ADVOKS GLOBAL · KENYA
Prevention of Fraud (Investments) Act
11. Guarantee in connection with principal’s licence
Edition: 2023-12-11 · Not commenced
11. Guarantee in connection with principal’s licence
(1)Subject to this section, a principal's licence may be granted to a person only if a guarantee, in the prescribed form, is provided by such guarantor as the Cabinet Secretary approves to the effect that, if an insolvency event involving the applicant occurs during the currency of the licence, the guarantor will pay to the bankruptcy trustee or the liquidator the sum of one million shillings or such other sum as the Cabinet Secretary determines from time to time.(2)The bankruptcy trustee or liquidator may recover from the guarantor a sum that becomes payable to a bankruptcy trustee under a guarantee given in accordance with subsection (1).(3)If any such sum exceeds the amount required to satisfy the debts and liabilities (including the costs and expenses of the bankruptcy administration, the amount of the excess or the amount of the sum (whichever is the less) is repayable by the bankruptcy trustee or liquidator to or in relation to the guarantor.(4)In this section—“company” includes a body corporate that is not a company registered under the Companies Act, 2015;“insolvency event” means—(a)in relation to a natural person—(i)the making of a bankruptcy order in respect of the person;(ii)the entering into by the person of a deed of composition or a voluntary arrangement with the person's creditors;(iii)the making of a summary instalment order in respect of the person; or(iv)the entry of the person into the no assets procedure; or(b)in relation to a company—(i)the making of a liquidation order or an administration order in respect of the company;(ii)the passing of a resolution for the voluntary liquidation of the company; or(iii)the entering into a voluntary arrangement with the creditors of the company.