Draft law “On labor unions of the Kyrgyz Republic” is brought up for public discussion on April 12, 2019
A group of Jogorku Kenesh deputies offers to specify the rights of trade unions and establish their responsibilities.
According to the explanatory note, an analysis of the activities of labor unions operating in accordance with the Law of the Kyrgyz Republic “On labor unions” dated October 16, 1998 No. 130, revealed the presence of numerous problems in their activities. In particular, lack of a unified policy in the activities of labor unions, lack of systematic work of the republican association with sectoral, regional and local labor unions, lack of responsibility of labor unions and its members for decisions made, lack of uniform requirements for the charter of a labor union and explicitly defined rights and obligations of labor unions.
In addition, it is proposed to establish mandatory requirements for charter of labor unions (the organizational structure and the procedure for forming a labor union, the procedure for participation as a member organization), to specify the rights of labor unions, to establish their duties, which are not explicitly provided in the current version of the Law.
Amendments have been introduced to regulations and legislative acts on investment funds activity
On April 1, 2019 the President of the Kyrgyz Republic Sooronbay Jeenbekov signed the Law of the Kyrgyz Republic “On Amendments to Certain Legislative Acts on the Issues of Investment Funds Activities”.
The law was adopted by the Jogorku Kenesh of the Kyrgyz Republic on February 20, 2019.
In order to improve the legislation of the Kyrgyz Republic on activities of investment funds, the adopted Law introduced changes and additions:
to the Law of the Kyrgyz Republic “On Investment Funds” dated July 26, 1999 No. 92;
to the Law of the Kyrgyz Republic “On Securities Market” dated July 24, 2009 No. 251
to the Law of the Kyrgyz Republic “On economic partnerships and companies” dated November 15, 1996 No. 60;
to the Law of the Kyrgyz Republic “On Joint-Stock Companies” dated March 27, 2003 No. 64.
One of the main changes is addition to the Law of the Kyrgyz Republic “On Investment Funds” dated July 26, 1999 No. 92 of the definition of “qualified investor”. According to the innovation, “a qualified investor is an individual or a legal entity, including a non-resident of the Kyrgyz Republic, which complies with requirements set forth by the legislation of the Kyrgyz Republic on the securities market and qualified investor. A qualified investor shall indicate its status as such upon signing of any documents aimed at investing its money in securities of investment funds.”
In addition, the following definition was added: “An investment fund for qualified investors is a closed investment fund shares of which can only be owned by qualified investors.”
According to the lawmakers, the introduction of the institute of “qualified investor” will allow diversification of the domestic securities market and would allow creation of a new group of investors. In turn, the creation of more flexible and favorable working conditions for qualified investors would allow attraction of new participants to the stock market and in general will have a positive effect on market activity.
The law enters into force upon fifteen days expiration after the date of official publication.
New law “On Guarantee Funds in the Kyrgyz Republic” is adopted
The purpose of the document is to improve the legal regulation of relations arising from the creation and operation of guarantee funds (GF) in the country. The law defines the legal and economic foundations of activities in this area.
According to the new wording of the law, regulation and supervision of GF’s activities will be transferred to the National Bank “as the body most appropriate for its functions and tasks”, and the law will provide a provision for the NB to determine the amount of capital of such funds. The National Bank will introduce a procedure for registration of funds; certain requirements shall be developed for legal entities that wish to engage in the work of the GF. The powers of the NB will include inspecting the activities of guarantee funds, receiving reports and applying measures of influence, and GF will be subject to mandatory external audit.
From the moment the law comes into force (15 days after the official publication), the current document with the same name shall no longer be valid.
Guarantee funds make bank loans more affordable for small and medium-sized enterprises by providing guarantees (sureties). These loans should be aimed at business development, expansion of production, acquisition and modernization of fixed assets, introduction of new technologies, innovative activities and the opening of new enterprises.
New state duty rates have been approved and introduced in the Kyrgyz Republic for filing lawsuits to the courts, notarization, obtaining legal documents and copies of documents from Civil Registry Office
On April 15, 2019 the Prime Minister of the Kyrgyz Republic, M. Abylgaziyev, signed the Resolution of the Government of the Kyrgyz Republic “On approval of state duty rates”.
This way, in accordance with Article 139 of the Code of Non-Tax Revenues, Articles 10 and 17 of the Constitutional Law “On the Government of the Kyrgyz Republic”, the Government has decided to approve state duty rates in accordance with the annex to the Resolution.
The Resolution comes into force on January 1, 2019.
The application containing the changes in the state duty rates can be found at the link below.
Amendments were introduced to the law “On audit activity”
On April 1, 2019, the President of the Kyrgyz Republic Sooronbay Jeenbekov, signed the Law “On Amendments to the Law of the Kyrgyz Republic “On Audit Activities”.
The law was adopted by the Jogorku Kenesh of the Kyrgyz Republic on February 20, 2019.
The purpose of the adopted law is to reinforce the requirements for audit organizations and auditors aimed at improving the efficiency and quality of audit inspections.
The adopted Law introduces amendments to the Law “On Audit Activity” according to which:
– An auditor carries out his/her activities under an employment contract or agreement (contract) as an auditor in the composition of only one audit firm.
– The minimum size for the authorized capital of an audit organization has been established in amount of KGS 100 000 (one hundred thousand soms).
– The procedure for certification of individuals wishing to engage in audit activities in the Kyrgyz Republic is determined by the Government of the Kyrgyz Republic.
The law enters into force upon fifteen days expiration after the date of official publication. The law was published in the newspaper “Erkin Too” dated April 5, 2019 N 25.
Jogorku Kenesh Committee on Fuel and Energy Complex and Subsoil Use approved the concept of draft law on amendment to condition on license extension at the development stage
On April 2, 2019 Jogorku Kenesh Committee on Fuel and Energy Complex and Subsoil Use approved concept of the draft law “On Amendments to the Law of the Kyrgyz Republic “On Subsoil”.
The draft law is proposed to change the terms of the extension in terms of mining activity. The new edition of these renewed conditions provides for mandatory receipt of a license agreement for works (i.e., completion of design) and mining of at least half of the mineral reserves, which are provided by the license agreement for works.
At the same time, the renewal condition, which requires at least half of the reserves to be mined, will not apply to license agreements issued less than a year before the license expires.
It is also proposed to exclude the application of this condition to the users of groundwater, since water is mainly used to ensure household and drinking needs of enterprises of various profiles (boarding houses, various industries, services) and supply to the population.
It is also proposed to exclude the use of this condition for developers of sand and gravel mixtures and loams, due to the fact that the granting of rights to use them is assigned to the jurisdiction of local state administrations through state registration.