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ZB Stockbrokers files for liquidation
Business Reporter
ZB Financial Holdings Limited stockbroking arm, ZB Stockbrokers has applied for liquidation following irreconcilable operational differences between shareholders.
Chartered accountant Mr Reggie Saruchera has been appointed provisional liquidator.
In an application to the High Court, the ZB Stockbrokers company secretary said it was agreed at an extraordinary general meeting in November last year that the minority shareholders representative on the board, Mr Geoff Mhlanga had formed a rival stockbroking firm.
Mr Mhlanga is alleged to have taken with him the entire staff complement of the company and the majority of the company’s assets.
"The company financial records have not been audited due to the squabbles between shareholders. The company has ceased trading and the irretrievable breakdown of the company’s shareholder’s relationship and this means that there are no prospects that the company will trade," reads part of the founding affidavit.
The stockbroking firm is now battling for an orderly realisation of its assets and the settlement of its creditors.
ZB Stockbrokers authorised share capital is held by Intermarket Holdings Limited, which owns 75 percent of the shares and Dawn Executive Offices Services which owns 25 percent of the shares.
Most stockbrokers are reeling under financial distress due to the limited number of deals they are handling on the stock market.
Since trades resumed on the Zimbabwe Stock Market in February last year activity has been largely concentrated on few stockbrokers. There are 21 registered stockbrokers.
Business has been depressed to an extent that some stockbrokers are going for "days or weeks" without handling any transaction.
Struggling stockbrokers are reluctant to surrender their licenses hoping that the operating environment would change but market sources said many of them are on the verge of collapse. |
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