Bankruptcy of Legal Entities: Another Step Toward Greater Transparency of the Procedure

Bankruptcy of Legal Entities: Another Step Toward Greater Transparency of the Procedure

 Since the beginning of the current year, a number of changes have been introduced in the field of bankruptcy of individuals and legal entities.

On January 16, 2026, amendments were adopted to the Laws of the Republic of Kazakhstan “On Restoring the Solvency and Bankruptcy of Citizens of the Republic of Kazakhstan” and “On Rehabilitation and Bankruptcy.”

It should be noted that the legal framework governing the bankruptcy of legal entities has not undergone significant changes in recent years. At the same time, the evolving nature of legal relations in this area has demonstrated the need for further measures aimed at improving the effectiveness of bankruptcy and rehabilitation procedures. To facilitate implementation and ensure convenience for participants, the amendments are being introduced in stages.

Accordingly, amendments entering into force on March 19, 2026, provide for:

  • granting bankruptcy administrators additional powers, including with respect to the calculation of additional remuneration and filing applications with the court to invalidate the re-registration of a legal entity;
  • introducing a mechanism for the removal of a temporary administrator;
  • expanding the methods of notifying creditors about meetings of the creditors’ assembly and creditors’ committee;
  • establishing a waiting period before a debtor may reapply for bankruptcy following a previous refusal by the court;
  • preventing the application of rehabilitation procedures where there are no creditors other than those with claims for taxes and other mandatory payments;
  • determining the quorum requirements and decision-making authority of creditors’ meetings in cases involving the direct sale of a bankrupt debtor’s property.

These amendments are expected to reduce attempts to misuse rehabilitation and bankruptcy procedures and to increase their transparency and effectiveness.

At the same time, legislative work in this area continues. Amendments to the Law “On Rehabilitation and Bankruptcy” are currently under consideration by the Mazhilis of the Parliament of the Republic of Kazakhstan. These amendments are aimed at enhancing the status of insolvency administrators and expanding the rights of creditors.