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Saturday, September 26th, 2020

Senators reviewed a bill to improve rehabilitation and bankruptcy procedures

by December 3, 2019 General

The Finance and Budget Committee reviewed the draft Law “On Amendments and Additions to Some Legislative Acts of the Republic of Kazakhstan on Improving Rehabilitation and Bankruptcy Procedures, Budget, Tax and Railway Laws”.

The purpose of the bill is legislative support for improving the procedures for rehabilitation and bankruptcy, outlined by the Head of State at the opening of the third session of the Parliament of the Republic of Kazakhstan of the sixth convocation, as well as improving the efficiency of the insolvency system.

The main conceptual areas of the bill include: a review of the procedure for initiating rehabilitation and bankruptcy procedures; reviewing the application of rehabilitation and bankruptcy; review of the authority of the meeting of creditors in order to reduce the terms of bankruptcy proceedings; clarification of the procedure for creditors to file claims against the debtor; review of the appointment of an interim manager and interim administrator; review of remuneration to managers; review of the procedure for meeting the requirements of collateral lenders; revision of provisions for intentional and false bankruptcy; reviewing the procedure for liquidation of an inactive debtor without initiating bankruptcy proceedings; establishing a procedure for subsidizing coupon interest rates on carrier bonds, issued in order to develop the main railway network and rolling stock of railway transport; exemption of micro and small business companies from income tax for a period of three years; strengthening responsibility for inefficient planning and use of budget funds.

The document has been submitted to the Chamber.

Source: Mazhilis of the Parliament of the Republic of Kazakhstan