Article 12. Foundation of the Law on Non-Profit Organizations

Home / RLA / Article 12. Foundation of the Law on Non-Profit Organizations

1. A foundation is a non-profit non-profit organization established by citizens and (or) legal entities on the basis of voluntary property contributions, pursuing social, charitable, cultural, educational and other socially useful goals.

1-1. In cases stipulated by the laws of the Republic of Kazakhstan, it is allowed to form the fund's assets on the basis of mandatory property contributions for the purposes specified in paragraph 1 of this Article.

2. When the foundation is established, a permanent collegial governing body is formed by the decision of the founders (founder) - the Board of Trustees, which appoints the executive body of the foundation, monitors the compliance of the foundation's activities with its statutory goals, as well as other powers stipulated by the foundation's charter.

The majority of the members of the Board of Trustees of the foundation cannot be persons related by marriage and close kinship, as well as be full-time employees of this foundation.

3. The executive body of the Foundation acts on the basis of and in pursuance of decisions of the supreme governing body and the permanent collegial governing body of the foundation (the Board of Trustees) and is accountable to them.

The head and members of the fund's executive management body are obliged to jointly compensate the fund for losses caused as a result of their decisions in violation of the foundation's founding documents, this Law and other legislative acts of the Republic of Kazakhstan. Persons who voted against, abstained from, or did not participate in the meeting when making such a decision are exempt from the obligation to compensate for losses.

4. The Foundation must have a head and an accountant who are not related by marriage, close kinship or property. The same person cannot hold both positions. The head, on the basis of the foundation's constituent documents and decisions of the fund's management body, has the right to make transactions on behalf of the fund. The fund's charter may specify the areas of activity of other authorized persons who can act independently and make transactions. The head of the fund has the right to represent the fund in court, government agencies, as well as in organizations without a power of attorney.

5. The property transferred to the foundation by its founders is the property of the foundation.

The founders of the fund do not have property rights to the fund's property and may be excluded from the fund by the general meeting of the founders in accordance with the procedure established by the charter for non-fulfillment of obligations.

6. The Fund is obliged to carry out inspections of financial activities within the time period established by the charter. Inspections are carried out by an auditor or an audit organization. The procedure for electing an auditor is determined by the charter, and audit organizations are involved in accordance with the procedure established by law.

7. The Fund is obliged to post annual reports on the use of its property on Internet resources and (or) publish them in periodicals distributed throughout the Republic of Kazakhstan.

The Law of the Republic of Kazakhstan dated January 16, 2001 No. 142.

President

Republic of Kazakhstan

Constitution Law Code Standard Decree Order Decision Resolution Lawyer Almaty Lawyer Legal service Legal advice Civil Criminal Administrative cases Disputes Defense Arbitration Law Company Kazakhstan Law Firm Court Cases