Hundreds of Kenyans are staring at unemployment following the move by the Registrar of Companies Joyce Koech to dissolve 33 companies.
The Registrar's decision stems from resolutions that were collectively endorsed by a majority of the respective business directors and shareholders. These resolutions were duly submitted in accordance with the prescribed format required by the government agency.
One significant reason for these dissolution requests is the companies' inability to manage their debt portfolios, which has reached an unsustainable level. Another major reason is lack of profitability.
Prior to the decision to close these companies, the Registrar of Companies reviewed the requests along with corresponding documents such as the minutes of the meetings during which the resolutions were approved.
"Pursuant to section 897 (4) of the Companies Act, 2015, it is notified for the information of the general public that the following companies are dissolved and their names have been struck off the Register of Companies, with effect from the date of publication of this notice," the Registrar of Companies stated.
The Registrar of Companies conducted a comprehensive assessment of the companies' annual returns over the preceding three years. Additionally, a clearance certificate furnished by the Revenue Authority was subjected to scrutiny.
Registrar Koech stipulated the requisition of certificates from the Commissioner of Cooperatives, particularly applicable to enterprises designated as cooperatives.
Preceding their dissolution, the 33 companies had duly issued notifications regarding their proposed termination in the Kenya Gazette.
These notifications, a requisite step, were issued three weeks before the dissolution date.
The Companies Act of 2015 unequivocally mandates that the companies must exhibit financial insolvency and an absence of outstanding debts or obligations before proceeding with the dissolution process.
In compliance with statutory provisions, the companies are required to conclude their affairs, settling all outstanding debts and obligations.
Furthermore, they are obligated to formally inform creditors and other vested stakeholders about their intent to undergo dissolution.
