Article 26. Repurchase of outstanding shares on the company's initiative The Law on Joint-Stock Companies
1. The repurchase of outstanding shares may be made with the consent of the shareholder on the initiative of the company for the purpose of their subsequent sale or for other purposes that do not contradict the legislation of the Republic of Kazakhstan and the articles of association of the company.
The repurchase of outstanding shares on the company's initiative is carried out in accordance with the methodology for determining the value of shares when they are repurchased by the company, approved in accordance with the procedure established by this Law, except in the case of repurchase of shares by the company on the stock exchange by open trading.
2. The company's repurchase of outstanding shares on the company's initiative is carried out on the basis of a decision of the Board of Directors, unless otherwise provided by this Law and (or) the company's articles of association.
3. The Company is not entitled to redeem its outstanding shares:
1) before the first general Meeting of Shareholders;
2) before the approval of the first report on the results of the placement of shares among the founders;
3) if, as a result of the share repurchase, the company's equity capital becomes less than the minimum authorized capital established by this Law;
4) if, at the time of the share repurchase, the company meets the criteria of insolvency or insolvency in accordance with the legislation of the Republic of Kazakhstan on rehabilitation and bankruptcy, or if these criteria appear as a result of the repurchase of all required or proposed shares.;
5) if the court or the general meeting of shareholders of the company has decided to liquidate it;
6) in cases stipulated by the Law of the Republic of Kazakhstan "On Banks and Banking Activities in the Republic of Kazakhstan".
4. If the number of outstanding shares to be repurchased at the company's initiative exceeds one percent of their total number, it is obliged to announce such repurchase to its shareholders prior to the conclusion of the share purchase(s).
The company's announcement on the repurchase of its outstanding shares must contain information on the types, number of shares to be repurchased, price, term and conditions of their repurchase and must be published in Kazakh and Russian on the Internet resource of the financial reporting depository.
5. If the number of outstanding shares of the company declared by its shareholders for repurchase exceeds the number of shares declared by the company for repurchase, these shares are repurchased from the shareholders in proportion to the number of shares owned by them.
The Law of the Republic of Kazakhstan dated May 13, 2003 No. 415.
This Law defines the legal status, procedure for the establishment, operation, reorganization and liquidation of a joint-stock company; the rights and obligations of shareholders, as well as measures to protect their rights and interests; the competence, procedure for the formation and functioning of the bodies of a joint-stock company; the powers, procedure for the election and responsibility of its officials.
President
Republic of Kazakhstan
© 2012. RSE na PHB "Institute of Legislation and Legal Information of the Republic of Kazakhstan" of the Ministry of Justice of the Republic of Kazakhstan
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