Why Kenya Should Reconsider its Ultra Vires Doctrine in Corporate Law
International Company and Commercial Law Review, 21(9), 301-304, 2010
Posted: 20 Apr 2012
Date Written: April 19, 2010
Abstract
Examines how the ultra vires doctrine in company law operates in Kenya, focusing on the power under the Companies Act 1948 s.8 to alter a company's objects clause by special resolution. Explains why the s.8 power should be reviewed, arguing that it creates practical difficulties for companies wishing to pursue commercial opportunities that may be outside the company's objects. Asks whether the objects clause and the s.8 power provide the intended protection for shareholders and investors.
Keywords: Kenya, objects clauses, special resolutions, ultra vires
JEL Classification: G3
Suggested Citation: Suggested Citation