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Section 878 of The Companies Act No. 17 of 2015: Charges created by a company

    

(1) A company that creates a charge to which this section applies shall, before the deadline for registration, lodge with the Registrar for registration the particulars of the charge prescribed by the regulations, together with the document (if any) by which the charge is created or evidenced.
(2) A charge to which this section applies is registrable on the application of any person who claims to have an interest in it.
(3) If a charge is registered on the application of a person other than the company concerned, that person is entitled to recover from that company the amount of any fees properly paid to the Registrar in respect of the registration.
(4) This section applies to the following charges created by a company:
(a) a charge on land or any interest in land (other than a charge for any rent or other periodical sum issuing out of land) owned by the company or in which it has a proprietorial interest;
(b) a charge created or evidenced by a document that, if executed by a natural person, would require to be registered as a bill of sale;
(c) a charge for the purposes of securing an issue of debentures by the company;
(d) a charge on the company's uncalled share capital (if any);
(e) a charge on calls made by the company but not yet paid;
(f) a charge on the company's book debts;
(g) a floating charge on the company's property or undertaking;
(h) a charge on a ship or aircraft, or a share in a ship or aircraft, owned by the company or in which it has a proprietorial interest;
(i) a charge on the company's goodwill or intellectual property.
(5) The holding of debentures entitling the holder to a charge on land is not, for the purpose of subsection (4)(a), an interest in the land.
(6) The deposit in the form of security of a negotiable instrument given to secure the payment of book debts is not, for the purpose of section subsection (4)(f), a charge on those book debts.
(7) For the purpose of subsection (4)(i), "intellectual property" means— (a) any patent, trade mark, registered design, copyright or design right; or (b) any licence under or in respect of any such right.
(8) If a company fails to comply with subsection (1)—
(a) the company; and
(b) each officer of the company who is in default, commit an offence and on conviction are each liable to a fine not exceeding one million shillings.
(9) Subsection (8) does not apply if the charge has been registered on the application of a person other than the company.
(10) If, after the company or any of its officers is convicted of an offence under subsection (8), the company continues to fail to lodge the prescribed particulars of the charge with the Registrar, the company, and each officer of the company who is in default, commit a further offence on each day on which the failure continues and on conviction are each liable to a fine not exceeding one hundred thousand shillings for each such offence.

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

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