Directors: Civil Consequences of Breaching General Duties

Power of Attorney (POA) is a formal instrument by which one person empowers another to represent him or act in his behalf in many matters including transactions for sale of land, registration of intellectual property, filing of lawsuits, signing off on documents, and opening of a bank account among many others. ...

The requirement of consultation is not expressly provided in section 40 of the Employment Act, 2007. However, by dint of Article 2(6) of the Constitution, treaties and conventions ratified by Kenya form part of the law of Kenya. Kenya is a state party to the International Labour Organization (ILO) since 1964 and is therefore bound by the ILO conventions....

The Employment Act, 2007, does not have an express provision on the employees’ right to information. However, Article 33(1)(a) of the Constitution of Kenya, 2010, provides that every person has the right to freedom of expression, which includes freedom to seek, receive or impart information or ideas. Article 35 (1)(b) of the Constitution 2010, further provides that every Citizen has the right to access information held by another person and required for the exercise or protection of any right or fundamental freedom. What information do employees have a right to? 1. Organizational goals and objectives Organizational goals and objectives are easily overlooked in the day-to-day business of getting the job done, but they should be provided, not just to new employees at induction, but to everyone regularly. Reinforcing an understanding of organizational goals and strategy helps employees feel like they are part of the business, which in return leads to improved job performance and engagement. Apart from the emphasis being made by the human resource manager, the line manager too should regularly remind his/her team of the goal and objective of the firm. The line manager together with his/her team may develop their department goals that align with the overall goal of the company. When a department has established its departmental goal, then it means they understand the goal and objective of the company. This in return leads to improved output and increased production. 2. Organizational policies and procedures Most organizations have rules, policies, and procedures that guide how they do things which is important for employees to know and understand. Depending on the company, the policies and procedures may be incorporated in the employee handbook or the human resource manual. How you collate this information is a matter of considering what works for you and the team, but the key is that you must make sure employees are aware of and understand all rules, procedures, practices, or policies with which they are expected to comply. This means they need to be written down somewhere and easily accessible. 3. Organization structure An organizational structure is the way that a company, organization, or team is set up. Every company and team has an organizational structure, even if it’s not formally defined. Organizational structures are important because they help businesses implement efficient decision-making processes and provide a clear org chart that helps businesses keep track of their human resources. Thus, the employees need to understand the organizational structure of the company because it guides all employees by laying out the official reporting relationships that govern the workflow of the company. A formal outline of a company's structure makes it easier to add new positions in the company, as well, as providing a flexible and ready means for growth. An employee who understands the organizational structure will be motivated to know that the company has a growth plan. 4. Feedback on performance Employees need to understand how well they are doing in their roles and what they can improve on. Regular constructive feedback is essential here, and the temptation to only pick them up on things they are doing wrong should be avoided. It is hard for you to do your best without information, and the same is true for your employees. If you withhold information unnecessarily, you will lose your talent. Maybe not today; but eventually those with choices will leave you. What information can be withheld from employees? Never use information withholding as power. If you are given 'secret' information, don't tell people you have it unless they ask you. If people ask you if you have information, be honest. Don't tell them you don't have information if you do. Tell them that you are not at liberty to share, and tell them why, e.g. "I've been asked to keep it confidential and I need to honor that request." If you establish a track record of early, honest information sharing, you will have more room to occasionally withhold information when the situation dictates. Information that should be kept confidential includes any information that could damage a company's reputation or ability to do business if that information becomes public. Such information is proprietary or sensitive. This information includes information whose disclosure is likely to: a. Impede the due process of law and procedures of the company; b. Endanger the safety, health, or life of any person; c. Involve the unwarranted invasion of the privacy of an individual; and/or d. Substantially prejudice the commercial interests, including intellectual property rights, of the company or third party from whom information was obtained. In the words of Sam Walton, Wal-Mart Founder: I guess our greatest technique and our greatest accomplishment is the commitment to communicating with employees in every way that we possibly can and listening to them constantly…you've got to put their interest first, and eventually, it will come back to the company....

A non-compete clause is a contractual agreement between two parties, typically an employer and employee, where the employee agrees not to engage in certain business activities that would be considered competitive with the employer's business. The purpose of a non-compete clause is to prevent the employee from working for or starting a business that would compete with the employer during and after their employment....

Here are some reasons why SMEs should use documents drafted by an Advocate: 1. Compliance with the Law. SMEs are subject to various laws and regulations. An Advocate can help SMEs navigate the complex legal landscape and ensure that they comply with all relevant laws and regulations. Non-compliance can lead to significant penalties, which can be detrimental to the business....