- Section 524 of The Companies Act No. 17 of 2015: Redeemed shares treated as cancelled
If shares in a limited company are redeemed—
(a) the shares are cancelled by operation of this section; and
(b) the amount of the issued share capital of the company is diminished by the nominal value of the shares redeemed.
- Section 525 of The Companies Act No. 17 of 2015: Notice to Registrar of redemption
(1) Within one month after a company has redeemed any redeemable shares, the company shall lodge with the Registrar for registration a notice specifying the shares that have been redeemed.
(2) The company shall attach to, or enclose with, the notice a statement of capital that complies with...
- Section 526 of The Companies Act No. 17 of 2015: Treasury shares
(1) This section applies to a purchase or acquisition of shares by a limited company of its own shares in accordance with this Act and—
(a) the purchase or acquisition is made out of distributable profits; and (b) the shares are qualifying shares.
(2) Shares are qualifying shares for the purpose...
- Section 527 of The Companies Act No. 17 of 2015: Treasury shares: maximum holdings
(1) If a company has shares of only one class, the company shall ensure that the aggregate nominal value of shares held as treasury shares does not at any time exceed ten per cent of the nominal value of the issued share capital of the company at that time.
(2) If the share capital of a company is...
- Section 528 of The Companies Act No. 17 of 2015: Exercise of rights in respect of treasury shares
(1) This section applies to a company that holds shares as treasury shares.
(2) The company may not exercise any right in respect of the treasury shares,including any right to attend or vote at company meetings.
(3) Any purported exercise of such a right is void.
(4) No dividend can be paid, and...
- Section 529 of The Companies Act No. 17 of 2015: Disposal of treasury shares
(1) A company that holds shares as treasury shares may, at any time—
(a) sell the shares, or any of them, for a cash consideration; or
(b) transfer the shares, or any of them, for the purposes of or in accordance with an employees' share scheme.
(2) In subsection (1)(a), "cash consideration"...
- Section 530 of The Companies Act No. 17 of 2015: Treasury shares: notice of disposal
(1) Within one month after shares held by a company as treasury shares—(a) are sold; or
(b) are transferred for the purposes of an employees' share scheme, the company shall lodge with the Registrar for registration a return that complies with subsection (2).
(2) A return complies with this...
- Section 531 of The Companies Act No. 17 of 2015: Cancellation of treasury shares
(1) A company that holds shares may at any time cancel all or any of the shares.
(2) As soon as shares held by a company as treasury shares cease to bequalifying shares, the company shall cancel them.
(3) For purpose of subsection (2), shares do not cease to be qualifying sharesonly because...
- Section 532 of The Companies Act No. 17 of 2015: Treasury shares: notice of cancellation
(1) Within one month after shares held by a company as treasury shares are cancelled, the company shall lodge with the Registrar for registration a return that specifies in relation to shares of each class cancelled—
(a) the number and nominal value of the shares; and (b) the date on which they...
- Section 533 of The Companies Act No. 17 of 2015: Treatment of proceeds of sale of treasury shares
(1) This section applies when shares held by a company as treasury shares are sold.
(2) If the proceeds of the sale are equal to or less than the purchase price paid by the company for the shares, the proceeds are, for the purposes of Part XVII, taken to be a realised profit of the company.
(3) If...
- Section 534 of The Companies Act No. 17 of 2015: Treasury shares: offences
(1) If a company that holds or held shares as treasury shares fails to complywith a requirement of this Part, 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.
(2) If, after...
- Section 535 of The Companies Act No. 17 of 2015: Application of Part XXII
(1) This Part applies only to public companies.
(2) This Part applies to the issued shares of a public company, or the issuedshares of a class shares of a public company, that confer rights to vote in all circumstances at general meetings of the company (including shares held as treasury...
- Section 536 of The Companies Act No. 17 of 2015: Notice by public company requiring information about interests in its shares
(1) A public company may give notice under this section to any person whom the company knows or reasonably believes— (a) holds an interest in the company's shares; or to have held such an interest at any time during the three years immediately preceding the date on which the notice is...
- Section 537 of The Companies Act No. 17 of 2015: Public company may apply to Court for order imposing restrictions on the relevant shares if notice requiring information is not complied with
(1) If—
(a) a notice under section 536 is served by a company on a person who holds or held interests in shares of the company; and
(b) the person fails to give the company the information required by the notice within the period specified in it, the company may apply to the Court for an order...
- Section 538 of The Companies Act No. 17 of 2015: Notice requiring information: offences
(1) A person who—
(a) fails to comply with a notice under section 536;or (b) in purported compliance with such a notice—
(i) makes a statement that the person knows to be false in a material particular; or
(ii) recklessly makes a statement that is false in a material particular, commits an...
