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{
    "id": 573923,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/573923/?format=api",
    "text_counter": 52,
    "type": "speech",
    "speaker_name": "Hon. G.W. Omondi",
    "speaker_title": "",
    "speaker": {
        "id": 1169,
        "legal_name": "George Washinton Mallan Omondi",
        "slug": "george-washinton-mallan-omondi"
    },
    "content": "Hon. Deputy Speaker, the next requirement for this audit committee is to establish standards of business conduct and ethical behaviour of the directors, managers and other personnel of the company. This will include policies for private transactions that involve the company’s employees like directors, managers, those who trade with the company and other transactions or practices which are not at an arm’s length. This in essence will entrench corporate governance in our companies. Part XXX of the Bill introduces a requirement that the affairs of the company could be investigated. Before, we would wait until a whole load is carried out to discover what a company is doing. This Part XXX now requires that a company could be investigated either by its members or by the Attorney-General (AG). Specifically, Clause 787(1)(a)(i) and (ii) provide that some members of the company could go to court and request that the affairs of the company be investigated. Clause 788(1) provides that the Attorney-General can, by a resolution of the company, order that a company’s affairs be investigated. This is different from what has been happening. It is in this context that I am saying that this is overhauling and modernising the existing company law. At Clause 801(1), Division, there is a requirement that this Bill intends to introduce into companies law, if it is passed by this House. This Bill also intends to introduce a requirement in terms of the circulation of information on companies. It provides that the information of a company can be provided through electronic means. One of the problems that we have been having is relying on written copies which are given to the members. This Bill, at Clauses 272, 273, 282, 315 and 316 provides that company information can be provided through electronic means and can also be put on a website. This will facilitate faster business transactions, something which was not there before. This Bill also intends to bring flexibility in a company. The current Act provides that you form a company if you are more than one. This Bill introduces a situation where we can have a one-member limited company. Part XII, Clause 244, provides that a private company can have one member as the owner and can enjoy limited liability benefits. Secondly, that clause also provides that a private company need not have a company secretary. One of the problems that have dragged entrepreneurs back is this requirement that you need to have a company secretary. This drains a company’s resources."
}