CBK Governor Njoroge orders banks to disclose top shareholders on websites

[Fire]

@spear

Yes.

the minority shareholder may choose to engage in unscrupulous business practices as long as his name doesn’t appear anywhere… ama unaonaje hapo

[system]

@spear

The share registry can change daily for example if the company is listed in NSE. Yes each time the directorship/shareholding changes it must be updated. It can’t be a secret, after all it has to be done officially at state law office. 1% of bank shareholding is billions so no one will accept just a simple handshake deal that can’t be proved or easily contested. The changes will also be visible during board meetings when a new person shows up at the meeting.

Mine was from an administrative view. How will Equity Bank know that the directors of their shareholders have changed?

[Fire]

@Okiya

Mine was from an administrative view. How will Equity Bank know that the directors of their shareholders has changed?

Can they stick a disclosure clause somewhere in the company listing?

[system]

@Fire

Can they stick a disclosure clause somewhere in the company listing?

Which company?

[Fire]

@Okiya

Which company?

The NSE

[system]

@Fire

The NSE

But there are private companies who own stocks in Banks. My argument is who will cater for the administrative costs of knowing the changes of directors so that websites can be updated?

[spear]

@Okiya

Mine was from an administrative view. How will Equity Bank know that the directors of their shareholders have changed?

I have already explained it. List of directorship in any company can’t change without a notice given to all other shareholders of companies that the said companies have a stake. If Spear investment shareholding changes the company act stipulates apart from giving notice to state law office, they must also inform other companies they have shareholding of the change. Failure to do so may lead to litigation, fines and suspension from affected companies.

[system]

@Okiya

But there are private companies who own stocks in Banks. My argument is who will cater for the administrative costs of knowing the changes of directors so that websites can be updated?

you can very easily end up with departments in the banks whose sole mandate is to keep track of who owns what

[spear]

@Okiya

But there are private companies who own stocks in Banks. My argument is who will cater for the administrative costs of knowing the changes of directors so that websites can be updated?

seriously cost of removing one picture to another, or writing letters to at least 5 authorities is not money to complain about for a bank.

[system]

@spear

I have already explained it. List of directorship in any company can’t change without a notice given to all other shareholders of companies that the said companies have a stake.

This is new to me. Please give me the link or specific chapter in the Act where I can find this.

[spear]

@Fire

the minority shareholder may choose to engage in unscrupulous business practices as long as his name doesn’t appear anywhere… ama unaonaje hapo

How? not theories. You do understand that is why Majority shareholder is listed because only him can move board decision to action by his one vote. The minority shareholder can keep his hands up forever but it wouldn’t move to action until the majority shareholder agrees. For example James Mwangi and Munga previously owned minority shareholding in HFCK but they couldn’t effect the company direction to cheaper mass market property financing. The majority shareholders stuck with the premium targeted financing. They later sold their stake after it rose and left.

[Fire]

@jimmy_m

you can very easily end up with departments in the banks whose sole mandate is to keep track of who owns what

Had not see that angle.

[system]

@spear am still waiting for that section of the law. I have the Companies Act 2015 with me here and am reading chapter 138 and there is absolutely nothing of what you claim

[spear]

@Okiya

@spear Am still waiting for that section of the law. I have the companies Act 2015 with me here and am reading chapter 138 and there is absolutely nothing of what you claim

Ongoja tu until you look it up yourself. Sometimes inafika mahali mpaka unachoka spoon feeding.

[system]

@spear

Ongoja tu until you look it up yourself. Sometimes inafika mahali mpaka unachoka spoon feeding.

We are having a constructive argument. Why are you evading supporting your claims? What is difficult in putting a screen shot or a link to validate your argument? Aren’t you the one who puts thousands of pictures showing Jubilee governments projects? Hiyo huwa spoon feeding pia?

[spear]

@Okiya

We are having a constructive argument. Why are you evading supporting your claims? What is difficult in putting a screen shot or a link to validate your argument?

Let me do the 1st part for you

Procedure for change of directors in Kenya - Capita Registrars Kenya Limited

Form C-12 Transfer deed

[SIZE=6]PROCEDURE FOR CHANGE OF DIRECTORS[/SIZE]

There are two ways in which the need for change of board of directors is required;
[ol]
[li]Resignation of a board director[/li][li]Forceful removal of a board director[/li][/ol]
We get a lot of inquiries as to how to deal with the issue of change of board director and shareholding.
There are instances where the director is also a shareholder of the company.
To cease being a director of the company;
[ol]
[li]You must notify the registrar of companies through Form 203 A when appointing and changing a director. The secretary of the company will file this notice before 30 days have expired.[/li][li]The director must write a letter to the registrar to notify the registrar that he/she no longer desires to be a director of the company. This ensures that other directors do not change the details at the registrar of company without the knowledge.[/li][/ol]
Transfer of shareholding
[ol]
[li]The parties involved i.e. the transferee and the transferor will sign a transfer deed.[/li][li]The company secretary will then assess the stamp duty and have the transfer registered at the Registrar of Companies.[/li][/ol]
How to allot shares after the company has been registered
To allot shares after the company has been registered, the company secretary will file a return on allotment.

Obtain a CR 12 form from the company’s registry

Once the changes have been completed, obtain the new list of shareholders and directors (CR12).

[system]

@spear

If Spear investment shareholding changes the company act stipulates apart from giving notice to state law office, [SIZE=6]they must also inform other companies they have shareholding of the change[/SIZE]. Failure to do so may lead to litigation, fines and suspension from affected companies.

The part in bold is what I want evidence of. So far what you have posted up here does not give evidence of this.