1. Aside from the right to own, the following shall be recognised as corporeal rights:
1) the right to use land;
2) the right to business authority;
3) the right to operational management;
4) other corporeal rights, provided for by this Code or any other legislative acts.
2. The provisions concerning the right of ownership shall apply to corporeal rights, unless it is otherwise stipulated in legislation, and when it does not contradict the nature of a given corporeal right.
Chapter 9. The Right to Business Authority
Article 196. The Right to Business Authority of
a State Enterprise
as amended by (12) Law of No. 211 of 2nd March 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to the Civil Code of the Republic of Kazakhstan (General Part), and to the Decree of the Supreme Soviet of the Republic of Kazakhstan "Concerning the Implementation of the Civil Code of the Republic of Kazakhstan (General Part)".
The right to business authority shall be a corporeal right of state-owned enterprises that received their property from the State as the owner, and which exercise within the limits established by this Code and other legislative acts, the right to own, use and dispose of that property.
Article 197. Items in the Right to Business Authority
Any property, unless it is otherwise stipulated in legislation, may be object of the right to business authority.
Article 198. The Acquisition and Termination of the Right of
Business Authority
1. The right of business authority over the property which the owner decided to entrust to a state-owned enterprise that has already been formed, shall arise for that enterprise at the moment of the registration of the property in the independent balance-sheet of the enterprise, unless it is otherwise established by legislation or decision of the owner.
2. The fruit, products and income from the use of the assets which are under business authority, and also the assets which are acquired by the enterprise in accordance with agreements or on any other bases, shall be received into the business authority of the enterprise in accordance with the procedure established by legislative acts for the acquisition of the right to own.
3. The right to business authority with regard to property shall cease on the bases and in accordance with the procedure stipulated by legislation for the cessation of the right of ownership, and also in the cases of the legitimate withdrawal of property from the enterprise by decision of the owner.
Article 199. The Right of the Owner With Regard to the Property
Which is Under Business Authority
amended by (11) Law of 11th July 1997 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of Banking Activity.
The owner of the assets which are under business authority, shall in accordance with legislative acts decide issues of creating an enterprise, determining the objectives and purposes of its activity, of its reorganisation and liquidation, and the owner shall exercise the control of use of the property belonging to the enterprise of its purposeful use and safety.
The owner shall have the right to receive part of net income from the use of the assets which are under the business authority of the enterprise formed by him.
Article 200. The Conditions for the Exercise of the Property
Rights of a State-Owned Enterprise
amended by (11) Law of 11th July 1997 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of Banking Activity; and
(12) Law of No. 211 of 2nd March 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to the Civil Code of the Republic of Kazakhstan (General Part), and to the Decree of the Supreme Soviet of the Republic of Kazakhstan "Concerning the Implementation of the Civil Code of the Republic of Kazakhstan (General Part)".
1. A state-owned enterprise which carries out its activities under the rights to business authority, unless it is otherwise stipulated in legislative acts, shall not have the right to enter into the following types of entrepreneurial activity without the approval of the owner or of the state body authorised by the owner:
1) to sell or transfer to any other persons, exchange, long-term lease (longer than three years), entrust for temporary charge-free use the buildings, facilities, equipment and any other fixed assets of the enterprise which belong to it;
2) to form affiliates and subsidiaries, establish in conjunction with private entrepreneurs enterprises and joint production facilities, to invest in them its productive and monetary capital;
3) to grant to private entrepreneurs loans with the payments of remuneration (interest) on them below the official rate of refinancing as established by the National Bank of the Republic of Kazakhstan;
4) to issue suretyship or a guarantee with regard to obligations of third parties.
2. Unless it is otherwise stipulated in legislation, a state enterprise shall independently dispose of the property which is attached to it under the right of business authority, and which is not recognised as fixed assets.
Article 201. The Application of the Provisions Concerning the
Right of Ownership to the Relations With the Participation of State-Owned
Enterprises
The provisions of this Code concerning the right to own shall apply to property relations with the participation of the state enterprises, unless otherwise ensues from this Code and any other legislative acts.
