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Companies Act

901. Copy of application to be given to new members, employees, etc.

Edition: 2024-12-27 · In force

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901. Copy of application to be given to new members, employees, etc.

(1)In this section—“company" means a company that has made an application, or in respect of which an application has been made, under section 897;“relevant period", in relation to a company, means the period beginning on the day after the day on which an application for striking off the company is made under section 910 and ending on the day before the application is finally dealt with or withdrawn.
(2)If, on a day during the relevant period, a person becomes—
(a)a member of the company;
(b)an employee of the company;
(c)a creditor of the company;
(d)a director of the company;
(e)a manager or trustee of any pension fund established for the benefit of employees of the company; or
(f)a person of a class prescribed by the regulations for the purpose of this paragraph, each person (not being that person) who, at the end of that day, is director of the company shall ensure that a copy of the application for voluntary striking off the company is given to that person within seven days after that day.
(3)The requirement imposed by subsection (2) ceases to apply if the application is disposed of or withdrawn before the end of the period within which the copy is required to be given.
(4)A person who fails to comply with subsection (2) (otherwise than with the intention referred to in subsection (6) commits an offence and on conviction is liable to a fine not exceeding fifty thousand shillings.
(5)In proceedings for an offence under subsection (4), it is a defence for the person charged with the offence to establish on a balance of probabilities—
(a)that, at the time of the failure to comply with the requirement imposed by subsection (2), the defendant was not aware of the fact that the company had made an application under section 897; or
(b)that the defendant took all reasonable steps to comply with that requirement.
(6)A person who fails to comply with subsection (2) with the intention of concealing the making of the application from a person referred to in paragraphs (a) to (f) of that subsection commits an aggravated offence and on conviction is liable to a fine not exceeding five hundred thousand shillings or imprisonment for a term not exceeding two years, or to both
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Source: Kenya Law