unknown but what I know is those willing will be identified [1/9, 4:08 PM] Mr Edward Samakomva: Sorry was gardening [1/9, 4:09 PM] mdmawere1: Do you agree that probing helps expose the inner sentiments? [1/9, 4:10 PM] Mr Edward Samakomva: Probing has always been powerful [1/9, 4:11 PM] Mr Edward Samakomva: Everything and anything must be probed and to me probing is a strength and a skill [1/9, 4:11 PM] mdmawere1: Now we know humans are not flies for what may be good to them is treated with susciption. [1/9, 4:14 PM] Mr Edward Samakomva: It’s human nature if we were up to no good or fraudulent people would give in easily that why scams succeed every second [1/9, 4:15 PM] mdmawere1: Do you accept that although they worked with you, they still reserve the right to reject what you may think is to their benefit? [1/9, 4:17 PM] Mr Edward Samakomva: Even ones own children can do like wise [1/9, 4:18 PM] mdmawere1: Are you discouraged? [1/9, 4:19 PM] Mr Edward Samakomva: Not at all the right people will be identified [1/9, 4:20 PM] mdmawere1: Do you agree that there exists no right person known to man? [1/9, 4:21 PM] Mr Edward Samakomva: Maybe it’s diction [1/9, 4:21 PM] Mr Edward Samakomva: Should I say willing [1/9, 4:23 PM] mdmawere1: Do you accept that in life, there are people who want to invoice without having any voice in the invoice? [1/9, 4:26 PM] Mr Edward Samakomva: Human nature sir. People forsee abuse and exploitation hence they choose to work as an entity to maximize profit and not as a community to give back value to the community [1/9, 4:32 PM] Mr Edward Samakomva: Certainly [1/9, 4:34 PM] mdmawere1: Do you agree that the threads speak to the fears and the elusive promise from the so-called enlightened who are blind to the power of platforms rather than the THEM & US LAWYERS typology? [1/9, 4:36 PM] Mr Edward Samakomva: But fun enough their ages should be embrassing technology better [1/9, 4:36 PM] mdmawere1: Do you agree that no change is better change? [1/9, 4:38 PM] Mr Edward Samakomva: Rather deep for me but is it upholding the status quo. Thing should remain? [1/9, 4:39 PM] mdmawere1: Do you agree that if you had dangled a job offer, you would be a life friend? [1/9, 4:40 PM] Mr Edward Samakomva: Certainly [1/9, 4:44 PM] mdmawere1: Do you agree that our initiative involves no service provider to client relationship and as such not direct monetary benefit to the proud and gifted service provider who believes that they are exceptional gate keepers to justice? [1/9, 4:57 PM] mdmawere1: Do you agree that if the platform idea is accepted, all professionals would be more useful to problem solving and customers would enjoy convenience of avoiding greedy service providers?
- View Mutumwa’s profileMutumwa Mawere 5:07 PMHello just seeing your message of 2019. I have 30k contacts and please forgive me for being human.
- Reuben Mukavhi MBA ACCA ACIS LLB BSc DipED sent the following messages at 5:58 PMView Reuben’s profileReuben Mukavhi MBA ACCA ACIS LLB BSc DipED 5:58 PMThank you Sir for the response. I do understand the lateness of the response. I really do.
- View Reuben’s profileReuben Mukavhi MBA ACCA ACIS LLB BSc DipED 6:03 PMWhen I sent the message in 2019, I was still in the Master’s Office. I left at the end of that year, and am now in private legal practice. During that time, there were quite a number of companies that were getting into corporate rescue, and there was indeed an opportunity to snap up controlling shareholding in those companies at favourable prices as I explained. The circumstances have changed quite a bit. Not many companies are getting into corporate rescue these days. I am not sure if it is a sign that our economic environment has improved.
- Mutumwa Mawere sent the following message at 6:46 PMView Mutumwa’s profileMutumwa Mawere 6:46 PMGreat. Can you relate to the problem of lack of visibility for black insolvency practitioners?
