6 reasons as to why you need a Labour Officer to sign a Foreign Contract of Service.
A foreign contract of service is a contract that is made in Kenya, but whose services are to be performed either wholly or partly outside Kenya. The labour officer is required to attest a Foreign Contract of Service to ensure that the employee indeed clearly understands the terms of the contract and is aware of […]
Impact of diplomatic immunity on employment contracts
What is Diplomatic Immunity? Diplomatic immunity is a form of legal immunity that ensures diplomats and members of their families are given safe passage and are considered not susceptible to lawsuit or prosecution under the host country’s laws. The Vienna Convention on Diplomatic Immunity (1961) (the “Vienna Convention”), ratified by Kenya, states that the purpose behind diplomatic immunity is to ensure that diplomats are […]
Three Key things an employer should know about probation contracts
Introduction Probation period is the period of time at the start of an employment when an employer evaluates and assesses the ability, competence and suitability of the employee for the role. Probation period can also be treated as a coaching or training opportunity where the new recruit learns the finer details of his job. The […]
What happens when you forfeit your shares in a company?
What are forfeited shares? These are shares that are lost by a member (or shareholder) of a publicly listed company for failure to pay any outstanding sums regarding them. How are shares forfeited? The Companies Act, 2015 allows companies to forfeit shares, in accordance with their Articles of Association, for failure by any shareholder to […]
How can you manage risk in corporate governance?
Corporate Governance is a system by which companies are managed and controlled. Shareholders who appoint the board of Directors to manage and control the company, the board comes up with accountable mechanisms that suit the company’s management system and apply it. One of these mechanisms is on how to manage risk, in a company. Risks […]
Duties of a Manager in a Limited liability Partnership
A manager is defined as any person who is concerned in or takes part in the management of the Limited Liability Partnership (“LLP”). The Limited Liability Partnership Act, 2011 states that every LLP must have at least one manager who is a natural person of at least eighteen years and is ordinarily resident in Kenya. […]
How to motivate your employees by creating class B shares
Most companies have only one class of shares, ordinary shares, but it is possible for even small private companies to have different share classes. Different classes of shares often have different voting, dividend and/or capital rights. Sometimes this is done to attract a particular investor, e.g. by giving them preference shares. In other cases, shares […]
Categories of shares in a company
The Companies Act (2015) defines “shares” in the following diverse ways: (a) in relation to an undertaking with a share capital, means shares in the share capital of the undertaking; (b) in relation to an undertaking with capital but no share capital, means rights to share in the capital of the undertaking; and (c) in […]
