Comment to Article 208. Transfer of ownership of an institution of the Civil Code of the Republic of Kazakhstan
The commented article, using the term "institution", means the institution not as a subject of law, but as a property complex, which is the object of ownership. In this sense, we are talking about the transfer of ownership of the institution. For example, it is quite possible that one private owner sells an institution to another as a property complex. This follows from the provision of paragraph 1 of Article 26 of the Constitution, according to which "citizens of the Republic of Kazakhstan may have any legally acquired property in private ownership".
It is more rare, but in principle it is possible for ownership of an institution to be transferred during the privatization of a public institution or the nationalization of a private institution. In accordance with paragraph 3 of Article 26 of the Constitution, "no one can be deprived of his property, except by a court decision. Compulsory alienation of property for state needs in exceptional cases provided for by law may be carried out on condition of its equivalent compensation.".
In all the above-mentioned situations, the institution retains the right of operational management of its balance sheet assets under the new owner. In contrast, when the owner of a state-owned privatisation enterprise changes, the enterprise, as a property complex, becomes part of a business partnership, which itself becomes the owner of the property transferred to it.
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The commentary was prepared within the framework of the scientific and practical research program of the Scientific Research Center of Private Law of the Kazakh State Law University.
Head of the working group on the preparation of the draft Civil Code of the Republic of Kazakhstan, Corresponding Member of the Academy of Sciences of the Republic of Kazakhstan, Professor Suleimenov M.K.
Deputy head Professor Basin Yu.G.
