Distinction between Statutory corporations and limited companies

Statutory Corporations

  • These are incorporated associations created statute. They owe their existence to an Act of Parliament.
  • The Act provides them with a name and prescribes its objects
  • The corporation is a body corporated with perpetual succession limited liability capacity to contract sue or be sued and own property.
  • Examples include Agricultural Finance Corporation, Kenya Wildlife Services, Kenya Air Ports Authority Public Universities
  • All state corporations belong to the state hence have one member.
  • Interest may be transferred the government.

 

Limited companies

  • These are incorporated associations created registration
  • Promoters must comply with the Provisions of the Companies Act.
  • On registration the association becomes a body corporate the name contained in the memorandum of association.
  • Their objects are prescribed the memorandum of association.
  • Their features are generally similar to those of statutory corporations
  • However registered companies are different in that
  • Membership is prescribed law for example the minimum number of members is two for both public and private companies. However, where as the
    membership of a public company is unlimited, a private company cannot have more than 50 members unless the excess members are or have been employees of
    the company.
  • Members interest in the company is transferable.
  • Companies are managed directors.
  • There are two types of registered companies namely public and private.

Statutory corporations and limited companies

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