Section 1003 of The Companies Act No. 17 of 2015: Power of the Court to prohibit payment or transfer of money, financial products or other property

(1) In this section—
“aggrieved person” means a person who claims that a relevant person is liable, or may be or may become liable, to pay money to the first-mentioned person (whether in respect of a debt, as damages or compensation or otherwise, or to account for financial products or other property);
“relevant person” means a person referred to in subsection (2)(a), (b) or (c).
(2) The following persons are relevant persons for the purposes of this section:
(a) a person in respect of whom an investigation is being carried out under this Act in relation to an act or omission that constitutes or may constitute an offence under this Act;
(b) a person against whom a prosecution has begun for an offence under this Act;
(c) a person against whom a civil proceeding has begun under this Act.
(3) If, on the application of the Attorney General or an aggrieved person, the Court considers it necessary or desirable to do so for the purpose of protecting the interests of the aggrieved person, it may make one or more of the following orders:
(a) an order prohibiting a person who is indebted to the relevant person or to an associate of the relevant person from making a payment in total or partial discharge of the debt to, or to another person at the direction or request of, the person to whom the debt is owed;
(b) an order prohibiting a person holding money or other property, on behalf of the relevant person, or on behalf of an associate of the relevant person, from paying all or any of the money, or transferring, or otherwise parting with possession of, the other property, to, or to another person at the direction or request of, the person on whose behalf the money or other property, is or are held;
(c) an order prohibiting the taking or sending out of Kenya by a person of money of the relevant person or of an associate of the relevant person;
(d) an order prohibiting the taking, sending or transfer by a person of other property of the relevant person, or of an associate of the relevant person from a place in Kenya to a place outside Kenya; (e) an order appointing—
(i) if the relevant person is a natural person — a trustee, having such powers as the Court orders, to manage the affairs and property of that person; or
(ii) if the relevant person is a company — an administrator, having such powers as the Court specifies, to manage the affairs and property of the company;
(f) if the relevant person is a natural person — an order requiring that person to surrender to the Court the person's passport and such other documents as the Court considers necessary in the circumstances;
(g) if the relevant person is a natural person — an order prohibiting that person from leaving Kenya without the consent of the Court.
(4) A reference in paragraph (3)(d) or (e) to property of a person includes a reference to property that the person holds otherwise than as sole beneficial owner, for example—
(a) as trustee for, as nominee for, or otherwise on behalf of or on account of, another person; or
(b) in a fiduciary capacity.
(5) An order under this section prohibiting conduct may prohibit the conduct either absolutely or subject to conditions.
(6) Before hearing an application for an order under this section, the Court may, if in its opinion it is desirable to do so, grant an interim order expressed to have effect pending the determination of the application.
(7) The Court may not, as a condition of granting an interim order under subsection (6), require the applicant or any other person to give an undertaking as to damages.
(8) If the Court has made an order under this section, it may, on application by the applicant for the order or by any other person affected by the order, make a further order discharging or varying the earlier order.
(9) An order made under this section may be expressed to operate for a specified period or until the order is discharged by a further order under this section.
(10) This section does not affect the powers that the Court has apart from this section.
(11) This section has effect subject to the laws relating to insolvency.

Disclaimer: This document is not to be taken as legal advice.

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