Definition of administrative and economic functions in criminal law

Paragraph 5 of Article 3 of the Criminal Code of the Republic of Kazakhstan defines administrative and economic functions as the right, granted in accordance with the procedure established by law, to manage and dispose of property on the balance sheet of an organization.

Commentary and clarification:

1. Administrative and economic functions may include such actions as the conclusion of contracts, management of financial and material resources, organization of supplies, control over the safety of property and inventory. They are often associated with individuals who hold senior positions in commercial and non-profit organizations, including directors, accountants, and managers.

2. These functions are grounds for prosecution for crimes related to abuse of official position (for example, embezzlement or embezzlement of property).

3. Article 189 of the Criminal Code of the Republic of Kazakhstan (Appropriation or embezzlement of someone else's entrusted property) directly refers to the actions of persons performing administrative and economic functions, since appropriation or embezzlement is possible only by those who have access to the management of the organization's property.

4. The Civil Code of the Republic of Kazakhstan (Article 220 Ownership, use and disposal of property jointly owned by the Civil Code of the Republic of Kazakhstan) also regulates relations related to the management and disposal of property, providing the opportunity to manage property on behalf of the organization. For example, in the civil law aspect, violation of duties related to property management may entail civil liability.

5. The Law of the Republic of Kazakhstan "On Combating Corruption" regulates the actions of persons performing administrative and economic functions in terms of their responsibilities to comply with anti-corruption standards, which may be important in assessing criminal offenses related to the abuse of these functions.

6. Regulatory rulings of the Supreme Court of the Republic of Kazakhstan. In judicial practice, for example, in the Normative Decisions of the Supreme Court of the Republic of Kazakhstan dated July 11, 2003, No. 8.

"On judicial practice in cases of embezzlement", explains exactly how courts should qualify the actions of persons managing property, and in which cases their actions are considered criminal under the Criminal Code of the Republic of Kazakhstan.

In addition, in the criminal law of the Republic of Kazakhstan, administrative and economic functions are defined as the right to manage and dispose of property on the balance sheet of an organization provided in accordance with the procedure established by law.

This concept covers the following aspects:

1. Property management is the decision—making regarding the use, storage and disposal of tangible assets belonging to an organization.

2. The disposal of property is the right to conclude transactions, allocate resources and control their use in the interests of the organization.

3. Persons performing administrative and economic functions are not only managers, but also other officials who are authorized to manage and dispose of property (for example, accountants, procurement managers, etc.).

These functions are of great importance in the qualification of criminal offenses, such as:

- Embezzlement or embezzlement of someone else's entrusted property (Article 189 of the Criminal Code of the Republic of Kazakhstan);

- Abuse of official authority (Article 361 of the Criminal Code of the Republic of Kazakhstan);

- Corruption crimes.

Functions may be violated in case of abuse of authority, which entails criminal liability.

Thus, administrative and economic functions are related to the management of the organization's resources, and any violation of these responsibilities can lead to serious legal consequences, including criminal liability.

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