ADVOKS GLOBAL · KENYA
The Capital Markets (Real Estate Investment Trusts) (Collective Investment Schemes) Regulations
39. Remedy for unfair prejudice or conduct of a scheme
Edition: 2023-10-06 · In force
39. Remedy for unfair prejudice or conduct of a scheme
(1)The Authority may issue a direction if it reasonably believes that the affairs of the scheme are being or have been conducted—(a)in a manner prejudicial to the interests of—(i)the REIT securities holders;(ii)investors in the securities market; or(iii)some part of REIT securities holders or investors; or(b)contrary to these Regulations or any other written law.(2)The Authority may, in issuing a direction under paragraph (1)—(a)restrain the carrying out of the act or the conduct;(b)require the removal and replacement of the trustee or the REIT manager;(c)require the trustee to initiate proceedings in Court, in the name of the trustee for the benefit of REIT securities holders, against any person on such terms as the Authority considers fit;(d)impose such conditions on the operations or conduct of affairs of the scheme in future as it may consider necessary;(e)specify the manner in which—(i)REIT securities of any REIT securities holder in the scheme may be purchased; and(ii)the REIT securities may be redeemed.(3)The Authority may, in addition to any direction issued under paragraph (1), apply to Court for an order of appointment of a receiver or manager to wind up the operations of the scheme.(4)The Court may, upon considering an application under paragraph (2), make an order—(a)requiring the appointment of a receiver or manager for the whole or part of the assets of the scheme;(b)specifying the powers and duties of the receiver or manager;(d)for the recovery of assets.(5)A real estate investment trust scheme shall not, where a direction or an order under this regulation has the effect of altering its trust deed or to the scheme documents, without the approval of the Authority, make any alteration or any addition to the trust deed or any scheme documents which is inconsistent with the direction or the order.