Mazhilis of the Parliament Republic of Kazakhstan has approved amendments to the legislation on rehabilitation and bankruptcy, aimed at simplifying procedural conditions and minimizing the risks of dishonest use of legal mechanisms.
The bill is currently under consideration by the Senate of the Parliament Republic of Kazakhstan.
The primary objective of the amendments is to enhance the transparency of business recovery and insolvency processes, reduce their timelines, and mitigate instances of intentional bankruptcy and misconduct.
Key Innovations of the Bill:
* Restriction of Sham Procedures: A ban is introduced on launching rehabilitation processes if the debtor has no creditors other than tax authorities;
* Optimization of Property Sales: The authority of the creditors' meeting regarding the direct sale of a bankrupt's assets is clearly regulated;
* Protection Against Procedural Delays: Strict deadlines are established for refiling bankruptcy applications following a prior court rejection, the completion of bankruptcy proceedings, or upon securing the creditors' approval;
* Expansion of Digital Channels: New methods are being introduced for prompt notification of creditors regarding upcoming meetings and committees;
* Elevating the Status of Administrators: Citizenship requirements are clarified, the powers of the bankruptcy trustee are expanded, and a mechanism for early resignation from duties for valid reasons is established.
The bill is designed to balance the rights of debtors seeking to restore insolvency with those of creditors protecting their financial interests. These novel provisions are synchronized with the overall digitalization strategy of Kazakhstan’s financial market.