ADVOKS GLOBAL · KENYA
The Companies (General) Regulations
38. Information about material interests of directors in transactions, arrangements or contracts
Edition: 2022-12-31 · In force
38. Information about material interests of directors in transactions, arrangements or contracts
(1)The information prescribed by paragraph (2) about material interests of directors in transactions, arrangements or contracts entered into by a company is information required to be included in the notes to the financial statement of the company for a financial year.(2)The information referred to in paragraph (1) is the particulars of any transaction, arrangement or contract—(a)entered into by the company; and(b)in which a person who at any time during the financial year was a director of the company had, directly or indirectly, a material interest.(3)The particulars referred to in paragraph (2) are—(a)the principal terms of the transaction, arrangement or contract;(b)a statement of the fact that the transaction, arrangement or contract was entered into or subsisted during the financial year;(c)the names of the parties to the transaction, arrangement or contract;(d)the name of the director having the material interest and the nature of that interest; and(e)if that director is treated as having the material interest because of paragraph (4), the name of the director's connected entity and the nature of the connection.(4)For the purposes of this regulation, a director of a public company is treated as having a material interest in a transaction, arrangement or contract entered into by the public company if a connected entity of that director has a material interest in that transaction, arrangement or contract.(5)In this regulation, a reference to a transaction, arrangement or contract is a reference to a transaction, arrangement or contract that is significant in relation to the company's business.(6)For the purposes of paragraph (5), a transaction, arrangement or contract is not significant in relation to the company's business if, after consideration, the directors of the company are of the opinion that it is not significant in relation to the company's business.(7)For the purposes of this regulation, an interest that a director of a company has in a transaction, arrangement or contract is not material if, after consideration, the directors of the company are of the opinion that it is not material.