Doing Business in Kenya - RSM International

• At the date of application, the company must not be in breach of any of its loancovenants particularly in regard to the maximum debt capacity.• Company shall not be eligible to list unless:• It has a minimum of 25 investors;• At least 20% of the paid up capital after listing, excluding any holding bythe employees or family members, is held by not less than the prescribedminimum number of investors; and• No investor shall hold more than 3% of the shares above.• Company must have been in existence in the same line of business for a minimumof 2 years with good growth potential in order to provide a comparative andreliable track record.• A subsidiary whose parent company has a 5 year track record may list, providedthat the subsidiary has an operating track record of at least 1 year.• The financial statements of the company must not be older than 4 monthsbefore the listing and must be audited.• Company must be solvent and the auditor’s report must be unqualified.• Company may not use the proceeds of a public issue to redeem any loans by thedirectors or the shareholders prior to the listing.• Company must ensure that the existing shareholders, related persons or suchother group of controlling shareholders who have influence over management,undertake not to sell their shareholding, before the expiry of a period of 24months following listing.• Company must have at least 2 non-executive and independent directors on itsboard of directors.• Company must disclose a clear policy on dividends.• Company listed on AIMS may only change from this segment after a minimumof 1 year and on satisfying, the requirements for MIMS.8.2.3 Fixed Income Securities Market SegmentCompanies intending to list their commercial papers or corporate bonds in the FIMSmust satisfy the following eligibility requirements:• Company to be listed must be a company limited by shares and registered underthe Companies Act (Cap 486).• The company must have a minimum authorised, issued and fully paid up sharecapital of Shs 50,000,000 and net assets of Shs 100,000,000 before the publicoffering of the securities. In the event that the issuer does not have net assetsof Shs 100,000,000, the issuer must obtain from a bank or any other approvedinstitution a financial guarantee to support the issue.• The securities to be listed must be freely transferable and not subject to anyrestrictions on marketability or pre-emption rights.78DOING BUSINESS IN KENYA