Entry Instance

HTTP 200 OK
Allow: GET, PUT, PATCH, DELETE, HEAD, OPTIONS
Content-Type: application/json
Vary: Accept

{
    "id": 572984,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/572984/?format=api",
    "text_counter": 160,
    "type": "speech",
    "speaker_name": "Hon. Katoo",
    "speaker_title": "",
    "speaker": {
        "id": 199,
        "legal_name": "Judah Katoo Ole-Metito",
        "slug": "judah-ole-metito"
    },
    "content": "In my view, one of the biggest changes in this law is Clause 316 that provides that every company should have a website. We are in a technological era and information is power. Businesses will always aim at having power and not just money power. Without information, you cannot really achieve that goal of having the profit power. Therefore, in this new law, every company under Clause 316 will be required to have a website. Clause 316(2) provides for the information that can be posted on that website. It should be for public awareness and educating the public about what kind of activities or services a business or a company provides. This includes the information that is required like company communication and notices. When most of these companies have annual general meetings, they give very short notices. You understand what is called “organisational politics”. This is where when there are changes or when the change of directors is due, the members of such companies get very short notices. However, with the website where you are supposed to post all the information, nothing will be done in a shrewd or in a secret way. There should be notices in that website. There should also be resolutions of all meetings that are held, either board meetings or annual general meetings. There should also be information like audited reports because it is a requirement that every company should have audited reports and those audited reports should be on the website so that members of those companies can scrutinise them. Any other communication that is relevant to members of those companies should be posted there. This law has considered the technological changes in the business environment in a manner in which company information can be disseminated. Companies operate within a business environment. The business environment can be categorized into two forms; the internal and the external environments. The internal environment is where companies may be in a position to control or regulate. There is no business company that controls the external environment. The external environment is the other world. Therefore, as a company, you must be ready to adapt to those changes and come up with capabilities and competencies that make you competitive and enable you to move along with those changes within the external environment. Those technological changes will go a long way to help. I want to appreciate Clause 316(2) that has recognized the electronic way of disseminating information. It now allows for posting in a company’s website. Part Four, Clause 34(v) is on Directors that they can be sued, or their liabilities--- This brings a new point that if the Directors are acting in good faith, they would not be held liable. Normally, if you are held liable, at times you are constrained in terms of what actions you can take or not take as a director of a company. If this Bill becomes law, Directors will now have that leeway of doing company transactions, especially in terms of financial borrowing. This is for as long as the action or inaction of the Director is in good faith. It also explains the procedures of determining what can be taken as action in good faith or inaction in good faith. As a Director you will not be liable to that. Under the same part, Clause 42(1) provides that the company - this is also very important - should have a common seal. This common seal which is the official seal of the company--- 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."
}