Article 52-9. Financing of production and trading activities through participation in the authorized capitals of legal entities and (or) on the terms of partnership of the Law on Banks and Banking Activities in the Republic of Kazakhstan

Home / Laws / Article 52-9. Financing of production and trading activities through participation in the authorized capitals of legal entities and (or) on the terms of partnership of the Law on Banks and Banking Activities in the Republic of Kazakhstan

Article 52-9. Financing of production and trading activities through participation in the authorized capitals of legal entities and (or) on the terms of partnership of the Law on Banks and Banking Activities in the Republic of Kazakhstan -The Law of the Republic of Kazakhstan dated August 31, 1995 No. 2444. On banks and banking activities, with the introduction of the Law of the Republic of Kazakhstan dated January 16, 2026 No. 258-VIII, the SAM has lost its legal force.

1. The Islamic Bank has the right to finance production and trading activities on the basis of a partnership agreement in order to generate income or achieve another goal that does not contradict the legislation of the Republic of Kazakhstan. A partnership agreement may provide for the establishment of a legal entity (a partnership agreement with the formation of a legal entity).

2. A partnership agreement may be concluded after receiving a positive opinion from the Council on the Principles of Islamic Finance. Violation of the requirements specified in Article 52-1 of this Law is the basis for early termination of the partnership agreement and (or) liquidation of a legal entity established on the basis of a partnership agreement, or for alienation of the Islamic bank's shares, including shares and participation interests in the authorized capitals of legal entities, and the transfer of the income received to charity.

3. The rules of a joint operation agreement with the specifics provided for in this article shall apply to a partnership agreement without a provision on the establishment of a legal entity (a simple partnership agreement with the participation of an Islamic bank).

4. A simple partnership agreement with the participation of an Islamic bank must contain the purpose of the joint activity, the term of the agreement or the conditions upon which the agreement terminates, the procedure and frequency of distribution of income from joint activities, the participant's responsibility for violating the terms of the agreement, information on the list, types and value of property contributed by each participant to carry out joint activities.. Unless otherwise provided by the agreement, the amount of each participant's share in the common property is determined in proportion to the value of the property contributed to carry out joint activities. The agreement may provide for conditions for using part of the income received from joint activities for charitable purposes.

5. Income from joint activities, total expenses and losses of the parties to the agreement of a simple partnership with the participation of an Islamic bank are distributed proportionally to the share in the common property, unless otherwise provided by the agreement. The income of a simple partnership with the participation of an Islamic bank should be distributed according to the actual results, without taking into account the expected income. The income of a participant in a simple partnership cannot be fixed in the form of a fixed amount of money.

6. If the common property of a simple partnership is insufficient, its participants are liable for obligations related to the contract of a simple partnership in proportion to their shares in the common property.

7. The rules on the foundation agreement of a legal entity of the appropriate organizational and legal form shall apply to a partnership agreement with the formation of a legal entity, unless otherwise provided by the agreement or the rules of this article.

8. In addition to the information provided by the legislation of the Republic of Kazakhstan for the founding agreement of a legal entity of a certain organizational and legal form, the partnership agreement with the formation of a legal entity must contain information on the objectives and terms of the partnership, the condition on the distribution of income of the legal entity in proportion to the contributed share of each participant.

9. The rules of the partnership agreement with the formation of a legal entity also apply to cases of partnership, the terms of which are the acquisition of shares (participation interests) of a legal entity, provided that the purpose of the partnership is to finance the production or trading activities of this legal entity.

The Law of the Republic of Kazakhstan dated August 31, 1995 No. 2444.

President

Republic of Kazakhstan

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