Public Enterprises Reform and Divestiture Act
- Commenced on 8 October 1993
- [This is the version of this document at 31 December 2000.]
- [Note: The version of the Act as at 31 December 2000 was revised and consolidated by the Law Reform Commission of Uganda. All subsequent amendments have been researched and applied by Laws.Africa for ULII.]
Part I – Preliminary
1. InterpretationIn this Act, unless the context otherwise requires—
2. Objectives of this Act
Part II – Institutional framework for reform and divestiture
3. Divestiture and Reform Implementation CommitteeThere shall be a body to be known as the Divestiture and Reform Implementation Committee.
4. Membership of committee and participation in its proceedings and functions
5. Functions of committee
6. Disclosure of interest
Part III – Institutional framework for monitoring
7. Monitoring by Minister responsible for finance
Part IV – Monitoring
8. Operational principlesIn determining the policies, operational issues and plans of a public enterprise generally, the managers, directors and line Ministers of enterprises and the Minister responsible for finance shall be guided by the following considerations—
9. Management of public enterprises
10. Employee participation in ownershipA public enterprise may provide for participation in the ownership of the enterprise through investment by its employees in shares and may, to this end, permit—
11. Operating plans
12. Annual reports to responsible Minister
13. Submission of report and other information to the Minister, etc.
14. Confidential information not to be divulged to third partiesNo chief executive, director, secretary, manager or other employee of a public enterprise shall divulge any confidential information in relation to that public enterprise to any third party without the authority of the board of directors of that public enterprise.
15. Annual certificate of responsibility
16. State shares
17. Auditor General to audit public enterprises
18. Minister to lay reports, etc. before Parliament
Part V – Reform
19. Financial disciplineThe Government’s policies regarding the reform of public enterprises shall recognise the following basic requirements—
20. Criteria for reform, restructuring, etc.
21. Compensation for redundant employeesThe Minister responsible for finance shall ensure that provision is made for payment of compensation to employees who are declared redundant as a result of the restructuring or liquidation of public enterprises through the establishment and operation of a redundancy account to be opened at a commercial bank approved by the Minister responsible for finance.
Part VI – Divestiture
23. Actual sale and transfer of public enterprises
24. Power of responsible Minister to direct transfer of shares
25. Shares to public and employees, etc.Shares, property or enterprises may be issued and disposed of under section 23 to—
26. Use of proceeds of divestiture
27. Acquisition of shares by Minister
28. Formation of successor companies
29. Minister to appoint a date for vesting of undertaking of public enterprises in successor company
30. Consequential provisionWithout limiting the general effect of section 29, on and after the appointed day in relation to a public enterprise—
31. Protection of employee contracts, etc.Notwithstanding any other provision of this Act—
32. Vesting of land of public enterprise in successor company
33. Successor company and public enterprises to be treated as same for tax purposesFor the purpose of any enactment that imposes or provides for the collection of a tax, duty, levy or other charge—
34. Registration of two or more successor companies in place of a single public enterpriseNothing is this Act shall prevent two or more successor companies being registered under section 28 in the place of a single public enterprise and, in those circumstances, the property, rights and liabilities of that enterprise shall be divided between the successor companies in accordance with the statutory instrument in relation to the enterprise made under section 29(1), and sections 28 to 35 shall be construed accordingly.
35. Effect of divestiture or liquidation on relevant enactments
Part VII – Offences and penalties
36. Penalty for stripping or concealing assetsAny person who in respect of a public enterprise—
37. Penalty for causing financial lossNo chief executive, director, secretary, manager or other employee of a public enterprise shall do any act or omit to do any act knowing or having reason to believe that the act or omission will cause financial loss to that public enterprise.
38. Restriction on persons, parties participating in divestiture
39. Offences and penalties
Part VIII – Miscellaneous
40. Reports to ParliamentThe Minister responsible for finance shall, at least once in every six months, submit a report to Parliament on the steps taken to implement this Act.
41. Primacy of this Act
42. Application of Investment CodeA company established or existing in Uganda as a result of divestiture under this Act shall with the approval of the Uganda Investment Authority be eligible for incentives under the Investment Code, as if it were a company which commenced operations after the commencement of that code.
44. Amendment of Schedules
45. Amendment of Third and Fourth SchedulesThe Minister responsible for finance may by statutory instrument with the approval of the Cabinet amend the Third and Fourth Schedule to this Act.
46. Departed Asians’ Property Custodian Board legislation not affectedNothing in this Act shall detract from any enactment concerning the treatment of properties falling under the Departed Asians’ Property Custodian Board.
47. Saving of private rightsAny divestiture under this Act shall not prejudice the right of any person who has suffered damage from obtaining fair, adequate and prompt redress in respect of the damage.
History of this document
31 December 2000 this version
08 October 1993