ADVOKS GLOBAL · KENYA
The Companies (General) Regulations
30. Interpretation of Division 3
Edition: 2022-12-31 · In force
30. Interpretation of Division 3
(1)In this Division—“bank” means a bank to which the Banking Act (Cap. 488) applies;“credit transaction” has the meaning given by section 155 of the Act for the purposes of Division 5 of Part IX of the Act;“guarantee” includes indemnity;“holding company” includes a parent undertaking that is a company;“quasi-loan” has the meaning given by section 156 of the Act;“specified company” means—(b)a private company or company limited by guarantee that is a subsidiary of a public company;“transaction” means—(a)any loan, quasi-loan or credit transaction; or(b)any guarantee or security in connection with any loan, quasi-loan or credit transaction.(2)In this Division, a reference to a subsidiary undertaking of a company, in relation to a transaction, is a reference to such an undertaking at the end of the company's financial year, whether or not it was in fact a subsidiary undertaking of the company on the date of the transaction.(3)In this Division, a reference to a loan, quasi-loan or credit transaction, or a guarantee or security in connection with a loan, quasi-loan or credit transaction, includes—(a)any arrangement under which the loan or quasi-loan is made or the credit transaction is entered into, or under which the guarantee is given or security is provided; and(b)any arrangement for an assignment or assumption of any rights, obligations or liabilities under the loan, quasi-loan or credit transaction or under the guarantee or security.(4)In this Division, a reference to a person for whom a transaction is entered into is a reference to a director, a body corporate controlled by a director, or an entity connected with a director, for whom a transaction is entered into—(a)in the case of a loan or quasi-loan, or a guarantee or security in connection with a loan or quasi-loan, is a reference to the director, controlled body corporate or connected entity to whom the loan or quasi-loan is made; or(b)in the case of a credit transaction, or a guarantee or security in connection with a credit transaction, is a reference to the director or connected entity to whom goods, land or services are supplied, sold, leased, hired or otherwise disposed of under the credit transaction.