ADVOKS GLOBAL · KENYA
The Capital Markets (Real Estate Investment Trusts) (Collective Investment Schemes) Regulations
61. Removal and replacement of a REIT manager
Edition: 2023-10-06 · In force
61. Removal and replacement of a REIT manager
(1)The Authority shall, except where the removal is ordered by the Court, approve any removal and replacement of a REIT manager including the appointment of a replacementREIT manager where the REIT manager resigns or is not reappointed by the trustee.(2)The trustee shall convene a meeting of REIT securities holders for purposes of approving the removal of the REIT manager and the appointment of a replacement REIT manager if—(a)the Court makes an order for the liquidation of the REIT manager, except a voluntary liquidation for the purpose of reconstruction or amalgamation under a scheme approved by the Authority;(b)a manager or a receiver is appointed over any of the assets of the REIT manager;(c)the REIT manager ceases to be eligible for appointment under regulation 55;(d)the REIT manager is in repeated breach the provisions of the Act, these Regulations or the scheme documents; or(e)the trustee is of the opinion that the replacement of the REIT manager is in the interests of the REIT securities holders or is necessary to protect the assets of the trust.(3)The REIT manager shall bear the costs and expenses incurred in the replacement of the REIT manager under this Regulation.(4)The resignation of a REIT manager shall not take effect until a replacement is appointed by the trustee and the appointment is approved by the Authority.(5)Where a company ceases to be a REIT manager and the appointment of a replacement REIT manager takes effect, it shall—(a)make available to the trustee and to the replacement REIT manager, all books, records, reports, information and data including access to software and source code which is within the possession or control of that REIT manager relating to the activities of the scheme or the assets of the trusts; and(b)execute such notices to tenants, assignments and novations of contracts as may be required by the trustee.