KASE releases effective text of Law of Republic of Kazakhstan On Joint Stock Companies

30.10.08 17:37
/KASE, October 30, 08/ - Kazakhstan Stock Exchange (KASE) has released at its website at: http://www.kase.kz/geninfo/normbase/zakon_ao.pdf the effective text of the Law of the Republic of Kazakhstan "On Joint Stock Companies" of May 13, 2003 No. 415-II. The text of the law has been made effective in accordance with Law No. 72-IV of the Republic of Kazakhstan "On Making Amendments to some Legislation Acts of Republic of Kazakhstan on Issues of Stability of Financial System" dated October 23, 2008, which in its main part was made effective October 24, 2008. The main amendments to the Law of the Republic of Kazakhstan On Joint Stock Companies may be summarized as follows: - glossary structure changed (which is likely due to necessity to ensure identity of this structure in versions of the law in Kazakh and in Russian); - concept "independent director" was given a more precise definition (in regard of requirements on absence of relations of subordination of independent director (candidate to independent directors) with authorities of a joint stock company and its affiliated persons); - stock delisting has become a ground for shareholder presenting a demand to a joint stock company on redemption of its shares; - joint stock companies state involvement management system changed; - making decisions on shares voluntary delisting became an exclusive competence of the general meeting of shareholders; - representation of shareholders by joint stock company body members and employees at the general meeting of shareholders banned (in this regard the norm effective before July 19, 2005 was almost revived); - peculiarities of voting of a shareholder representative enjoying a status of large member or other special status in accordance with legislation acts of the Republic of Kazakhstan at the general meeting of shareholders were set; - authorities of directors of joint stock company in regard of internal audit service were specified; - making decisions on issues in competence of the general meeting of shareholders (members) of legal entity, ten or more percent of shares (charter capital participation stake) of which belongs to the company is now an exclusive competence of the board of directors of a joint stock company (unless the charter specifies other wise). The text of the law has been reformatted in accordance with the rules on formalization of normative documents approved by KASE with maximum (including misprints) preservation of the original edition. [2008-10-30]