- Reuben Mukavhi MBA ACCA ACIS LLB BSc DipED sent the following message at 6:51 PMView Reuben’s profileReuben Mukavhi MBA ACCA ACIS LLB BSc DipED 6:51 PMNot in Zimbabwe. The Insolvency industry is actually dominated by black practitioners. There are very few non-black practitioners in the industry.
- Mutumwa Mawere sent the following message at 6:55 PMView Mutumwa’s profileMutumwa Mawere 6:55 PMAre you operating in Zimbabwe?
- Reuben Mukavhi MBA ACCA ACIS LLB BSc DipED sent the following message at 7:00 PMView Reuben’s profileReuben Mukavhi MBA ACCA ACIS LLB BSc DipED 7:00 PMYes, I am in Zimbabwe
- Mutumwa Mawere sent the following messages at 7:13 PMView Mutumwa’s profileMutumwa Mawere 7:13 PMGreat
- Are you familiar with the Reconstruction of State Indebted Insolvent Companies Act?
- Reuben Mukavhi MBA ACCA ACIS LLB BSc DipED sent the following message at 7:16 PMView Reuben’s profileReuben Mukavhi MBA ACCA ACIS LLB BSc DipED 7:16 PMYes I am.
- Mutumwa Mawere sent the following message at 7:17 PMView Mutumwa’s profileMutumwa Mawere 7:17 PMIs Reconstruction akin to judicial management or business rescue? If yes, why? If no, why?
- Reuben Mukavhi MBA ACCA ACIS LLB BSc DipED sent the following message at 7:24 PMView Reuben’s profileReuben Mukavhi MBA ACCA ACIS LLB BSc DipED 7:24 PMThe purposes are quite the same, but the legal procedures are different. So for example, where judicial management/ corporate rescue is supervisor by a Master of the High Court, reconstruction is supervised by the Minister of Justice. Where corporate rescue is commenced by resolution or court order, reconstruction is commenced through a decree of the Minister which will then presented before the High Court for confirmation proceedings. But the processes essentially aim to nurse distressed companies back to viability to enable them to pay their debts and be going concerns again.
- Mutumwa Mawere sent the following message at 7:50 PMView Mutumwa’s profileMutumwa Mawere 7:50 PMThanks Reuben
- Reuben Mukavhi MBA ACCA ACIS LLB BSc DipED sent the following message at 7:52 PMView Reuben’s profileReuben Mukavhi MBA ACCA ACIS LLB BSc DipED 7:52 PMMy pleasure Sir.
- Mutumwa Mawere sent the following messages at 7:52 PMView Mutumwa’s profileMutumwa Mawere 7:52 PM#1 if the purpose is the same, then why not use the existing law, the Companies Act, to regulate the affairs of a company based on similar facts and circumstances.
- View Mutumwa’s profileMutumwa Mawere 7:56 PM#2 you assert that the legal procedures are different when the constitution is founded on the doctrines of equality and separation of powers. S2 of the constitution provides that any law, conduct, practice and custom that is inconsistent with the constitution is invalid to the extent of the constitution. Accordingly, no one is above the law to permit the issuance of an order outside the four corners of the court. A liquidation order is preceded by the due process of the law involving a creditor and debtor.
- Reuben Mukavhi MBA ACCA ACIS LLB BSc DipED sent the following message at 7:57 PMView Reuben’s profileReuben Mukavhi MBA ACCA ACIS LLB BSc DipED 7:57 PMThe law is the law until it is repealed. Maybe now that we have a new Insolvency Act, maybe the Reconstruction Act might be repealed.
- Mutumwa Mawere sent the following messages at 7:57 PMView Mutumwa’s profileMutumwa Mawere 7:57 PM#3 A Minister of state is a member of the executive branch of government and as such lacks title and jurisdiction to issue any binding orders at all.
