A company limited by guarantee is a company that does not have a share capital. The liability of its members is limited by the company’s articles of association to the amount that the members undertake, by those articles, to contribute to the assets of the company in the event of liquidation of the Company.
Minority shareholding in a company may take a variety of forms. In order to safeguard the interests of minority shareholders certain provisions can be included in the Articles of Association of the Company or in a Shareholders’ agreements.
A tax payer can obtain orders allowing it to continue with its business where KRA hinders such business by demanding payment of a disputed tax demand in spite of existence of tax refunds capable of off-setting the disputed tax.
A breach of contract occurs when a party to the contract fails to perform their obligations under the contract. Often, the offended party will rush to have the offending party pay monetary compensation, which often ends in litigation. One of the ways of enforcing a contract that can be applied by the court is Specific Performance.
The High Court has ruled that any company which finds it impracticable to conduct its general meetings in the manner required under its Articles of Association and the Companies Act 2015 due to the ongoing COVID-19 pandemic may convene the general meeting by use of virtual/electronic technology.
The establishment of separate children courts is meant to ensure that cases involving children are heard with the welfare of the child being the paramount consideration and that matters involving children are not mixed with other types of cases. So how are children courts different from normal courts?
In as much as some employers may be genuinely unable to meet contractual obligations due to employees on account of the pandemic or other difficult circumstance, there is need to consult with employees and thereafter communicate with them in writing before effecting fundamental changes to their contractual terms of employment.
An employee may resign in response to misconduct on the part of an employer that has made the employee’s working conditions so intolerable that he is compelled to leave. Where the employee considers making a claim for constructive dismissal these five tips should guide his writing of a resignation letter.
Given the duration of the restrictions imposed by the government, many employers have found it difficult to generate revenue that is required to meet their business overheads including salaries. Employers have handled this challenging environment in varied ways.
An employer may propose revising the terms of an employment contract on account of adverse economic conditions affecting the employer from the effects of the corona virus pandemic. In such instances, these are the considerations to be made.
In times of economic downturn employers may opt for redundancy given that it is provided by statute as a fair reason for terminating employment in instances where a business needs fewer people carrying out work of the kind which several employees previously performed.
The economic downturn expected in the wake of the corona virus pandemic has forced businesses to employ a number of cost cutting measures in order to maintain operations. One of the measures that has been effected by many companies is reduction in employee remuneration.
In view of the current pandemic, a power of attorney can be used to formally delegate authority to handle transactions to persons that are physically present where business needs to be conducted hence managing the challenges arising from the prevailing travel restrictions.
A possible consequence of the outbreak of COVID-19 is that a party to a contract entered into prior to the outbreak may argue that the contract has been frustrated and that the party is discharged from further performance of obligations under the contract
Did you know that you may now enter into contractual relationships from the comfort of your home without the need to physically meet so as to sign contracts? Advanced electronic signatures are now recognized as a valid way to sign binding contracts between individuals just as handwritten signature.
A good succession plan gives one a measure of control over matters of administration of his estate upon death. Without a proper succession plan in place, important decisions over ones estate are usually left up to a court determination with the attendant delays and costs.
When preparing a partnership deed or partnership agreement certain pertinent matters tend to be forgotten yet they are important for the sustainable operation of a partnership. Five such matters are as follows.
If left unattended, statutory obligations relating to a company result in financial penalties to the directors of a dormant company which over time may rise to significant sums.
Sometimes entrepreneurs come up with promising business ideas but are constrained in moving their ideas into a viable business by unavailability of finances. Here are 5 matters an entrepreneur should consider before approaching an investor with an idea requiring business finance.
Here are common mistakes employers make in the course of employment that will strongly influence an employee’s claims once the employee is terminated.
Conducting an official search before purchasing property only shows the current legal owner of the property and may not bring out other pertinent information about it. Here are other measures a buyer needs to take when doing their due diligence on a property.
Do you know what you are entitled to after employment termination? An employee whose employment has been terminated other than by summary dismissal is entitled to these rights and benefits.
Are you considering quitting employment due to intolerable working conditions? This is the legal position on cessation of employment brought about by an employer making the employee’s working conditions so intolerable that the employee feels compelled to leave.
Some contracts include a ‘force majeure clause’ which provides that on the happening of a specified event that is beyond the control of the parties’ to the contract, either of the said parties has recourse to do the following.
