The RK bill intended to exclude unreasonable bankruptcies in Majilis was approved in the second reading. This was reported by Kapital.kz Business Portal from Astana. 

Law “On rehabilitation and bankruptcy” is aimed to protect the interests of creditors. As part of the document one provides for the shortening of the bankruptcy proceedings and changes in the system of approaches to bankruptcy. Change over from external control over the procedure to introduction of a figure of interim control.

“The procedure of external supervision is not effective and does not lead to a specific decision of the debtor’s insolvency. That is practically we can observe intervention of the administrator of external surveillance in activities of an enterprise. Bill excludes this procedure,” Bakhyt Sultanov, a Finance Minister said in a speech at the first reading of the bill.

“The duties of the interim manager will include collecting information about the financial condition of the debtor, which will allow a more reasonable approach to the imposition of a court decision declaring the debtor as a bankrupt,” Bakhyt Sultanov said.

“The bill introduces a possibility of bringing of a debtor to subsidiary responsibility for failure to take measures upon the occurrence of signs of insolvency and failure to transfer the records. Adding these rules is due to the need to reduce cases of deliberate bankruptcy “, the speaker -added.

According to the minister, in Kazakhstan, 90% of bankrupt enterprises do not have the property. As a result, the rights of creditors to meet the requirements are violated.

Norms stipulated by the bill will ensure improvement of the existing bankruptcy system to world standards and establish priority of the interests of secured creditors.

“During the review of the law by deputies a number of norms revised: in terms of increasing the time for the creditor on  taxes to apply to the court to declare the debtor as a bankrupt; extension of  specifying the grounds for the invalidation of transactions concluded by a debtor on the eve of the bankruptcy; addition to the list of grounds to dismiss  an administrator from fulfillment of its powers, and its deregistration; clarification of terms of payment of additional remuneration to the administrator”, Gleb Schegelsky, a Majilis deputy said during the second reading.

Source: Kapital.kz Business Portal.