ARCHBISHOP MIHAYO UNIVERSITY COLLEGE OF TABORA

A CONSTITUENT COLLEGE OF ST AUGUSTINE UNIVERSITY OF TANZANIA ( SAUT)

FACULTY

BACHELOR OF LAW (LLB)

COURSE NAME

BUSINESS LAW

COURSE CODE

SLW 300

INSTRUCTOR

MR. MWITA M.

ASSIGNMENT TYPE :

INDIVIDUAL ASSIGNMENT

SUBMISSION DATE

15TH JANUARY 2016

NAME.

REGISTRATION No.

MNANGO ABUBAKAR A.

AM/LLB2/13174

SIGNATURE.

QUESTION

Provide a legal discussion on the regulation and functions of statutory companies.

INTRODUCTION
Statutory companies are public enterprises brought into existence by a special act of the
Parliament. The act defines its powers and functions, rules and regulations governing its
employees and its relationship with government departments. They are companies created by
statute. Their precise nature varies by jurisdiction thus they might be ordinary companies owned
by a government with or without other shareholders, or they might be a body without
shareholders which is controlled by national government to the extent provided for in the
creating legislation.1
Another definition of the statutory companies is that, when a Company is incorporated or formed
by passing a Special Act at the Legislature, it is called as a Statutory Company, though primarily
they are governed under that Special Act, still the Companies Act, 2002 will be applicable to
them.2
These companies are formed mainly with an intention to provide the public services like gas,
water, electricity, etc. the examples of this acts in Tanzania would be; TANESCO, TBC, NBC,
NDC, NHC, NARCO, and TPDC.
Section 23, defined Statutory Corporation to mean anybody corporate established by or under
any written law other than an Act of the Community, but does not include a company
incorporated under the Companies Ordinance.
FUNCTIONS OF THE STATUORY COMPANIES
TANESCO
Tanzania Electric Supply Company Limited (TANESCO Ltd) is a company limited fully owned
by the Government of Tanzania under the Ministry of Energy and Minerals and hence was duly
1 https://en.wikipedia.org/wiki/Statutory_corporation accessed at 01:45hrs on
14/01/2016
2 http://www.corporate-cases.com/2012/01/statutory-company.html accessed at
02:00hrs on 14/01/2016
3 Public Corporation Act, 1969

registered under the Companies Act4 as amended, under the Registrar of Companies under the
Business Registration and Licensing Authority (BRELA). The New Electricity Act No. 10 of
2008 as amended which repeals the Electricity Act 5 is the law that facilitates and regulates
generation, transmission, distribution, supply and use of electric energy and hence is the main act
that governs TANESCO Ltd works as being the current sole licensee.
TANESCO Ltd currently carries out all distribution, transmission and generation activities within
the Country.
Since sometime in 2001 the Government has formed a Regulatory Authority is the Energy and
Water Utilities Regulatory Authority (EWURA) under the Energy and Water Utilities Regulatory
Authority Act6 as amended which is an Act which has established the Regulatory Authority in
relation to energy and water utilities and it provides for its operation in place of former
Authorities and for related matters.7
The functions of EWURA in relation to electricity supply industry are stated under section 6 (1) 8
as follows:
a)
b)
c)
d)

Protect customers interest through the promotion of competition;

Promote access to and affordability of electricity services particularly in rural areas;
Promote least cost investment and the security of supply for the benefit of customers;
Promote improvement in the operational and economic efficiency of the electricity supply

industry and efficiency in the use of electricity;

e) Promote appropriate standards of quality, reliability and affordability of electricity
supply;
f) Take into account the effect of the activities of the electricity supply industry on the
environment;
4 Cap 12 [R. E. 2002]
5 Cap 131 [R. E. 2002]
6 Cap 414 [R. E. 2002]
7 http://www.tanesco.go.tz accessed on 13/01/2016 at 13:45hrs
8 Ibid note 8 above

