Undoubtedly, the most significant change in business legislation in the last year has been the new Companies Act, 2015 (the Act). The Act is set to among other things, streamline business practice in Kenya as well as enhance corporate governance. Borrowed heavily from the UK’s Companies Act of 2006, the voluminous act consists of thousands of sections. It is noteworthy that only Section 2 of the Act came into operation on the date of gazettement (15th September, 2015), the remaining sections were to be operationalised in a phased out manner by way of gazzettement.
The first phase of the Act was operationalised with effect from 6th November, 2015 vide Legal Notice No. 233 of 2015 published on the same date. Consequently, the following provisions of the Act came into operation then:
a) Parts 1 to 14, 23, 31, 32, 38, 40, 42
b) The First Schedule
c) The Second Schedule
d) The Sixth Schedule
Published on 18th November 2015, Legal Notice No. 239 of 2015 introduces the Companies (General) Regulations, 2015 (the Regulations) made by the Attorney-General in exercise of the powers conferred by Section 1022 of the Act. These regulations came into operation on 2nd December, 2015 and they provide for additional requirements as required by the Act and the necessary forms and fees for the services offered by the Companies Registry.
Provisions of the Regulations that relate to components of the Act that did not come into operation by 2nd December, 2015 shall come into operation on the day on which the corresponding provisions of the Act come into operation.
For a detailed analysis of the Companies Act, 2015 click here
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