The Parliament of the Republic of Kazakhstan has approved amendments to the legislation on rehabilitation and bankruptcy aimed at strengthening the protection of the rights of administrators involved in bankruptcy proceedings.
A bankruptcy administrator is responsible for forming the bankruptcy estate, analyzing the debtor’s financial condition, realizing the debtor’s assets, and conducting settlements with creditors. However, where the bankrupt debtor’s assets are insufficient, the payment of the administrator’s basic remuneration could remain unresolved.
To improve bankruptcy legislation and enhance the effectiveness of bankruptcy proceedings, amendments have been introduced to Article 11 of the Law of the Republic of Kazakhstan «On Rehabilitation and Bankruptcy».
In particular, the amendments establish a mechanism for recovering the unpaid basic remuneration of a bankruptcy administrator for a period of up to three months by imposing subsidiary liability on the bankrupt debtor’s officials in cases where they have violated the requirements of the legislation and the debtor’s assets are insufficient to satisfy creditors’ claims.
The amendments will provide additional protection for the rights of bankruptcy administrators, increase incentives for the effective and high-quality administration of bankruptcy proceedings, and at the same time strengthen the liability of the debtor’s officials for failure to perform the obligations established by law.
