Ndiritu Muriithi

All parliamentary appearances

Entries 241 to 250 of 472.

• 7 Jun 2011 in National Assembly: Thank you, Mr. Deputy Speaker, Sir. I rise to second that the Insolvency Bill be read a second time. In doing so, as the Mover, the Attorney-General, has explained, we are in a time where the whole legal regime under which private companies are operating is undergoing modernization. The hon. Attorney-General referred, for example, to the new Companies Bill which has already gone through the Second Reading with a lot of support from the House. These sets of law will add to the Accountants Act that sought to improve the nature of financial reporting and, therefore, improve the overall corporate ... view
• 7 Jun 2011 in National Assembly: Mr. Deputy Speaker, Sir, of particular note is the effort by this Bill to encourage dissolution of non-viable enterprises, or enterprises that are inefficient; it creates a regime that encourages the survival of the efficient companies in order to maximize value in the event of liquidation. view
• 7 Jun 2011 in National Assembly: Mr. Deputy Speaker, Sir, hon. Members will note that Part III of this Bill, which is voluminous, introduces the idea of a moratorium, or a period during which companies can go through a process of curing themselves if they are insolvent. This is seeking to change the environment under which, for example, receiverships take place. So far, in most of corporate Kenya, receiverships tend to be an exercise in which assets are sold off and a company is liquidated. This fails to make the clear distinction between insolvency and the possibility of bankruptcy. Throughout the world, three-quarters of businesses fail; ... view
• 7 Jun 2011 in National Assembly: Mr. Deputy Speaker, Sir, this Bill goes further in parts VII and IX to examine and provide for how corporate rescue can happen. I think Uchumi Supermarket is an excellent case in point. You will notice that in this case, because the creditors, shareholders of this business, suppliers and everybody who was involved were able to very quickly get together and decide that they were going to rescue this business, because it was profitable--- I think the facts have shown so; perhaps, it had suffered periods of poor management and corporate governance. Therefore, the rescue, or bringing of Uchumi back ... view
• 7 Jun 2011 in National Assembly: Mr. Deputy Speaker, Sir, if you compare that to the efforts we are now making in the revival of Pan African Paper Mills (PAPM) in Webuye-- This rescue of PAPM is difficult and has taken a long time; it has been the subject of many sessions of the Parliamentary Committee on Implementation. The reason is that we operate in a legal environment where corporate rescue is not expressly provided for in law. If the various view
• 7 Jun 2011 in National Assembly: stakeholders, meaning the holders of debts, whether long-term or short-term and the shareholders are not able to quickly come to an agreement, then the rescue becomes very difficult. For example, in this particular matter of the PAPM, because there are so many creditors, both foreign and local, some long-term, some secured and others unsecured, and because of the very many shareholders and our inability, as groups in the very beginning to be able to come together as happened in the case of Uchumi, this rescue has taken so long and has been very cumbersome. view
• 7 Jun 2011 in National Assembly: Therefore, the idea of having a well-defined legal regime within which various critical steps can be taken to ensure that businesses that have the prospect of survival – business that are profitable - are not put in a test spin, which is what tends to happen when we put companies in a receivership--- Creating that legal regime is what is necessary to modernize the legal environment in which they operate; this is line with the best practices globally. view
• 7 Jun 2011 in National Assembly: Mr. Deputy Speaker, Sir, if you consider the totality of these Bills, the Accountants Act, the new Companies Bill that has gone through Second Reading the net effect is to be able to create an environment that allows us to rapidly modernize this country and build momentum for growth, thereby creating jobs and having an environment in which we encourage the private sector to grow. view
• 7 Jun 2011 in National Assembly: Mr. Deputy Speaker, Sir, we have recently been criticized on a variety of issues. We make efforts to encourage investments by Kenyans as well as by investors from the region and overseas. When we are evaluated by others on the climate under which businesses operate, and by those who do the investment and by those who look at the overall environment in which business is done, one of the key issues that both the private sector as well other partners raise is, in fact, this very need to modernize the Company law and the Insolvency law, so that we are ... view
• 7 Jun 2011 in National Assembly: Mr. Deputy Speaker, Sir, when this is achieved, several things will happen. Those things are that first, we become a more attractive investment destination not just for foreign direct investments, but also for the much more crucial domestic investments. You will notice that even though in the State Law Office we have well over half a million business names, very few entities choose to formalize themselves by becoming private or public companies. Part of the challenge has been because the previous legal environment that we are seeking to--- view