- Section 539 of The Companies Act No. 17 of 2015: Notice requiring information: persons exempted from obligation to comply
(1) A person is not obliged to comply with a notice given under 536 if the personis for the time being examined by the Cabinet Secretary from the operation of that section.
(2) The Cabinet Secretary may grant any such exemption only if—
(a) deleted by Act No. 28 of 2017, s. 34;
(b) the Cabinet...
- Section 540 of The Companies Act No. 17 of 2015: Consequences of order imposing restrictions
(1) The effect of an order under section 537 that shares are subject to restrictions is as follows—
(a) a transfer of the shares is void;
(b) no voting rights are exercisable in respect of the shares;
(c) no further shares may be issued in right of the shares or in accordance with an offer made...
- Section 541 of The Companies Act No. 17 of 2015: Offence to attempt to evade restrictions
(1) This section applies if shares are subject to restrictions imposed by an order under section 537.
(2) A person who—
(a) exercises or purports to exercise a right—
(i) to dispose of shares that to the person's knowledge, are for the time being subject to restrictions; or
(ii) to dispose of a...
- Section 542 of The Companies Act No. 17 of 2015: Relaxation of restrictions
(1) If an order of the Court directs shares to be subject to restrictions, thecompany or any person aggrieved may make an application to the Court on the ground that the order unfairly affects the rights of third persons in relation to the shares.
(2) On the hearing of an application made under...
- Section 543 of The Companies Act No. 17 of 2015: Removal of restrictions
(1) An application may be made to the Court for an order directing that the shares are to cease to be subject to restrictions.
(2) An application for an order under this section may be made by the company or by any person aggrieved.
(3) The Court may make an order under this section only...
- Section 544 of The Companies Act No. 17 of 2015: Order of Court for sale of shares
(1) The Court may order that the shares subject to restrictions be sold, subjectto the Court’s approval as to the sale.
(2) An application for an order under subsection (1) may only be made by thecompany.
(3) If the Court has made an order under this section, it may make such furtherorder relating...
- Section 545 of The Companies Act No. 17 of 2015: Application of proceeds of sale under order of Court
(1) If shares are sold in accordance with an order of the Court under section544, the seller shall pay the proceeds of the sale, less the costs of the sale, into court for the benefit of the persons who hold beneficial interests in the shares.
(2) A person who holds a beneficial interest in the...
- Section 546 of The Companies Act No. 17 of 2015: Power of members of company to require company to act
(1) The members of a company may require it to exercise its powers undersection 536.
(2) A company shall comply with such a requirement once it has receivedrequests (to the same effect) from members of the company holding at least ten percent of such of the paid-up capital of the company as confer...
- Section 547 of The Companies Act No. 17 of 2015: Duty of company to comply with requirement
(1) A company that is required under section 546 to exercise its powers torequire a person to provide information about their interests in the company’s share, shall exercise those powers in the manner specified in the requests.
(2) If the company fails to comply with subsection (1), the company,...
- Section 548 of The Companies Act No. 17 of 2015: Report to members on outcome of investigation
(1) On the conclusion of an investigation carried out by a company in accordance with a requirement made under section 546, the company shall prepare a report of the information obtained as a result of the investigation.
(2) The company shall ensure that the report is made available for inspection...
- Section 549 of The Companies Act No. 17 of 2015: Offences relating to a failure to comply with requirement of section 560
(1) If a company fails to comply with a requirement of section 548(1) to (6), 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.
(2) Deleted by Act No. 28 of 2017, s....
- Section 550 of The Companies Act No. 17 of 2015: Right to inspect and request copy of reports
(1) A company that has prepared a report in accordance with section 548 shall ensure that during the company’s ordinary business hours it is available for inspection by any person without charge.
(2) A company shall allow any person who makes a request to the company to inspect a report prepared in...
- Section 551 of The Companies Act No. 17 of 2015: Company to keep register of interest disclosed
(1) A company shall keep a register of information that it has obtained as a result of a requirement imposed under section 536.
(2) Within three days after receiving any such information, the company shall enter in the register—
(a) the fact that the requirement was imposed and the date on which...
- Section 552 of The Companies Act No. 17 of 2015: Register to be kept available for inspection
(1) Except in so far as the regulations otherwise provide, a company shall keep the register required by section 551 available for inspection at the company’s registered office.
(2) If a company fails to comply with subsection (1), the company, and eachofficer of the company who is in default,...
- Section 553 of The Companies Act No. 17 of 2015: Rights to inspect and require copy of entries
(1) A company that is required to keep a register under 551, shall keep the register open during the company’s ordinary business hours for inspection by any person without charge.
(2) Any person who requests a copy of any entry in the register is entitled, on payment of such fee (if any) as may be...