The Law of the Republic of Kazakhstan of 1 February, 2012 № 550-IV «On Sovereign Wealth Fund»

The Law of the Republic of Kazakhstan of 1 February, 2012 № 550-IV
«On Sovereign Wealth Fund»

Unofficial translation

This law defines the legal status, procedure of activity, goals, tasks and powers of the sovereign welfare Fund, the procedure of interaction of the sovereign welfare Fund and state bodies, as well as individual particularities of legal status of legal entities, the shares (equity stake) of which belong to the sovereign welfare Fund, and other organizations, included into the group of sovereign welfare Fund.

Chapter1. General provisions

Article 1. Basic definitions, used in this Law

The following basic definitions shall be used in this Law:

1) indirect ownership - ownership of each subsequent organization of the shares of the Fund (equity stake in charter capital) of another organization on the right of ownership or entrusted management;

2) the company - the national development institutions, national companies and other legal entities, more than fifty percent of voting shares (equity stakes) of which belong to the Fund of the right of ownership or entrusted management;

3) The development strategy of the Fund - a document specifying and justifying the mission, vision, goals and objectives of the Fund on management of companies, aimed at increasing long-term denomination (value) of the organizations, included into the group of the Fund, effective management of assets,included into the group of the Fund;

4) the group of the Fund - the Fund, companies, their subsidiaries, more than fifty percent of voting shares (equity stakes) of which are owned by the companies, as well as legal entities, more than fifty percent of voting shares (equity stakes) of which is owned by the specified subsidiaries of companies in respect of which this Law establishes a special legal status.

The group of the Fund shall not include:

legal entity shares (equity stakes) which has gone into the property of the bank, included in the group of the Fund, upon the announcement of the auction sale of the pledged shares (equity shares) failed in accordance with the civil legislation of the Republic of Kazakhstan;

banks, shares of which has entered in the property of the Fund by the decision of the Government of the Republic of Kazakhstan in accordance with legislation of the Republic of Kazakhstan in order to protect the interests of creditors of the bank and to ensure the stability of the banking system of the Republic of Kazakhstan;

5) the sovereign welfare Fund (hereinafter - the Fund) - a national managing holding.

Article 2. The legislation of the Republic of Kazakhstan on the Fund

1. The legislation of the Republic of Kazakhstan on the Fund shall be based on the Constitution of the Republic of Kazakhstan, shall consist of this Law and other regulatory legal acts.