ADVOKS GLOBAL · KENYA
Central Depositories Act
40. Capitalisation, rights issues, etc
Edition: 2023-12-11 · In force
40. Capitalisation, rights issues, etc
(1)Where an issuer, in relation to any book-entry—(a)makes a bonus issue by way of an increase in the total issued capital, or issues securities pursuant to a rights issue or the conversion of any debt securities; or(b)issues securities pursuant to an exercise of any right or option to acquire securities in the share capital of the issuer, the issuer shall notify the central depository accordingly, and deliver to the central depository—(i)a confirmed list of the names of the allottees for purposes of amendment of the securities accounts held by such allottees; and(ii)the appropriate certificates, if any, in such denominations as may be specified by the central depository registered in the name of the central depository or its nominee company.(2)A prospective allottee shall, before acquiring any of the securities referred to in subsection (1), open a securities account in his name.