How do I get rid of a Business Partner or Director? – Our answer to this question is always through an example comparing a Divorce and the Process of ejecting a Director/Partner from a Business/Company.

Just like a Wedding the period of setting up a company is rosy and the thought of ever separating never crosses the Partner’s minds and hence most of them never care to come up with a prenuptial agreement.

Similarly the process of removing a Partner/Director is often confusing to many and can lead a serious breach of the law if not well executed.

Vacation/Removal of Director can occur as a result of the following;

  1. When a Director voluntarily Resigns
  2. When a Director is Removed by Ordinary Resolution of Members
  3. When there is a Removal by the Court Authority.
  4. When a Director becomes of Unsound Mind.
  5. When a Director is absent without permission for more than 6 months from meetings of Directors held during that period.
  6. When a Director Dies.
  7. When a Director retires by Rotation under Articles.
  8. When the Company is Dissolved.

Procedures for Removing a Director according to the Company’s act In Kenya

  1. Fill in a Form of Transfer of Shares that is Filled and Signed by all the Concerned Parties.
  2. Fill Form 203 A to show the Outgoing Directors.
  3. Fill the Annual Returns form to show that Company returns have been made. The form should be Signed by one of the Directors.
  4. Request for a for a CR12 letter by writing an Application letter to the Registrar of companies.
  5. During the Annual General Meeting, the minutes must be signed by the Company Chairperson and the Company Secretary. The minutes should show clearly that the directors agreed to remove Directors.
  6. In case a Director is leaving the Company, he/she should provide a Resignation Affidavit which can be in the form of Resignation letter.

Are you still unsure on the process for removal of a Business Partner/Director? Contact us today and we will gladly help you out.

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