Entry Instance

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

{
    "id": 575512,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/575512/?format=api",
    "text_counter": 335,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "Creditors meetings can be attended by non-creditors; the non-creditors can offer information on the debtor’s affairs. In the current law, under Chapter 4 of the Companies Act, non-creditors are not allowed to sit in the creditors meeting, but for the first time we are introducing new jurisprudence in which the law requires that those people who are not creditors can sit in the creditors meetings, so that they can offer information with regard to the debtor’s affairs. The other thing that this legislation introduces is the list of bankruptcy offences, which has been increased and updated in the Bill. Examples are the offence of bankruptcy in relation to the management of companies, the offence of fictitious losses or expenses and the offence of a bankrupt person living in Kenya without consent. If a bankrupt person decides to run away or take a flight from Kenya, there are serious sanctions in this particular legislation. It protects creditors from those people who are a flight risk, and who just want to come and introduce a business, cause mayhem and run away with people’s monies. The Bill introduces entitlement of surviving spouse to household furniture and effects; this will not form part of the estate. So, a spouse who is bankrupt will not dispose the property of the surviving spouse. The other spouse will remain with something in the house. The Bill also introduces an allowance which may be paid out of an estate to the surviving spouse, or to any of the relatives or dependents of the deceased. This is not provided for in the current law, and it is introduced for the first time in this Bill. It also provides that when a company is liquidated, every present and former members, that includes directors, former directors, shareholders and former shareholders, are liable to contribute to its assets any amount sufficient to ensure that debts, liabilities and expenses of liquidation are covered. That is not contained in the current legislation. So, as a director you do not cause problems and run away, thinking that you will not be held to account. For the first time, this law ensures that if you are a former director, and you caused a lot of problems in the company, like insider trading, you will be held responsible. This will ensure that those who participate in insider trading and resign as directors or members or shareholders, will be held responsible. There are penalties that have been provided for in the law. The people who have caused problems in a company will be required to contribute to ensure that the debts and liabilities of that company are covered sufficiently. The Companies Bill makes void the transfer of shares and an attempt to alter members’ status after a resolution for voluntary liquidation has been passed, thereby securing the interest of existing members during the liquidation period. At the moment, when people enter into voluntary liquidation, they can run away and decide that they do not want to be part and parcel of that company. That practice has been curtailed by this law. The insolvency, or the bankruptcy, law is totally inadequate in this country. The Bill only authorizes insolvency practitioners who can be---"
}