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THE CIVIL CODE OF THE REPUBLIC OF KAZAKHSTAN as amended by: 1) Edict No. 2447 Having the Force of A Law of the President of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts. August 31, 1995 (Article 3); 2) Edict No. 2489 Having the Force of A Law of the President of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan and Edict Having the Force of Law of the President of the Republic of Kazakhstan "Concerning the State Registration of Legal Entities". October 5, 1995 (Articles: 106, 107, 109); 3) Edict No. 2835 Having the Force of A Law of the President of the Republic of Kazakhstan. Concerning the Introduction of An Addendum to the Civil Code of the Republic of Kazakhstan. (GENERAL PART). January 27, 1996; 4) Law No. 30 - I of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan. July 15, 1996 (Articles: 38, 41, 42, 43, 50, 59, 62, 77, 93); 5) Law No. 50-I of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan. December 7, 1996 (Article 86); (6) Law No. 68 of the Republic of Kazakhstan. Concerning the Recognition as Invalid of the Edict of the President of the Republic of Kazakhstan, Having the Force of a Law "Concerning Bankruptcy" and Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan. January 21, 1997. (Articles: 49, 51, 52, 53, and 54); (7) Law No. 80 of 5th March 1997 of the Republic of Kazakhstan. Concerning the Introduction of An Addition and Amendments to the Civil Code of the Republic of Kazakhstan (General Part). (Articles: 129, and 135). (8) Law of No. 132 19th June 1997 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan. (Article 41). (9) Law of No. 134 19th June 1997 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Act of the Republic of Kazakhstan. Effective from the 1st of July 1997. (Articles 45, 49, 85, 182); (10) Law No. 144 of 2nd July 1997 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan. (Articles 19, 21); (11) Law No. 154 of 11th July 1997 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of Banking Activity. (Articles: 2, 10, 34, 41, 42, 44, 50, 55, 58, 59, 61, 64, 65, 67, 69, 71, 73, 74, 77, 78, 79, 80, 84, 85, 86, 87, 88, 89, 90, 91, 92, 94, 95, 97, 98, 99, 106, 107, 130, 136, 137, 138, 139, 140, 144, 187, 199, 200, 207, 282, 291, 301, 302, 303, SYMBOL 167 \f "Times New Roman CE" 4 of Chapter 18 (Articles 329-336), Articles: 341, 353, 366, 387); (12) Law No. 211 of 2nd March 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to the Civil Code of the Republic of Kazakhstan (General Part), and to the Decree of the Supreme Soviet of the Republic of Kazakhstan "Concerning the Implementation of the Civil Code of the Republic of Kazakhstan (General Part)". (Articles 3, 21, 34, 35, 37, 38, 39, 41, 42, 44, 48, 49, 50, 56, 58, 59, 60, 61, 64, 70, 72, 73, 74, 77, 78, 79, 80, 82, 83, 85, 86, 87, 90, 91, 92, 96, 97, 98, 100, 102, 103, 106, 108, 109, 110, 117, 118, 119, 125, 132, 141,152, 155, 156, 159, 162, 182, 188, 191, 192, 193, 195, 196, 200, 202, 207, 209, 221, 223, 227, 228, 230, 231, 233, 240, 243, 251, 253, 261, 269, 281, 287, 291, 293, 299, 301, 311, 325, 328, 339, 344, 348, 350, 354, 357, 358, 364, 368, 370, 372, 390, 401, 403, 404,); (13) Law No. 221 of 22nd April 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan. (Article 41, 60, 77, 79, 81, 84); (14) Law No. 238 of 29th June 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments to the Civil Code of the Republic of Kazakhstan (General Part). (Article 52, 53, and 55); (15) Law No. 282 of 10th July 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of Joint-Stock Companies. (Article 34, 41, 42, 50, 58, 85, 86, 87, 88, 89, 90, 91, 92, 94, 95, 130, 136, 139); (16) Law No. 283 of 10th July 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan. (Article 10); (17) Law No. 320 of 16th December 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of the State-Owned Legal Entities (Articles 34, 35, 44, 50, 104, 105 replaced, 202, 204, 205, 206, 207 replaced) effective from the 1st of January 1999; (18) Law No. 436 of 16th July 1999 of the Republic of Kazakhstan "Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan" (Article: 62, 77, 107, 282). Published on the 3rd August 1999; (19) Law No. 440 of 16th July 1999 of the Republic of Kazakhstan Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of Taxation. (Article 38). Effective from the date of publication; (20) Law No. 472 of 4th November 1999 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of Functioning of Public Enterprises. (Articles 44 and 192). Effective from 1st January 2000; (21) Law No. 96 of 8th November 2000 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of Appraisal of Property. (Article 319); (22) Law No. 128 of 18th December 2000 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of Insurance and Insurance Activities. (Article 45, 49, 86, 306). Effective from 23rd December 2000; (23) Law No. 141 of 15th January 2001 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of Grain Procurement Enterprises. (Article 3) Effective from 23rd January 2001; and (24) Law No. 162 of 2nd March 2001 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions To Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of the Banking Activity. (Article 192, 206, 328, 331). Effective from 12th March 2001. SECTION I. GENERAL PROVISIONS Chapter 1. Regulation of Civil Rights Relations Article 1. Relations Regulated by Civil Legislation 1. Civil legislation shall regulate commodity-money relations and other property relations based on the equality of the participants, and also personal non-property relations which are associated with property relations. Citizens, legal entities, state, and also administrative and territorial units shall be participants of the relations regulated by civil legislation. 