Who is a promoter in company law?

Who is a promoter in company law?

Definition of Company Promoter A person who has control over the affairs of the company, directly or indirectly whether as a shareholder, director or otherwise; or. A person who is in agreement with whose advice, directions or instructions the Board of Directors of the company is accustomed to act.

Can a foreign company operate in Kenya?

A foreign company is prohibited from carrying on business in Kenya (including offering of any debentures and being a guarantor for any debentures offered in Kenya) unless it is registered in Kenya under the Companies Act, 2015.

What is the difference between promoter and shareholder?

When the company is getting incorporated, the promoters subscribe to the MOA of the company. They are the ones to buy the shares of the company and invest their money in the company. On the other hand, the term shareholder is very specific and means any person who invests his capital in the company.

Can a foreigner be a director of a Kenyan company?

Foreigners are allowed to register the organization as the only 1 director and 1 shareholder. This means that you do not have to seek a local director to be part of your firm for successful registration. Foreigners are also able to run this organization locally or from abroad.

Can a foreigner be a shareholder in a Kenyan company?

There is no limitation on foreigners subscribing to and owning some or all of the shares in a private or public company registered in Kenya. However, foreigners setting up companies in Kenya must pay heed to local representative requirements if they do not intend to be resident in Kenya.

Who has more power shareholder or director?

Shareholder power depends on the level of ownership As such, a shareholder with only 10% of the voting rights and no influence over other shareholders would in practice have much less power over the company than its board of directors.

Is director the owner?

While the shareholder is the owner of the company, the directors are the managers of the company. The same person can assume both the roles unless articles of association of the company prohibit it.

Can you be a shareholder without being a director?

Shareholders and directors have two completely different roles in a company. The shareholders (also called members) own the company by owning its shares and the directors manage it. Unless the articles say so (and most do not) a director does not need to be a shareholder and a shareholder has no right to be a director.

How much does it cost to register a company in Kenya as a foreigner?

Cost: Approximately KES 7,360. Note: Fee schedule for registration under the Companies Act (Cap. 486): For the first KES 100,000: KES 2,200.