Chapter 10. The Right to the Operational Management
Article 202. The Definition and Contents of the Right to
Operational Management
as amended by (12) Law of No. 211 of 2nd March 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to the Civil Code of the Republic of Kazakhstan (General Part), and to the Decree of the Supreme Soviet of the Republic of Kazakhstan "Concerning the Implementation of the Civil Code of the Republic of Kazakhstan (General Part)"; and
(17) Law No. 320 of 16th December 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of the State-Owned Legal Entities.
The right of operational management shall be recognised as a corporeal right of an institution, state-owned institution which is financed at the expense of the funds of its owner, and of a public enterprise which received property from the owner and which exercise within the confines established by legislative acts, and in accordance with the objectives of their activities, assignments of the owner and designation of the property, the rights to possess, use and dispose of that property.
Article 203. The Acquisition and Cessation of the Right of
Operational Management
The acquisition and cessation of the right of operational management shall be exercised on the conditions and in the accordance with the procedure stipulated in Chapters 13 and 14 of this Code, unless it is otherwise stipulated in legislation.
Article 204. The Rights of the Owner of the Property Entrusted for
Operational Management
(17) Law No. 320 of 16th December 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of the State-Owned Legal Entities.
1. The owner of the assets which are in operational management shall in accordance with legislative acts decide the issues of creating an institution, state-owned institution or a public enterprise, of determining the objectives and the purposes of its activities, it shall have the right to determine the legal destiny of the institution, state-owned institution or public enterprise, and the contents of its activities.
2. The owner shall exercise supervision of the efficient use and safety by the institution, state-owned institution or the public enterprise of the assets entrusted by the owner.
3. In the event that an institution, state-owned institution is formed by several owners, the relations between them and the rights of the owners to manage their assets shall be determined by the foundation agreement or a similar contract.
Article 205. The Right of the Owner to Withdraw and Re-Allocate
the Property Entrusted for Operational Management
as amended by (17) Law No. 320 of 16th December 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of the State-Owned Legal Entities.
The owner of the assets entrusted to an institution, state-owned institution or a public enterprise shall have the right to withdraw that property or re-allocate it between other legal entities formed by the owner at his discretion, unless it is otherwise stipulated in legislative acts.
Article 206. The Disposal of the Property of an Institution
State-Owned Institution or a Public Enterprise
as amended by (17) Law No. 320 of 16th December 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of the State-Owned Legal Entities; and
(24) Law No. 162 of 2nd March 2001 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions To Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of the Banking Activity.
1. An institution, state-owned institution shall not have the right to alienate or in any other way dispose of the assets which are entrusted to it and of the assets which are acquired at the expense of the resources appropriated to it in accordance with the budget, unless it is otherwise specified by a legislative act.
2. A public enterprise shall have the right to alienate or in any other way dispose of the assets entrusted to it only with the consent of the owner of those assets.
A public enterprise shall independently sell the production manufactured by it, unless it is otherwise stipulated in legislation.
The procedure for distributing income of a public enterprise shall be determined by the owner of its assets.
Article 207. Making a Claim on the Assets Transferred for
Operational Management Liability of the Owner under Debts of a Public
Enterprise and Institutionre
amended by (11) Law of 11th July 1997 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of Banking Activity;
(12) Law of No. 211 of 2nd March 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to the Civil Code of the Republic of Kazakhstan (General Part), and to the Decree of the Supreme Soviet of the Republic of Kazakhstan "Concerning the Implementation of the Civil Code of the Republic of Kazakhstan (General Part)"; and
replaced by (17) Law No. 320 of 16th December 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of the State-Owned Legal Entities.
Article 207. The Liability of the Foundation Party With Regard to
Debts of the Public Enterprise, Institution and State-Owned Institution
replaced by (17) Law No. 320 of 16th December 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of the State-Owned Legal Entities.
1. A public enterprise shall be liable for its obligations with the funds at its disposal.
When funds owned by a public enterprise are insufficient, the Government of the Republic of Kazakhstan or the relevant local executive body shall bear the subsidiary liability under its obligations.
With regard to contractual obligations, the liability shall arise in accordance with the procedure as defined by legislative acts concerning state-owned enterprises.
2. Liability of institutions and state-owned institutions shall arise in accordance with the procedure provided for by paragraph 1 of Article 44 of this Code.
