Section 881 of The Companies Act No. 17 of 2015: Additional registration requirement for commission, allowance or discount in relation to debentures
(1) If any commission, allowance or discount has been paid or made (either directly or indirectly) by a company to a person as consideration for—
(a) subscribing or agreeing to subscribe (whether absolutely or conditionally) for debentures in a company; or
(b) procuring or agreeing to procure subscriptions (whether absolute or conditional) for any such debentures, the company shall include in the particulars lodged with the Registrar under section 878(1) details of the amount or rate percent of the commission, discount or allowance so paid or made.
(2) The deposit of debentures as security for a debt of the company is not anissue of debentures at a discount for the purpose of this section.
(3) Failure to comply with this section does not affect the validity of thedebentures issued.
(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.
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