Section 827 of The Companies Act No. 17 of 2015: Power of Court to order relaxation or removal of restrictions

    

(1) If an order makes securities of a company subject to the restrictions contained in this Division, any person claiming to be aggrieved by the order may apply to the Court for an order under subsection (2).
(2) If, on the hearing of an application made under subsection (1), the Courtis satisfied that the restrictions are not, or are no longer, justified, it shall make an order directing that the restrictions, or such of them as are specified in the order, are to cease to apply to the securities.
(3) In deciding whether to make an order under subsection (2), the Court may not be satisfied that the restrictions are not, or are no longer, justified unless—
(a) it is satisfied that the relevant facts about the securities have been disclosed to the company concerned and that no unfair advantage has accrued to any person as a result of the earlier failure to make that disclosure; or
(b) the securities are to be transferred for valuable consideration and the Court approves the transfer.
(4) If, on the hearing of an application made under subsection (1), the Court is satisfied that an order subjecting the securities to the restrictions contained in this Division unfairly affects the rights of third parties in respect of the securities, the Court may, for the purpose of protecting those rights and in addition to or instead of any order it may make under subsection (2), make an order directing that such acts by such persons or classes of persons, and for such purposes, as may be specified in the order, do not constitute a breach of those restrictions.
(5) In making an order under subsection (2) or (4), the Court may impose such conditions as it considers appropriate.
(6) If securities of a company are subject to restrictions contained in this Division, the Court, on an application made under subsection (7)—
(a) may make an order directing the securities to be sold, subject to the
Court's approval as to the sale; and
(b) may also make an order directing that the restrictions, or such of them as are specified in the order, are to cease to apply to the securities. Nothing in this subsection affects the power of the Court to make an order under subsection (2).
(7) An application to the Court under this subsection may be made by the Attorney General or by the company.
(8) If an order has been made under subsection (6), the Court may, on application made under subsection (9), make such further order relating to the sale or transfer of the securities as it considers appropriate.
(9) An application to the Court under this subsection may be made—
(a) by the Attorney General;
(b) by the company;
(c) by the person appointed to carry out the sale; or,
(d) by any person claiming to have an interest in the securities.
(10) An order directing that restrictions contained in this Division are to cease to apply to securities may, if it is—
(a) expressed to be made with a view to permitting a transfer of the securities; or
(b) made under subsection (6), continue the restrictions referred to section 825(1)(c) and (d), either in whole or in part, so far as they relate to a right acquired or an offer made before the transfer.
(11) Subsection (3) does not apply to an order under subsection (4) or to an order under subsection (10).
(12) An order under this section directing that restrictions contained in this Division are to cease to apply to securities takes effect from the date of the order or, if a later date is specified in the order, from that date.


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

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