This process of transfer of shares occurs when a shareholder of a listed company in Kenya dies and the shares are transferred to their beneficiaries such as a spouse, children, relatives, etc.
The process can only successfully occur in two circumstances:-
- Where the deceased left a valid will, bequeathing their shares to a respective beneficiary.
- If the deceased died without a will, a grant of letters of administration together with a certificate of confirmation of grant issued by a Kenyan court would be required.
REQUIRMENTS FOR PRIVATE TRANSFER OF SHARES
When the gross value of the deceased’s estate exceeds Kshs.100,000/- (one hundred thousand Kenyan shillings), certified copies of the grant letters of administration and a certificate of confirmation of grant applied for and issued by the courts is mandatory. The copies must be certified by an Advocate and Commissioner of Oaths.
In instances where the grant of probate or letters of administration have been issued by a foreign court, they should be sealed by the High Court of Kenya.
Where the estate’s worth is below Kshs. 100,000/-, a letter of indemnity from the Deputy County Commissioner (formally referred as District Commissioner) would suffice.
Certified copies of the Identity card or Passport of the estate’s executor(s)/administrator(s) and beneficiaries.
A certified copy of the death certificate.
Transfer forms obtained from the stockbroker to be signed by both administrator(s) and beneficiaries
A transmission fee payable to the stockbroker.
All the ORIGINAL share certificates belonging to the deceased (if they are not immobilized). If they are lost or missing, indemnity forms would be issued by the relevant company registrar and should be signed by the administrator whose signature must be witnessed by an Advocate and Commissioner for Oaths.
Unpaid dividend cheques and if the cheques are missing, an indemnity form is issued by the registrar.
It is important to note that the name of the deceased shareholder must be the same name indicated on the share certificate and death certificate.
The name of the executor/administrator and the beneficiaries must be the same name on the identity card or passport and in all documents to be used in the share transfer process including the confirmed grant. In the event that any names differs, an affidavit to support the said names should be attached.
Only a licensed stockbroker can forward an application for the transfer of shares to the Nairobi Securities Exchange. There are a number of stock brokerage firms in Kenya that handle the share transfer process.
Do you need assistance in the share transfer process? Please get in touch with us on [email protected]