The Companies Act of 2015 in Kenya is a comprehensive piece of legislation designed to streamline business operations and enhance the ease of doing business. Here are some key overview points about this Act you can learn:
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Purpose and Intent
- The Companies Act, 2015 aims to create a conducive environment for entities to establish and operate in Kenya.
- It takes into account technological advancements and procedural improvements.
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Effective Date
- The Act was published in September 2015.
- However, certain sections related to accounting, reporting, and audit came into force on 15th June 2016.
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Corporate Governance and Protection
- The Act significantly improves corporate governance for both listed and non-listed companies.
- It emphasizes disclosures for majority shareholders, protection of minority interests, and effective dispute resolution.
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Key Areas Covered : The Act addresses various aspects of company operations, including:
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- Incorporation and Registration: Procedures for forming and registering companies.
- Management and Administration: Rules governing company management, directors, and shareholders.
- Financial Reporting and Auditing: Requirements for financial statements and audits.
- Corporate Governance: Guidelines for transparency, accountability, and ethical conduct.
- Winding Up and Dissolution: Procedures for closing down companies.
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Impact on Business Environment
- The Companies Act, 2015 has significantly improved the ease of doing business in Kenya.
- It provides a robust legal framework for companies to operate efficiently and responsibly.
For detailed information, you can refer to the full text of the Companies Act, 2015 available on the Kenya Law Reports website.