Pursuant to Law of the Republic of Kazakhstan No.333-V of 17 July, 2015
“On amendments and additions into the certain legal acts of the Republic
of Kazakhstan pertaining increase of protection of property right,
securing performance of contractual obligations and strengthening of
liability for violation of them” the Civil Code, Law on registration of
mortgage of immovable property and Law on Banks and Banking Activity
have been amended.
Following up upon administrative barriers restricting business
development, we offer to consider following cases from our practice.
In our practice, we often face with the so-called administrative
barriers, which hinder development of entrepreneurship in Kazakhstan. We
believe that other practitioners can identify many of such barriers,
but we are going to focus only on those that are relevant today in
accordance with our practice:
In its practice, Linkage & Mind has not infrequently come across applications of FIDIC templates in major construction projects in various industries. FIDIC templates were normally used where the contractor was a foreign company and/or the project was financed by international financial institutions. In this context, the Kazakhstan party quite often tried to change the structure and contents of the contract in an attempt to harmonize it as much as possible with the Kazakhstan law and practices. In the end, the contract contained a great number of amendments and exceptions to the General Terms and Conditions
According to the general provisions of civil legislation, the persons performing obligations may be changed further to the transaction, or based on the legislative act. Thus, it is assumed that the parties of any contract are entitled to assign a claim (with or without the debtor’s consent) or transfer a debt (with the creditor’s consent).
13 November 2015 saw the adoption of the Republic of Kazakhstan Law to
Amend Certain Legislative Acts of the Republic of Kazakhstan on
Rehabilitation and Bankruptcy (hereinafter referred to as the Law).
Specifically, the Rehabilitation and Bankruptcy Law received a new
chapter, 6-1, Settlement, which enables the debtor and creditors to make
a settlement agreement at any stage of bankruptcy proceedings in order
to discontinue bankruptcy proceedings. The effective date of the
amendments is 2 December 2015.