Definition of a Company Under the Kenya Company Law

A company can be defined as a group of persons associated together for the purpose of attaining a common objective, social or economic.According to Lord Justice Lindley a companyis “an association of many persons who contribute money or money’s worth to a common stock and employs it in some trade or business and who share the profit and loss there from. The common stock so contributed is denoted in money and is the capital of the company.

The persons who contribute it or to whom it belongs are members. The proportion of capital to which each member is entitled is his share. The shares are always transferable although the right to transfer is often more or less restricted”Justice Marshall defines a company as an artificial being, invisible, intangible,existing only in contemplation of the law. Being a mere creation of law, it possesses only the properties, which the charter of its creation confers upon it,either expressly or as incidental to its very existence.

According to Haney “a company is an incorporated association which is an artificial  person  created  by  law, having  separate  entity,  with  a  perpetual succession and a common seal”.Section 2 (1) of the Kenya company Act (cap 486) provides that “a company means a company formed and registered under this Act or an existing company”. Existing company only means a company formed andregistered under any of there pealed  ordinances.  For  the  purposes  of  companies  Act  of  Kenya  the companies includes: -a)A registered company under this Act.b)An existing company.c)An unregistered company covered under section 357-364.d)A produce company covered under section388.e)A foreign company covered under section 365-381