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{
    "id": 573992,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/573992/?format=api",
    "text_counter": 121,
    "type": "speech",
    "speaker_name": "Hon. Gichigi",
    "speaker_title": "",
    "speaker": {
        "id": 1909,
        "legal_name": "Samuel Kamunye Gichigi",
        "slug": "samuel-kamunye-gichigi"
    },
    "content": "it becomes impossible. This particular clause should be retained. It is a very healthy clause in terms of doing business in this country. Clause 138 provides that the residential addresses of the directors must be disclosed. This is very good. For a long time, you would move up and down looking for the directors of companies that maybe owing their creditors. Even if you knew the identities of such directors it would be difficult to find them without knowing where they live. It is important that we identify the people that we are doing business with. In Clause 139, if the address of the director is changed, it is now mandatory that the particulars of the new address are filed with the Registrar as well as kept at the registered office of the company. Clause 152 is also a good clause. In doing business what has been reserved for public companies as well as public officers has been put in this proposed law. A director who has an issue that is being debated and which requires resolution is now put on notice and they must declare their interest in writing so that it is very clear to other members and directors that this person has an interest. Previously, one would hide only to take advantage including insider trading. Hon. Temporary Deputy Speaker, Clause 156 is also good. In certain transactions, directors are enjoined to ensure that they involve members in approving certain decisions. For a very long time, directors have been taking advantage of their positions to loot companies. With this law, they will be forced when they are selling assets of the companies to seek the approval of the members. For public companies, Clause 310 is making it mandatory that companies must hold meetings within six months from the accounting reference date. So, if you are supposed to have your accounts ready by a certain date within six months, an Annual General Meeting must be held so that you can explain to the other shareholders who can make decisions against the directors if things are not correct. Clauses 315 and 316 are good clauses. They are importing technology and introducing digitization in operations of companies where notices are supposed to be posted on the website for communication to the members and other interested parties. Clause 317 is also good as it requires companies to keep their records of minutes and resolutions for, at least, 10 years. Previously, you could find a resolution that had been made a few months earlier. Now, it is mandatory that those records are kept for, at least, 10 years in line with other important documents. As I wind up, Clause 11 needs to be clarified. When it says that registration of a company can be done by one or more persons, we need a clarification because a company cannot be formed by one person. As we open our business to foreigners, we need to have certain safeguards such that certain vital, crucial and critical sectors are not taken over by foreigners. We need to put certain restrictions. We need to provide for clauses that allow the Cabinet Secretary to waive certain costs of registration of companies when it comes to the youths and people living with disabilities. We have been urging our youths to register companies to bid for Government contracts but you find that coming up with the requisite funds to register the companies might be a challenge. We need a clause in the Act that gives the Cabinet Secretary powers to waive such costs for the youths and people living with disabilities. It is a good law and it is going to reform this sector. 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."
}