Annalise Keating
What is the Companies Act, 2015?
This Kenyan statute provides the legal foundation for how companies raise capital, issue shares, and make distributions.
This key legal document outlines a company’s powers to borrow, issue securities, and manage its capital structure under corporate finance law.
Are non-deposit taking and deposit taking mutual societies governed the same way?
No! Not necessarily. The SACCOs Act 2008 imposes stricter regulations on deposit-taking institutions. However, there are regulatory frameworks that address both, for example, SACCO regulations and the Co-operative Societies Act.
As of this year, what is the minimum core capital required for banks?
3 billion
What is the fiduciary duty of directors?
This principle ensures that directors act in the best interests of the company when making financial decisions.
These regulations, effective from December 15, 2023, modernized the framework for public offers and listings on the Nairobi Securities Exchange
the Capital Markets (Public Offers, Listings, and Disclosures) Regulations,2023
The IMF and the World Bank do not treat developing and developed countries the same. How does this manifest?
Amount of Loans
Delays in loans
Orthodox macroeconomic policies
What penalty can directors face for implementing a notifiable merger in Kenya without CAK approval?
Up to KSh 10 million in fines or 5 years’ imprisonment, plus an additional fine of up to 10% of the firm’s turnover.
What is a debenture?
This legal instrument, often required for secured debt in Kenya, gives creditors the right to seize specific assets in the event of default.
A short-term, unsecured debt instrument issued by corporations to finance working capital needs
A commercial paper
What do you think happens when governing bodies are corrupt?
Eroded trust
Harm to consumers through scams and unfair practices
Increased financial INSTABILITY
Unstable economy
what bank was acquired by Equity Bank in 2023?
Spire Bank
What is the Financial Reporting Centre (FRC Kenya)?
This body established under the Financial Reporting Centre Act oversees compliance with anti–money laundering obligations and financial disclosures.
These collective investment vehicles pool funds to invest in real estate and are regulated by the CMA’s Capital Markets (Collective Investment Schemes) Regulations, 2001
Real Estate Investment Trusts (REITs)
What are the ways minority shareholders amplify their voices?
Coalition
Private discussions
Legal actions: Derivative claims
Educate and mobilize shareholders
Under what legal mechanism in the Companies Act, 2015 can a Kenyan company merge or restructure through a court-approved compromise with its creditors or shareholders?
Through a Scheme of Arrangement under Part XXXIV (Sections 920–929) of the Companies Act, 2015.
What is the company’s memorandum of association (or constitution)?
This key legal document outlines a company’s powers to borrow, issue securities, and manage its capital structure under corporate finance law.
This 2016 amendment to the Capital Markets Act introduced provisions for electronic commerce and new financial instruments like derivatives and sukuk
the Capital Markets Authority (Amendment) Act, No. 8 of 2016
List 3 articles that apply to shareholders as discussed in the teaching?
Article 10 – National Values and Principles of Governance
Article 40 – Protection of Right to Property
Article 46 – Consumer Rights
what section of the Banking act limits ownership in Banks to 25% per individual or entity?
Section 13