Corporate hospitality is not infrigement of law
I have been asked to sign a personal guarantee agreement by a bank that is extending a business loan to a company in which I am a director. Should I sign the agreement?
That your company is being extended a business loan doesn’t mean that you must sign the personal guarantee agreement. Read carefully the agreement and if possible, seek the expertise of your legal counsel.
If the terms are not acceptable, there’s still a chance that you or your lawyer to renegotiate. You may propose the terms that will give you more protection. Otherwise, if you’re feeling uncomfortable with the terms of the personal guarantee agreement, you may decide not to sign it. You’re, however, advised to carefully read the agreement and if possible to seek legal advice before securing a business loan.
My employees have gone on strike. Can I replace them with new staff during the strike?
It depends on whether the strike is lawful or not. Under section 76(3)(b) of the Employment and Labour Relations Act 2004, an employer is prohibited from replacing workers to continue or maintain production during a lawful strike.
However, this does not preclude you from deploying an employee to do the work of an employee on strike provided that you have his or her consent.
At the end of a lawful strike, you have no option but to allow him/ her to resume his/ her normal duties if he/ she wants to continue with the job.
An employer cannot simply dismiss employees for exercising their legal rights, which include striking. During an unlawful or illegal strike, the employer has the right to replace the striking workers.
As a director of business development, I invite potential customers to tour our company’s printing facility. The company covers the cost of a corporate hospitality package, which includes travel and accommodation. Do anti-bribery laws of Tanzania prevent such trips? What can I do to comply?
The Prevention and Combating of Corruption Act, Cap 329 (R.E. 2002), criminalises attempted corruption and both passive and active bribery, among others.
It does not, however, prevent corporate hospitality provided that it is reasonable and proportionate expenditure intended to fulfil your company’s legitimate business needs.
If your company fails to prevent bribery by an employee or agent, an offence is committed. However, it is a defence to show that the company had put in place adequate anti-bribery procedures and that these procedures were known to the employee or agent.
You are encouraged to monitor expenses on hospitality and gifts given or received by your company and to put in place anti-bribery and anti-corruption policies and procedures, including a guidance note on corporate hospitality spending.
Our company is wracked with debt. Can a creditor put the company into liquidation? If so, what will be the effect of this process?
Yes, but only if the main justification for a creditor to do so is that your company is unable to pay its debts.
If the court grants a winding up order, all dispositions of the property of your company and every transfer of shares or changes in the status of the shareholders of the company made between the date of filing the petition and the winding-up order are void unless the court orders otherwise.
Also, unless permission is obtained from the court, any other proceedings brought against your company will be automatically stayed.
I have been dragged to court by a former business partner. Will the court hearing be held in private or public? If in public, can I ask the court to hold the proceedings in private?
Court proceedings are usually public and judgments are also delivered in open court. However, the court may decide that a hearing be held in a closed session.
You and your former business partner must disclose information requested by the court, which may include confidential documents. If those documents contain commercial secrets or for reasons of public interest and if confidential matters need to be deliberated upon, the court may go into closed session.
