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Article 62. Transformation of Business Partnerships

as amended by (4) Law No. 30 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan. July 15, 1996; and

(18) Law No. 436 of 16th July 1999 of the Republic of Kazakhstan "Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan"

1. Business partnerships of one type may be transformed into business partnerships of the other types or into joint stock companies or in to production co-operatives upon a decision of the general meeting of the participants in the cases and in accordance with the procedures provided for by legislative acts.

2. When transforming a general or a limited partnership into a joint-stock company, limited liability or additional liability partnership, each general partner that became a participant of the joint-stock company, limited liability partnership or additional liability partnership, shall within two years bear subsidiary liability with all his assets on the obligations which were transferred to the joint-stock company, the limited liability partnership or additional liability partnership from the general or limited partnership. The alienation by a former general partner of his shares shall not exempt him from such a liability.

2. General Partnerships

Article 63. The Fundamental Provisions Concerning General

Partnerships

1. A general partnership shall be a partnership, the participants whereof in the case of the insufficiency of the property of the general partnership, shall bear a joint liability upon it obligations with all the property that they have.

2. A citizen may be the participant of only one general partnership.

Article 64. The Charter Fund Capital of the

General Partnership

amended by (11) Law of 11th July 1997 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of Banking Activity;

(12) Law of No. 211 of 2nd March 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to the Civil Code of the Republic of Kazakhstan (General Part), and to the Decree of the Supreme Soviet of the Republic of Kazakhstan "Concerning the Implementation of the Civil Code of the Republic of Kazakhstan (General Part)".

1. The amount of the charter fund authorised capital of a general partnership shall be determined by it foundation parties, but it may not be less than the minimum amount specified by legislative acts.

Article 65. Managing the Affairs of a General Partnership

amended by (11) Law No. 154 of 11th July 1997 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of Banking Activity.

1. The general meeting of a general partnership shall be the supreme body of the general partnership. Resolutions on the internal issues of a general partnership shall only be adopted by unanimous consent of all the participants. The foundation agreement of a partnership may stipulate the cases, where a decision is to be adopted by a majority of votes of the participants. Each participant of a general partnership shall have one vote, unless the foundation agreement stipulates any other procedure for determining the number of votes of its participants. The foundation agreement may stipulate that the number of votes which is available to the participants shall be determined in proportion to their share in the charter fund authorised capital.

2. Managing a general partnership subject to the provisions of paragraph 1 of this Article, shall be carried out by the executive bodies of the general partnership. The types of, the procedure for the formation of governing bodies and their authority shall be defined in the foundation documents.

3. A participant of a general partnership shall not have the right to commit in his name and his interests or in the interests of third parties without consent of other participants, the transactions which are identical to those which constitute the object of activities of the partnership. In the case of violating this rule, the partnership shall have the right to demand from such a participant either compensation of losses incurred by the partnership, or transfer to the partnership of all the benefits acquired through such transactions.

4. The bodies of a general partnership, to which it is delegated to transact the business of the partnership, shall be obliged to present to all the participants, upon their request, comprehensive information about their activities.

5. A participant who acts for common interests without authorisation, in the cases where his actions are not approved by all the other participants, shall have the right to claim from the partnership compensation of expenditures incurred by him, under the condition that he proves that due to his efforts the partnership has economised or appropriately acquired assets which exceed in their value the expenditures incurred by the partnership.

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