Section 504 of The Companies Act No. 17 of 2015: Company no longer authorised to issue share warrants after commencement of this section
(1) Irrespective of whether a company limited by shares purports to be authorised by its articles to issue with respect to any fully paid shares a share warrant stating that the bearer of the share warrant is entitled to the shares specified in it, the company may no longer issue such share warrants after the commencement of this section.
(2) A share warrant issued in contravention of subsection (1) is void.
(3) A company in respect of which a bearer share is in issue shall ensure that the share is converted into a registered share.
(4) Subsection (3) shall apply notwithstanding any contrary provision in the company's memorandum or articles of incorporation.
(5) The company shall notify the Registrar within thirty days of the conversion of a bearer share into a registered share.
(6) A right attached to a bearer share shall not be exercised unless the bearer share is converted into a registered share.
(7) A company commits an offence if it fails or refuses to comply with subsection
(3) within nine months of the coming into operation of subsection (3).
(8) A company, and each officer of the company, that contravenes subsection(3) commits an offence and is liable, on conviction, to a fine not exceeding five hundred thousand shillings.
(9) If, after a company or any of its officers has been convicted of an offence under subsection (8), the company or officer continues to fail or refuse to comply with subsection (3), that company or that officer commits a further offence on each day of which the failure or refusal continues and on conviction shall be liable to a fine not exceeding fifty thousand shillings for each such offence.
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