Article 16. The authorized and equity capital of the Bank of the Law on Banks and Banking Activities in the Republic of Kazakhstan
1. The authorized capital of the bank is formed in the national currency of the Republic of Kazakhstan through the placement of shares, except for the cases specified in paragraph 2 of this Article.
2. The bank's shares must be paid for exclusively in cash upon placement. This requirement does not apply to banks in the following cases::
1) placement of shares of the bank among the creditors of the bank and their payment by offsetting any right (claim) under the monetary obligation of the bank to the relevant creditor, when the bank carries out restructuring in cases provided for by this Law and other laws of the Republic of Kazakhstan;
1-1) conversion of securities and other monetary obligations of the bank into common shares of the bank in case of application of measures to settle an insolvent bank on the basis and in accordance with the procedure provided for in Articles 61-10 of this Law;
2) conversion of securities into shares of the bank on the basis of the prospectus for the issue of equity securities convertible into shares of the bank;
2-1) exchange of outstanding shares of a bank of one type for shares of a given bank of another type on the basis of the bank's charter and its share issue prospectus;
3) payment of the bank's shares in case of reorganization carried out in accordance with the procedure established by the Law of the Republic of Kazakhstan "On Joint-Stock Companies";
4) payment of the bank's shares in government securities of the Republic of Kazakhstan in the case provided for in Article 17-2 of this Law.
When placing shares of the bank in the cases provided for in this paragraph, an assessment is not required.
3. In case of conversion of securities into shares of the bank as part of its restructuring procedure and (or) as part of the application of measures to resolve an insolvent bank in accordance with the procedure provided for in Article 61-10 of this Law, the right of pre-emptive purchase is not granted to the bank's shareholders when placing its shares by converting securities and (or) monetary obligations of the bank into its shares.
3-1. The Bank has the right to issue preferred shares, the issue prospectus of which provides for the right of the bank's executive body not to accrue dividends on preferred shares if the accrual of dividends on shares leads to a decrease in prudential standards below the values established by the regulatory legal act of the authorized body.
3-2. A bank that uses funds from the state budget, the National Fund of the Republic of Kazakhstan, the National Bank of the Republic of Kazakhstan and (or) its subsidiaries to ensure financial stability and (or) improve its health, in the period from the date of the decision to provide funds from the state budget, the National Fund of the Republic of Kazakhstan, the National Bank of the Republic of Kazakhstan and (or) its subsidiaries. subsidiaries and distributes profits until the bank fully fulfills its obligations to return the funds received ., accrues dividends on ordinary and (or) preferred shares and (or perpetual) financial instruments, and also carries out the repurchase of its own shares subject to the conditions stipulated by the regulatory legal act of the authorized body.
4. The minimum amount of the authorized capital of a newly created bank must be paid in full by its founders within thirty calendar days after the state registration of the bank.
The minimum amount of the authorized capital of a bank established as a result of the voluntary reorganization of a microfinance organization in the form of conversion into a bank is formed at the expense of the authorized capital of the microfinance organization, subject to compliance with the requirements of part one of paragraph 1 of Article 42 of this Law before applying for a license to conduct banking and other operations.
5. The methodology for calculating the bank's equity and investments is determined by the authorized body.
If the amount of the bank's liabilities exceeds the value of its assets, the bank's equity is negative.
6. When establishing a negative amount of the bank's equity, the authorized body has the right to make a decision on the compulsory purchase of shares of its shareholders and immediately sell them to a new investor at the purchase price, on terms that guarantee an increase in the bank's capital and its normal functioning, taking into account the obligations assumed by the investor.
The authorized body's compulsory repurchase of the bank's shares is carried out at a price determined based on the value of the bank's assets minus the amount of its liabilities as of the date of its decision on compulsory repurchase of the bank's shares (shareholders' shares) for the purpose of their subsequent sale to a new investor. The sale of the bank's repurchased shares is carried out by the authorized body immediately at the purchase price. The rights and obligations of the owners of all forcibly repurchased shares of the bank are transferred to the new investor.
The procedure for the compulsory repurchase of the bank's shares and their mandatory subsequent sale to investors is established by the authorized body. - Excluded by the Law of the Republic of Kazakhstan dated June 24, 2025 No. 196-VIII SAM
The Law of the Republic of Kazakhstan dated August 31, 1995 No. 2444.
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
Constitution Law Code Standard Decree Order Decision Resolution Lawyer Almaty Lawyer Legal service Legal advice Civil Criminal Administrative cases Disputes Defense Arbitration Law Company Kazakhstan Law Firm Court Cases
