Article 94. A subsidiary of the Civil Code of the Republic of Kazakhstan
1. A subsidiary is a legal entity whose decisions can be determined by another legal entity (hereinafter referred to as the main organization) based on the presence of a predominant share in the authorized capital or an agreement concluded between them, or otherwise.
2. The subsidiary is not responsible for the debts of its main organization.
The main organization, which, under an agreement with a subsidiary (or otherwise) has the right to give the latter mandatory instructions for it, is subsidiary responsible with the subsidiary for transactions concluded by the latter in pursuance of such instructions.
In case of bankruptcy of a subsidiary due to the fault of the main organization, the latter bears subsidiary responsibility for its debts.
A subsidiary organization may not acquire shares of the main organization, with the exception of financial organizations that have the right to own shares of the main organization in the amount of no more than ten percent of the voting shares of such an organization.
3. Members of a subsidiary organization have the right to demand compensation by the main organization for losses caused by its fault to the subsidiary organization, unless otherwise established by legislative acts.
4. The specifics of the position of subsidiaries that are not provided for in this article are determined by legislative acts.
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