Article 37. Foreclosure on the share of a participant in a limited liability partnership by its creditors Law on Limited and Additional Liability Partnerships
1. Creditors of a participant in a limited liability partnership have the right to demand, in a compulsory manner, on the basis of a court decision, foreclosure on the share or part of the share of such participant in the property of the partnership.
2. A creditor who forecloses on a share (part of a share) in respect of which he does not have the rights of a pledgee, submits to a limited liability partnership a demand for compulsory redemption of the share (part of the share) from the debtor and repayment of the debt from the proceeds of the redemption. The share (part of the share) is repurchased by the partnership or its participants at a price determined by the parties, with the consent of the participant whose share is being repurchased.
3. With the consent of the limited liability partnership and the participant whose share is being foreclosed on, such a share (part of the share) may be sold to a third party.
4. If, within three months from the date of the creditor's claim, the partnership or its participants or third parties do not redeem the share (part of it) and satisfy the claim, the creditor has the right to demand the sale of the share (part of it) at public auction in accordance with the procedure provided for by the civil procedure legislation of the Republic of Kazakhstan. At the same time, the other participants of the partnership retain the pre-emptive right to purchase a share provided for in Article 31 of this Law.
5. The money earned from the sale of the share is used to pay off the costs of evaluating it, organizing and conducting the sale, and satisfying the claim of the creditor who foreclosed on the share. The remaining money, if any, is transferred to the person whose share (part of the share) is sold.
The Law of the Republic of Kazakhstan dated April 22, 1998 No. 220-1.
President
Republic of Kazakhstan
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