Day: February 23, 2021

COMPANY LIQUIDATION Liquidation: this is the legal process, by which a company’s existence is brought to an end, its assets realized, liabilities ascertained and paid and the balance, if any, fairly distributed amongst the members. Winding up is thus the Read More …

COMPANIES ACCOUNTS Under the provisions of the Companies Act, companies are obliged to keep certain books of accounts in the English language. Every company must keep proper books of accounts with respect to: All sums of money received and expected Read More …

THE COMPANY SECRETARY The company secretary is responsible for the efficient administration of a company, particularly with regard to ensuring compliance with statutory and regulatory requirements and for ensuring that decisions of the board of directors are implemented. Company secretaries Read More …

COMPANY MANAGEMENT/DIRECTORS Both the Companies Act and case law recognize the general meeting and the Board of Directors (the BOD) as the principal managerial organs of the company and the Articles vest power in both. Whereas the general meeting makes Read More …

DEBT CAPITAL BORROWING BY COMPANIES Introduction Most Companies like individuals require to borrow from time to time for the requirement of their business. All companies registered under the Companies Act 2015 have an implied power to borrow for purposes incidental Read More …

CAPITAL MAINTANANCE Introduction The capital which a limited company obtains from its members as consideration for their shares is sometimes called ‘the creditors’ buffer’. No one can prevent an unsuccessful company from losing its capital by trading at a loss. Read More …

COMPANY SHARE CAPITAL SHARE CAPITAL Share capital is the amount that purchasers of shares have agreed to contribute to the Company in return of its shares. This is the amount of capital raised or to be raised by issue of Read More …

COMPANY OBJECTS AND CAPACITY A company’s objects are its aims and purposes. If a company enters into a contract which is outside its objects, that contract is said to be ultra vires. However, the rights of third parties to the Read More …

COMPANY PROMOTION LESSON  Definitions of a promoter  Promotion is conducted by persons who come up with the idea to form a company. They are legally referred to as promoters. It has been observed that a promoter is a person who Read More …

INTRODUCTION TO COMPANY LAW The exact scope of company law is difficult to define, on account that the laws of Kenya do not define the term in testament to the words of Buckley J in Re: Stanley (1906) “The word Read More …