Kazakhstan Parliament adopted amendments limiting state participation in private business

Photo

The deputies of the Senate (upper house) of the Parliament of Kazakhstan adopted a law "On amendments and additions to certain legislative acts of the Republic of Kazakhstan concerning the limitation of state participation in business activities," the agency reports.

The main objective of the law is to improve the legislation in the field of the management of state assets by developing legal framework for the limitation of the state participation in those economic sectors, where business activities are involved, which will promote competition and create favorable conditions for private entrepreneurs in general.

According to the Minister of National Economy Erbolat Dossaev, the involvement of the state in small businesses is prohibited by the law "On private entrepreneurship". In addition, within the framework of the laws "On competition" and "On State Property", severe limitations shall be imposed on the creation of new state enterprises and subsidiaries, the state companies failing to comply with the rules of the state participation limitation shall be privatized, the competencies of the antimonopoly body shall be extended.

Moreover, the law stipulates that the antimonopoly body shall conduct the annual analysis of the commodity markets to identify inappropriate participation of the state in business environment.

At the same time, the law provides for the liquidation of enterprises and legal entities with 100 percent of state participation, and if they are not privatized within two years from the date when the decision enters into force, the share of state shall be alienated.

The Minister also noted that the rule is introduced obliging companies to post the information on major shareholders on their corporate websites, as well as the information on members of the board holding managerial or other positions in another legal entity, specifying his or her responsibilities and duties in another legal entity.

IA Novosti-Kazakhstan