ARRANGEMENT OF SECTIONS
1. Short title.
3. Formation and membership of company limited by shares and
restriction on transfer of shares.
4. Objects and functions of Company.
5. Transfer of certain assets and obligations of State to company.
6. Engagement by company of certain employees of the State.
To provide for the formation of a company to take over the functions, assets and staff
of the Government Medical Stores in the Ministry of Health and Child Welfare and to
provide for matters connected with or incidental to the foregoing.
ENACTED by the President and the Parliament of Zimbabwe.
1 Short title
This Act may be cited as the Government Medical Stores (Commercialisation) Act,
In this Act-
"company" means the company formed for the purposes referred to in section three;
"Government Medical Stores" means the Department of that name in the Ministry of
Health and Child Welfare;
"Minister" means the Minister of Health and Child Welfare or any other Minister to
whom the President may, from time to time, assign the administration of this Act;
"transfer date", in relation to any asset or right, means the date fixed in terms of
subsection (1) of section five for the transfer of that asset or right from the State to the
3 Formation and membership of company limited by shares and restriction on
transfer of shares
(1) Subject to this section, the Minister shall take such steps as are necessary to
secure the formation, registration and licensing of a company limited by shares in
terms of section 26 of the Companies Act [Chapter24:03] which company shall take
over the functions, assets and obligations of the Government Medical Stores to the
extent provided in the Act.
(2) All the members of the company on its incorporation shall be persons nominated
by the Minister and shall subscribe to the Memorandum of Association of the
company on behalf of the State.
(3) Where a company has been formed in terms of subsection (1) no person shall
authorise the transfer of shares or any other asset of that company belonging to the
State to any other person.
4 Objects and functions of Company
(1) The objects of the company shall be-
(a) to purchase, sell, deal in and store medicines, medical equipment and
TITLE 22 other goods and articles for use in hospitals, clinics, pharmacies and other medical
(b) to perform any other function set out in its memorandum of
(2) In the performance of its functions the company shall give priority to serving the
needs of the State, to the extent that it is compatible with sound business practice to
5 Transfer of certain assets and obligations of State to company
(1) Subject to this section, the assets and rights of the State which-
(a) immediately before the date of commencement of this Act, were used
or otherwise connected with the functions of the Government Medical Stores; and
(b) are indicated by the company's board of directors with the approval of
together with any liabilities or obligations attaching to them, shall be transferred to
the company with effect from such date as the Minister may specify by written notice
to the company:
Provided that the Minister may specify different dates for the transfer of different
assets and rights.
(2) On the relevant transfer date, every asset and right of the State which is to be
transferred to the company in terms of subsection (1), together with any obligation
attaching to it, shall vest in the company.
(3) All bonds, hypothecations, deeds contracts, instruments, documents and working
arrangements which subsisted immediately before the relevant transfer date in
relation to any asset or right transferred to the company under this section and to
which the State was a party, shall, on and after that date, be as fully effective and
enforceable against or in favour of the company as if, instead of the State, the
company had been named therein.
(4) It shall not be necessary for the Registrar of Deeds to make any endorsement on
title deeds or other documents or in his registers in respect of any immovable
property, right or obligation which passes to the company under this section, but the
Registrar of Deeds, when so requested in writing by the company in relation to any
particular such property, right or obligation, shall cause the name of the company to
be substituted, free of charge, for that of the State on the appropriate title deed or
other document or in the appropriate register.
(5) Any course of action or proceeding which existed or was pending by or against
the State immediately before the relevant transfer date in respect of any asset, right or
obligation which passes to the company under this section may be enforced or
continued, as the case may be, by or against the company in the same way that it
might have been enforced or continued, as the case may be, by or against the State
had this Act not been passed.
6 Engagement by company of certain employees of the State
(1) Subject to the Public Service Act [Chapter 16:04] and to the consent of the
employees concerned, the company may engage such of the persons who were
employed in the Government Medical Stores on the date of commencement of this
Act as the Public Service Commission, the Minister and the company's board of
directors may mutually agree.
(2) Persons engaged in terms of subsection (1) may be permitted to continue
contributing towards a pension in terms of the Public Service (Pensions) Regulations,
1992 (Statutory Instrument 124 of 1992), or any other enactment, subject to such
terms and conditions as the Public Service Commission may fix with the approval of
the Minister and the company's board of directors
(3) Terms and conditions fixed in terms of subsection (2) may provide for-
(a) payments by the company to the Consolidated Revenue Fund to
compensate the State, wholly or partially, for pensions and other benefits paid or
payable to or in respect of persons engaged in terms of subsection (1); and
(b) the application, non-application or modification of the provisions of
the Public Service (Pensions) Regulations, 1992 (Statutory Instrument 124 of 1992),
in regard to persons engaged in terms of subsection (1).
(4) Notwithstanding any other provision of this Act, a person who-
(a) as a member of the Public Service, was afforded an opportunity of
engagement by the company in terms of this section and declined to avail himself of
the opportunity; and
(b) subsequently left the Public Service and as a consequence became
entitled to pension benefits in respect of the abolition of his post;
shall not be engaged in any capacity by the company for a period of ten years from
the date on which he left the Public Service, unless the Minister and the Public
Service Commission consent to his engagement.