Accountants Park
Plot No. 2374/a
Thabo Mbeki Road, Lusaka
membership@zica.co.zm
education@zica.co.zm
(+260) 211 374 551-9

Continuity Agreement Form


ZiCA is regularly made aware of problems which have arisen where a sole practitioner has become physically or mentally incapacitated and consequently unable to continue to manage their practice, or has died without making adequate arrangements for the carrying on of their practice by his personal representatives. The following guidance is intended to be of assistance to sole practitioners.  

It is imperative for sole practitioners to identify the solutions to the problems which will inevitably arise in the event of their incapacity or death.  These may affect clients, other members and firms who may be involved in the continuation of the practice, and the member’s personal representatives, their advisors and any other persons who may be concerned.

General considerations

All practitioners have a duty to ensure that their practices are at all times properly supervised and conducted, including implementing arrangements to cover holidays and sickness of the practitioner. The problems which will inevitably arise where a sole practitioner ceases to be able to conduct his practice because of continuing incapacity or death are much more serious. The interruption of services resulting in particular from mental incapacity or death will cause considerable difficulty and inconvenience to the practitioner’s clients, additional anxiety for their family and reduction in the value of the practice or even its disintegration.


It is vital for a sole practitioner to confront these problems and difficulties associated with the continuity agreement, preferably when he or she first enters into practice, and to make arrangements appropriate to each of the following circumstances to enable the practice to be carried on with a minimum of dislocation.


A.

short-term absence due to holiday or sickness

C.

mental incapacity

B.

A continuing physical incapacity

D.

Death

The arrangements in respect of (b), (c) and (d) should provide, as far as is possible, for the practice to be continued as a going concern by the member’s alternate until such time as the sole practitioner recovers or a decision is made to dispose of the practice. Where the office has been authorised under the Membership Services Department these arrangements should include provision for notification of death or anticipated prolonged absence of the sole practitioner to the Practice Review Department of the Institute so that provision can be made to ensure that Approved Training is not placed in jeopardy.

The arrangements may be made with another sole practitioner or with a firm, or through support arrangements set up by the membership Department. Any effective arrangements will require very specific legal measures, and as such it is, however, first necessary to consider the specific legal problems associated with the provision of services in the reserved areas of practice, if incapacity or death of a sole practitioner should occur.

What is the essence of the Continuity Agreement Form?

It is in this form where the firm states is the suitably qualified individual or firm appointed by a sole principal (sole practitioner or sole director of a corporate practice) to continue the running of their practice in the event of their death or incapacity.

By ensuring that you have a continuity agreement in place, and providing your immediate family and senior staff with access to the agreement with your alternate, you will help avoid uncertainties that could create further concern and distress at a difficult time. There is a requirement to inform ZiCA of your firm you have signed continuity arrangements with you are a sole practitioner.

Continuity of Practice Agreement Forms