Article 208. The Transfer of the Right to Own an Institution
When the right to own an institution is transferred to any other entity, that institution shall retain the right of operational management of the property which belongs to it.
Chapter 11. Common Property
Article 209. The Definition and Bases for the Emergence of Common
Property
as amended (12) Law of No. 211 of 2nd March 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to the Civil Code of the Republic of Kazakhstan (General Part), and to the Decree of the Supreme Soviet of the Republic of Kazakhstan "Concerning the Implementation of the Civil Code of the Republic of Kazakhstan (General Part)".
1. Property which is in the ownership of two or more persons shall belong to them under the right of common ownership.
2. Assets may be in common ownership with the determination of the share of each of the owners in the right to own (shared ownership) or without determining such shares (joint property).
3. Common ownership of any assets shall be shared-ownership, except for the cases where the law stipulates the formation of joint ownership of the property.
4. Common ownership shall emerge when two or several persons receive the property which may not be divided without changing its designation (indivisible items), or may not be divided by virtue of law.
Common ownership of indivisible assets shall emerge in the cases which are stipulated in legislative acts or an agreement.
5. By agreement of the participants of common property, and in the case of failure to reach consensus, upon the decision of a court, shared ownership of the entities may be established with regard to the common property.
6. Ownership of real estate may arise in the form of a condominium, whereby certain parts of real estate are in individual (separate) ownership of citizens and (or) legal entities, and those parts of real estate which are not in separate ownership, shall belong to the owners of parts of real estate under the right of common shared ownership.
The share of each owner in the common property shall be inseparable from his separate ownership of a part of real estate belonging to him.
The size of a share of each owner in the common property, and the degree of participation in costs of its maintenance, shall be related to the size of the parts of real estate which are in individual (separate) ownership, unless it is otherwise stipulated in legislative acts or an agreement.
Special considerations in the legal regime of different types of condominium may be defined in legislative acts.
Article 210. Determining the Shares in the Right of Shared
Property
1. When the size of the shares of participants of shared property may not be established on the basis of legislative acts and is not established by an agreement of all its participants, the shares shall be deemed to be equal.
2. An agreement of all the participants in a shared property may establish a procedure for determining or changing their shares in relation to the contribution of each one of them to the formation and the increase of the common property.
Article 211. The Rights of A Participant in Shared Property Which
Are Associated with Its Improvement
1. A participant in shared property who carries out at his own expense, in compliance with the procedure established for the use of common property, its inseparable improvements, shall have the right to proportionate increase of his share in the right to the common property.
2. The separable improvements of common property, unless it is otherwise stipulated in an agreement of the participants in common property, shall become the property of the one of the participants who made them.
Article 212. Disposal of the Assets Which are in Shared Ownership
1. Disposal of the assets which are in shared property shall be carried out by with the agreement of all its participants.
2. Each participant in the shared property shall have the right at his discretion to sell, transfer as a gift, bequeath, or mortgage his share, or to dispose of it in any other manner in compliance with the conditions stipulated by Article 216 if this Code.
Article 213. Ownership and Use of the Property Which is in Shared
Ownership
1. Managing and using the assets which are in shared ownership shall be carried out by agreement of all its participants, and where consent is not reached, it shall be established by the court.
2. Each participant in shared ownership shall have the right to be granted, into his ownership and use a part of the common property commensurate with his share, and where it is impossible, he shall have the right to claim from the other participants who own and use the property corresponding to his the share of payment of the appropriate amount or other compensation.
Article 214. Fruit, Production and Income from the Use of the
Property Which is in Shared Ownership
The fruit, production and income from the use of the property which is in shared ownership, shall become part of the common property. Subsequent distribution of the fruits, production and income shall be carried out between the participants of shared property in proportion to their shares, unless it is otherwise stipulated in the agreement between them.
Article 215. Expenditures Associated with the Maintenance of the
Property Which is in the Shared Ownership
Each participant in shared ownership shall be obliged to participate in the payment of taxes, levies and any other payments in respect of their common property in proportion to his share, and also in the costs of its maintenance and preservation.