- View Mutumwa’s profileMutumwa Mawere 7:58 PM#4 you asset that the law is the law. Have you looked at s2 of the Constitution to guide your thinking?
- Reuben Mukavhi MBA ACCA ACIS LLB BSc DipED sent the following message at 8:03 PMView Reuben’s profileReuben Mukavhi MBA ACCA ACIS LLB BSc DipED 8:03 PMThe point I am making is that as long as a piece of legislation is still part of our Statute book, it is law. I am not talking about whether the law is a good or bad law.
- Mutumwa Mawere sent the following message at 8:05 PMView Mutumwa’s profileMutumwa Mawere 8:05 PM#4 Your point is taken but the constitution is instructive in that a law is only law and is, therefore, valid to the extent of its consistency with the constitution. It would appear that you are missing this point.
- Reuben Mukavhi MBA ACCA ACIS LLB BSc DipED sent the following message at 8:24 PMView Reuben’s profileReuben Mukavhi MBA ACCA ACIS LLB BSc DipED 8:24 PMI am not missing the point about the Constitution. The position is that only the Constitutional Court can pronounce a piece of legislation unconstitutional. There are only two ways in which a piece of legislation can be invalidated in our country. Either, the ConCourt pronounces it to be invalid to the extent of its inconsistency with the Constitution, or Parliament repeals it. The point I am making is that the Reconstruction Act has not been declared unconstitutional, neither has it been repealed. It still remains part of our law.
- Mutumwa Mawere sent the following message at 8:28 PMView Mutumwa’s profileMutumwa Mawere 8:28 PMIndeed you are making a valid point but do you agree that a law is invalid to the extent of its inconsistency and not to the extent of its existence from a constitutional point. The duty to uphold, defend, respect and obey it as the supreme law is binding not only on the courts but on every person.
- Reuben Mukavhi MBA ACCA ACIS LLB BSc DipED sent the following message at 8:38 PMView Reuben’s profileReuben Mukavhi MBA ACCA ACIS LLB BSc DipED 8:38 PMIn our law, laws bind all citizens until they are repealed. I agree that a law is invalid to the extent of its inconsistency with the Constitution. But the power to declare that a law is invalid is reposed in the ConCourt. You and me have no power to declare laws invalid. What we have are rights to approach the ConCourt with challenges against laws we might think are inconsistent with the constitution. It will be for the ConCourt to decide.
- Mutumwa Mawere sent the following messages at 8:42 PMView Mutumwa’s profileMutumwa Mawere 8:42 PMI did not talk about the address of determining the constitutional validity of a law but the principle of constitutionalism and rule of law. Are you aware that the duty to test a law’s constitutional validity is vested in every person. One of the remedies is the court and is not the only one?
- TODAYView Mutumwa’s profileMutumwa Mawere 7:16 AMGood morning
- View Mutumwa’s profileMutumwa Mawere 7:23 AM
- 👏
- 👍
- 👎
- 😊
- 😞
- Reuben Mukavhi MBA ACCA ACIS LLB BSc DipED sent the following message at 8:01 AMView Reuben’s profileReuben Mukavhi MBA ACCA ACIS LLB BSc DipED 8:01 AMVery true. I agree with your exposition.
- Mutumwa Mawere sent the following message at 8:24 AMView Mutumwa’s profileMutumwa Mawere 8:24 AMWould you want to be in a circle to build the future that has a common denominator of CORPORATE AND LEGAL LITERACY THAT IS SHARED?
- Reuben Mukavhi MBA ACCA ACIS LLB BSc DipED sent the following message at 9:29 AMView Reuben’s profileReuben Mukavhi MBA ACCA ACIS LLB BSc DipED 9:29 AMProvide more information Sir.
Related Topics:
Continue Reading
You may like
Click to comment
Warning: Undefined variable $user_ID in /home/iniafrica/public_html/wp-content/themes/zox-news/comments.php on line 49
You must be logged in to post a comment Login