Discharge vouchers or settlement agreements are used by employers to ensure that employees relinquish any claims they may have against the employer. The courts have held that once an employee signs a discharge voucher then he cannot claim against the employer.
By making a will, the law allows a person to determine the distribution of his assets posthumously. However, this right is not absolute and the courts may intervene to provide for dependants who the writer of the will has not provide for. This is known as reasonable provision.
First, make follow-up on sums owed by written correspondence so as to have ready record trail minimizing phone-calls which may not provide an easy record trail.
An employee that is not accorded his basic rights may succeed in legal action against an employer who proceeds to terminate his employment following a disciplinary hearing process.
One of the statutory prerequisites for a redundancy procedure in Kenya is that the employer has to give written notification to the targeted employees at least one month before the commencement of the intended redundancy. There are other prerequisites for this process.
The Employment Act allows an employer to summarily dismiss an employee if the employee is arrested for a cognizable offence punishable by imprisonment and is not released within 14 days. Where the offence is against the employer, the employer should take the following steps.
An employment contract is an agreement whether oral or written, expressed or implied, to employ or to serve as an employee for a period of time. These are the types of employment contracts in Kenya.
Often, parties to a land transaction focus on the purchase price and forget about other additional charges that may arise in the course of the transaction. These charges may seem negligible, but could sum up to a substantial amount.
When starting a business, it is important to consider the legal aspects. This not only ensures that your business is legally compliant but also limits interruptions due to non-compliance. You may involve a lawyer who will advise you on the following aspects.
It is prudent to administer the Estate of a deceased person within a reasonable time to avoid disputes that invariably arise when the process is delayed. The process starts as follows:
Employment contracts have to come to an end, by either party terminating the contract. Resignation is usually done by issuing a notice to the employer in accordance with the contract of employment. This is what you need to know about withdrawal of a notice of resignation.
The contents of the letter by which an employer summons an employee to a disciplinary hearing in instances of gross misconduct is an important first step in a disciplinary process. These 6 tips will help you draft the letter in a way that mitigates some of the risk arising from legal action.
Did you know that when your land is compulsorily acquired by the government you may be entitled to damages in addition to compensation for the market value of the land?
Life interest refers to the legal interest of a surviving spouse in the net estate of the deceased spouse in the course of the surviving spouse’s lifetime. This is what the law provides on life interest.
A reinstatement order ensures that the employee is restored to the same position he held, or a substantially similar position, prior to termination of employment with full pay and other benefits. These are the principles applicable to a reinstatement order.
Once a potential employee has been offered a job, an employer may choose to withdraw the offer for various reasons such as finding out that the prospective employee provided false information or lack of funds on the part of the employer. These are the key issues to keep in mind.
Business entities need agreements to ensure that providers of goods and services are legally bound. Having a written agreement ensures that there is a reference point. Every agreement should be tailored to suit the individual needs for each business.
Often parties enter into marriage with children from previous unions. While the relationship is working, the question of parental responsibility for such children hardly arises. However, issues of parental responsibility often arise when the relationship falls apart.
If we wish to increase the credibility of polygraph tests, the tests should be taken voluntarily and even then, the subject should be allowed to be guided by his lawyer and measures put in place to ensure that the subject is not coerced into giving consent.
Instituting a civil suit as a result of breach of contract could seem like the best option when the party in breach of the contract is not willing to rectify the breach or perform their part of the contract. However, there are factors you need to consider before filing the suit.
Every person has the right to fair labour practices. Where the court finds that during termination, the employer’s conduct amounted to an unfair labour practice, it follows that the termination was unfair and the employee is entitled to compensation.
A business name is a valuable asset that helps customers identify you and your goods or services. Once you have settled on a name, it is advisable to conduct a search on its availability on the e-Citizen platform after which you can reserve the name.
Are you engaged in a not for profit venture in Kenya and are uncertain over the type of entity to use? Why not register a company limited by guarantee which has the following features.
Legal guardianship is acquired after the death or presumption of death of either one or both parents of the child. It can be acquired either by a deed or will made by a parent before his/her death or by a court order.
A trademark is a form of intellectual property, where registration is proof of ownership. Unlike real property where it is easy to monitor and protect the owner’s interest, interest over intellectual property may be difficult to monitor. Registration is the surest was to avoid theft and interference.
