Article 18. Placement of the company's shares The Law on Joint Stock Companies

Home / RLA / Article 18. Placement of the company's shares The Law on Joint Stock Companies

1. The Company has the right to place its shares after the state registration of their issue through one or more placements within the declared number of shares.

The decision on the placement of shares of the company within the limits of the number of its declared shares is made by the Board of Directors of the company, except for the case when the company's articles of association refer this issue to the competence of the general meeting of shareholders.

The placement of shares is carried out through the exercise by shareholders of the right of pre-emptive purchase of shares or other securities convertible into common shares of the company, a subscription or auction held on an unorganized securities market, or a subscription or auction held on an organized securities market, as well as through the conversion of securities and (or) monetary obligations of the company into shares of the company in cases stipulated by this Law and other legislative acts of the Republic of Kazakhstan.

2. If a shareholder alienates a share or other security convertible into common shares of the company within thirty calendar days provided to him for submitting an application for the purchase of a share or other security convertible into common shares of the company, in accordance with the right of pre-emptive purchase, this right passes to the new owner of the share or other security convertible into common shares of the company, if the previous owner has not submitted such an application.

3. The share placement price set for this placement by the company's body that made the decision on the placement of shares is the lowest price at which these shares can be sold.

Shareholders purchase shares in accordance with the right of pre-emption at the single lowest placement price of these shares, established by the company's body that made the decision on the placement.

The company's shares are subject to sale at a single price for all persons purchasing shares by subscription within the limits of this placement.

4. If the authorized body of the company decides to change the terms of the previously adopted decision on the placement of declared shares by increasing the number of outstanding shares and (or) reducing the price at which they were offered to shareholders as part of the exercise of the right of pre-emptive purchase, the company re-grants shareholders the right of pre-emptive purchase of these shares.

The Law of the Republic of Kazakhstan dated May 13, 2003 No. 415.

This Law defines the legal status, procedure for the establishment, operation, reorganization and liquidation of a joint-stock company; the rights and obligations of shareholders, as well as measures to protect their rights and interests; the competence, procedure for the formation and functioning of the bodies of a joint-stock company; the powers, procedure for the election and responsibility of its officials.

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