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Article 35. The Legal Capacity of a Legal Entity

amended by (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

(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.

1. A legal entity may have civil rights and bear obligations associated with its activity in accordance with the present Code. Commercial organisations, except for state-owned enterprises, may have civil rights and bear civil obligations, which are necessary for the exercise of any types activity which are not prohibited by legislative acts or their foundation documents.

In the cases stipulated by legislative acts, for legal entities carrying out certain types of activity, a possibility may be excluded or restricted to engage in another activity.

A legal entity may engage in certain types of activities, the list of which is defined by legislative acts, only on the basis of a licence.

2. The legal capacity of a legal entity shall arise at the moment of its creation and it shall cease at the time of completion of its liquidation. The legal capacity of a legal entity in a sphere of activities which requires a licence, shall arise from the moment of the procurement of such a licence and it shall cease at the moment of its revocation, expiry of the term of its validity, or recognition of it as invalid in accordance with the procedure established by legislative acts. 3. The legal capacity of a legal entity who is a non-commercial organisation and maintained solely at the expense of the state budget (state institution) shall be defined by this Code and other legislative acts of the Republic of Kazakhstan.

Article 36. The Rights of Foundation Parties (Participants) With Regard to the Property of the Legal Entities Formed by Them

as amended by (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.

1. The foundation parties (participants) of a legal entity may have obligatory or corporeal rights with regard to the separate property of the legal entity.

2. Business partnerships, joint-stock companies and co-operatives shall be recognised as legal entities whose property remains under the obligatory rights of their participants (foundation parties).

3. The organisations which hold their property under the right to business authority or under the right of operational management shall be recognised as legal entities whose properties remain under the right of ownership or under other corporeal rights of their participants (foundation parties).

4. Public associations, public foundations and religious associations shall be recognised as legal entities, and their foundation parties (participants) shall not retain any property rights with regard to their property.

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