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{
    "id": 570527,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/570527/?format=api",
    "text_counter": 207,
    "type": "speech",
    "speaker_name": "Hon. (Ms.) Mbalu",
    "speaker_title": "",
    "speaker": {
        "id": 432,
        "legal_name": "Jessica N. Mbalu",
        "slug": "jessica-mbalu"
    },
    "content": "Hon. Temporary Deputy Speaker, clauses 69 to 92 provide for how to convert a registered private company to a public company and vice versa. This one has been very well articulated and I think it is well decided. I also think that the beneficiaries are the business people of this country. With regard to the reduction of Kshs5 million to Kshs1 million as share capital this is really going to give a lot of positive advantage to the business people of this country. The Companies Bill, 2015 will be an Act of Parliament to consolidate and reform the law relating to incorporation, registration, operation, management and regulation of companies to provide for appointment and functions of auditors to make other provisions relating to companies and to provide for related matters. Business people, however small they are, may have the place, capital, intention, invention and the good idea, but they may not be in a position to even register a company because of bureaucracy. As we propose amendments and come to the Committee Stage let us look at the Registrar of Companies. How easy will it be to register a company in order to make it convenient for business people without a lot of bureaucracy? Business people should be in a position to register companies in order to do business and fit in the 30 per cent procurement regulations. I am happy about women and youth of this country because they now have a leeway to do business. They can now register companies. They can now move from single business permits to companies. Given the work at the counties and in the public service, this is a Bill that is going to give light to business people and anybody who wants to undertake transactions. This Bill also looks at the different fines that have been introduced for non-compliance by directors and shareholders. We are going to introduce case law. I really think that when we pass this Bill in the Third Reading--- This Bill is so voluminous that many amendments will be brought; I hope business people will be able to understand them. I am talking about things like fines that will be imposed on them if they do not comply with the law. This is because any laws that have been made in this country from this House have to be followed or adhered to, to the letter. I must appreciate my students wherever they are. This is a day they want to celebrate because we are now able to see light in terms of the new Companies Act. The bureaucracy that has been there has been lessened in terms of registration and performance of a company. Every public company will have a secretary. A private company will not even be required to have a secretary. This is very welcome. It is positive and advantageous to those who are willing to start companies. The SMEs of this country are really going to benefit. If you look at the performance of countries in terms of GDP and improvement of the economy, you will realize that it is through SMEs that we are able to say an economy is growing. Look at the USA, about 70 to 80 per cent of its GDP is attributable to the small businesses. It is those customers who walk in and out of the small business who are able to grow the economy. Kenya, through empowerment by this Bill, should emulate the USA. Digitization has been so involving for the shareholders and directors. Now that digitization has been proposed in the Bill, we will be able to have written resolutions rather than attending meetings through written resolutions. Physical presence may not be required; this is going to ease operations. As we know, now we are moving into an open system. Technology has come into our country. We are going to be in a better position to use technology. I must say that the office of the Registrar of Companies will need to pull up its socks and align itself to the requirements of this Bill for the sake of business people and entrepreneurs. This The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}