Fusing Ministerial Role in SOE Boards Is Fatal To The Rule Of Law
This article examines the legal and governance challenges surrounding the oversight of state-owned enterprises (SOEs) in Namibia. It argues that the current legislative framework, which centralizes power in the hands of the minister rather than the board of directors, undermines corporate governance and the rule of law.
Why it matters
It highlights the tension between political control and corporate autonomy in public sector management, which is critical for economic stability and accountability.
Before 2004 companies and any other corporate incorporated were regulated by the Companies Act, 61 of 1973.
During 2004, parliament enacted a law called the Companies Act, 28 of 2004 and its purpose was to provide for the incorporation, management and liquidation of companies.
This act defined a director as any person occupying the position of director or alternate director of a company by whatever name that person may be designated.
In terms of the old act, the business and affairs of a company must be managed by or under the direction of its board of directors who has the authority to exercise all of the powers and perform all the functions of the company except to the extent that the act or its articles of association provide otherwise.
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