The Law of the Republic of Kazakhstan No. 176-V “On Rehabilitation and Bankruptcy” dated 7 March 2014 (hereinafter the “Rehabilitation Law”) was amended as follows:
- Creditors are entitled to apply to the court requesting an application of the rehabilitation procedure to a debtor.
- Administrators must, when deregistering at their own will, attach copies of minutes of creditor meetings for each debtor, specifying his/her removal from the office of a rehabilitation and/or bankruptcy manager and the selection of a new nominee.
- The Law establishes the fixed base fee for interim and bankruptcy for the entire period of the procedure, regardless of its duration. The only exception is the distribution of administrative expenses payable by court order for the account of a creditor for taxes and other obligatory payments to the budget. The minimum amount of the basic fee for interim and rehabilitation managers as well as the payment procedure are determined by the authorized body. Previously, the determination of the amount of a basic fee to an interim manager was the competence of a creditors’ meeting.
- The functions on the development and approval of a form of the mandatory departmental reporting, checklists, risk assessment criteria and semi-annual inspection plans are now excluded from the competence of the authorized body.
- The Rehabilitation Law changed the voting procedure on the issue of amendments to a rehabilitation plan. Creditors now are entitled to participate in voting, if their interests are affected by such amendments, including creditors, whose claims are to be satisfied within the same priority as such creditors and/or within subsequent priorities. A decision of a creditors’ meeting is to be adopted by a majority of votes of the total number of votes of creditors, including those voting in absentia, that participate in the adoption of a decision on amendment of a rehabilitation plan.
- The interesting novelty is that the power to write-off movable property present in books but absent under an inventory act is included in authorities of the creditors’ meeting.
- Henceforth, the sale of the bankrupt’s estate by a single lot is to be carried out at least twice. The single lot includes the property complex used in the entrepreneurial activities for the production of goods, performance of work and/or provision of services.