Article 17. Preliminary interim measures of the Law On the Return of Illegally Acquired Assets to the State

Home / RLA / Article 17. Preliminary interim measures of the Law On the Return of Illegally Acquired Assets to the State

1. Preliminary interim measures are taken by the court upon the application of the authorized body for the return of assets in respect of assets before filing a claim for the conversion of assets into state revenue in accordance with this Law.

When the authorized body for the return of assets submits an application for the adoption of preliminary interim measures, it is not required to simultaneously file a claim for the conversion of assets into State revenue.

2. An application for provisional interim measures shall be considered and resolved by a judge on the day of its receipt by the court without notifying the persons and holding a court session.

When considering an application provided for in this article, the court does not verify the ratio of the total assets of a person (group of persons) included in the register with the threshold value provided for by this Law.

Based on the results of consideration of the application, the judge issues a ruling on the adoption of a preliminary interim measure or on the refusal to satisfy the application.

3. Preliminary interim measures may be:

1) seizure of the assets of the entity and (or) its affiliated persons;

2) prohibiting the entity and (or) its affiliated persons from performing certain actions, including entering into transactions aimed at incurring debt and other obligations, encumbering assets with collateral and other rights of third parties;

3) prohibiting other persons from transferring property to the entity and (or) its affiliated companies for obligations that have expired, or from fulfilling other obligations provided for by law or contract in relation to the entity and (or) its affiliated companies;

4) suspension of the asset sale.

4. With respect to persons who directly or indirectly own shares of financial organizations, the authorized asset recovery body may send to the court an application for a preliminary interim measure in the form of a ban on the use of shares of financial organizations, as well as shares (stakes in the authorized capital) of persons who directly or indirectly own shares of financial organizations, which may include provide for:

1) prohibition of voting on shares on all or individual issues;

2) prohibition on payment and receipt of dividends on shares to entities and (or) their affiliated companies;

3) prohibition to participate in the distribution of property in the event of liquidation of the above-mentioned persons.

5. If necessary, at the request of the authorized body for the return of assets, the court may take other preliminary interim measures that meet the objectives specified in the first part of this article.

The court may take several preliminary interim measures. Preliminary interim measures may also be taken by the courts of the Republic of Kazakhstan in respect of assets located outside the Republic of Kazakhstan.

6. In case of violation of the prohibitions specified in this article, the perpetrators bear the responsibility established by law.

7. The authorized body for asset recovery has the right to demand in court from entities and (or) their affiliated persons compensation for losses caused by non-fulfillment of court rulings on preliminary interim measures.

8. The court issues a ruling on leaving the application of the authorized body for the return of assets for the adoption of preliminary interim measures without satisfaction, if, when considering the issue of taking preliminary interim measures, it finds that it does not contain sufficient information to make reasonable assumptions, taking into account the relevance, admissibility, reliability that:

1) the assets indicated in the application (inventory) are owned, used, owned and (or) controlled by the defendant(s) indicated in the application;

2) the respondent(s) indicated in the application are included in the register on the basis of proper compliance with the provisions of this Law concerning the procedure and grounds for including a person (group of persons) in the register.

At the same time, control is assumed with direct or indirect ownership of ten or more percent of the shares (stakes) of a legal entity. In respect of smaller than the above-mentioned sizes of blocks of shares (stakes) of legal entities, as well as other grounds for control, the authorized body for asset recovery shall indicate relevant information and arguments in the application.

9. The court's ruling specifies the period for which provisional interim measures are being taken.

The term should not exceed two months. This period may be extended for a reasonable period, but not more than one year at the request of the authorized body for the return of assets, on which a court ruling is issued.

10. A private complaint may be filed against the ruling on the adoption of preliminary interim measures within ten working days from the date of the court's ruling to the court of appeal, whose decision is final.

Filing an appeal against a court ruling on the adoption of preliminary interim measures does not suspend the execution of the ruling.

11. The ruling on the adoption of a preliminary interim measure is subject to immediate enforcement.

A ruling on the adoption of preliminary measures is sent by the court for its immediate execution in accordance with article 158 of the Civil Procedure Code of the Republic of Kazakhstan. Copies of the ruling are sent to the authorized body for asset recovery and to the person (group of persons) in respect of whom preliminary interim measures are being taken no later than the next business day from the date of the ruling.

This Law, in the interests of current and future generations of Kazakhstanis, regulates public relations to identify and return illegally acquired assets to the state (hereinafter referred to as asset recovery) in order to restore the violated rights of the people of Kazakhstan, ensure the rule of law, social justice, and sustainable economic and social development of Kazakhstan for the benefit of its people.

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