ADVOKS GLOBAL · KENYA
Companies Act
113. Protection of third parties in cases if subsidiary acting as dealer in securities
Edition: 2024-12-27 · In force
113. Protection of third parties in cases if subsidiary acting as dealer in securities
If—(a)a subsidiary that is a dealer in securities has purportedly acquired shares in its holding company in contravention of the prohibition in section 108; and(b)a person acting in good faith has agreed, for value and without notice of the contravention, to acquire shares in the holding company—(i)from the subsidiary; or(ii)from someone who has purportedly acquired the shares after their disposal by the subsidiary, a transfer to that person of the, shares referred to in paragraph (a) has the same effect as it would have had if their original acquisition by the subsidiary had not contravened the prohibition.