| dc.description.abstract | Directors are employed to manage the assets of the corporation on behalf of the shareholders
who own it. However, more often, directors fail to discharge their duties with diligence and due
care leading to mismanagement and collapse of many private and public companies. In Kenya,
the major reason is the weak corporate governance regulatory framework and legal enforcement
mechanism that fails to prescribe the precise duties of directors, to whom they are owed and
major consequences for breach. Thus, companies in Kenya are unlikely to see the light of day in
good governance unless the current laws are reviewed to reflect changing economic trends and to
take into account the evolving duties of directors to company stakeholders.
Accordingly, this researchstudydelves into the corporate governance fragility that characterized
National Bank of Kenya (NBK) leading to its near-collapse in the 1980s and 1990s and
recommends review of the Companies Act to incorporate a statutory statement on directors‟
duties for purposes of reducing corporate scandals and litigation and thus promoting good
corporate governance practice in Kenya.The study explores a comparative analysis of the
corporate law in United Kingdom and South Africa and accordingly makes recommendations on
review of the Kenya‟s Companies Act. | en_US |