When terminating an employee’s services, it is important to consider the legal implications. These are five common mistakes that employers should avoid during termination in order to minimize the risk of litigation.
Extra time arises when an employee works for more time than is provided in the employment contract or in the Employment Act. As an employer or employee, it is important to keep in mind the following to ascertain payment for extra hours or in the case of a claim for extra hours.
Litigation can be a long and expensive process. For a startup, it could stall the growth of your business and sometimes even lead to collapse of the business. Here are some tips to help you minimize litigation.
When making a will, it is important to involve an attorney to guide you through the formalities. A will that does not conform to the law could be successfully challenged and revoked or have the invalid sections revoked.
Did you know that your employment contract may still apply after you leave employment? Such contracts are known as restrictive contracts and are meant to protect an employer’s legitimate business interests including trade secrets, goodwill and business connections.
Administration of estates is usually done under court supervision by appointing a person duly qualified and legally appointed. The appointed administrator safeguards the interests of the beneficiaries of the estate. These are the common mistakes an administrator should avoid.
Kenya has incorporated drones into its civil aviation regulatory framework. The Regulations prohibit any person from operating a drone in Kenya without KCAA authority. But why is KCAA, a National Government regulator, the sole regulator of these low-flying devices?
Divorce is the dissolution of a marriage that has subsisted for three or more years. The common grounds for dissolution of all forms of marriage are cruelty, adultery, desertion, exceptional depravity and the irretrievable breakdown of the marriage, among others.
The best interest of the child is the paramount consideration when deciding the legal custody of the child. However, a parent who is ordinarily entitled to custody over a child could lose it under these circumstances.
The Kenyan President recently gave the directive for fresh vetting of public officers. Although the exercise is geared towards determining suitability to continue holding public office in public trust, and promote confidence in the public service, several legal questions arise from this directive.
The extension and renewal of leases is governed by the Land (Extension and Renewal of Leases) Rules, 20l7 which provide for the manner and timelines in which a landowner is to be notified of impending expiration. A lessee can apply for extension at any time before expiry of a lease.
It is essential to involve a lawyer of good standing when buying or selling property. This is to ensure that the sale agreement and transfer documents are well drafted to protect your interests. There are other roles that the lawyer will play in the transaction.
An order for maintenance is made when the court, orders a person to make payment for the child’s upkeep. Here are some of the factors that the court considers in making maintenance orders.
With increasingly stringent Labour laws you need to consider instances when using an independent contractor trumps getting an employee.
A will provides certainty to the surviving members of the deceased’s family, by distributing the property of the deceased according to his/her wishes. These are the legal requirements for a valid written will.
It appears that some toy drones, no matter their size or use squarely fall within the ambit of the Kenya Civil Aviation Authority (KCAA). So, parents watch out! Before you allow your child to fly that quad-copter you bought on Amazon, check the specifications.
It is not always the case that majority shareholders have the final say in company decisions. A minority shareholder can challenge the actions of majority shareholders that are not made in the best interest of the company.
Did you know that you can now create a security over movable property from the comfort of your computer using your e-citizen account? The Movable Property Security Rights Act enacted in May 2017 which is aimed at improving access to finance now enables this.
Persons with Disabilities Act makes provision for employment of persons with disabilities and prohibits anyone from denying a person with a disability access to opportunities for suitable employment. This is what you need to know about employment of persons with disabilities.
Copyright infringement includes doing an act protected by the copyright, making or importing a copy of the copyrighted work and circumventing measures meant to protect the copyrighted work, without a license from the copyright owner. These are the remedies available to a copyright owner.
A personal representative is the person charged with dealing with the property of a deceased person. He can be appointed either by the deceased in his will or by the court upon application for a grant of administration where the deceased died without a will.
Section 4 of the Employment Act prohibits the use of forced labour and makes it an offence for anyone to use or assist another person in recruiting, trafficking or using forced labour. Other offences are as stated here.
The two ways of enforcing a trade mark is by an action in passing off (taken against a person who violates trademark rights in relation to an unregistered trademark) or an action against infringement (taken against a person who violates trademark rights in relation to a registered trademark).
Under The Children Act No. 8 of 2001, any child who is resident within Kenya is eligible for adoption, whether or not the child is a Kenyan citizen, and whether it was born in Kenya or not. The child has to be at least six weeks old and has to be declared free for adoption by a registered adoption society.