ROOT

The responsibility of the legal entity and its officials is one of the most important issues of corporate law.

According to Kazakhstan legislation, the officials of the legal entity are the head of the sole executive body, the members of the collegial executive body, the members of the Board of Directors (JSC) and members of the supervisory board (LLP).

Since gaining independence, one of the priorities of the state policy of the Republic of Kazakhstan is to maintain a favorable investment climate and further promotion of foreign direct investments in the country.

The system of organization of rendering of state services is permanently improved in Kazakhstan. According to the decision of the Government of the RK,  recently was founded a State corporation “Government for Citizens” (hereinafter – the Corporation), which has integrated in itself Republican State Enterprises “Public Service Center”, “Research and development centre of Land Register”, “Center for Real Estate”, Republican state budget-supported enterprise “State Center for Payment of Pensions”. The Corporation thereby became the unified provider, carrying out the activity in the sphere of rendering of state services to natural persons and legal entities by “one stop” principle, registration of pledges of movable property, technical inspection of buildings, constructions, maintenan

As a general rule, investors and Kazakhstani entrepreneurs prescribe an arbitration clause in contracts with foreign counterparties and, subsequently submit disputes to international arbitration courts in other states (herein below “international arbitration courts”), and  Kazakhstani residents also sometimes submit their disputes to international arbitration courts.

However, a judicial practice shows that residents encounter difficulties in recognition of validity of arbitration clauses (arbitration agreements), because the competent courts opine that residents’ disputes cannot be submitted to international arbitration courts, e.g. LCIA, ICC, etc., referring to provision of point 4, article 6 Law on Foreign Arbitration

The analysis of court practice in respect of invalidation of contracts on public procurement of services (hereinafter “the Contract”) performed by the team of Linkage&Mind Law Firm has shown that plaintiffs (potential suppliers, who are not parties of the Contract) (hereinafter “the Plaintiff”) along with the claims for invalidation of the Contract usually file an application for an interim measure «suspension of contract execution».