Article 11. The legal status of the debtor of the Law on Rehabilitation and Bankruptcy

Home / RLA / Article 11. The legal status of the debtor of the Law on Rehabilitation and Bankruptcy

1. The debtor has the right:

1) apply to the court for declaring him bankrupt, applying debt restructuring procedures, rehabilitation procedures, and liquidation without initiating bankruptcy proceedings in the cases provided for by this Law;

2) conclude a settlement agreement during the bankruptcy procedure in accordance with the procedure and on the terms provided for by this Law;

3) to challenge the amounts of accounts payable in court, as well as to involve audit organizations for these purposes;

4) enjoy other rights provided for by the legislation of the Republic of Kazakhstan.

2. The debtor is obliged to:

1) apply to the court for declaring him bankrupt in the event that the owner of his property (his authorized body), the body of a legal entity authorized to do so by the constituent documents, has decided to liquidate him, and the value of the property is not sufficient to satisfy creditors' claims in full;

2) submit to the court and the administrator within three working days from the date of the court's ruling on the initiation of bankruptcy or rehabilitation proceedings, and in the cases provided for by this Law, – from the date of appointment of the administrator, information on financial and economic activities, including information on the debtor's property, including property encumbered by collateral, leased (leased) and (or) leased, money held in bank accounts, account numbers and location of banks, organizations, performing certain types of banking operations, on the amount of accounts receivable;

3) before submitting an application to the court for the application of a rehabilitation procedure, conclude an agreement on the exercise of the powers of the temporary administrator with the person whose notification is included in the register of notifications of persons authorized to carry out the activities of the administrator.;

4) before submitting an application for bankruptcy to the court, conclude an agreement on the exercise of the powers of the interim manager with the person whose notification is included in the register of notifications of persons authorized to carry out the activities of the administrator.;

5) submit to the authorized body, within three working days from the date of the court's decision to liquidate the debtor without initiating bankruptcy proceedings, the documents provided for in paragraph 2 of Article 115 of this Law.;

6) transfer to the rehabilitation manager, within three working days from the date of his appointment, the constituent documents, seals (if any), stamps, within fifteen working days – accounting documents, title documents for the debtor's property, within two months – material and other valuables;

7) transfer to the temporary manager, within three working days from the date of the court's decision declaring the debtor bankrupt, the constituent documents, seals (if any), stamps, within ten working days – accounting documents, title documents for the bankrupt's property, within twenty working days – material and other valuables belonging to the bankrupt;

8) provide the temporary manager with access to the accounting documentation for study by viewing;

9) provide the temporary administrator with access to the accounting documentation for study by viewing;

10) ensure the completeness and reliability of accounting documentation, accounting systems and financial statements;

11) when carrying out the rehabilitation procedure, provide information on the progress of its activities to any creditor on the basis of his request in writing and (or) in the form of an electronic document no later than three working days from the date of receipt of the request, with the exception of confidential information;

12) upon request, provide information and explanations about the financial situation and economic activities of the debtor to the court, rehabilitation, temporary or bankruptcy administrators and the creditors' committee;

13) no later than the 15th day of each month, to inform the creditors' committee of information on the financial condition, transactions made in the course of ordinary commercial transactions for the previous month during the rehabilitation procedure;

14) perform other duties stipulated by this Law.

3. In cases where the management of the debtor in the rehabilitation procedure is entrusted to the individual entrepreneur – debtor or the body or person authorized by the owner of the property, the founder (participant) of the legal entity – debtor, he is subject to the powers within the competence established by the legislation of the Republic of Kazakhstan and responsibility provided by this Law for the rehabilitation manager.

4. For violation of the provisions of subitems 1), 2), 7) and 8) of paragraph 2 of this Article, if the debtor's property is insufficient to satisfy creditors' claims in full, the official whose duties include fulfilling the requirements provided for in subitems 1), 2), 7) and 8) of paragraph 2 of this article, bears subsidiary liability in accordance with the laws of the Republic of Kazakhstan in the amount of the bankrupt's obligations to creditors that remain unfulfilled as a result of the bankruptcy procedure.

The Law of the Republic of Kazakhstan dated March 7, 2014 No. 176-V SAM.

This Law regulates public relations arising from the debtor's inability to satisfy creditors' claims in full, establishes the grounds for applying debt restructuring procedures, rehabilitation procedures and declaring the debtor bankrupt, liquidating the debtor without initiating bankruptcy proceedings, and also defines the procedure and conditions for their conduct.

President

Republic of Kazakhstan

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