Many Kenyans have been asking themselves several questions why change from Safaricom Limited Company to Safaricom Public Limited Company.
According to Kathryne Maundu, Company Secretary through a notice to the public, the company changed its name in order to comply with Section 53 of the Companies Act 2015 and in line with the approval granted by the company's shareholders during the Annual general meeting held on September 15, 2017.
But what does this section 53 of the Companies Act 2015 which made Safaricom changed its name say?
The section as enshrined in the Kenya Law says that a company that is both a limited and public company may only be registered with a name that ends with the words "public limited company" or abbreviated as "plc"
The objects of this Act is to facilitate commerce, industry and social-economic activities by enabling one or more natural persons to incorporate as entities with perpetual succession, with or without limited liability and to provide for the regulation of those entities in the public interest, and in particular in the interest of their members and creditors.
However, the changes as confirmed by Company secretary would not affect any of all contractual relationship and obligations the company already has with their customers.
"All contractual relationship and obligations that the company has with its customers, partners and other stakeholders are not affected by the change of the name," Maundu said in a notice.
And now you know.