Significance of Registration:
S.389 provides that "no company or association or may partnership consisting of more than twenty persons shall be formed... except it is registered as a company under this Act". The provision has been interpreted by the English and Kenyan courts to the effect that registration is the condition precedent to the formation of a registered company and failure to register a proposed company will mean that it does not legally exist: Fort- Hall Bakery Supply Co v Wangoe(1)