2. Personal non-property relations not associated with property relations, shall be regulated by civil legislation, unless it is otherwise provided for by legislative acts or ensues from the essence of a personal property relation. 3. Civil legislation shall apply to family relations, labour relations and relations associated with the use of natural resources and the protection of the environment, which meet the requirements of paragraph 1 of this Article, in the cases where those relations are not regulated respectively by legislation concerning family, labour, use of the natural resources and protection of the environment. 4. Civil legislation shall not apply to property relations which are based on the administrative or any other power subordination of one party by the other, including tax and other budget relations, except for the cases provided for by legislative acts. Article 2. The Fundamental Principles of Civil Legislation amended by (11) Law of 11th July 1997 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of Banking Activity. 1. Civil legislation is based on the recognition of the equality of the participants of the relations regulated thereby, inviolability of property, freedom of agreement, prohibition of arbitrary interference in somebody's private affairs, indispensability of the free exercise of civil rights, and provision for the restitution of violated rights and their defence in the court. 2. Citizens and legal entities shall acquire and exercise their civil rights by their will and in their interests. They shall be free in establishing their rights and obligations on the basis of agreements and in specifying any conditions in their agreements, which do not contradict legislation. 3. Goods, services and monetary resources funds shall be unrestrictedly transferred and circulated in the entire territory of the Republic of Kazakhstan. Restrictions in the circulation of goods and services shall be introduced in accordance with legislative acts, where it is necessary for ensuring safety, protection of life and health of people, protection of the natural environment and valuable cultural assets. Article 3. Civil Legislation of the Republic of Kazakhstan as amended by (1) Edict No. 2447 Having the Force of Law of the President of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts. August 31, 1995; (12) Law of No. 211 of 2nd March 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to the Civil Code of the Republic of Kazakhstan (General Part), and to the Decree of the Supreme Soviet of the Republic of Kazakhstan "Concerning the Implementation of the Civil Code of the Republic of Kazakhstan (General Part)"; and (23) Law No. 141 of 15th January 2001 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of Grain Procurement Enterprises. 1. The civil legislation of the Republic of Kazakhstan shall consist of the present Code, laws of the Republic of Kazakhstan adopted in accordance with it, other laws of the Republic of Kazakhstan, edicts of the President of the Republic of Kazakhstan having the force of laws, decrees of the Parliament, and decrees of the Senate and Majilis (legislative acts), as well as edicts of the President of the Republic of Kazakhstan, decrees of the Government of the Republic of Kazakhstan which regulate relations indicated in paragraphs 1 and 2 of Article 1 of the present Code. 2. In case of a contradiction between the provisions of civil law which are contained in the acts of legislation of the Republic of Kazakhstan, except for those indicated in paragraph 3 of Article 1 of the present Code, and the provisions of the present Code, then the provisions of this Code shall apply. Provisions of civil law containing in legislation of the Republic of Kazakhstan which are contradictory to the provisions of the present Code, may apply only after the introduction into the Code of the appropriate amendments. 3. The relations associated with the formation, reorganisation, bankruptcy and liquidation of banks and grain procurement enterprises, supervision of banking activities and their auditing, supervision of activities of grain procurement enterprises, licensing of certain types of banking transactions performance of transactions in warehouse warrants of grain procurement enterprises, shall be regulated by this Code inasmuch as this does not contradict the legislative acts that regulate the banking business and activities of grain procurement enterprises. Relations between banks and their clients, as well as relations between clients through banks, shall be regulated by civil legislation in accordance with the procedure established in paragraph 2 of this Article. 4. Civil relations may be regulated by tradition, including the tradition of business operation, unless those contradict the civil legislation which is effective in the territory of the Republic of Kazakhstan. 5. Ministries and other central executive bodies, local representative and executive bodies, may issue acts which regulate civil relations, in the cases and within the limits provided for by the present Code, and by other acts of civil legislation. 