On the ratification of the Agreement on the Establishment of the Islamic Corporation for the Development of the Private Sector
The Law of the Republic of Kazakhstan dated May 6, 2002 No. 317.
To ratify the Agreement on the Establishment of the Islamic Corporation for the Development of the Private Sector, signed in Jeddah on November 3, 1999.
President of the Republic of Kazakhstan
Agreement on the Establishment of the Islamic Corporation for the Development of the Private Sector The Governments and institutions on whose behalf this Agreement is signed, Recognizing that the purpose of the Islamic Development Bank is to promote economic development and social progress by supporting the growth of public and private manufacturing enterprises in the member countries of the Islamic Development Bank in accordance with the principles of Sharia; Taking into account the trend in these member countries, which is shifting the financing of development projects from the public sector to the private sector, leading to unprecedented opportunities for the private sector to contribute to the economic development of the member countries; Realizing the need to promote the development of private production
Convinced of the need to establish an independent international institution for effective cooperation with the private sector in the Member countries; Hereby agree on the following:
Chapter I Institution, legal status, purpose, functions, powers, policies and membership
Article 1 The establishment of the Islamic Corporation for the Development of the Private Sector (hereinafter referred to as the "Corporation") is established on the basis of this Agreement as an international specialized institution for the purpose of public importance, as specified in paragraph 1 of Article 3 of this Agreement. Agreements.
Article 2 Legal status The corporation has full legal responsibility and, in particular, full right: (i) enter into contracts; (ii) (iii) to acquire and dispose of property; (iii) to conduct legal proceedings before arbitration and courts.
Article 3 Purpose
1. The purpose of the Corporation is to promote, in accordance with the principles of Sharia, the economic development of its member countries by supporting the creation, expansion and modernization of private enterprises producing goods and services in such a way as to complement the activities of the Islamic Development Bank (hereinafter referred to as the "Bank"). 2. For the purposes of this Agreement, enterprises in the member States with partial State participation or their public structures holding no more than forty-nine percent of the voting shares owned by the State, which operate on a commercial basis and whose activities are supported by the private sector, are considered private enterprises.
Article 4 Functions 1. To achieve its purpose, the Corporation may assume the following functions in support of enterprises referred to in Article 3: (a) to assist, individually or jointly with other financial sources, in financing the establishment, expansion and modernization of private enterprises using such financial instruments and mechanisms as the Corporation considers appropriate in each case.; (b) to facilitate their access to private and public capital, domestic and foreign, including access to capital markets; (c) to stimulate the development of investment opportunities that facilitate the flow of private capital, domestic and foreign, into investments in member countries; (d) to promote the development and diversification of financial products, with due regard for compatibility with principles based on prudent management of Corporate funds; and (e) provide technical assistance for the preparation, financing and execution of projects, including the transfer of appropriate technologies. 2. The Corporation can offer advisory services to member countries and their public and private enterprises on issues related to its purpose, such as creating an enabling environment for private investment, identifying and promoting investment opportunities, converting sole proprietorship institutions and private limited liability companies into joint stock companies, privatizing public enterprises, and merging private enterprises and the development of capital markets.
Article 5 Powers of 1. To fulfill its purpose, the Corporation has the authority to carry out any economic or financial activities that comply with the Regulations issued by the Board of Directors of the Corporation. 2. Without prejudice to the general nature of paragraph 1 of this article. Articles of Agreement, the Corporation has the following powers: (a) Identify and promote private sector projects that meet the criteria of economic feasibility and effectiveness, giving preference to projects that differ in one or more of the following characteristics: (i) they promote the development and use of human and material resources in the member countries of the Corporation; (ii) they stimulate job creation; (iii) they promote information technology; (iv) they encourage cost savings and the use of capital in investments that produce goods and services; (v) they promote the acquisition and/or saving of funds in foreign currency; and (vi) they promote managerial skills and technology transfer; and (vii) They promote wider public ownership of enterprises through the participation of as many investors as possible in the equity of such enterprises.; (b) to make direct investments through Islamic financial instruments and preferably through the subscription and purchase of shares or convertible debt instruments in enterprises in which the majority of voting rights belong to investors who have citizenship in member countries, as well as in limited cases where the approval of the Board of Directors is required, to make direct investments in small and medium-sized enterprises. enterprises located in the member countries, in which the majority of voting rights belong to investors from other countries and in which significant amounts of local value are added that are otherwise unavailable; (c) offer financial products and services, including, but not limited to, instruments in the form of shares and quasi-shares, leasing, installment sales, istisna'a, salaam, mudaraba, murakhaba, guarantees and risk management services; (d) to facilitate the participation of other sources of financing and/or expert services in appropriate ways, including the organization of syndicated associations, the placement and purchase of securities, the organization of joint ventures and other forms of association; (e) to issue mudharaba, leasing and istisna bonds and other financial instruments; (f) to facilitate the placement of shares and other securities to expand the volume of further placement, subject to compliance with the relevant requirements - individually or jointly with other financial institutions.; (g) to provide asset management services to institutional and other investors in member countries; (h) to accumulate stock resources and, for this purpose, provide such collateral or other collateral as the Corporation determines, provided that the total amount not paid for the accumulated resources or guarantees given by the Corporation, regardless of the source, should not exceed an amount equal to three times the amount of subscribed share capital, accumulated net profit and reserves; (i) to invest funds not urgently involved in its financial operations, as well as funds held by it for other purposes, in such market obligations and securities as may be determined by the Corporation; (j) to guarantee the securities in which it has invested in order to facilitate their sale(k) to buy and/or sell securities that it has issued or guaranteed or in which it has invested; (l) to be considered under such conditions as may be determined by The Corporation, any specific issues related to its activities that may be entrusted to the Corporation by its members or third parties and perform the duties of the trustee in relation to the disposal of property on the basis of trust ownership.
Article 6 Policy The Corporation's activities are carried out in accordance with the investment policy, which is set out in detail, with amendments to it, if necessary, in the Provisions approved by the Board of Directors Corporations.
Article 7 Members 1. The founding members of the Corporation are the Bank, those member countries of the Bank and those institutions of the member countries that signed this Agreement on the date specified in paragraph 1 of Article 60 and made the initial payment referred to in Article 10 of this Agreement. 2. Other member countries of the Bank and other financial institutions, which are mostly owned or controlled by a member country or member countries of the Bank, may accede to this Agreement on such date and in accordance with such conditions as the General Meeting of Shareholders The Corporation may determine by a majority vote of the members representing at least two thirds of the total number of their votes. 3. The General Meeting may, at any time after the entry into force of this Agreement, by a vote of at least two-thirds of the total number of members representing at least three-quarters of the voting rights of members, open membership in the Corporation to private sector institutions on such terms and conditions as it may determine.
