How do I get rid of a Business Partner or Director?Business Consultants Kenya

How do i get rid of a Business Partner/ Director in my Kenyan Company/Business?

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.

21 Comments

  1. Amani-Reply
    September 20, 2017 at 11:32 pm

    Greetings,
    I registered a business name partnership with my ex-husband at 50/50 shareholding and I would like to remove him from the partnership. Kindly advise on the procedure.

    • Admin-Reply
      March 16, 2018 at 8:51 am

      Hello Amani,
      Kindly share with us your Mobile number so that we can call and explain the whole Process.

      Many Thanks

  2. njathi-Reply
    December 22, 2017 at 11:22 am

    This is a very Informative Post. i shall be contacting you soon. Thank you

    • Admin-Reply
      March 16, 2018 at 8:44 am

      Hello Njathi,

      We are glad you found our blog informative. We are looking forward to helping you sort out your issue.

  3. Lindah Abdallah-Reply
    December 22, 2017 at 12:48 pm

    hello I have a business partner whom i want to kick out because he is dormant does literally nothing to the growth of the company all he is doing is waiting for it to grow then come and claim what he thinks he should be compensated.He came up with an idea of how to make money for the company since we still you and trying to stabilize,its been nine months down the line he has never brought on board the profit he made for the money that i as the co director offered him.we are 3 directors he is the 3rd with the least no of shares and we the 2 director have been contributing to the company’s growth both financially and marketing.kindly advice because its a family business and im want him out an di cant stand his lazyness and craft way of handling issues.

  4. Kangiri mwaura-Reply
    March 30, 2018 at 8:16 am

    Hello,
    I registered a business name with 2 partners and currentry one of us is not interrelated with the business….how do we go about removing him?
    Also we want to change our business to a company….how should we go about it

    • Admin-Reply
      April 13, 2018 at 10:42 am

      Hello Kangiri,

      Kindly email us your Telephone number and more details about your business on tony@eastafricabusinessconsultants so that we can be better placed to advice on how to remove him.

      Many Thanks

  5. Janet Maina-Reply
    April 3, 2018 at 3:11 pm

    Hi ,

    I need your assistance to commence the whole process.I wish to have this closed before the end of this month.Am reachable on 0720718804.
    I was appointed a director as a proxy and i barely receive anything for the use of my name.I feel its time to resign and get this off my shoulders.

    • Admin-Reply
      April 13, 2018 at 10:37 am

      Hello Janet,

      Thank you For contacting us and we are happy to help you close this Matter. We are calling you shortly for more info.

  6. April 11, 2018 at 6:56 am

    We registered a partnership, the 4 of Us and two of the Partners are so dormant they don’t attend meeting and contribute nothing, I really want to kick then out before its too late, the business is only three months old. Kindly advise me on the procedure.

    • Admin-Reply
      April 12, 2018 at 3:00 pm

      Hello Diana,

      Thank you for contacting us and we are Happy to help you resolve the issue. Kindly Send me an email on tony(at)eastafricabusinessconsultants.com with details about your Business so that we can be better placed to advice.
      Many Thanks

  7. Bett Paul-Reply
    May 12, 2018 at 10:37 pm

    Greetings
    I registered a business name with 2 partners but one of us left and requested to be delisted as a partner….how do we go about removing him?
    Also we want to change our business to a company….how should we go about it

    • Admin-Reply
      May 17, 2018 at 7:38 am

      Hello Bett Paul,

      Thank you for contacting us and we are happy to help you with the two Processes, Kindly check your email for more details.

  8. Richard-Reply
    May 28, 2018 at 1:01 pm

    I registered a company with five directors all with equal shares 5 years ago. Since registration some of the directors have never attended any meeting nor participate is planning for the company leading to the company not transacting any business during the period. How do we remove three directors and add one for the company to do business?

    • Admin-Reply
      July 19, 2018 at 10:09 am

      Hello Richard,

      Kindly heave the Directors Leaving sign the shares transfer forms and affidavits and then contact us on guidance on how to finalize on the Process.

  9. Peter Kwemoi-Reply
    May 29, 2018 at 12:56 pm

    hallo, thanks for the important information, where do i download stock shares transfer forms?

  10. June 17, 2018 at 6:18 pm

    Hey we registered a busines name two of us and my partner want to withdraw and we have the affidavit .AI want to move on with the name how do I remove his name kindly reach me through 0722924654

  11. Antony-Reply
    June 20, 2018 at 10:35 am

    My name is Antony, actually we are group of 10 people planning and in the process of registering a limited liability company, we run a self help group which we have different amounts of contributions , I would like to be advised on how we can distribute our shares 0705782038

  12. J. M. Thuita-Reply
    July 29, 2018 at 3:59 pm

    We are ten people and several years ago registered a limited company. We have several properties in our company name. However, some directors have not been attending meetings and have not been making monthly contributions. We have bought some of the properties together. How can we get rid of them?

    • Admin-Reply
      July 30, 2018 at 6:00 am

      Hello J M Thuita,

      We are happy to help you sort the Issues in your Company.

      Kindly check out your email for a detailed response to your query.

      Many thanks

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