Article 216. The Pre-Emption Right
1. When a share in the right of shared ownership is sold to a stranger, the other participants in the shared ownership shall have a pre-emption right to purchase the share which is being sold, at the price at which it is being sold and on other equal conditions, except for the case of selling through a public auction.
Public auctions for selling shares in the right of shared ownership, where the approval of all the participants in the shared ownership is not reached, may be carried out in the cases, stipulated in paragraph 2 of Article 222 of this Code, and in other cases stipulated in legislative acts.
2. The seller of a share shall be obliged to notify in writing the other participants in shared ownership concerning his intention to sell his share to an outside party with an indication of the price and any other conditions on which he is selling it. If the other participants in shared ownership refuse to purchase or fail to acquire the share which is sold in the right to own immovable property during one month, and with regard to any other assets within 10 days from the date of the receipt of the notice, the seller shall have the right to sell his share to any other person.
3. When a share is sold in violation of the pre-emption right, another participant in shared ownership shall have the right within three months to claim in the court a transfer to him of the rights and obligations of the buyer.
4. The assignment of the pre-emption right to purchase a share shall not be allowed.
5. The rules of this Article shall also apply when a share is alienated in accordance with a barter agreement.
Article 217. The Moment of the Transfer to the Buyer of a Share in
the Right of Shared Ownership In Accordance with An Agreement
A share in the right of shared ownership shall be transferred to the buyer through an agreement from the moment of concluding the agreement, unless the agreement of the parties stipulates otherwise.
The moment of transfer of a share in the right of shared ownership in accordance with the agreement which is subject to state registration or notarisation, shall be determined in accordance with paragraph 2 of Article 238 of this Code.
Article 218. Division of Property Which is in the Shared Ownership
and Appropriation of a Share Out of It
1. The property which is in shared ownership may be divided between its participants by an agreement between them.
2. A participant in shared ownership shall have the right to claim the appropriation of his share out of common property.
3. Where participants in shared ownership fail to reach an agreement on the methods and conditions of dividing the common property or appropriation of the share of one of them, a participant in shared ownership shall have the right to claim the appropriation of his share out of the common property, in kind.
When the appropriation of a share in kind is not allowed by legislative acts or it is impossible without unreasonable damage to the property which is in the common ownership, the owner who is appropriating, shall have the right to be paid by the other participants in shared ownership for the value of his share.
4. The disproportion of the property which is appropriated in kind to a participant in the shared ownership on the basis of this Article, to his share in the right of ownership shall be eliminated by payment of appropriate amount of money or by other compensation.
The payment to a participant in shared property by the other owners of compensation instead of appropriating his share in kind, shall be allowed upon his consent. In the cases where the share of certain owner is minor, and it may not be realistically appropriated and he has not any substantial interest in the use of the common assets, the court may in the case of the absence of consent of that owner, compel the other participants in shared ownership to pay him compensation.
5. With the receipt of compensation, in accordance with paragraphs 3 and 4 of this Article, the owner shall lose the right to his share in the common property.
6. Where the non-expedience of division of common property or the appropriation of a share out of it in accordance with the rules outlined in paragraphs 3 - 5 of this Article are obvious, the court shall have the right to adopt the decision to sell the property through a public auction with the subsequent distribution of the received amount between the participants in common property in proportion to their shares.
Article 219. Joint Common Property
1. Joint common property shall exist in the following forms:
1) the common property of spouses;
2) the common property of a peasant (farmer's) farm;
3) the common property to privatised housing.
2. Legislative acts may stipulate any other types of the joint common property.
3. The joint common ownership shall be established and it shall exist, unless an agreement between its participants stipulates otherwise.
Article 220. Ownership, Use and Disposal of the Property Which is
in the Joint Ownership
1. The participants in joint ownership, unless it is otherwise stipulated in an agreement between themselves, shall collectively own and use common property.
2. The disposal of the assets which are in the joint ownership, shall be carried out with the consent of all the participants, which is presumed irrespective of which of the participants entered into the property disposal transaction.
3. Each of participants in joint ownership shall have the right to enter into transactions disposing of the common property, unless it is otherwise ensues from the agreement of all the participants. A transaction which is entered into by one of the participants in joint ownership, and which is connected with the disposal of the common property, may be recognised as invalid by the claim of the other participants on the motive that the participant who entered into the transaction did not have the requisite powers, only in a case where it is proved that the other party in the transaction knew or should beforehand have known of it.