6. The rights of the citizens and legal entities which are established by the present Code and any other legislative acts of the Republic of Kazakhstan may not be restricted by the acts of the bodies of the state administration and local representative and executive bodies. Such acts shall be invalid from the moment of their adoption and must not be applicable. 7. Foreign individuals and legal entities and also stateless persons shall have the right to acquire the same rights and they shall be obliged to fulfil the same obligations which are provided for by civil legislation for the citizens and legal entities of the Republic of Kazakhstan, unless legislative acts stipulate otherwise. 8. When an international treaty, to which the Republic of Kazakhstan is a signatory, establishes different rules than those contained in the civil legislation of the Republic of Kazakhstan, the rules of the indicated treaty shall apply. The international treaties to which the Republic of Kazakhstan is a signatory, shall apply to civil relations directly, except for the cases where it ensues from a treaty that its application requires the issuing of a domestic act of the Republic. Article 4. The Effect of Civil Legislation in Time 1. Civil legislation acts shall not have retroactive force and they shall apply to relations which arise after their entering into force. The legal force of a civil legislation act shall apply to relations which arose prior to its enactment in the cases where it is directly provided for by it. 2. With regard to relations which arose prior to the entering into force of a civil legislation act, it shall apply to the rights and obligations which arise after its entering into force. Relations of parties to an agreement concluded prior to the enactment of civil legislation act shall be regulated in accordance with Article 383 of this Code. Article 5. Application of Civil Legislation by Analogy 1. In the cases where the relations provided for by paragraph 1 and 2 of Article 1 of this Code are not regulated directly by legislation or an agreement of the parties and tradition applicable to such relations does not exist, those provisions of civil legislation shall apply, which regulate similar relations (analogy of a law), unless this contradicts their essence. 2. When it is impossible in the indicated cases to use the analogies of law, the rights and obligations of the parties shall be defined on the basis of the general fundamentals and the spirit of civil legislation as well as the requirements of good faith, reasonableness and fairness (analogy of law). Article 6. Interpretation of Civil Legislation Provisions 1. Provisions of civil legislation must be interpreted literally. Where the possibility exists of different understanding of the words used in the text of legislative provisions, preference shall be given to that understanding which is consistent with the provisions of the Constitution of the Republic of Kazakhstan and the fundamental principles of civil legislation which are outlined in this Chapter, and first of all in Article 2. 2. When establishing the precise meaning of a provision in civil legislation, it shall be required to consider the historic conditions under which it was introduced and its interpretation in judicial practice, unless it violates the requirements specified in paragraph 1 of this Article. Article 7. The Foundations for the Emergence of Civil Rights and Obligations Civil rights and obligations shall arise on the fundamentals which are specified in legislation and also from actions of citizens and legal entities which, although not specified in it, but by virtue of the general fundamentals and the spirit of civil legislation, give rise to civil rights and obligations. In accordance with this, civil rights and obligations shall arise as follows: 1) out of agreements and any other transactions provided for by legislation, and also from transactions which although are not specified in it, do not contradict legislation; 2) form the administrative acts which give rise to civil rights consequences by virtue of legislation; 3) from court decisions which establish civil rights and obligations; 4) as a result of creating or acquiring assets on the bases which are not prohibited by legislative acts; 5) as a result of creating inventions, industrial samples, works of science, literature and art and any other results of intellectual activity; 6) as a result of causing harm to any other person, and equally as a result of the unfair acquisition or saving of assets at the expense of another person (unfair enrichment); 7) as a result of any other acts of citizens and legal entities; 8) as a result of events to which legislation conditions the emergence of civil rights. Article 8. The Exercise of Civil Rights 1. Citizens and legal entities at their discretion shall exercise civil rights which belong to them, including the right to their protection. 2. The refusal of citizens and legal entities to exercise their rights shall not entail the cessation of those rights, except for the cases which are provided for by legislative acts. 3. The exercise of civil rights must not violate the rights and the interests of any other subjects under legislation, and it must not do any harm to the environment. 