Chapter II Financial resources
Article 8 Capital 1. The authorized capital of the Corporation is one billion US dollars (1,000,000,000 US dollars), of which five hundred million US dollars (500,000,000 US dollars) are initially provided for subscription by the founding members. The Bank subscribes to fifty percent of the second of the specified amounts. 2. The authorized capital is divided into one hundred thousand (100,000) shares with a par value of ten thousand US dollars (10,000 US dollars) per share. Shares for which the initial subscription by the founding members has not been made in accordance with paragraphs 1 and 2 of Article 9 of this Agreement, are provided for subsequent subscription. 3. The General Meeting may increase the authorized capital at such time and on such terms and conditions as may be determined as acceptable, by votes of at least two thirds of the total number of members representing at least three-quarters of the members' voting rights.
Article 9 Subscription 1. The Bank and the founding member countries shall make an initial subscription for the number of shares specified in Appendix A to this Agreement. 2. Each other founding member subscribes to at least one hundred shares. 3. Shares initially subscribed to by the founding members are issued at face value. 4. The conditions governing the subscription to shares for issue after the initial subscription to shares by the founding members, for which no subscription has been made in accordance with Article (8)2, as well as the terms of their payment, are determined by the General Meeting of the Corporation. 5. If the General Meeting decides to increase the share capital of the Corporation, each member has the appropriate opportunity to subscribe on such terms and conditions as are determined by The General Meeting, in the proportion of the increase in the share capital, equivalent to the proportion in which its part of the share capital, which was subscribed before, was correlated with the total amount of the subscribed share capital immediately prior to such an increase. No member is required to subscribe to any part of the increase in the share capital of the Corporation. 6. Subject to paragraph 5 of this Article, the General Meeting may, at the request of a member, by a majority vote of the total number of members representing the majority of the total number of members' voting rights, increase such member's subscription to the share capital on such terms and conditions as the General Meeting may determine.
Article 10 Subscription Payment 1. The Bank shall pay the value of the subscribed shares in three annual, equal and consecutive installments. The first installment is paid within thirty days after the Bank has become a member. Corporations in accordance with Article 61 (2) of this Agreement. Each of the other contributions is paid one year after the date on which the deadline has come and the previous contribution was due. 2. The Bank, on behalf of each founding member country, pays the value of the shares for which such country has initially subscribed. The number of contributions and the terms of their payment are determined The Board of Directors of the Corporation together with the Board of Executive Directors of the Bank. 3. Each other founding member pays the value of the shares subscribed to in five annual, equal and consecutive installments. The first installment shall be paid within thirty days after the founding member in question becomes a member of the Corporation in accordance with Article 61 (2) of this Agreement. Each of the other contributions is paid one year after the date on which the deadline has come and the previous contribution was due. 4. The share price is paid in United States dollars America. The corporation determines the place or locations of the payment.
Article 11 Restrictions on the Transfer and Pledge of Shares Shares of a Corporation may not be pledged, burdened with any obligations or transferred in any way, regardless of their nature, except for the Corporation itself, unless the General Meeting approves the transfer of shares between members by a numerical majority representing two thirds of the total number of their votes.
Article 12 Limitation on Obligations Obligations of the members, including the Bank, in relation to the signed documents
shares are limited to the unpaid portion of their value at issue. No member, including the Bank, is responsible on the basis of its membership for the obligations of the Corporation.
Article 13 Other resources The following resources of the Corporation include: (a) amounts accrued in the form of dividends, commissions and other funds received from the Corporation's investments; (b) amounts received from the sale of investments or repayment of financing; (c) amounts received by the Corporation through various instruments; and (d) other funds entrusted to the Corporation for management.
Chapter III Activities
Article 14 Current Principles 1. The Corporation provides financing on terms and conditions that it considers acceptable in the circumstances, taking into account the requirements of the financed enterprises, environmental risks, risks assumed by the Corporation and the terms and conditions that are usually recognized by private investors in relation to similar Islamic financing. 2. It ensures the resumption of its funds through the sale of its investments, provided that such a sale can be made in an appropriate form and on acceptable terms within the limits permitted by law. Article 5 (2) (a) (vii). 3. It ensures that appropriate diversification is maintained in its investments. 4. It applies such financial, technical, economic, legal, environmental, and institutional principles of feasibility and evaluation criteria as may be required to justify investments and review the compliance of proposed guarantees with established requirements. 5. She provides representation on the Board of corporate structures that she finances or invests in, if her share in their capital does not exceed 5 percent of the total amount of subscribed share capital. 6. It does not perform any transaction that falls into the category of investments that the Sharia Committee referred to in Article 29 has determined to be incompatible with the requirements of Sharia Law or that the Corporation considers to be contrary to this Agreement or the Provisions issued in accordance with this Agreement. 7. It does not stipulate the use of funds from its financing for the purchase of goods and services produced in a predetermined country. 8. She does not assume responsibility for the management of any enterprises in which she has invested and does not exercise her right to participate in voting for such or any other purpose, which, in her opinion, is properly subject to management control.
Article 15 Restrictions 1. Except when it comes to investing liquid assets. Corporations referred to in Article 5 (2) (i) of this Agreement, the Corporation's investments are carried out only in enterprises located in the member countries or operating exclusively or primarily for the benefit of the member countries; such investments are carried out in accordance with the established rules of financial management. 2. The Corporation does not finance any obligations on the territory of a member State if the member State objects to such financing.
Article 16 Protection of Interests Nothing in this Agreement shall prevent the Corporation from performing such actions and exercising such rights as it may deem necessary to protect its interests in the event of non-fulfillment of obligations with respect to any of its investments or financing, actual or imminent insolvency of enterprises in which such investments or financing have been made, or other situations, which according to Corporations threaten to put such investments or financing at risk.
Article 17 Prohibition of Political Activity The Corporation, the Chairman of its Board of Directors, the members of the Board of Directors, the Chief Executive Officer, officials and members of the staff shall not interfere in the political affairs of any Member State; The political specifics of the member country concerned do not influence them in their decisions.