When entering into the transactions which require the notarisation or state registration, the consent of the other participants in joint ownership, to the commitment of the transaction must be confirmed in the notarial procedure.
4. Paragraphs 1-3 of this Article shall apply, unless it is otherwise stipulated by this Code or other legislative acts with regard to specific types of the joint property.
Article 221. Division of the Property Which is in the Joint
Ownership and Appropriation of a Share Out of It
as amended by (12) Law of No. 211 of 2nd March 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to the Civil Code of the Republic of Kazakhstan (General Part), and to the Decree of the Supreme Soviet of the Republic of Kazakhstan "Concerning the Implementation of the Civil Code of the Republic of Kazakhstan (General Part)".
1. The division of common assets between participants in joint ownership, and also the appropriation of the share of one of them, may be carried out under the condition that there has been a prior definition of the share of each of the participants in the right to common property.
2. When dividing common property or appropriating a share out of it, provided it is not stipulated otherwise in legislative acts or agreement of the participants, their shares shall be recognised as equal.
3. The basis and the procedure for the division of joint property and the appropriation of a share out of it shall be determined in accordance with the rules of Article 218 of this Code, unless it is otherwise stipulated by this Code, or other legislative acts for certain types of joint property, nor does it ensue from the essence of relations of the participants in the joint property.
Article 222. Imposition of a Claim on a Share in Common Property
1. The creditor of a participant in shared or joint property in the case of insufficiency of other assets of the latter, shall have the right to impose a claim of appropriating the share of the debtor in the common property for the imposition of the claim upon it.
2. In the event that the other participants in common property refuse to purchase the share of the debtor, the creditor shall have the right to claim through the court the imposition of the claim upon the share of the debtor in the common property by way of selling that share in a public auction.
3. Where in such cases the appropriation of a share in kind is impossible or the other participants in shared or joint property object thereto, the creditor shall have the right to claim the sale by the debtor of his share to the other participants of the common property at the price which is related to the market value of that share, with the use of the funds received from the sale for the repayment of the debt.
Article 223. Common Property of Spouses
as amended by (12) Law of No. 211 of 2nd March 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to the Civil Code of the Republic of Kazakhstan (General Part), and to the Decree of the Supreme Soviet of the Republic of Kazakhstan "Concerning the Implementation of the Civil Code of the Republic of Kazakhstan (General Part)".
1. Property which is gained by spouses during their marriage, shall be the common property, unless an agreement between themselves stipulates that those assets are shared property of the spouses, or it belongs to one or certain parts of it belong to either spouse in accordance with the right of ownership.
2. The assets which belonged to spouses prior to entering the marriage, and also those received by them during the marriage, as a gift or in the procedure of inheritance, shall be the property of either of them.
The items of individual use (clothes, footwear etc.), except for jewellery and other items of luxury, although acquired during the marriage at the expense of common funds of the spouses, shall be recognised as the property of that spouse who used them. Property of each of the spouses may be recognised as their joint property, provided it is established that during their marriage investments have been made at the expense of the common property of the spouses, which significantly increased the value of that property (capital repairs, refurbishment, re-equipment, etc.).
3. Upon the obligations of one of the spouses, a claim may be imposed only on the assets which are in his ownership, and also upon his share in the common assets of the spouses, which would be due to him, should that property be divided.
4. Special considerations in the right to joint property of spouses shall be determined by legislation of the Republic of Kazakhstan concerning the marriage and family.
Article 224. The Ownership of a Peasant (Farmer) Holding
1. The property of a peasant (farmer) holding shall belong to its members on the right of joint ownership, provided the agreement between them does not stipulate otherwise.
2. In joint ownership of the members of a peasant (farmer) holding there shall be plantations on a land plot, business and any other structures, melioration and any other installations, productive and working cattle, poultry, agricultural and other machinery and equipment, transport vehicles, inventories and other assets which are purchased for the farm at the expense of common funds of its members.
3. The fruit, production, and income received as a result of activities of the peasant (farmer) holding, shall be recognised as common property of the members of the peasant (farmer) holding and they shall be used by agreement between them.
