ADVOKS GLOBAL · KENYA
Companies Act
579. Provisions protecting trustees of deed securing debentures to be void
Edition: 2024-12-27 · In force
579. Provisions protecting trustees of deed securing debentures to be void
(1)A provision contained in—(a)a trust deed for securing an issue of debentures; or(b)a contract with the holders of debentures secured by a trust deed, is void to the extent that it would have the effect of exempting a trustee of the deed from, or indemnifying a trustee against liability for breach of trust when the trustee fails to show the degree of care and diligence required of trustee, having regard to the provisions of the trust deed(2)Subsection (1) does not invalidate—(a)a release otherwise validly given in respect of anything done or omitted to be done by a trustee before the giving of the release; or(b)any provision enabling such a release to be given—(i)if it is agreed to by a majority of not less than seventy-five percent in value of the debenture holders present and voting in person or, if proxies are permitted, by proxy at a meeting summoned for the purpose; and(ii)either with respect to specific acts or omissions or on the trustee dying or ceasing to act.