Chapter IV Organization and management
Article 18 Structure The Corporation consists of the General Meeting, the Board of Directors, the Executive Committee, the Advisory Committee, the Sharia Committee, the Chairman of the Board of Directors, the Chief Executive Officer and such other officials and members of the staff as may be necessary for the successful management of the Corporation within the limits permitted by the Board. Directors of the Corporation.
Article 19 General Meeting 1. Each member must be represented at the General Meeting and appoints one representative who acts at the discretion of the appointing member. 2. The representatives of the members at the General Meeting act as such without remuneration from the Corporation, but the Corporation may reimburse them for the expenses incurred as necessary by participating in the meetings. 3. The General Meeting appoints one of the representatives of the member countries. The Chairman, who holds this position until the next one is elected. Chairman at the next annual meeting of the General Meeting.
Article 20 General Meeting: Powers 1. The Corporation is given all its powers at the General Meeting. 2. The General Meeting may delegate any or all of its powers to the Board of Directors, except for the following powers: (a) to admit new members and determine the terms of their admission; (b) to increase or decrease the share capital of the Corporation; (c) to suspend membership; (d) to decide on appeals against the interpretation or application of this Agreement submitted by the Board of Directors; (e) approve, after review, the auditor's report, the final reports of the Corporation; (f) elect members of the Board of Directors; (g) determine reserves and distribution of net income and retained earnings of the Corporation; (h) use the services of external auditors who are hired to review the final reports of the Corporation; (i) amend this Agreement; and (j) decide on the suspension or termination of the Corporation's activities and the distribution of its assets. 3. The General Meeting and the Board of Directors, to the extent authorized by the latter, may adopt such general rules and regulations as may be necessary or appropriate for the conduct of the Corporation's activities, including Rules and Regulations relating to Staff, Pensions and Other Benefits. 4. The General Meeting may establish a committee and instruct it to evaluate the performance of the Corporation and submit reports on it. To the Chairman of the Board of Directors of the Corporation. 5. The General Meeting fully reserves the right to exercise authority in relation to any matter delegated to the Board of Directors in accordance with paragraphs (2) and (3) of this Article.
Article 21 General Meeting: Procedures 1. The General Meeting holds its annual meeting, which is held jointly with the annual meeting of the Bank's Board of Governors. It may hold meetings on other occasions that, in the opinion of the General Meeting, are necessary or may be convened by the Board of Directors. The Council The Board of Directors must convene a General Meeting at any time when one third of the members of the Corporation so request. 2. A majority of the members of the General Meeting shall constitute a quorum for any meeting of the General Meeting, provided that such majority represents at least two thirds of the total number of voting members. 3. The General Meeting, by decision, establishes a procedure according to which The Board of Directors may, in cases where the latter considers such actions appropriate, obtain the votes of the members of the General Meeting on a specific issue without calling a General Meeting.
Article 22 Voting 1. Each member has one vote on each subscription and paid-for promotion. 2. Except as otherwise provided in this Agreement, all issues submitted to the General Meeting for consideration shall be resolved by a majority of the voting rights represented at the meeting.
Article 23 Board of Directors: Composition 1. The Board of Directors consists of at least six and no more than ten members, excluding the Chairman of the Board of Directors and the Chief Executive Officer. 2. The Bank appoints one or more members of the Board of Directors, who, together with the Chairman of the Board of Directors and the Chief Executive Officer, represent half of the Board of Directors. 3. One member is appointed by the Member country holding the largest number of shares in the Corporation. 4. The other members of the Board of Directors are elected by the remaining members, with the exception of the member holding the largest number of shares. 5. The procedures for electing members of the Board of Directors are set out in the Regulations for adoption by the General Meeting. 6. Members of the Board of Directors are appointed or elected for a period of three years and may be reappointed. The members of the Board of Directors who have been elected may be re-elected for no more than two consecutive terms. The term of office of the members of the Board of Directors continues until their legal successors are appointed or elected. If the position of a member of the Board of Directors has become vacant more than ninety (90) days before the end of his term of office, the successor in title shall be appointed or elected for the remainder of such term by the member or members who appointed or elected the former member of the Board of Directors, as appropriate. 7. Members of the Board of Directors must have the necessary qualifications and experience in the fields of the Corporation's activities. 8. No member of the Board of Directors may simultaneously be a member of the General Meeting of the Corporation. 9. A member of the Board of Directors shall cease to hold office if the member
or all members whose votes were counted in favor of his appointment or election cease to be members of the Corporation.
Article 24 Board of Directors: Powers The Board of Directors is responsible for the general conduct of the Corporation's business and for this purpose exercises all the powers granted to it under this Agreement or delegated to it by the General Meeting. In particular, the Board of Directors, on the recommendation of the Chairman The Board of Directors: (a) adopts the Corporation's strategy and its general rules and regulations; (b) adopts the Corporation's operational strategy; (c) adopts the annual administrative budget; (d) submits the final reports for each financial year for approval by the General Meeting; (e) interprets the provisions of this Agreement; (f) proposes amendments to this Agreement at the General Meeting;
(g) performs any other actions that do not contradict the provisions of this Agreement or the decisions of the General Meeting that he considers acceptable for carrying out the Corporation's activities or furthering its goals.
Article 25 Board of Directors: Procedures 1. The Board of Directors carries out its work at the head office The Corporation or in such other place, which is appointed by the Board and holds its meetings on time and in such a manner as required by the current activities of the Corporation. 2. A majority of the members of the Board of Directors shall constitute a quorum for any meeting of the Board of Directors, provided that such majority represents at least two thirds of the total number of voting rights of the members. 3. Subject to paragraph (4) of this Article, when voting in the Council Each member of the Board of Directors has the right to cast the number of votes that a member or members of the Corporation whose vote(s) was counted in favor of his appointment or election has the right to cast. 4. Members of the Board of Directors appointed by the Bank, have the votes of the Bank equally divided among them. 5. Except in cases where this Agreement explicitly states
Otherwise provided, all issues submitted for consideration by the Board of Directors are resolved at the meeting by a majority of the voting rights of the members represented at the meeting. 6. All votes that a member of the Board of Directors is entitled to cast are cast as a whole. 7. In case of equality of votes, the Chairman has the right to cast the casting vote in the Council.
