Article 59. External audit in a Limited Liability Company Law on Limited and Additional Liability Companies

Home / Laws / Article 59. External audit in a Limited Liability Company Law on Limited and Additional Liability Companies

1. In order to verify and confirm the correctness of the financial statements of a limited liability partnership, as well as the current state of its affairs, the partnership has the right, in cases and in accordance with the procedure defined in its charter, to involve an audit organization that is not related by property interests to the partnership, members of its executive body, supervisory board or participants (external audit).

An audit of the annual financial statements is mandatory for a limited liability company, provided that the following conditions are met::

1) it consists of participants (founders) who own less than ten percent of the shares in the authorized capital;

2) the average annual number of employees is more than two hundred and fifty people and (or) the average annual income is more than three million times the monthly calculation index established by the law on the republican budget and effective on January 1 of the corresponding fiscal year.

The audit of the annual financial statements for a limited liability partnership related to a medium-sized business entity is carried out at the expense of the partnership at the request of a participant (founder) who owns less than ten percent of the shares in the authorized capital of the partnership.

2. Legislative acts may establish the mandatory audit of annual financial statements for all limited liability companies engaged in certain types of business activities.

The executive body of a limited liability partnership shall monitor the audit of the partnership's annual financial statements in accordance with the requirements of paragraph 1 of this article and submit the issue of approval of the annual financial statements to the general meeting of the partnership's participants.

3. Any participant in a limited liability partnership has the right to request an audit of the partnership's financial statements at his own expense.

4. If the executive body of a limited liability partnership avoids conducting an audit of the financial statements of the partnership when an audit is required or when a participant in the partnership requires it, an audit may be appointed by a court decision taken at the request of any interested person or participant in the partnership.

The Law of the Republic of Kazakhstan dated April 22, 1998 No. 220-1.

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