Draft law on bankruptcy to be revised taking into account opinion of business
Draft law on bankruptcy will be further developed in the second reading, taking into account the opinion of Atameken NCE RK and business community, chairman of the Mazhilis of the Parliament of the Republic of Kazakhstan Nurlan Nigmatulin said.
In particular, participants of the Mazhilis plenary session considered the issues of introducing a new article to the draft law “Causing property damage to creditors by deception or abuse of trust” instead of the article “False bankruptcy”. The articles that concern intentional bankruptcy and insolvency, the developers (Ministry of Finance of the Republic of Kazakhstan) propose to save exclusively for financial organizations.
According to Nurlan Nigmatulin, the amendment threatens the basics of doing business. According to the current law, the participants of LLPs or JSCs are liable to creditors only within the limits of their contribution to the statutory fund. And it is this rule that allows you to invest free money in business development.
“If the norm proposed by you is adopted, people will simply be afraid of doing business, because initially they know that they are at a risk of losing all their property. Instead of creating conditions for business, you create all the conditions for its collapse," Nurlan Nigmatulin said addressing to representatives of the Ministry of Finance.
Commenting on the issue, deputy chairman of the Board of Atameken NCE RK Alyona Romanova noted that the National Chamber provided a negative expert opinion on the aforementioned norms of the draft law.
“National Chamber pointed out that the Draft Law presents risks for business. We have sent an official position to a state agency regarding possible negative consequences for entrepreneurs: last year during the review of the concept at the interdepartmental commission: and expressed negative opinion during the round table meeting in Mazhilis in February of this year. I think that the authorized agency in the second reading will hear the opinion of entrepreneurs,” Alyona Romanova said.
Mazhilis chairman proposed to leave the current version (when the founder’s liability for the debts of his company comes only if the court establishes the bankruptcy of the enterprise and the violation of creditors’ rights) and refine this provision before the second reading, taking into account the opinion of Atameken.
In general, the draft law is aimed at simplifying the conditions for the application of rehabilitation and bankruptcy procedures by business entities. A simplified liquidation of long-term inactive debtors without initiating bankruptcy proceedings is proposed.
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