Article 26 Executive Committee 1. The Executive Committee consists of the following persons: (a) the Chairman of the Board of Directors; (b) the Chief Executive Officer of the Corporation; (c) a member of the Board of Directors appointed by the member country with the largest number of shares in the Corporation; (d) at least two and no more than four members from among the members of the Board of Directors representing other members, how is it defined By the Board of Directors.
2. The Chairman of the Board of Directors and, in his absence, the Chief The Managing Director of the Corporation directs the meeting of the Executive Committee and does not have the right to vote in the management of the meeting, except in cases where it is a casting vote in the event of a tie.
Article 27 Executive Committee: Functions Without prejudice to Article 31 (5), the Committee has the authority to approve all financing and investments of the Corporation in enterprises in member countries and exercises other powers delegated to it by the Board of Directors.
Article 28 Executive Committee: Procedures 1. All financing and investments require the approval of a majority of the voting Committee members. Absence or abstention shall not be counted in the voting. 2. The presence of a majority of the Committee members ensures a quorum for any meeting of the Committee. 3. Report on each financial transaction approved Submitted by the Committee to the Board of Directors. At the request of a member of the Board of Directors, such an operation is submitted to the Board for a vote. If such a request is not submitted to the Council within thirty days, the operation is considered approved by the Council. 4. In the event of a tie in the proposed financial transaction, the proposal is returned to Management for additional review and analysis; if, after repeated consideration by the Committee, there is a tie again, the Chairman has the right to cast the casting vote in the Committee. 5. If the Committee has rejected a proposed financial transaction, it shall inform the members of the Board of Directors about it, who, at the request of any member of the Board of Directors, may request that the Management report on such transaction, together with a summary of the review conducted by the Committee, be submitted to the Board for discussion and for possible guidance on technical and strategies related to the operation and similar operations in the future.
Article 29 Sharia Committee 1. The Corporation has a Sharia Committee consisting of three members, scientists in the field of Islamic studies, with good experience in financial transactions. The members of the Sharia Committee are appointed by the Board of Directors for a term of three years, with a possible renewal of this term. 2. The Sharia Committee decides whether a certain category of investment is compatible with Sharia requirements and considers any issue referred to it by the Board of Directors or the Executive Committee or the Management of the Corporation. 3. The Committee makes its decisions after examining the opinions of Management and experts on the issues on which they wish to consult. 4. Decisions of the Sharia Committee are made by a majority vote of its members and they set out the arguments and grounds that determined such a decision.
Article 30 Advisory Board 1. The Corporation may include an Advisory Board consisting of five internationally renowned experts in the fields related to the Corporation's activities from various countries. 2. The members of the Advisory Board are appointed by the General Meeting for a term of three years, with a possiblecle 30 Advisory Board 1. The Corporation may include an Advisory Board consisting of five internationally renowned experts in the fields related to the Corporation's activities from various countries. 2. The members of the Advisory Board are appointed by the General Meeting for a term of three years, with a possible renewal of this term. 3. The Advisory Board conducts an exchange of views and submits reports on any issues submitted to it by the General Meeting, the Council The Board of Directors, the Executive Committee, the Chairman of the Board of Directors, or the Chief Executive Officer. All opinions expressed in the Advisory Board are reflected in its reports.
Article 31 Chairman, Chief Executive Officer and Officers 1. By virtue of his position, the President of the Bank is the Chairman. The Board of Directors of the Corporation. He directs meeticle 31 Chairman, Chief Executive Officer and Officers 1. By virtue of his position, the President of the Bs the Chairman. The Board of Directors of the Corporation. He directs meetings of the Board of Directors, but without the right to vote, except in cases of equality of votes. He participates in the meetings of the General Meeting, but does not vote at such meetings. 2. The Chief Executive Officer is appointed by the Board of Directors on the recommendation of Chairman of the Board of Directors. The Chief Executive Officer is a citizen of the Member State. The Board of Directors determines the term of office of the Chief Executive Officer, with the possibility of extension, and the terms of his appointment. 3. The Chief Executive Officer is the Chief Administrator of the Corporation and conducts the day-to-day activities of the Corporation under the general supervision of the Chairman of the Board of Directors. The Chief Executive Officer is responsible for the organization, appointment and dismissal of officials and members of the staff in accordance with the Rules and Regulations adopted by the Corporation. 4. The Chief Executive Officer is a member of the Board of Directors and the Executive Committee without the right to vote, except in cases when he acts as Chairman in case of equality of votes. 5. To the extent permitted by the Board of Directors, the Chief Executive Officer approves the financing and investments of the Corporation in enterprises in the member countries. 6. Each time an activity is to be carried out that requires special knowledge or that cannot be carried out by regular staff, temporary hiring of experts and consultants to provide their services is allowed. 7. Officials and members of the Corporate staff have full moral obligations to the Corporation in the performance of their duties. Each member of the Corporation is obliged to respect the international character of such obligations, and each member of the Corporation refrains from any actions that may affect any of them in the performaEach member of the Corporation is obliged to respect the international character of such obligations, and each member of the Corporation refrains from any actions that may affect any of them in the performance of their duties. 8. The Corporation pays due attention to the need to ensure the highest standards related to organizational and technical level, competence and professional and ethical requirements, as being of paramount importance when appointing members of the service staff. Corporations and creating conditions for their work. Due attention is also paid to ensuring the widest possible geographical representation of those employed.
Article 32 Publication of Annual Reports and their Dissemination 1. The Corporation publishes an annual report, which includes an audited statement of its accounts. It also transmits to its members a quarterly summary of its financial position and an income statement showing the Article 32 Publication of Annual Reports and their Dissemination 1. The Corporation publishes an annual report, which includes an audited statement of its accounts. It also transmits to its members a quarterly summary of its financial position and an income statement showing the results of its operations. 2. The Corporation may also publish any other reports and communications that it deems necessary to fulfill its goals and functions.
Article 33 Dividends 1. The General Meeting
1. The General Meeting determines a part of the net income and retained earnings after providing reserves for distribution as dividends. In any case, no dividends will be distributed until the amount of reserves amounting to twenty-five percent (25%) of the subscribed share capital is reached. 2. Dividends are distributed proportionally to the paid-up portion of the share capital held by each member. 3. Dividends are paid in such manner and in such currency or currencies as the General Meeting determines.