4. Citizens and legal entities must act in good faith, reasonably and fairly when exercising their rights, and comply with the requirements which are contained in legislation, with the moral principles of the society, while entrepreneurs must also comply with business ethics rules. This obligation may not be excluded or restricted by any agreement. The good faith, reasonableness and fairness of the acts of participants in civil rights relations shall be presumed. 5. Acts of citizens and legal entities which aim to cause harm to any other person, at the abuse of rights in any other form and also at an exercise of a right in contradiction to its intention. In the case of a failure to comply with the requirements specified in paragraphs 3 to 5 of this Article the court may deny a person the protection of his right. Article 9. Protection of Civil Rights 1. The protection of civil rights shall be exercised by the court, arbitration tribunal or the judgement of third party by way of: recognition of rights; restitution of the position which existed prior to the violation of the right; putting an end to behaviour which violates the right or create the threat of its violation; awarding the execution of an obligation in kind; compensation of losses; damages; recognition of the transaction as invalid; compensation of moral losses; termination or alteration of legal relations; the recognition as invalid or void of an act which does not comply with legislation of a body of the state administration or of a local representative or executive body; imposition of a fine on the state body or official for impeding a citizen or a legal entity to acquire or exercise a right, and also in the other manner as provided for by legislative acts. 2. The appeal for protection of a violated right to a body of power or administration shall not prevent an appeal to the court with an action to protect a right, unless legislative acts specify otherwise. 3. In the cases which are specifically provided for in legislative acts, the protection of civil rights shall be carried out directly by actual or legal acts of the person whose right is violated (self-defence). 4. The person whose right is violated may require the entire restitution of the losses inflicted on him, unless legislative acts or the agreement do not stipulate otherwise. The expenditure shall be understood to mean losses, which are incurred or must be incurred by the person whose right is violated, the loss or the damage to his property (real damage) and also lost profit which this person would have received under the normal conditions of the turnover, should his right have not been violated (lost profits). 5. The losses which are inflicted upon a citizen or a legal entity as a result of issuing by a governmental body of an act which does not comply with legislation, or by any other state body, and also by acts (failure to act) of the officials of those bodies, shall be subject to compensation by the Republic of Kazakhstan or by the relevant administrative and territorial unit. 6. When emergence of the legal consequences of a violation is related to the guilt of the violator his guilt shall be presumed, except for the cases where legislative acts stipulate otherwise. Article 10. The Protection of the Rights of Entrepreneurs and Consumers as amended by (3) Edict No. 2835 Having the Force of Law of the President of the Republic of Kazakhstan. Concerning the Introduction of An Addendum to the Civil Code of the Republic of Kazakhstan. (GENERAL PART). January 27, 1996]; (11) Law of 11th July 1997 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of Banking Activity; and (16) Law No. 283 of 10th July 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan. 1. Entrepreneurship is the activity of citizens and legal entities, taken on the initiative, irrespective of the form of ownership, which is aimed at the earning of profits or personal net income by way of satisfying the demand for goods (work, services) which is based on the private property (private entrepreneurship) or under the right to business authority of a state-owned enterprise (state entrepreneurship). Entrepreneurial activity shall be carried out on behalf of, under the risk, and under the property liability of the entrepreneur. 2. The state shall guarantee the freedom of entrepreneurial activities and it shall ensure its protection and support. 3. The rights of entrepreneurs who carry out the activities which are not prohibited by legislation shall be protected as follows: 1) by the possibility to carry out entrepreneurial activities without obtaining anyone's permission, except for the types of activity which are subject to licensing; 2) by a simple procedure for the registration of any type of entrepreneurship in any sphere of the economy by one registering authority by way of a arrival; 3) by restricting, through legislative acts, those audits which are carried out by the state bodies; 4) by a compulsory termination of entrepreneurial activities based only upon the decision of the court of law, which is passed on the basis provided for by legislative acts; 5) by establishing through legislative acts of the lists of operations and types of goods and services which are prohibited for private entrepreneurship, or restricted for export and import; 6) by holding the state bodies, officials and any other persons and organisations responsible for loss to the entrepreneurs and for illegal impediments to their activities; 6-1) by prohibiting to executive, supervisory and monitoring bodies, to enter into contractual relations with entrepreneurial entities for the matter of performing the obligations which are the function of those bodies. 