Kazakhstan:
Bankruptcy vs. Liquidation
26 August 2021
Unicase Law Firm
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BANKRUPTCY |
LIQUIDATION |
TIMEFRAME |
FROM 9 MONTHS TO 5 YEARS UNDER SOME
CONDITIONS. |
FROM 6 MONTHS TO 1 YEAR OR MORE, DEPENDING ON THE
EFFICIENCY OF EACH PERSON/COMPANY/STATE AUTHORITY INVOLVED. |
CONDITIONS |
- THE COMPANY HAS LESS MONEY AND PROPERTY THAN THE CREDITORS'
CLAIMS;
- THE COMPANY HAS STABLE INSOLVENCY;
- THE UNFULFILLED MONETARY OBLIGATION OF THE DEBTOR TO THE LENDER
ON THE BASIS OF A JUDICIAL ACT;
- NON-PAYMENT BY THE DEBTOR OF THE AMOUNT OF TAX DEBT, AS WELL AS
CUSTOMS DEBT, SPECIAL, ANTIDUMPING, COMPENSATION DUTIES.
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- THE COMPANY HAS MORE MONEY AND PROPERTY THAN THE CREDITORS'
CLAIMS;
- VOLUNTARY LIQUIDATION BY THE DECISION OF THE COMPANY;
- BY THE COURT DECISION IN THE FOLLOWING CASES:
- BANKRUPTCY;
- INVALID REGISTRATION UNDER SOME CONDITIONS;
- ABSENCE OF A LEGAL ENTITY AT THE LOCATION OF OR IN THE ACTUAL
ADDRESS, AS WELL AS FOUNDERS AND COMPANY OFFICIALS;
- CARRYING OUT ACTIVITIES WITH VIOLATION OF LEGISLATION;
- CARRYING OUT ACTIVITIES THAT CONTRADICT GOALS SET IN THE
CHARTER;
- CARRYING OUT THE ACTIVITY WITHOUT A LICENSE OR AN ACTIVITY THAT
IS PROHIBITED BY LAW.
|
STEP-BY-STEP PROCESS |
- RESOLUTION/MINUTES ON LIQUIDATION OF THE COMPANY.
- FINDING A TEMPORARY MANAGER.
- SUBMITTING A SET OF DOCUMENTS TO THE COURT.
- THE COURT INITIATES A BANKRUPTCY CASE.
- TEMPORARYMANAGERANALYSESTHE COMPANY'S FINANCIAL
STABILITY.
- THE COURT CONSIDERS THE CASE.
- THE COMPANY TRANSFERS DOCUMENTS, MATERIALS,S AND OTHER VALUES
TO THE TEMPORARY MANAGER.
- THE TEMPORARY MANAGER NOTIFIES THE AUTHORIZED BODY.
- THE COURT DECISION COMES INTO FORCE, WHETHER DECLARED BANKRUPT
OR NOT.
- THE BANKRUPTCY PROCEDURE BEGINS AND A BANKRUPTCY MANAGER IS
APPOINTED TO COMPLETE THE BANKRUPTCY PROCEEDING.
- THE BANKRUPTCY COMPLETION AND LIQUIDATION.
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- RESOLUTION/MINUTES ON LIQUIDATION OF THE COMPANY.
- NOTIFICATION OF THE JUSTICE AUTHORITIES AT THE PLACE OF
REGISTRATION.
- NOTIFICATION OF THE TAX COMMITTEE.
- NOTIFICATION OF THE EMPLOYMENT CENTRE.
- PUBLICATION OF INFORMATION ON THE LIQUIDATION OF A LEGAL
ENTITY.
- PREPARING INTERIM LIQUIDATION BALANCE SHEET.
- SENDING TO THE TAX COMMITTEE AN APPLICATION FOR A TAX AUDIT AND
SENDING THEM LIQUIDATION TAX REPORTS.
- PAYMENTS OF TAXES, PAYMENTS TO THE BUDGET, AND OTHER
PAYMENTS
- SATISFACTION OF CLAIMS BY CREDITORS.
- TRANSFER TO THE ARCHIVE OF DOCUMENTS TO BE TRANSFERRED.
- THE TRANSFER OF THE REMAINING PROPERTY TO THE FOUNDERS.
- DISTRIBUTION OF PROPERTY AMONG THE PARTICIPANTS OF THE
LIQUIDATED PARTNERSHIP.
- PREPARING LIQUIDATION BALANCE SHEET.
- OBTAINING CERTIFICATES OF THE ABSENCE OF ARREARS OF TAXES AND
CUSTOMS DUTIES.
- CLOSING A BANK ACCOUNT.
- DESTRUCTION OF SEALS.
- REGISTRATION OF LIQUIDATION OF LEGAL ENTITY IN THE JUSTICE
AUTHORITIES.
|
ADVANTAGES |
- PROVIDES AN OPPORTUNITY TO LIQUIDATE A COMPANY THAT IS NOT
PROFITABLE AND HAS MORE ACCOUNTS PAYABLE THAN ASSETS ON THE BALANCE
SHEET;
- ALLOWS FOR THE POSSIBILITY TO SWITCH TO REHABILITATION
PROCEDURE IF THE WORKABLE PLAN ON RESTORING SOLVENCY IS
PRESENTED.
|
- ANY PERSON CAN BECOME A MEMBER OF THE LIQUIDATION COMMITTEE,
THERE IS NO PROHIBITION IN KAZAKH LAW. MEMBER OF LIQUIDATION
COMMITTEE IS SELECTED BY RESOLUTION OF THE COMPANY.
|
DISADVANTAGES |
- THE TEMPORARY MANAGERS AND BANKRUPTCY MANAGERS ARE SELECTED BY
THE COURT AND CREDITORS COMMITTEE RESPECTIVELY AND APPROVED BY
STATE AUTHORITY.
- IN GENERAL, THE BANKRUPTCY PROCEEDING IS MORE TIME-CONSUMING
AND A LOT OF EFFORT SHOULD BE PUT, AS THERE IS A RIGOROUS PROCESS
THAT REQUIRES INTERACTION WITH COURTS, CREDITOR COMMITTEE,
TEMPORARY AND BANKRUPTCY MANAGERS.
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- PRIOR TO LIQUIDATION, ALL TAX AND DEBT LIABILITIES SHOULD BE
RESOLVED.
- IN THE CASE OF DEBT WAIVER, THERE MIGHT APPEAR INCOME TAX
LIABILITY TO BE PAID.
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The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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