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The document ceased to be valid since  April 15, 2017 according to Item 2 of the Resolution of Board of National Bank of the Republic of Kazakhstan of January 28, 2017 No. 19

RESOLUTION OF BOARD OF NATIONAL BANK OF THE REPUBLIC OF KAZAKHSTAN

of June 28, 2001 No. 262

About approval of Rules of the forced redemption and implementation of shares of the insurance (reinsurance) organization

 

It is approved

National Commission

Republic of Kazakhstan

on securities

of May 26, 2001

 

For the purpose of implementation of the Law of the Republic of Kazakhstan "About insurance activity" the Board of National Bank of the Republic of Kazakhstan DECIDES:

1. Approve, the Rules of the forced redemption and implementation of shares of the insurance (reinsurance) organization approved with the National commission of the Republic of Kazakhstan on securities, enclosed and to enact them and this resolution after fourteen days from the date of state registration in the Ministry of Justice of the Republic of Kazakhstan.

2. To department of banking and insurance supervision (Mekishev A. A.):

1) together with Legal department (Sharipov S. B.) to take measures to state registration in the Ministry of Justice of the Republic of Kazakhstan of this resolution and Rules of the forced redemption and implementation of shares of the insurance (reinsurance) organization;

2) in ten-day time from the date of state registration in the Ministry of Justice of the Republic of Kazakhstan to bring this resolution and Rules of the forced redemption and implementation of shares of the insurance (reinsurance) organization to data of the interested divisions of central office, territorial branches of National Bank of the Republic of Kazakhstan and the insurance (reinsurance) organizations.

3. To impose control of execution of this resolution on the Chairman of National Bank of the Republic of Kazakhstan Marchenko G. A.

 

Chairman

National Bank of G. A. Marchenko

Approved by the Resolution of Board of National Bank of the Republic of Kazakhstan of June 28, 2001 No. 262

Rules of the forced redemption and implementation of shares of the insurance (reinsurance) organization

These rules are developed according to the Law of the Republic of Kazakhstan "About insurance activity" (further - the Law) and other regulatory legal acts, determine procedure for the forced redemption and implementation of shares of the insurance (reinsurance) organization (further - insurance company) authorized state body by regulation and supervision of insurance activity (daleeupolnomochenny state body).

Chapter 1. General provisions

1. The forced share repurchase of insurance company and implementation of the redeemed shares are subject to application by authorized state body for the purpose of protection of legitimate interests of her insurers, insured, beneficiaries and ensuring stability of the insurance market. The decision is on this matter made on insurance companies which financial condition falls under requirements, the stipulated in Clause 61 Law.

2. The forced share repurchase of insurance company and the realization of the redeemed shares is enabled according to the decision of authorized state body and does not require availability of declaration of will of shareholders of insurance company.

3. The authorized state body uses the procedure of forced share repurchase of insurance company only for the purpose of ensuring transition of the property right to shares of insurance company to the new shareholder (new shareholders), under no circumstances without being final acquirer (owner) of the called rights.

4. The basic concepts used in these rules:

the redeemed shares - the shares of insurance company acquired by authorized state body according to these rules;

the investor - the legal entity or physical person which entered negotiations with authorized state body concerning acquisition of the redeemed shares on the conditions determined by these rules;

the new shareholder - legal entity or physical person to which passed the property rights according to the redeemed shares on the conditions determined by these rules;

the former shareholder - person who is the shareholder of insurance company, belonging to which shares of this insurance company were compulsorily redeemed by authorized state body according to these rules.

Chapter 2. Bases and conditions of the forced redemption and implementation of shares

5. The forced redemption of all shares of insurance company can be performed in case of establishment of negative difference between the asset cost calculated taking into account their classification by quality and liquidity and obligations of insurance company, for the purpose of realization to their new shareholder (new shareholders).

6. Calculation of difference between asset cost and obligations of insurance company is performed according to regulatory legal acts of authorized state body.

7. (-and) insurance company the person which is meeting requirements imposed by the legislation for the shareholder of insurance company, having opportunity (separately can be the investor or together with other investors) to fulfill all agreement obligations of insurance and reinsurance, to provide financial stability and solvency of insurance company, and also to satisfy other conditions, stipulated in Item 16 these rules.

8. The decision on implementation of the redeemed shares is made by authorized state body in case of representation by the investor (-and) the documents confirming availability at it (them) sufficient financial and other opportunities for accomplishment of conditions, provided by Items 7, of 16-18 these rules.

Chapter 3. Procedure of carrying out forced share repurchase and their realization

9. Registration of forced share repurchase of insurance company and their further realization is made by adoption by authorized state body of the decision on forced share repurchase and the decision on sale of shares of insurance company to the investor(s). At the same time the purchase and sale agreement of the redeemed shares of insurance company becomes effective from acceptance date authorized state body of the decision on implementation of such shares of insurance company to the investor(s).

10. In case of forced share repurchase of insurance company the agreement or any other documents concerning forced share repurchase between authorized state body and shareholders of insurance company are not drawn up, as such transaction is made for the purpose of protection of legitimate interests of her insurers, insured, beneficiaries and ensuring stability of the insurance market.

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