Askhad Koshkarbayev’s Article in the AmCham’s Publication Investors’ Voice
nvestors’ Voice, April 2016 Spring Issue #69, the AmCham’s regular publication, published an article of Askhad Koshkarbayev, a partner of Sayat Zholshy & Partners, devoted to the issues of obtaining authorization for disposal of a subsoil use right.
Any subsoil use right and any asset related thereto (interests/shares in the corporate holder of such subsoil use right) shall be treated as civil matters and may be acquired or disposed of in compliance with the Kazakhstan Law On Subsoil and Subsoil Use (the “Law”).
The Law provides for a detailed description of the procedure for obtaining such authorization. However, unfortunately, the Law cannot capture each and every case that might occur in practice.
The article focuses on the following perplexing issues of obtaining authorization from the competent authority:
- May a person intending to dispose of a subsoil use right / related asset enter into a sale and purchase transaction on terms and conditions different from those set forth in the application for authorization to dispose of such subsoil use right/asset? If not, does it apply to all terms and conditions of the transaction?
- Is it possible to close such transaction if its key terms and conditions (quantity of shares/interests, transaction price or purchaser) have not changed?
- What action, if any, should be taken by the person authorized to dispose of a subsoil use right / related asset? Do they have to reapply? Or would it be sufficient to notify the appropriate authority of the changed terms and conditions? Would it be possible to file the amended transaction documents at the stage when the application for authorization is already being processed by the competent authority for the authorization to accommodate the new terms and conditions?
To see the full text of the article please click here.