Article 225. The Division of Property of a Peasant (Farmer)
Holding
1. When terminating a peasant (farmer) holding in relation to the departure therefrom of all its members, or on other basis, the common property shall be subject to division in accordance with the rules stipulated in Article 218 and 221 of this Code.
2. The means of production which belong to a peasant (farmer) holding, in the case of the exit of one of its members from the farm, shall not be subject to division. The person who exited the farm shall have the right to receive a monetary compensation proportionate with his share in the common ownership of that property.
3. In the cases stipulated in paragraph 1 and 2 of this Article, shares of the members of a peasant (farmer) holding in the right of joint ownership of the property of the farm shall be recognised as equal, unless the agreement between themselves stipulates otherwise.
Article 226. The Legal Regime of the Property in the Case of
Reorganisation a Peasant (Farmer) Holding into
a Business Partnership or Co-Operative
1. Members of a peasant (farmer) holding on the basis of the farm's property may form a business partnership or a productive co-operative. Such a reorganised peasant (farmer) holding as a legal entity, shall have the right to own the property transferred to it in the form of investments and other contributions by the members of the farm, and also the property received as a result of its activities and acquired on other bases which do not contradict legislation.
2. The amounts of contributions of members of a peasant (farmer) holding, who are participants of a partnership or members of a co-operative, shall be established on the basis of their shares in the right of common ownership of the property of the peasant (farmer) holding as determined in accordance with the procedure specified in paragraph 3 of Article 225 of this Code.
Article 227. Common Ownership of Privatised Housing
as amended by (12) Law of No. 211 of 2nd March 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to the Civil Code of the Republic of Kazakhstan (General Part), and to the Decree of the Supreme Soviet of the Republic of Kazakhstan "Concerning the Implementation of the Civil Code of the Republic of Kazakhstan (General Part)".
Housing which is purchased or acquired free of charge by the tenant in accordance with legislation concerning privatisation in the buildings of the state housing stock, shall be transferred into the common ownership of the tenant and his family members who reside permanently with him, including minors and those temporarily absent, unless it is otherwise stipulated in an agreement between them.
Special considerations with regard to the right of joint ownership of privatised housing shall be determined by legislative acts concerning housing relations.
Chapter 12. Agreement On Joint Activities
(Ordinary Partnership)
Article 228. Ordinary Partnership
as amended by (12) Law of No. 211 of 2nd March 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to the Civil Code of the Republic of Kazakhstan (General Part), and to the Decree of the Supreme Soviet of the Republic of Kazakhstan "Concerning the Implementation of the Civil Code of the Republic of Kazakhstan (General Part)".
1. An ordinary partnership shall be formed on the basis of an agreement on joint activities.
In accordance with the agreement concerning joint activities (the agreement on ordinary partnership) the parties undertake to act jointly in order to earn income or attain any other objective which does not contradict the law.
An ordinary partnership shall not be a legal entity.
2. The agreement concerning joint activities (the agreement on ordinary partnership) shall be concluded between citizens, citizens and legal entities, and between legal entities (consortium).
3. The obligations of the participants of an ordinary partnership, which are related to the agreement on joint business activities, before third parties shall be joint obligations, unless their joint activities agreement stipulates otherwise.
Article 229. Managing Common Business of the Participants
of an Agreement
Managing of common business of the participants of an agreement on joint activities shall be carried out on the basis of their common consensus. Upon agreement between themselves, they may entrust the management of their joint activities and managing of common business to one of the participants, who in that case shall act on the basis of a power of attorney issued to him by the other participants of the agreement.
Article 230. Common Property of the Participants
in Agreement
as amended by (12) Law of No. 211 of 2nd March 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to the Civil Code of the Republic of Kazakhstan (General Part), and to the Decree of the Supreme Soviet of the Republic of Kazakhstan "Concerning the Implementation of the Civil Code of the Republic of Kazakhstan (General Part)".
1. In order to attain their objectives, the participants in agreement on joint activities shall make contributions in money or in other property or by way of labour contribution.
2. The monetary or any other property contributions of the participants in agreement and also the assets which are created or acquired as a result of their joint activity shall be their joint shared property.