7) by any other means provided for by legislation. 4. The manufacture and sale of certain types of goods, work and services, because of considerations of national security; ensuring law and order; protection of the environment; property and lives and health of citizens must be carried out in accordance with the State licences. The list of such goods, work and services shall be defined by legislative acts or in accordance with the procedure established by them. 5. A commercial (entrepreneurial) secret shall be protected by law. The procedure for identifying the information which constitutes a commercial secret, the methods of its protection and also the list of information which must not be included among commercial secrets shall be established by legislation. 6. The protection of the rights of consumers shall be ensured by the means which are envisaged by this Code or any other legislative acts. In particular, each consumer shall have the right: to freely enter agreements to purchase goods and to use work and services; to proper quality and safety of goods (work, services); to full and reliable information on goods (work, services); and the right to join public associations of consumers. Article 11. Prohibition of Abusing the Freedom of Entrepreneurship 1. Monopolistic activities and any other activities aimed at restricting or eliminating legal competition or the extraction of unreasonable advantages by the restriction of rights and legitimate interests of consumers, shall not be allowed. 2. Except for the cases provided for by legislative acts, the use by entrepreneurs of civil rights for the purpose of restricting competition, shall not be allowed, in particular: 1) the abuse by entrepreneurs of their dominant position in the market to restrict or terminate the production or reserve from circulation of any goods in order to create shortages or increase the prices; 2) entering into and implementing by persons who carry out similar entrepreneurial activities of agreements concerning prices, subdivision of markets, elimination of any other entrepreneurs or any other conditions which materially restrict competition; 3) commission of unfair acts which are aimed at restriction of the legitimate interests of a person who performs similar entrepreneurial activities and of consumers (unfair competition), in particular, the misleading of consumers with regard to the manufacturer, designation, method and place of manufacture, quality or any other properties of goods of other entrepreneurs, by way of unfair comparison of goods in advertising and in any other information, copying external design of somebody else's goods and by any other methods. The remedies to control unfair competition shall be established by legislative acts. Chapter 2. Entities in Civil Rights § 1. Citizens of the Republic of Kazakhstan and Other Physical Persons Article 12. The Definition of a Physical Person Citizens of the Republic of Kazakhstan, citizens of other states, as well as stateless persons shall be understood to be physical persons. The provisions of this chapter shall apply to any physical persons, unless it is otherwise established by this Code. Article 13. The Legal Capacity of Citizens 1. The capacity to have civil rights and bear obligations (civil rights capacity) shall be recognised as equal in all citizens. 2. The legal capacity of a citizen shall arise at the moment of his birth and it shall cease with his demise. Article 14. The Principal Contents of the Legal Capacity of a Citizen A citizen may have, under his right of ownership , properties including foreign currency, both within the boundaries of the Republic of Kazakhstan and beyond its boundaries; inherit and bequest property; move freely in the territory of the Republic and select the place of residence; freely leave the boundaries of the Republic and return to its territory; engage in any activities which are not prohibited by legislative acts; create legal entities independently or with other citizens and legal entities, enter into any transactions which are not prohibited by legislative acts and participate in obligations; have the right to intellectual property with regard to inventions, works of science, literature and art and any other results of intellectual activity; claim the compensation for financial and moral damage; have any other property rights and personal rights. Article 15. The Name of a Citizen 1. A citizen shall acquire and exercise the rights and obligations under his name including the surname and the proper name and at his discretion - the patronymic name. 2. Legislation may provide for cases of anonymous acquisition by citizens of the rights and execution of obligations, or the use of a pen name (fictitious name). 3. The name which is received by a citizen at his birth and also the change of the name shall be subject to registration in accordance with the procedure established by legislation concerning the registration of civil status acts. 4. A citizen shall have the right to change his name in accordance with the procedure established by legislative acts. The change of name shall not be the basis for the cessation or alteration of his rights and obligations which are acquired under the former name, anonymously or under a pseudonym. 