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Section 826 of The Companies Act No. 17 of 2015: Offence to attempt to evade restriction imposed by or under this Part

    

(1) Subject to the terms of any directions given, or any conditions imposed, under section 812 or 827, a person who—
(a) exercises, or purports to exercise, a right to dispose of securities that, to the person's knowledge, are for the time being subject to restrictions imposed by or under this Part or of a right to be issued with any such securities;
(b) votes in respect of any such securities (whether as holder or proxy); or appoints a proxy to vote in respect of them;
(c) being the holder of any such securities, fails to notify a person who would, but for restrictions, be entitled (whether as holder or as proxy) to vote in respect of the securities; or
(d) being the holder of any such securities, or being entitled to a right to be issued with other securities in respect of them, or to receive any payment on them (otherwise than in a liquidation), enters into an agreement that is void under section 825,
commits an offence.
(2) In a prosecution for an offence under subsection (1)(c), it is a defence for the defendant to show that the person entitled to vote in respect of the securities was already aware of the restrictions.
(3) Subject to the terms of any directions given, or any conditions imposed, under section 812 or 827, if securities of a company are issued in contravention of restrictions imposed by or under this Part, the company, and each officer of the company who is in default, commit an offence.
(4) A company or an officer of a company found guilty of an offence under subsection (1) or (2) is on conviction liable to a fine not exceeding one million shillings.

« Previous:   Section 825 - Consequence of order imposing restrictions          Next: »   Section 827 - Power of Court to order relaxation or removal of restrictions

Disclaimer: This document is not to be taken as legal advise.

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