Compare and contrast a corporation created under the Companies Act and a corporation created under an Act of Parliament.

Registered Companies Statutory Corporations
·    This is a company incorporated pursuant to the provisions of the Companies Act.

 

·    Owes its existence to registration.

·    It is a legal person distinct and separate from its members.

 

·    A private company consists of 2 – 50 excluding passed and current employees who are members. A public company must have a minimum of 7 members.

 

·    May be public or private.

·    Managed directors elected members.

 

·    Canonly engage in transactions set forth the objects clause and those that are reasonably incidental to the attainment

or pursuit of such objects.

·    This is a corporation created an Act of parliament e.g. Kenya Wildlife Services      or     Agricultural      Finance Corporation, Capital Markets Authority.

 

·    It is a legal person in its own right.

 

·         Owes   its   existence   to   an   Act    of Parliament.

 

·         The   statute   gives    it   a    name         and prescribes its objects.

 

·    It is “owned” the government.

·    Can only engage in transaction set forth the statute and those reasonably incidental  thereto.  Other                                          transactions are ultra vires and therefore void.

 

·    Management is prescribed the statute.

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