g) Protect the public from dangers arising from the activities of the electricity supply
industry; and
h) Promote the health and safety of persons in the working environment employed in the
electricity supply industry.
REGULATIONS OF STATUTORY COMPANIES
Section 79 provides as follows;
a) to perform the functions conferred on the Authority by sector legislation;
b) subject to sector legislation;
i.
to issue, renew and cancel licences;
ii.
to establish standards for goods and services;
iii.
to establish standards for the terms and conditions of supply of goods and
services;
iv. to regulate rates and charges;
v. to make rules;
c) to monitor the performance of the regulated sectors in relation to;
i.
levels of investment;
ii.
availability, quantity and standard of services;
iii.
the cost of services;
iv. the efficiency of production and distribution of services; and
v. other matters relevant to the Authority;
d) in the case of petroleum and natural gas, to regulate transmission and natural gas
e)
f)
g)
h)

distribution;
to facilitate the resolution of complaints and disputes;
to disseminate information about matters relevant to its functions;
to consult with other regulatory Authorities;
to perform such other functions as are conferred on the Authority;

TANZANIA POSTs COMMUNICATION

This is the one among of the statutory companies which had been established and regulated by
the act of parliament act No. 19 of 1993 and became operational on 1st January, 1994 The
Tanzania Posts Corporation (TPC) is a national designated public postal operator Parliament.

9 The Energy and Water Utilities Regulatory Authority Act Cap 414 [R. E. 2002]

FUNCTION OF THE STATUTORY COMPANY (Tanzania Posts Corporation) as it provided

under section 5(1)10 the company may:To promote the development of telecommunication and postal systems and services in
accordance with, practicable recognized international standard practices and public demand.
This is the one among of the functions of the company where by the company needed to insure
there is the development of telecommunication and postal services

and to insure that that

systems are developing in accordance with to the standard practice and the public demand.
To ensure that there are provided throughout the United. Republic good and sufficient domestic
and international telecommunications (except broadcasting and television) and postal services
and such other services on such terms as the Commission may think expedient
This is another function of the statutory company (Tanzania Posts Corporation) whereby the
issue of telecommunication and postal service are provide throughout of Tanzania or means to
operate worldwide so as to encourage any people from everywhere to understand that services,
bud did not including broadcasting and television.
Section 10(1)11, it shall be the general duty of the Board, by means of the undertaking of the
Corporation;
a) to provide postal services and telecommunications services within the United Republic
and to countries outside the United Republic;
b) to regulate and control radio communications operated from or received in the United
c)

Republic;
Subject to section 99, to manage and control, on behalf of the United Republic and in
accordance with the laws of the United Republic, Savings Banks.

REGULATIONS OF THE CORORATION

Section 10 still provides for the powers of the corporation; The Corporation shall have power the
Corporation as;
10 Tanzania Communication Corporation Act no 18 of 1993
11 THE TANZANIA POSTS AND TELECOMMUNICATIONS ACT , 1977

a) to establish and operate postal services and to convey from one statutory place to another,
whether by land, by water or by air, all postal articles and to perform all the incidental
services of receiving body collecting, sending, dispatching and delivering all postal
articles;
b) to establish and operate money order services and to remit fro one place to another
money by means of money orders and perform all the incidental services of issuing,
receiving and paying oil money orders.
c) to establish and operate telephone services and to perform all the incidental services of
providing, installing and maintaining the necessary telephone apparatus, receiving and
booking calls, and connecting one telephone with any other telephone;
d) to establish and operate telegraph services and to transmit from one place to another, by
means of the telegraph services, all communications which the sender desires to send by
telegrams and to perform all the incidental services of receiving, collecting, dispatching
and delivering telegrams;
e) to establish and operate radio communication services, to regulate and control radio
communication and to provide, install and maintain the necessary equipment for any
other person authorized to operate radio communication.

BIBLIOGRAPHY
STATUTES
Public Corporation Act, 1969
The Companies Act Cap 12 [R. E. 2002]
The Electricity Act Cap 131 [R. E. 2002]
The Energy and Water Utilities Regulatory Authority Act Cap 414 [R. E. 2002]
Electricity Act No. 10 of 2008
The Tanzania Posts and Telecommunications Act, 1977
Tanzania Communication Corporation Act no. 18 of 1993
INTERNET SOURCES
https://en.wikipedia.org/wiki/Statutory_corporation
http://www.corporate-cases.com/2012/01/statutory-company.html
http://www.tanesco.go.tz accessed on 13/01/2016 at 13:45hrs