Article 16. Non-profit Joint Stock Company of the Law on Non-Profit Organizations

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1. A non-profit joint-stock company is a legal entity that issues shares in order to raise funds for its activities, the income of which is used exclusively for the development of this company.

2. Non-commercial joint-stock companies are not entitled to issue preferred shares, derivative and convertible securities.

3. The founding agreement of a non-profit joint-stock company is concluded by signing this agreement by each founder or his authorized representative.

4. A society established as a non-profit organization cannot be transformed into a commercial organization, just as a society established as a commercial organization cannot be transformed into a non-profit organization.

The requirements of the first part of this paragraph do not apply to cases of conversion:

1) stock exchanges established in accordance with the legislation of the Republic of Kazakhstan on the securities market;

2) commercial joint-stock companies to autonomous educational organizations in accordance with the Law of the Republic of Kazakhstan "On the status of Nazarbayev University, Nazarbayev Intellectual Schools and the Nazarbayev Foundation," as well as to the autonomous cluster fund in accordance with the Law of the Republic of Kazakhstan "On the Innovative Cluster Park of Innovative Technologies";

2-1) organizations of higher and (or) postgraduate education established as commercial organizations;

3) credit bureaus established in accordance with the legislation of the Republic of Kazakhstan on credit bureaus and the formation of credit histories;

4) an accumulative pension fund with the participation of the state in a single accumulative pension fund;

IZPI's note! Subparagraph 5) is amended by the Law of the Republic of Kazakhstan dated 30.06.2025 No. 204-VIII (effective sixty calendar days after the date of its first official publication).

5) a non-profit organization in the organizational and legal form of a joint-stock company with direct or indirect state participation in the authorized capital, which guarantees, upon the occurrence of a guarantee event, the completion of construction and the transfer of a share in an apartment building or a complex of individual residential buildings to shareholders.

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

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