Lifting the veil off fraudsters

Q: I know a man who took money from the public to finance his company and promised to repay. He didn’t repay and now his excuse is that the company does not have money despite the fact that he has bought a huge house and drives fancy cars. It is obvious he used the money for this purpose. Can his property be attached to offset the debts he owes people?

A: A company comes into existence after it is incorporated under the Companies Act, Chapter 486 of the Laws of Kenya. Once incorporated, it is recognised in law as an independent legal entity, normally referred to as a body corporate. This means it is treated as a separate ‘person’ from its directors and shareholders and can, therefore, hold property, enter contracts, sue and be sued.