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Article 69. Imposition of a Claim upon the Share of a Participant

In a General Partnership

amended by (11) Law of 11th July 1997 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of Banking Activity.

1. The imposition of a claim upon the share of a participant in the property of a general partnership for his personal debts shall be allowed only in the case where his other assets are not sufficient to cover the debt. Creditors of such a participant shall have the right to demand from the general partnership of appropriation of a part of the property of the partnership in proportion to the share of the debtor in the charter fund authorised capital for the purpose of imposing the claim on that property. The part of property of the partnership which is subject to appropriation, or its worth, shall be determined on the basis of the balance-sheet compiled at the moment of the presentation by the creditors of their claims to appropriate [compensation].

2. The imposition of a claim upon the share of a participant in the property of a general partnership shall terminate his participation in the partnership, and it shall entail the consequences which are provided for by Articles 70 and 71 of this Code.

Article 70. The Liability of Participants for Debts of a General Partnership

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)".

1. If in liquidating a general partnership it so happens that the property available is not sufficient to cover all its debts, the participants shall bear joint liability for the missing part, with all their property upon which in accordance with legislative acts, a claim may be imposed.

A participant of a general partnership shall be liable for the debts of the partnership irrespective of whether they emerged after or before his entering the partnership, unless otherwise specified in legislative acts.

2. A participant who repaid the debts of a general partnership in excess of his share in the property of the partnership, shall have the right to appeal with a regress claim for the appropriate amount, to the other participants who shall bear a shared liability before him in proportion to their shares in the property of the partnership.

3. A participant who left a general partnership of his own accord, or was excluded from the partnership upon the decision of the court, and also a legal successor (inheritor) of a deceased participant who refused the proposal to enter the partnership, shall be liable for the obligations of the partnership which arose prior to the moment of their departure, during the two year period from the date of the approval of the report on the activities for the year in which they exited the partnership.

4. A participant who left a general partnership in a procedure of transferring his share to any other participant or third persons, in a procedure of imposing a claim upon his share in the property of the partnership by a creditor (creditors), and also a legal successor (inheritor) of a deceased participant, whom the other participants denied acceptance to the partnership, shall not be liable for the obligations of the partnership.

5. After the cessation of a general partnership, the participants shall be liable upon the obligations of the partnership, which arose prior to the moment of its cessation, for two years from the date of the cessation of the partnership.

6. Arrangements of participants, which alter the procedure of their liability for the obligations of the general partnership, which are is specified in this Article, shall be invalid.

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