5. A citizen shall be obliged to take appropriate steps to notify his debtors and creditors of a change of his name and he shall bear the risk associated with the consequences which are caused by those persons' unawareness of the change of his name. 6. A citizen who has changed his name shall have the right to require the introduction of the appropriate amendments into the documents formulated for his former name. 7. The acquisition of rights and obligations under the name of a different person shall not be allowed. 8. A citizen shall have the right to require the prohibition of the use of his name where it was done without his consent. 9. The harm caused to a citizen as a result of the illicit use of his name shall be subject to compensation in accordance with the provisions of this Code. In the case of a distortion or use of a citizen's name by ways or in a manner which affect his honour, dignity or business reputation, the rules shall apply which are provided for by Article 143 of this Code. Article 16. The Place of Residence of a Citizen 1. The populated area where a citizen permanently or predominantly resides shall be recognised as the place of domicile of the citizen. 2. The place of residence of the parents, adopters or guardians of persons who have not reached 14 years of age or citizens who are under guardianship, shall be recognised as their place of domicile. Article 17. The Deed Capacity of Citizens 1. The capacity of a citizen by his deeds to acquire and exercise civil rights, create for himself civil obligations and execute them (citizen's deed capacity) shall arise in their entire volume when the citizen reaches the age of majority, that is, upon reaching eighteen years of age. 2. In the case where legislative acts allow for the entering into marriage prior to reaching eighteen years of age, a citizen who has not reached 18 years of age shall acquire deed capacity in its entire volume from the moment of entering marriage. 3. All citizens shall have equal deed capacity, unless it is otherwise provided for by legislative acts. Article 18. The Prohibition of Deprivation and Restriction of Legal Capacity and Deed Capacity 1. No one may be restricted in legal capacity and deed capacity otherwise than in the cases and in accordance with the procedure provided for by legislative acts. 2. The non-compliance with the conditions and the procedure established by legislative acts for restricting the legal capacity and the deed capacity of citizens or of their right to engage in entrepreneurial or any other activities shall entail the invalidity of the act of the state body or any other authority which established that restriction. 3. An entire or a partial rejection by a citizen of his legal capacity or deed capacity and any other transactions aimed at restricting the legal capacity or deed capacity, shall be invalid except for the cases where such transactions are permitted by legislative acts. Article 19. Entrepreneurial Activities of Citizens amended by (10) Law of 2nd July 1997 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan. 1. Citizens shall have the right to engage in entrepreneurial activities without creating legal entities except for the cases provided for by this Code from the moment of the state registration. and other legislative acts. 2. The state registration of private entrepreneurs shall be based on arrival and it shall consist of registration as an individual entrepreneur. 3. The rules of this Code which regulate activities of the legal entities which are commercial organisations shall apply accordingly to entrepreneurial activities of citizens which are performed without formation of a legal entity, unless it is otherwise ensues from legislation or from the essence of the legal relations. 4. Individual entrepreneurs who are subject to one of the following conditions shall be subject to obligatory state registration: 1) use work of hired workers on a permanent basis; 2) have from their entrepreneurial activity an aggregate annual income calculated in accordance with tax legislation in an amount exceeding the amount of aggregate annual income which is exempt from tax as established for physical persons by the legislative acts of the Republic of Kazakhstan. Activities of said individual entrepreneurs without state registration shall be prohibited. 5. When an individual entrepreneur carries out activities which are subject to licensing, he must have a licence for the right to carry out such an activity. Licences shall be issued in accordance with the procedure established by legislation concerning licensing. The Government of the Republic of Kazakhstan shall have the right to establish a simplified procedure for issuing licences to individual entrepreneurs. Article 20. Property Liability of a Citizen 1. A citizen shall be liable for his obligations with all the property he has, except for the property upon which, claims may not be imposed, in accordance with legislative acts. 2. The list of the property of citizens upon which claims may not be imposed shall be established by the Civil Procedural Code of the Republic of Kazakhstan.
replaced by (10) Law of 2nd July 1997 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan.
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