Development of Company Law in Kazakhstan: Main Issues and Trends

Author:Farkhad Karagussov
Pages:84-95
SUMMARY

The article shows that special legislation to regulate corporate forms for entrepreneurial activity (apart from forms for non-commercial activities) has been developed in Kazakhstan since the 1990s. The most important stages in such development are highlighted, with special emphasis on the influence of Russian legal developments. The article includes description of the current structure, content, ... (see full summary)

 
FREE EXCERPT
84 JURIDICA INTERNATIONAL 24/2016
Farkhad Karagussov
Professor, Institute of Private Law
Caspian University, Almaty, Kazakhstan
Development of Company Law
in Kazakhstan
Main Issues and Trends
1. Introduction
This article is focused on a brief analysis of development of the legislation of the Republic of Kazakhstan in
relation to corporate forms for business entities during the period after collapse of the Soviet Union. Compar-
ing it with the notion of company law in European jurisdictions, the author notes the absence of a clear concept
of company law and of a legal term ‘corporation’ in the law of Kazakhstan and also claims that a company (or
corporate) law of Kazakhstan has not been adequately institutionalised yet within the national legal system.
Nevertheless, it is shown that special legislation to regulate corporate forms for entrepreneurial activity
(apart from forms for non-commercial activities) has been developed in Kazakhstan since the 1990s. The
most important stages of such development are highlighted with special emphasis on an in uence of Rus-
sian legal developments. The article also includes description of the current structure, content, and speci cs
of Kazakhstan’s legislation on corporate forms for economic activity as well as identifying main trends in
development of company / corporate law in Kazakhstan and concerns related to it.
2. Meaning of company law in European jurisdictions
Our studies show that within the European legal environment the notions of ‘company law’ and ‘corporate
law’ are used mostly as synonyms in identifying the legal background for: (i) creation of legal entities formed
on the basis of an association of persons with the purpose of earning pro t and (ii) conduct of economic
activity by such legal entities observing adequate balance in protecting rights of a company, its members
(shareholders) and creditors, and public interest. The company law is called on to become a ‘special private
law’ combining laws on capital companies, general partnerships, and limited partnerships.*1
Depending on the terms of such association, all respective commercial legal entities are classi ed into
two groups – partnerships (also sometimes called associations of persons) and companies (entities formed
on the basis of joint capital contributions of their members / shareholders). This classi cation of business
entities was also known in Soviet-time civil law.*2 Formation of a partnership allows its members (partners
Қ P. Hommelho . Corporate and business law in the European Union: Status and perspectives ҚҢҢҠ. – Towards a European
Civil Code. қnd revised and expanded ed. Nijmegen: Ars Aeque Libri ҚҢҢҡ (ҟҞқ p.), pp. ҟҙқҟҙҜ.
қ ражданское и торговое право капиталистических государств [‘Civil and Commercial Law of Capitalist States’]. ..
арыш кина [R. Naryshkina] (ed.). осква: здательствоеждународные отношения’, ҚҢҡҜ [Moscow: International
Relations, ҚҢҡҜ] (Volume I, қҡҟ p.), p. Қҝҡ (in Russian).
http://dx.doi.org/10.12697/JI.2016.24.09

To continue reading

REQUEST YOUR TRIAL