Winding up of companies in Kenya OR Liquidation is a formal insolvency procedure in which a company is brought to an end; all of its assets are liquidated and the proceeds from the sale of assets is used to repay creditors.
Winding up or liquidation is the process by which the management of the company’s affairs is taken out of its directors’ hands, its assets are realized by the liquidator and its debts are paid out of the proceeds of realization.
While both de-registration and dissolution have the same effect of terminating the legal existence of a company, theoretically speaking, the consequences are different. When a company has dissolved, the liability of the directors, members, and officers cease to exist as opposed to de-registration where such liability does not cease to exist. The effect of dissolving a company is that property that was not distributed before the dissolution took place, vests in the state with effect from the dissolution date. The Attorney General may, however, discharge such property by issuing a notice of disclaimer of ownership of the property.
Requirements needed for Dissolution of a Company in Kenya:
Minutes to the resolution
Company annual returns
Clearance from all charges, debentures, mortgages, and chattels of the company.
A written application.
Contact ocl business associates for company dissolution, winding up, liquidation or de-registration of companies in Kenya