Article 26. The procedure for making decisions by the creditors' meeting during rehabilitation and bankruptcy proceedings The Law on Rehabilitation and Bankruptcy

Home / RLA / Article 26. The procedure for making decisions by the creditors' meeting during rehabilitation and bankruptcy proceedings The Law on Rehabilitation and Bankruptcy

1. The general procedure for the competence and decision-making of the creditors' meeting is determined in accordance with this article.

The specifics of the competence and procedure for making a decision by the creditors' meeting are determined by:

paragraph 6 of Article 99 of this Law – in case of direct sale of the debtor's property;

Article 26-1 of this Law – upon approval of the rehabilitation plan;

Article 26-2 of this Law – in case of amendments and (or) additions to the rehabilitation plan.

2. A creditors' meeting is competent if creditors participate in it, including those voting in absentia, who have more than fifty percent of the total number of votes of creditors who are entitled to vote when making a decision by the creditors' meeting.

If the creditors' meeting is authorized, taking into account the provisions of part one of this paragraph, the postponement of consideration of issues included in the agenda of the creditors' meeting is not allowed.

A reconvened creditors' meeting is valid if creditors with at least twenty-five percent of the total number of votes of creditors entitled to vote at the creditors' meeting participate in it, provided that creditors are duly notified of the time and place of the creditors' meeting.

3. Decisions of the creditors' meeting shall be taken by a majority vote of the number of votes of creditors, including absentee voters participating in the creditors' meeting, except for the cases provided for in Articles 26-1 and 26-2 of this Law.

The administrator, and in cases where a creditors' meeting is organized by a creditors' committee, the chairman of the creditors' committee determines the number of votes of each creditor for creditors to make decisions on the principle of "one tenge of claims – one vote."

Penalties (fines, penalties), losses in the form of lost profits, as well as other property and (or) financial sanctions for the purposes of determining the number of votes at the creditors' meeting are not taken into account, unless otherwise provided by this paragraph.

For the purposes of determining the number of votes at the creditors' meeting, creditors' claims regarding penalties (fines, penalties), losses in the form of lost profits, as well as other property and (or) financial sanctions are taken into account in the following cases::

1) satisfaction in full of the claims of creditors who have the right to vote when making a decision by the creditors' meeting;

2) the formation of a register of creditors' claims solely based on claims regarding the payment of penalties (fines, penalties), compensation for losses in the form of lost profits, and other property and (or) financial sanctions by a court decision.

As the creditor's claims are satisfied, the number of his votes decreases by the amount of the satisfied claims.

The effect of the fifth part of this paragraph does not apply when determining the competence and making a decision by the creditors' meeting in the event of consideration of the issue of approving the final report.

When voting on each item on the agenda of the meeting, creditors express their votes in the words "for" or "against".

4. They do not have the right to vote when making decisions by the creditors' meeting.:

1) creditors deprived of the right to vote in accordance with paragraph 3 of Article 72 and paragraph 5 of Article 90 of this Law;

2) creditors who are affiliated persons with respect to the debtor, until the claims of the other creditors are fully satisfied.

For the purposes of determining the votes of creditors when making a decision by the meeting, the creditor is not considered to participate in the creditors' meeting if he refuses to vote.

If a creditor fails to attend the creditors' meeting without a valid reason twice, the number of votes of such creditor is not taken into account when determining the competence of the creditors' meeting.

If there is a supporting document, it is recognized as a valid reason.:

1) temporary disability of the creditor or his authorized representative;

2) the occurrence of an emergency situation preventing the participation of the creditor or his authorized representative in the creditors' meeting;

3) another reason for the decision of the creditors' meeting.

5. The administrator, and in cases where the creditors' meeting is organized by the creditors' committee, the chairman of the creditors' committee, shall register the participants of the meeting prior to the opening of the creditors' meeting.

The decisions of the creditors' meeting are formalized by the minutes.

The creditors' meeting is chaired by a chairman elected from among the creditors present who have the right to vote. The minutes are kept by a secretary elected from among the creditors present who have the right to vote. The Chairman and the Secretary are elected by a simple majority of votes from the number of creditors present. The minutes are signed by the chairman, the administrator, the secretary on the day of the meeting and certified by the seal of the debtor (if any).

The signing of the minutes of the creditors' meeting by the administrator is not required when organizing a creditors' meeting by the creditors' committee in the cases provided for in subitems 10-1) and 10-2) of Article 76 and subitem 7) of Article 94 of this Law.

The minutes of the creditors' meeting are drawn up by the secretary in three copies, one of which, after its signing, is transmitted to the authorized body within three working days, the second to the creditors' committee, and the third to the administrator.

Copies must be attached to the minutes of the creditors' meeting.:

1) records of registration of participants of the meeting;

2) materials submitted to the participants of the meeting for review and (or) approval;

3) documents attesting to the proper notification of creditors of the date and place of the creditors' meeting;

4) other documents at the discretion of the administrator or the chairman of the creditors' committee.

6. The decision of the creditors' meeting may be appealed by the participants in the proceedings within one month from the date of its adoption.

The Law of the Republic of Kazakhstan dated March 7, 2014 No. 176-V SAM.

This Law regulates public relations arising from the debtor's inability to satisfy creditors' claims in full, establishes the grounds for applying debt restructuring procedures, rehabilitation procedures and declaring the debtor bankrupt, liquidating the debtor without initiating bankruptcy proceedings, and also defines the procedure and conditions for their conduct.

President

Republic of Kazakhstan

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