Like most institutions in this\ncountry and the world over, there are laws set up by the government to ensure\nlegality as well as the promotion and protection of individuals rights in these\ninstitutions. These laws also serve to ensure the efficient functioning of\nthese institutions. There are various laws that govern how business is\nconducted in this country as well as how companies are to conduct their\ndealings. In this article we\u2019ll look at some of the new laws and amendments to\nthese laws. <\/p>\n\n\n\n
The Business Registration Service\nAct of 2015 establishes the Business Registration Service as the body in charge\nof administering laws relating to the incorporation, registration, operation\nand management of companies, partnerships and firms. <\/p>\n\n\n\n
This Act will be responsible for\nmatters relating to business registration. This body will also take over the\nexisting company law functions of the State Law office. The Business\nRegistration Service Act, 2015 will become operational on a date to be set by\nthe Cabinet Secretary by notice in the Kenya Gazette. <\/p>\n\n\n\n
The Companies Act of 2015 is one of\nthe laws intended to streamline the manner in which business is conducted in\nKenya. The intention behind this is that the new provisions will be more\nflexible, in line with modern business practices and will in turn lead to\ngrowth and innovation in various commercial transactions in Kenya. Among the\nmany significant changes, the Act now has provisions that allow companies to\nhave a single shareholder as well as provisions that require a company to have\nat least one natural director except for in cases where the company\u2019s sole\ndirector is a corporation. <\/p>\n\n\n\n
Previously, financial assistance was\nprohibited except in a limited number of cases. This is no longer the case as\ncompanies are now able to buy back their own shares in order to create treasury\nshares which may then be re-issued. <\/p>\n\n\n\n
To begin with, insolvency occurs\nwhen a company is unable to pay its debts. The Insolvency Act of 2015 contains\nlaws relating to matters of insolvency for both individuals and companies which\nwere previously contained in the Bankruptcy Act. The Insolvency Act provides\ndebtors with an alternative to bankruptcy. It creates the legal framework that\nenables companies to be put into administration which is an alternative to\nliquidation under the supervision of an insolvency lawyer.<\/p>\n\n\n\n
In Kenya, our laws are constantly\nchanging and various amendments are done to ensure that the laws serve the\nKenyan people accordingly. It is important to keep up-to-date with these\nchanges.<\/p>\n\n\n\n