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 […]
Quick steps on how to register your sole proprietorship faster?
QUICK STEPS ON HOW TO REGISTER YOUR SOLE PROPRIETORSHIP FASTER? A Sole Proprietorship, is an unincorporated business entity in which one person owns all the assets and assumes all the debts of the business. The Sole Proprietorship is registered in the name of the individual proprietor and wholly owned and operated by that same individual. […]
What happens when you surrender your shares?
WHAT HAPPENS WHEN YOU SURRENDER YOUR SHARES? What are surrendered shares? Surrendered shares are shares that have been voluntarily returned to a company by the registered shareholder of those shares. In that, surrendering shares is the transfer of allotted shares back to the company that issued them. When should shares be surrendered? The Companies Act […]
Are you about to enter into a foreign contract of service?
What is 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 employer requiring services under such a contract can be a Kenyan based organization or a foreign company based in Kenya which has […]
Registration of a simple trust in Kenya
I. INTRODUCTION A trust can be defined as a legal relationship that exists between a settlor (creator of the trust) and trustee (a protector of the trust) and a beneficiary. It is important to note that the parties to a trust can either be individuals or legal entities. In this trust arrangement, the settlor transfers […]
The Advantages of Having a Shareholders’ Agreement
The Advantages of Having a Shareholders’ Agreement A shareholders’ agreement is a formal agreement between all or some of the shareholders in a company. A shareholder agreement is usually considered alongside the company’s articles of association, which defines the relationship between the shareholders and is in law considered a contract inter se between the shareholders. […]
Why Corporate Governance Experts Recommend specially designed articles of association for your Start Up
Why Corporate Governance Experts Recommend specially designed articles of association for your Start Up Introduction The articles of association (AoA) are basically regarded as the “constitution of a company.” They outline the rules and regulations that stipulate a company’s internal affairs. The articles of association are also considered a user’s manual for an organization that […]
Registration of a Limited Liability Partnerships
A limited liability partnership (“LLP”) is a type of partnership where the liability of all partners is limited to the amount that they have each contributed to the partnership. This is unlike a limited partnership in which there exists at least one general partner whose liability is unlimited while the rest of the liability of […]
Registration of a Simple Partnership
REGISTRATION OF A SIMPLE PARTNERSHIP Partnerships in Kenya are governed by the Partnerships Act No. 16 of 2012 (the “Act”). A partnership is the relationship which exists between 2 or more persons who carry on business in common with a view to making a profit. Partnerships can either be general or limited. General partnerships differ […]
Understanding Employee/ Share Ownership Plan (ESOPS) in Kenya
Understanding Employee/ Share Ownership Plan (ESOPS) in Kenya What is an ESOP? An ESOP stands for employee stock/ share ownership plan. An ESOP grants company stock to employees, often based on the cadre and duration of their employment. Typically, it is part of a compensation package, where shares will vest over a period of time. […]
