ADVOKS GLOBAL · KENYA
Companies Act
176. The value of transactions and arrangements
Edition: 2024-12-27 · In force
176. The value of transactions and arrangements
(1)For the purposes of this Division—(a)the value of a transaction or arrangement is to be determined in accordance with subsections (2) to (7); and(b)the value of any other relevant transaction or arrangement is taken to be the value so determined reduced by the amount (if any) by which the liabilities of the person for whom the transaction or arrangement was made have been reduced.(2)The value of a loan is the amount of its principal.(3)The value of a quasi-loan is the amount, or maximum amount, that the person to whom the quasi-loan is made is liable to reimburse the creditor.(4)The value of a credit transaction is the price that it is reasonable to expect could be obtained for the goods, services or land to which the transaction relates if they had been supplied (at the time the transaction is entered into) in the ordinary course of business and on the same terms (apart from price) as they have been supplied, or are to be supplied under the relevant transaction.(5)The value of a guarantee or security is the amount guaranteed or secured.(6)The value of an arrangement to which section 169 applies is the value of the transaction to which the arrangement relates.(7)If, for whatever reason, the value of a transaction or arrangement is not capable of being expressed as a specific amount of money, its value is taken to exceed five million shillings.