Article 34 Relations with the Bank 1. The Corporation is a structure operating independently and separately from the Bank. The Corporation's funds and accounts are kept and maintained separately and distinct from the Bank's funds and accounts, despite the fact that both organizations can jointly finance the same project and can jointly invest their funds, provided that they reccle 34 Relations with the Bank 1. The Corporation is a structure operating independently and separately from the Bank. The Corporation's funds and accounts are kept and maintained separately and distinct from the Bank's funds and accounts, despite the fact that both organizations can jointly finance the same project and can jointly invest their funds, provided that they record them separately in their books. The provisions of this paragraph do not prevent Corporations in establishing agreements with the Bank regarding material assets, service personnel, services, etc.t Corporations in establishing agreements with the Bank regarding material assets, service personnel, services, etc. in connection with the reimbursement of administrative expenses paid by one of the organizations for the benefit of the other. 2. The Corporation uses, as far as possible, the facilities and facilities of the Bank, taking into account how it can be agreed with the Bank. 3. Nothing in this Agreement binds the Corporation to responsibility for the actions or obligations of the Bank or the Bank for the actions or obligations of the Corporation.
Chapter V Withdrawal from the corporation and suspension of membership
Article 35 Right to Resign from the Corporation 1. Any member of the Corporation may resign from its membership by notifying the Chairman of the Board of Directors in writing of his intention to do so. Such a decision shall enter into force on the date specified in the notification, but in no case earlier than six months from the date on which such notification was submitted to the ticle 35 Right to Resign from the Corporation 1. Any member of t Corporation may resign from its membership by notithe Chairman of the Board of Directors in writing of his intention to do so. Such a decision shall enter into force on the date specified in the notification, but in no case earlier than six months from the date on which such notification was submitted to the Corporation. At any time before such a decision takes effect, a member of the Corporation may, by notifying the latter in writing, abandon his intention to withdraw from its membership. 2. A member of the Corporation resigning from its membership remains responsible for the obligations to the Corporation that applied to him on the day of filing the notice of withdrawal. However, if the decision to withdraw from the The Corporation has entered into force, a member of the Corporation does not bear any responsibility for obligations related to the activities of the Corporation carried out after the day when the latter received notification of withdrawal from its membership.
Article 36 Suspension of membership 1. The participation of a member of the Corporation who fails to fulfill any of his obligations to the Corporation may be suspended by a vote representing at least three-quarters of the total number of members' voting rights. 2. A member whose participA member whose participation is suspended in this way shall automatically cease to be a member of the Corporation within one year after the date of suspension of his membership, unless the General Meeting during this period decides by a majority vote referred to in paragraph (1) of this Article to extend or lift the suspension. 3. Despite the suspension, a member of the Corporation may not exercise any of the rights granted to him under this Agreement. By Agreement, except for the right to withdraw from the Corporation, but it is still subject to its obligations to be fulfilled by it.
Article 37 Rights and Obligations Related to Termination of Membership 1. From the moment of termination of its membership, the member of the Corporation no longer participates in the profits or losses icle 37 Rights and Obligations Related to Termination of Membership 1. From the moment of termination of its membership, the member of the Corporation no longer participates in the profits or losses of the Corporation and does not bear any responsibility with respect to financing and guarantees accepted The corporation after that. The Corporation shall purchase back the amount of the share capital of such member as part of the payment of bills with him in accordance with the provisions of this Article. 2. The CorporatThe Corporation and its member may agree to terminate the membership and repurchase the shares of said Corporation member on terms acceptable under the circumstances. If such an agreement is not reached within three months after the date on which such a member of the Corporation expressed his desire to terminate his membership or within a period agreed between the two parties, the repurchase price of the shares of the member of the Corporation is equal to their book value on the day when the member of the Corporation ceased to belong to the Corporation.; This book value is determined based on the latest audited financial statements of the Corporation. 3. Payment for shares shall be made in such installments and on such dates and in such available currencies as the Corporation determines, taking into account its financial situation, provided that payment of the repurchase price of shares allocated in accordance with this Agreement to a former member country of the Corporation and paid on its behalf in accordance with Article 10 (2)) By the Bank, produced by the Bank. 4. No amount due to a former member of the Corporation for his shares under this Article may be paid before the expiration of one month after the date on which he terminated his membership in the Corporation. If during this period the Corporation has suspended its financial operations, the rights of such a member of the Corporation are determined by the provisions of Article 38 and the member of the Corporation is still considered such for the purposes of the above-mentioned Articles, except that he does not have any voting rights.
Article 38 Suspension Of Financial Transactions In case of emergency, the Board of Directors may suspend financial transactions in respect of new investments, financing and guarantees until such time as the General Meeting will have an opportunity to review the situation and take appropriate measures.
Article 39 Termination of Financial Transactions 1. A corporation may terminate its financial transact Article 39 Termination of Financial Transactions 1. A corporation may terminate its financial transactions by decision of A General Meeting adopted by a two-thirds majority of the total number of members representing at least three-fourths of the total number of votes held by its members. Upon termination of financial transactions, the Corporation immediately ceases all activities, except those related to the preservation, protection and sale of its property and settlements on its obligations. 2. Until the final settlement of such obligations and the distribution of property, the Corporation continues to exist, and none of the mutual rights and obligations of the Corporation and its members in accordance with this The Agreement does not detract from, except that the participation of no member The Corporation shall not be suspended or terminated, and no distribution among the members of the Corporation shall be made, except as provided for in this Article.
Article 40 Obligations of Members of the Corporation and Payment of claims 1. Obligations of members arising from the subscription to capital remain in force until the Corporation's obligations, including contingent liabilities, are fully settled. 2. Payment to all creditors with direct clPayment to all creditors with direct claims is made from the assets of the Corporation to which such obligations relate, and then from other reserves, and then from the paid-up portion of the share capital, and then from payments, if any, owed to the Corporation on unpaid subscriptions to the capital to which such claims relate. Before making any payments to creditors with direct claims, the Board of Directors makes such necessary preparations as it considers necessary in order to ensure proportional distribution among those with direct and conditional claims.
Article 41 Distribution of Assets 1. No distribution of assets among members to the account of a paid subscription to the share capital of the Corporation shall be mArticle 41 Distribution of Assets 1. No distribution of assets among members to the account of a paid subscription to the share capital of the Corporation shall be made until all monetary obligations to creditors have been settled or secured. Such distribution must be approved by the General Meeting with the votes of two thirds of the total number of members representing at least three quarters of the total number of voting rights of the members. 2. Any distribution of assets distribution of assets among members is carried out in proportion to the paid-up portion of the share capital belonging to them, and is carried out in such cases and on such terms as the Corporation consider
in front of the Corporation. 3. Any member receiving assets distributed in accordance with this It enjoys the same rights with respect to such assets that the Corporation enjoyed prior to its distribution.
