Section 503 of The Companies Act No. 17 of 2015: Duty of company as to issue of certificates etc on transfer
(1) A company shall, within two months after the date on which a transfer of any of its shares, debentures or debenture stock is lodged with the company, complete and have ready for delivery—
(a) the certificates of the shares transferred;
(b) the debentures transferred; or
(c) the certificates of the debenture stock transferred.
(2) For the purpose of subsection (1), "transfer" does not include a transfer that the company is for any reason entitled to refuse to register and does not register.
(3) Subsection (1) does not apply if the conditions of issue of the shares, debentures or debenture stock provide otherwise.
(4) If a company fails to comply with subsection (1), the company, and each officer of the company who is in default, commit an offence and on conviction are each liable to a fine not exceeding five hundred thousand shillings.
(5) If, after a company or any of its officers is convicted of an offence under subsection (4), the company continues to fail to complete and have ready for delivery the documents referred to in subsection (1), the company, and each officer of the company who is in default, commits a further offence on each day on which the failure continues and on conviction are each liable to a fine not exceeding fifty thousand shillings for each such offence.
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