Over-The-Counter Trading (OTC) | Fountain Enterprises Programme

Over-The-Counter Trading (OTC)

Over-The-Counter Trading (OTC)

This process which is mostly referred to as transmission of shares involves the transfer of shares from the estate of a deceased shareholder to a beneficiary. The process is regulated through the Companies Act & Regulations and the Law of Succession Act. Where a shareholder leaves a will, the beneficiaries will have to apply to the courts for a Grant of Letters of Administration to qualify as administrators of the Estate.

The documents required to facilitate the shares transmission process include:

  1. A Share Transfer Form signed by both the Executor / Administrator of the Estate of the deceased and Transferee / Beneficiary, in the presence of a Commissioner of Oaths or a Notary Public.
  2. A certified copy of the Death Certificate.
  3. Original Share Certificates. In the case of lost / misplaced certificates, the Executor / Administrator needs to sign an Indemnity Form before a Commissioner of Oaths or a Notary Public.
  4. A certified copy of the National ID / Passport of the Executor / Administrator.
  5. A certified copy of the National ID / Passport of the Transferee / Beneficiary.
  6. A certified copy of Grant of Probate with written Will or Letters of Administration.
  7. A certified copy of the Confirmation of Grant of Probate / Grant of Letters of Administration (if Grant has been issued outside Kenya, it must further undergo the re-sealing process by the High Court of Kenya, at the Executor’s / Administrator’s cost in accordance with the Kenyan Laws of Succession) and
  8. Varying amount of money, being the Filing Fee and Registrars’ Fee.
  9. Where the Estate of the deceased person consists of property of an estimated gross value exceeding Kshs. 500,000 and the deceased has died (in Kenya) intestate, the Public Trustee may apply for Grant of Probate or Letters of Administration, pursuant to section 6 of the Law of Succession Act. The Public Trustee may take possession of and Administer the Estate of the deceased person without making an application to the court, under the Act and no court fees shall be chargeable in respect of any such Estate. In the case above, the beneficiaries need to obtain the following documents from the Public Trustee;
  10. A Letter of Summary Administration.
  11. A Letter of Indemnity, indemnifying the company in which the deceased was a shareholder against any future claims.