ADVOKS GLOBAL · KENYA
Companies Act
119. Termination or suspension of nomination
Edition: 2024-12-27 · In force
119. Termination or suspension of nomination
(1)The nomination of a person under section 115 may be terminated at the request of the member or of the nominated person.(2)The nomination ceases to have effect on the occurrence in relation to the member or the nominated person if—(a)in the case of a natural person, the person dies or is adjudicated bankrupt; or(b)in the case of a body corporate, the body is dissolved or an order is made for the liquidation of the body otherwise than for the purposes of reconstruction.(3)In subsection (2)—(a)the reference to bankruptcy includes the sequestration of a person's estate; and(b)the reference to the making of an order for liquidation is to the making of such an order under the law relating to insolvency, or any corresponding proceeding under the law of a country or territory outside Kenya.(4)The effect of any nominations made by a member is suspended at any time when there are more nominated persons than the member has shares in the company.(5)If—(a)the member holds different classes of shares with different information rights; and(b)there are more nominated persons than the member has shares conferring a particular right,the effect of any nominations made by the member is suspended to the extent that they confer that right.(6)If the company—(a)requests a nominated person to specify whether the person wishes to retain information rights; and(b)does not receive a response within twenty eight days from and including the date on which the company’s request was sent, the nomination ceases to have effect at the end of that period.(7)Such a request may not be made of a person more than once in any twelve-month period.(8)Although the termination or suspension of a nomination means that the company is no longer required to act on it, it does not prevent the company from continuing to do so, to such extent or for such period as it considers appropriate.