Chapter VI Immunity and pre-emptive rights
Article 42 Purpose of the Chapter In order to enable the Corporation to perform the functions assigned to it, the immunity and preferential rights referred to in this Chapter shall be granted to the Corporation in the territory of each Member State.
Article 43 The Corporation's Position on The Judicial Procedure 1. Claims against a Corporation may be filed only in a court of appropriate jurisdiction in the territory of a member country in which the Corporation has a representative office, has appointed a representative to accept the delivery of a court document or notification of a court order, or has issued or guaranteed securities. 2. However, no claim is brought against the Corporation by members or persons acting or receiving claims from members in relation to matters related to service personnel. 3. The property and assets of a Corporation, regardless of their location and regardless of who holds them, shall enjoy immunity from all forms of judicial seizure, seizure or judicial enforcement pending a final judicial decision in respect of
Corporations.
Article 44 Immunity of Property from Seizure The property and assets of the Corporation, regardless of their location and regardless of who owns them, enjoy immunity from inspection, requisition, confiscation, expropriation or any other form of seizure by acts of the executive or legislative authorities.
Article 45 Inviolability of Archives The Corporation's archives are inviolable.
Article 46 The Secret of Deposits
The Corporation maintains complete secrecy regarding depositors' accounts, and its members respect the inviolability of information about such deposits.
Article 47 Freedom of Property from Restrictions 1. Subject to paragraph (2) of this Article and to the extent necessary to carry out the activities provided for in this Agreement, all property and assets of the Corporation shall be exempt from restrictions, regulations and controls and moratoriums of any kind. 2. Funds received by the Corporation or payable to it in respect of investments of the Corporation made in the territory of any country pursuant to Article 4 (1) of this Agreement shall not be exempt solely on the basis of any provision of this Agreement from currency restrictions, regulations and controls generally applicable in the territory of a member State.
Article 48 Preferential rights in relation to Communications, the official communications of the Corporation are granted by each member country the same treatment that it grants to the official communications of other member countries.
Article 49 Immunity and Preferential Rights of Officials and Employees All members of the General Meeting, Chairman and members of the Board of Directors, Chief Executive Officer, officers and employees of the Corporation: (i) enjoy immunity from legal proceedings in respect of acts committed by them in their official position; (ii) persons who are not local citizens are granted the same immunity from immigration restrictions, alien registration requirements and conscription obligations and the same benefits in respect of currency restrictions that are provided by Member countries to representatives, officials and employees of similar rank of other Member countries; (iii) they are granted the same the same regime regarding travel benefits that is provided by Member countries to representatives, officials and employees of similar rank of other Member countries.
Article 50 Immunity from Taxation 1. The Corporation, its assets, property, income and its financial transactions and transactions permitted by this Agreement shall enjoy immunity from all taxation and all customs duties. The corporation also enjoys immunity from monetary obligatiArte 50 Immunity from Taxation 1. The Corporation, its assets, property, income and its financial transactions and transactions permitted by this Agreement shall enjoy immunity from all taxation and all customs duties. The corporation also enjoys immunity from monetary obligations to collect or pay any tax or duty. 2. No tax is levied on or in relation to salaries and salaries paid by the Corporation to the Chairman or members of the Board of Directors, the Chief Executive Officer, offNo tax is levied on or in relation to salaries and salaries paid by the Corporation to the Chairman or members of the Board of Directors, the Chief Executive Officer, officers or employees of the Corporation. 3. No taxation of any kind shall be imposed on any obligation or security issued A corporation (including any dividend or income from it), regardless of who owns it: (a) which discriminates against such an obligation or security solely because it is issued by a Corporation; or (b) if the sole basis of jurisdiction for such taxation is the place or currency in which it is issued, payable or payable, or the location of any representative office or place of business that the Corporation operates. 4. No taxation of any kind is imposed on any bond or security guaranteed by A corporation (including any dividend or income from it), regardless of who owns it: (a) which discriminates against such a bond oruaranteed by A corporation (including any dividend or income from it), regardless of who owns it: (a) which discriminates against such a bond or security solely because it is guaranteed by the Corporation; or (b) if the sole basis of jurisdiction for such taxation is the location of any representative office or the location of the place of business that the Corporation operates.
Article 51 Chapter Application Each Member country shall carry out such actions as are necessary in its own territory for the purpose of ensuring the effectiveness, in the sense of its own legislation, of the principles set out in this Chapter, and shall inform the Corporation of all actions taken by it.
Article 52 Waiver The Corporation may, at its discretion, waive any of the pre-emptive rights and immunities granted under this To the Article within such limits and under such conditions as it can determine.
Chapter VII Amendments, interpretation, arbitration
Article 53 Amendments 1. This Agreement may be amended by a decision of the General Meeting of Shareholders. Adopted by two thirds of the total number of members representing at least three quarters of the total number of members' voting rights. 2. Notwithstanding the provisions of paragraph (1) of this Article, the unanimous consent of the General Meeting is required for the approval of any amendment on the basis of which the amendments are: Notwithstanding the provisions of paragraph (1) of this Article, the unanimous consent othe General Meeting is required for the approval of any amendment on the basis of which the amendments are: (a) the right to withdraw from the Corporation, as provided for in Article 35 (1) of this Agreement; (b) the right to subscribe to shares in the event of an increase in the capital of the Corporation, as provided for in paragraph (5) of Article 9; and (c) restrictions on obligations referred to in Article 12.3. AnAny proposal to amend this Agreement, whether it comes from a member of the Corporation or the Board of Directors, shall be notified. To the Chairman of the General Meeting, who submits a proposal for consideration by the General Meeting. After the amendment is adopted, the Corporation confirms this in an official communication sent to the Competent Authorities to all members. Amendments come into force for all members after the date of the official notification, unless the General Meeting specifies a different time.
Article 54 Languages, Interpretation and Application 1. Arabic is the official language of the Corporation. In addition, English and French can be used as working languages. The text of this Agreement in Arabic has the force of the original for both interpretation and application. 2. Any issue related to the interpretation of the provisions of this Any agreement that arises between a member and the Corporation or between the members is submitted to the Board of Directors for resolution. 3. In any case, when the Board of Directors has made a decision in accordance with paragraph (2) of this Article, any member may request that the issue be submitted to the General Meeting for consideration, the decision of which is final. Until a decision is made by the General Meeting, the Corporation may, as it deems necessary, act on the basis of a decision of the Board of Directors.
