Wakoli Bifwoli

All parliamentary appearances

Entries 191 to 200 of 1331.

• 24 May 2011 in National Assembly: Mr. Temporary Deputy Speaker, Sir, if I may now look at the Bill, we have Part 1 which deals with the preliminary matters, including definitions of various words, including who is an associate and so on. That is at page 1161. Part II of this Bill provides for the various types of companies that may be incorporated in Kenya; it also provides for the formation of companies. That is the methods for forming the companies, requirements for registration and the effects of registration. It also makes it possible, under Clause 6 at page 1172, for just one person to form ... view
• 24 May 2011 in National Assembly: Mr. Temporary Deputy Speaker, Sir, Part III provides for the constitution of the company; it provides that a company must have Articles of Association. This part also gives the Minister power to prescribe model articles of association to make the registration of companies cheaper and easier. Members, of course, will note that when it comes to, for example, the registration of societies even now, there are models – constitutions of registered societies. So, that is a concept that we have brought to the Companies Act because we would want it to cater for the big ones which are complicated and ... view
• 24 May 2011 in National Assembly: Mr. Temporary Deputy Speaker, Sir, under Part II, you will find issues such as employees’ share scheme – the definition of what that means is not there under the current Companies Act. It will take care of the employees. The modern trend, as we know, is for companies to encourage employees - as part of the incentives - to own shares where they are working. It will not just be employees providing labour, directors earning their salaries and shareholders earning the profits out of the employee’s sweat. The employee, in addition to his salary, is encouraged to own part of ... view
• 24 May 2011 in National Assembly: Mr. Temporary Deputy Speaker, Sir, Part II deals with company formations in general. It defines what a limited and an unlimited company is. It also defines what a private company is and what a public company is. Also in there, is a good definition of subsidiary companies, holding companies and so on. view
• 24 May 2011 in National Assembly: Mr. Deputy Speaker, Sir, with regard to what I had earlier stated relating to the democratic system of running those companies, you will find that under Clause 26, the company is obligated, on the request of a member, to supply all the information therein set out, which the member of that company, that is the shareholder, will want to have access to. view
• 24 May 2011 in National Assembly: Mr. Deputy Speaker, Sir, under Clause 28, there is the right to participate in the profits by a member. Now, that particular clause actually forbids somebody who is not a member to participate in the profits of that company. That way, the shareholders’ interests are protected. view
• 24 May 2011 in National Assembly: Mr. Deputy Speaker, Sir, if you come to page 1193, Clause 48, you will find that, for the first time, we have for now been reading the name of the company ending with the word “limited”. That will continue in some cases. That “limited” has been applied whether or not it is a private company or a public company. However, you find in Clause 48 that the name of a limited company will now, of course, bear the word “limited”. But if that private company is also a public company, then the abbreviation “public limited company” will appear after the ... view
• 24 May 2011 in National Assembly: Mr. Deputy Speaker, Speaker, Sir, another thing which the current company law does is to withhold information. This sort of shields the directors to such an extent that they even mismanage a company completely. There have been cases where a number of creditors could not be paid and so on, or the directors they knew that the company was insolvent, nevertheless they continued doing business as if the company was not insolvent and incurred more debts and so on. This new law provides that the veil must be pierced. Such people will not hide behind the shield of a body ... view
• 24 May 2011 in National Assembly: A number of financial institutions were formed in this country. The owners of those institutions got a lot of money, after which they withdrew it and put it into their personal accounts. The argument behind this is that it is a company, and you cannot be liable for the debts of the company. The process of getting that debt is very long and winding, through the courts and everything else; it only succeeds through sheer determination. I am glad to say that that process will now be easier according to this Bill. view
• 24 May 2011 in National Assembly: Mr. Deputy Speaker, Sir, I would like to, quickly, refer to Chapter 14 and just say that to hold a share is in itself like having a title deed. Therefore, the whole of that Chapter deals with ownership of shares. Shares can now be charged and redeemed. It is just like having a piece of land. These detailed provisions are not in the current Companies Act. Another important area for hon. Members to look at is Part 19, regarding financial statements, which have been captured in great detail. There is a distinction between a financial statement required in the case ... view