The Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market
How many members must the board of directors of a joint-stock company have to constitute a quorum?
In accordance with the provisions of Articles 54 and 58 of the Law on Joint-Stock Companies, the board of directors must consist of no fewer than three members. At least thirty percent of the board members must be independent directors. The quorum required for holding a board meeting is determined by the company’s charter but must not be less than half of the total number of board members.
If the total number of board members is insufficient to reach the quorum established by the charter, the board of directors is required to convene an extraordinary general meeting of shareholders to elect new board members. The remaining members of the board of directors may only make decisions related to convening such an extraordinary general meeting of shareholders.
Accordingly, a board of directors of a joint-stock company that does not comply with the requirements of paragraph 5 of Article 54 and paragraph 1 of Article 58 of the Law on Joint-Stock Companies, in terms of maintaining a permanent total membership and quorum, is not authorized to adopt any decisions within its competence, except for the mandatory decision to convene an extraordinary general meeting of shareholders for the election of new board members.
What mistakes do borrowers most commonly make when taking out a mortgage?
The most common mistakes include underestimating one’s financial capabilities, focusing solely on the amount of the monthly payment without considering the total cost of the loan and the overall amount of interest paid, and overlooking additional expenses associated with purchasi...
What additional expenses, apart from the monthly payment, should be taken into account when purchasing a home with a mortgage?
When purchasing a home with a mortgage, it is important to consider not only the monthly loan payment but also additional expenses associated with acquiring and maintaining the property. These may include property appraisal costs, insurance, notarial and registration fees, taxes,...
Can a borrower lose their home due to a prolonged mortgage delinquency? What is the foreclosure procedure?
In the event of a prolonged failure to fulfill obligations under a mortgage loan, the legislation provides for the possibility of foreclosure on the mortgaged property. However, before such measures are taken, borrowers are provided with a number of tools to settle their debt. In...
What are the “gray” and “black” lists of droppers?
To combat dropper schemes, a centralized system for recording suspicious clients has been established. The system is operated by the Anti-Fraud Center of the National Bank, which receives information from banks, payment organizations, telecommunications operators, and law enforce...
What new requirements have been introduced for the remote issuance and reissuance of bank cards?
For the remote issuance and reissuance of bank cards, financial institutions are required to use two-factor authentication, including biometric identification. Bank cards may only be linked to Kazakhstan-registered mobile phone numbers, which reduces the risk of using foreign SIM...
What is “dropping” and what penalties are provided by law?
“Dropping” refers to the illegal provision, transfer, or use of access to a bank account, payment instrument, or identification tool, as well as the execution of unauthorized payments or money transfers, including on behalf of third parties, in exchange for financial compensation...
How has the regulator strengthened its oversight of collection agencies in recent years?
Since 2017, the Agency has pursued a regulatory policy aimed at strengthening oversight of collection activities, improving the functioning of the debt collection market, and reducing unfair collection practices. Since 2017, the following regulatory measures have been introduced:...
Does a debtor have the right to record a conversation with a collector?
Yes. Under subparagraph 7) of paragraph 1 of Article 16 of the Law on Collection Activities, a debtor and/or their representative has the right to independently record interactions with employees of a collection agency using audio and/or video recording equipment.