Article 55 Arbitration If there is a disagreement between the Corporation and a member that has ceased to be such, or between the Corporation and any member after the decision to terminate the Corporation's activities has been made, such disagreement shall be submitted for arbitration to a court consisting of three arbitrators. One of the arbitrators is appointed by the Corporation, the other by the member in question, and each party acts within sixcle 55 Arbitration If there is a disagreement between the Corporation and a member that has ceased to be such, or between the Corporation and any member after the decision to terminate the Corporation's activities has been made, such disagreement shall be submitted for arbitration to a court consisting of three arbitrators. One of the arbitrators is appointed by the Corporation, the other by the member in question, and each party acts within sixty days from the date of the request for arbitration. The third arbitrator is appointed by agreement of the two parties and, if no agreement is reached between y agreement of the two parties and, if no agreement is reached between them within sixty days, by the current Chairman of the Islamic The Court, which also appoints an arbitrator who has not been appointed by a party within the time period specified above, at the request of the other party. If, despite all efforts, a unanimous decision is not reached by the arbitrators, the decision is made by a majority vote of three arbitrators. The third arbitrator is authorized to resolve all procedural issues in any case when the parties have not reached an agreement in this regard.
Article 56 Approval Considered Given
Whenever the approval of a member is required prior to any action that may be taken by the Corporation, the approval is considered given unless the members submit an objection within such a stipulated period of time as the Corporation may designate by notifying the member of the proposed action. Chapter VIII General provisions
Article 57 Head Office of the Corporation 1. The Head Office of the Corporation is the Head Office of the Bank in Jeddah in the Kingdom of Saudi Arabia. 2. The Board of Directors of the Corporation may establish other offices in any of its member countries.
Article 58 Financial Year The Financial Year of the Bank is the Financial Year of the Corporation.
Article 59 Channels Of Communicatrticle 59 Channels Of Communication, Depositories 1. Each member shall designate a specific agency from among its own for the purpose of communicating with the Corporation on matters related to this Agreement. 2. Each member country appoints its central bank or such other institution, the appointment of which may be agreed with the Corporation, as a depository where the Corporation can keep its holdings in the currency of that member, as well as other assets of the Corporation.
Chapter IX Final provisions
Article 60 Signature and Acceptance 1. This Agreement shall be deposited with the Bank, where it is always open for signature by representatives of the Bank, the member countries of the Bank, the list of which is given in Appendix A, and other potential members before the 30th day of the month of Dzul Hijjah 1420 AH, corresponding to April 5, 2000 (according to the Gregorian CalendArticle 60 Signature and Acceptance 1. This Agreement shall be deposited with the Bank, where s always open for signature by representatives of the countries of the Bank, the list of which is given in Appendix A, and other potential members before the 30th day of the month of Dzul Hijjah 1420 AH, corresponding to April 5, 2000 (according to the Gregorian Calendar) or such more at a later date, which is set by the Board of Directors of the Corporation. Each signatory to this Agreement shall deposit with the Bank a document stating that it has accepted or ratified this Agreement in accordance with its own legislation or regulations and has taken the necessary actions to enable it to fulfill all of its obligations under this Agreement. 2. The Bank shall transmit certified copies of this Agreement to all Members and duly notify each of them of the signature and deposit of the instrument of acceptance or ratification made in accordance with the preceding paragraph, as well ashe Bank shall transmit certified copies of this Agreement to all Members and duly notify each of them of the signature and deposit of the instrument of acceptance or ratification made in accordance with the preceding paragraph, as well a their date. 3. On or after the day when the Corporation began its activities, the Bank may receive a signed document and an act of acceptance of this agreement. Agreements from any country or institution whose membership(s) approved in accordance with paragraph (2) of Article 7 of this Agreement.
Article 61 Entry into Force 1. This Agreement shall enter into force on the date of its signature and deposit of instruments of acceptance or ratification in accordance with paragraph (1) of Article 60: (a) by the Bank; (b) by the country where the Head Office is located; and (c) by at least four other Member countries. 2. Countries and institutions whose instruments of acceptance or ratification were deposited before the date on which the Agreement entered into force, become members on that date. Other countries and institutions become members on the days when their instruments of acceptance or ratification are deposited.
Article 62 Commencement Of Activity As soon as this Agreement enters into force in accordance with paragraph (1) of Article 61, each member shall appoint a representative, and the President of the Bank shall convene The General Meeting. The Corporation begins its activities on the day of such a meeting. Done in the city of Jeddah, Kingdom of Saudi Arabia, in a single original copy dated the 25th day of the month of Rajab, 1420 AH, corresponding to November 3, 1999, in Arabic, with a translation into English and French, which is transmitted and remains in custody in the archives of the Islamic Development Bank, which expresses its signature below
its consent to act as the depositary of this Agreement and to notify all the Governments of those countries whose names are listed in Annex A on the date of entry into force of this Agreement in accordance with paragraph (1) of Article 61 of this Agreement. Appendix A Shares in the authorized capital of the corporation intended for initial subscription by the Islamic Development Bank and member countries (Nominal value of each share: 10,000 USD) ___________________________________________________________________________ The shareholder! Number of Shares ___________________________________________________________________________ Islamic Development Bank 25,000 Azerbaijan 4 Albania 7 Algeria 475 Afghanistan 17 Bangladesh 188 Bahrain 44 Benin 18 Brunei Darussalam 47 Burkina Faso 48 Gabon 51 Gambia 16 Guinea 47 Guinea-Bissau 13 Djibouti 10 Egypt 401 Indonesia 475 Iraq 82 Iran 1,337 Yemen 95 Jordan 76 Kazakhstan 3 Cameroon 40 Qatar 188 Comoros 4 Kuwait 1,899 Kyrgyzstan 3 Lebanon 19 Libya 2,016 Mauritania 16 Malaysia 304 Mali 19 Maldives 16 Morocco 95 Mozambique 14 Niger 39 United Arab Emirates 1,082 Oman 53 Pakistan 475 Palestine 26 Saudi Arabia 3,812 Senegal 47 Syria 19 Somalia 16 Sudan 63 Suriname 5 Sierra Leone 6 Tajikistan 3 Togo 3 Tunisia 38 Turkmenistan 3 Turkey 1,176 Uganda 39 Chad 11 Total 40,003 __________________________________________________________________________ Explanations on the Rights - Immunity and Pre-Emptive - of the Islamic Corporation for the Development of the Private Sector (ICR)
