- These are incorporated associations created by statute. They owe their existence to an Act of Parliament.
- The Act provides them with a name and prescribes its objects
- The corporation is a body corporated with perpetual succession limited liability capacity to contract sue or be sued and own property.
- Examples include Agricultural Finance Corporation, Kenya Wildlife Services, Kenya Air Ports Authority Public Universities
- All state corporations belong to the state hence have one member.
- Interest may be transferred by the government.
- These are incorporated associations created by registration
- Promoters must comply with the Provisions of the Companies Act.
- On registration the association becomes a body corporate by the name contained in the memorandum of association.
- Their objects are prescribed by the memorandum of association.
- Their features are generally similar to those of statutory corporations
- However registered companies are different in that
- Membership is prescribed by law for example the minimum number of members is two for both public and private companies. However, where as the
membership of a public company is unlimited, a private company cannot have more than 50 members unless the excess members are or have been employees of
- Members interest in the company is transferable.
- Companies are managed by directors.
- There are two types of registered companies namely public and private.
(Visited 14 times, 1 visits today)