The Companies Act No. 17 of 2015Section 529 of The Companies Act No. 17 of 2015: Disposal of treasury shares
(1) A company that holds shares as treasury shares may, at any time—
(a) sell the shares, or any of them, for a cash consideration; or
(b) transfer the shares, or any of them, for the purposes of or in accordance with an employees' share scheme.
(2) In subsection (1)(a), "cash consideration" means—
(a) cash received by the company;
(b) a cheque received by the company in good faith that the directors have no reason for suspecting will not be paid;
(c) a release of a liability of the company for a liquidated sum;
(d) an undertaking to pay cash to the company on or before a date that is no more than ninety days after the date on which the company agrees to sell the shares; or
(e) payment by any other means giving rise to a present or future entitlement of the company, or a person acting on the company's behalf, to a payment, or credit equivalent to payment, in cash.
(3) For purposes of subsection (2), "cash" includes foreign currency.
(4) A company that receives a notice under section 611 that a person wishes to acquire shares held by the company as treasury shares shall not sell or transfer the shares to any other person.
(5) If a company contravenes subsection (4), the company, and each officer of the company who is in default, commit an offence and on conviction are each liable to a fine not exceeding five hundred thousand shillings.
Check the current authoritative text and amendment history before relying on this provision.
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