___________________________________________________________________________ Shareholder ! Number of Shares ___________________________________________________________________________ Islamic Development Bank 25,000 Azerbaijan 4 Albania 7 Algeria 475 Afghanistan 17 Bangladesh 188 Bahrain 44 Benin 18 Brunei Darussalam 47 Burkina Faso 48 Gabon 51 Gambia 16 Guinea 47 Guinea-Bissau 13 Djibouti 10 Egypt 401 Indonesia 475 Iraq 82 Iran 1,337 Yemen 95 Jordan 76 Kazakhstan 3 Cameroon 40 Qatar 188 Comoros 4 Kuwait 1,899 Kyrgyzstan 3 Lebanon 19 Libya 2,016 Mauritania 16 Malaysia 304 Mali 19 Maldives 16 Morocco 95 Mozambique 14 Niger 39 United Arab Emirates 1,082 Oman 53 Pakistan 475 Palestine 26 Saudi Arabia 3,812 Senegal 47 Syria 19 Somalia 16 Sudan 63 Suriname 5 Sierra Leone 6 Tajikistan 3 Togo 3 Tunisia 38 Turkmenistan 3 Turkey 1,176 Uganda 39 Chad 11 Total 40,003 __________________________________________________________________________ Explanations on the Rights - Immunity and Pre-Emptive - of the Islamic Corporation for the Development of the Private Sector (ICR)
(1) Chapter VI of the Agreement, on the basis of which the ICR is established, specifies the number of rights, immunities and preferential rights, which are granted to the ICR, its property and property, and which are granted to its officials and employees. There is no significant difference between such rights and those granted to international development agencies. (2) The ICR is an international development institution, the purpose of which, as stated in Article 3 (1) of the Agreement, is to promote the economic development of its member countries in accordance with the principles of Sharia through the establishment, expansion and modernization of private enterprises producing goods and services, so as to complement the activities of the Islamic Development Bank (IDB). (3) The purpose of the rights of immunity and preferential rights granted to international development institutions is to ensure that such institutions can most successfully perform their assigned functions. Such rights, which are mentioned in the ICR Agreement, do not differ from the rights enjoyed by similar institutions whose activities are related to the development of the private sector. When comparing such rights with those granted by the International Finance Corporation (IFC), a subsidiary of the World Bank, it can be seen that the provisions of Article 43 (Corporation's Position on Judicial Procedure), Article 44 (Immunity of Property from Seizure) and Article 45 (Inviolability of Archives) are identical to Sections 3, 4 and 5, respectively, Article VI IFC agreements. Articles 47 (1) and 47 (2) (Freedom of Property from Restrictions) of the ICR Agreement are identical to Section 6 of Article VI and Section 5 of Article III, respectively, of the IFC Agreement. On the other hand, Articles 48 (Preferential Rights in Respect of Communications), 49 (Immunity and Preferential Rights of Officials and Employees) and 50 (Immunity from Taxation) of the ICR Agreement are also identical to Sections 7, 8 and 9, respectively, of Article VI of the Agreement on the basis of which the IFC is established. (4) On the other hand, Given that the activities of the ICR will be related to the private sector, some of the rights - immunity and preferential rights granted to it are lower than the rights granted to the IFC. For example, Article 43 of the ICR Agreement allows for legal action against a Corporation as a rule, while according to the IDB Agreement (Article 52), claims against the IDB can only be filed as an exception to the general rule that grants the IDB immunity from any legal process. It should also be noted that with regard to currency restrictions and controls, paragraph 2 of Article 47 of the ICR Agreement states that the Agreement does not grant the ICR immunity from currency restrictions and controls that operate in the territory of a member country. The relevant Article of the IDB Agreement does not mention any such immunity. It should be mentioned that Article 25 (2) of the IDB Agreement obliges member countries to facilitate the rapid conversion of its currency, which is owned by the IDB, into a freely convertible currency. Paragraph 4 of the same Article states that "the Member State does not impose any restrictions on the transfer of profits and the repatriation of capital by the Bank in a freely convertible currency acceptable to the Bank." (5) With regard to legal entities that will enjoy the rights of immunity and pre-emption granted by the ICR, it is necessary to distinguish between the ICR and the projects in which it may invest. Thus, if the ICR invests in the equity of the company with which the project is associated, such participation, regardless of its amount, will not exempt such a company from paying corporate income tax on its profits, nor will it exempt such a company from customs duties on goods imported by it. In contrast, the dividends received by the ICR and the price it receives when selling its shares will be exempt from taxation. Goods imported by the ICR for use in its own activities will also enjoy exemption from customs duties. Sharia is a set of faith and practical rules of conduct established by Islam. Istisna is a contract according to which a party undertakes to produce a certain product, which can be produced in accordance with certain contractual specifications at a set price and by a certain delivery date. Istisna is a medium-term financing tool before the goods are shipped. A salaam is a sales contract for which payment is made in advance. Mudaraba is a form of partnership where one party provides financial resources, while the other party provides expert services and management. In this case, the first side is designated as Rabal-Mal and the second side is designated as Mudarib. Any profits are distributed between the two parties on a pre-agreed basis, while losses are borne by the partner providing the capital. A mudaraba may include several partners on one side as well as on the other. A murahaba (murabaha) is a contract for sale between a buyer and a seller at a higher price than the original price at which the seller bought the product. As a financial instrument, murabaha involves the purchase by the seller (financier) of certain goods necessary for the buyer and their resale to the buyer based on the costs incurred plus margins. The profit (margin) and the time of payment (usually in installments) are stipulated in the original contract. Installment sales are a medium-term form of financing where a Bank buys machinery and equipment, then sells them to the recipient at a higher price. a high price. Payments are made in equal and consecutive installments. Ownership of assets is transferred to the recipient upon delivery (as opposed to from leasing (ijara), where ownership remains with the seller for the entire duration of the contract).
(Experts: Umbetova A.M., Abramova T.M.)
President
Republic of Kazakhstan
© 2012. RSE na PHB "Institute of Legislation and Legal Information of the Republic of Kazakhstan" of the Ministry of Justice of the Republic of Kazakhstan
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