{"id":604746,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/604746/?format=json","text_counter":458,"type":"speech","speaker_name":"Hon. Gaichuhie","speaker_title":"","speaker":{"id":17,"legal_name":"Nelson Ributhi Gaichuhie","slug":"nelson-gaichuhie"},"content":"Hon. Temporary Deputy Chairlady, I beg to move:- THAT, Clause 18 of the Bill be amended by deleting sub-clause (1). The provision contradicts section 16(2) of the Companies Act and the concept of a registered company being a legal entity. A registered company should be treated as a company and an individual be treated as an individual. The provision says that a registered company must be treated like any other independent person with its own rights and liabilities appropriate to itself. This means that the company debts are not the debts of any member or directors. The only instance that could occasion personal liability to the directors should be where in the case of fraud the corporation’s veil is lifted. Therefore, company creditors, including the Kenya Revenue Authority (KRA), cannot institute legal proceedings against a company member or in order to recover from him what the company owes."}