Gov’t Issues Dissolution Notice To Over 700 Companies
Over 700 enterprises across the country face closure when the government issues a notice of intended dissolution, causing thousands of Kenyans to lose their jobs.
In a gazette notification dated November 28, Registrar of businesses Damris Lukwo stated that the businesses will be removed from the register within the next three months, in accordance with Section 894 (2) of the Companies Act.
To avoid being struck off by the registrar, Lukwo stated that company owners will be forced to verify that they are still in business or operating.
The companies are made up of organisations from a variety of industries, including travel, education, automobile production, telecommunications, and trading, among others.
“Pursuant to section 894 (2) of the Companies Act, the Registrar of Companies gives notice that the names of the companies specified hereunder shall be struck off from the Register of Companies at the expiry of three (3) months from the date of this publication, unless it is shown that the companies listed below are carrying on business or in operation,” the notice read.
The registrar of companies can dissolve a business in a variety of circumstances, including if the company has violated many regulations, such as failing to file yearly returns or operating without necessary documentation.
Other circumstances that might lead to a corporation’s dissolution include insolvency, which occurs when a company is unable to pay its debts; voluntary dissolution; and fraud or misbehaviour.
Other grounds for company dissolution in Kenya include the following.
To reopen after dissolution, a corporation must seek restoration, either through the High Court or directly with the registrar.
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During the application process, the company must demonstrate that it was in operation at the time of striking off and that six years have not passed since the dissolution.
The warning comes two weeks after Hiram Gachugi, the Deputy Registrar of firms, said that 126 firms had already been liquidated and removed from the register.
The firms formed organisations in major industries such as logistics, real estate, manufacturing, and retail.
In the same gazette notice, the registrar published another list of 308 entities that may face closure if no action is taken.
Gov’t Issues Dissolution Notice To Over 700 Companies
