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State and explain the two ways in which corporations are created.

      

State and explain the two ways in which corporations are created.

  

Answers


sharon
(a) By act of parliament
The corporations can be created by the Act of Parliament in Kenya. The state corporations are%
created by this method. The main examples of such corporations are: Kenya railways, Kenya
airways, Kenya Meat Commission, Pyrethrum Board of Kenya, Coffee Board of Kenya e.g.
Such corporations owe their legal existence to a statue. A statue creating the corporation gives it
a name, stipulates its composition, and prescribes its powers and duties. The powers of these
corporations are limited to those which are expressly conferred by the acts. The powers of
statutory corporation can be extended or limited by statutes. These can be also dissolved by
statutes. The statutory corporations are legal persons. They can sue and be sued. They can buy
and sell property.
(b) By registration under companies act
The registered companies are created by registration under the companies act. These are also
know as limited company comes into existence by complying with the provision of the
companies act (cap 486) a limited company may either be private or public limited company. A
private limited company can be registered by two or more persons but it is not allowed to call
upon the public for funds in the form of shares or debentures. A public limited company can be
registered by seven or more persons and it cano ffer its shares to the general public freely.
In Kenya, the limited companies are formed according to the companies act (Chapter 486).

sharon kalunda answered the question on April 12, 2019 at 11:50


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