Govt shuts down 33 businesses, causing hundreds of job losses.

Govt shuts down 33 businesses, causing hundreds of job losses.

Govt shuts down 33 businesses, causing hundreds of job losses.

Following the decision by the Registrar of Companies  Joyce Koech to dissolve 33  companies, hundreds of Kenyans are facing  unemployment. Resolutions that were unanimously approved by the  majority of the relevant business directors and  shareholders led to the Registrar’s decision. These resolutions were properly presented in the  manner specified by the government organization.

The corporations’ failure to control their debt portfolios, which have risen to an unmanageable level, is a key factor for these dissolution demands. A significant factor is a lack of profitability.The Registrar of firms considered the requests and related materials, such as the minutes of the meetings where the resolutions were approved, before making the decision to close these firms.”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. “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.”

The annual returns of the companies for the previous three years were thoroughly examined by the Registrar of Companies. A clearance certificate provided by the Revenue Authority was additionally examined.

The Commissioner of Cooperatives must provide certificates, according to Registrar Koech, and this is especially true for businesses that have been certified as cooperatives.The 33 corporations had properly published notices of their impending termination in the Kenya Gazette prior to their dissolution. These announcements, which were a requirement, were made three weeks before to the dissolution date.The Companies Act of 2015 categorically requires that before beginning the dissolution procedure, the companies must demonstrate financial insolvency and a lack of outstanding debts or commitments.

The corporations are expected to wrap up their business affairs by paying off any outstanding debts and obligations in compliance with statutory requirements. They must also formally notify their creditors and any interested parties of their intention to dissolve.