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DISCLOSURE OF COMPANY BENEFICIAL OWNERSHIP INFORMATION

There is a new company regulation that requires all companies to lodge with the Registrar of companies by the 31st of January 2021, a list of its beneficial owners i.e. the ultimate natural persons who own and control a Company.

The Regulations define a beneficial owner as a person who:

  1. holds at least 10% of the issued shares in the company either directly or indirectly;
  2. exercises at least 10% of the voting rights in the company;
  3. holds a right to directly or indirectly appoint or remove a director of the company; OR
  4. exercises significant influence or control over the company (participation in the finances and financial policies of a company without necessarily having full control over them)

Though the regulations are meant to disclose the owners of companies that own companies and nominee shareholders, please be advised that even companies owned by natural persons are required to comply with this regulation and also update the Beneficial Owners (BO) register anyway.

 

Be advised that failure to comply with this Regulation will attract a fine of up to KES. 500,000/- for each officer of the company in default and a possibility of KES. 50,000/- penalty for each day in default if the default continues.

 

Please do reach out to us on enquiries@jradvocates.com so we can help keep your company compliant.

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