Government is to toughen shareholders' rights protection

Astana, 17 September 2008, (Khabar) - The government is to toughen control over the activity of construction companies.

The deputy prime-minister for trade and industry, Yedil Mamytbekov, has presented amendments to the law entitled "About shared construction" to the mazhilis. In particular, it will toughen claims for builders and will only let companies who have been existence for at least 3 year enter the market.

It will also require the construction companies to have fixed capital amounting to 100 000 monthly
calculation indexes. It is expected that companies will need to have 20% of
the invested money in their accounts and to hold a yearly audit of the
financial accounts. According to Yedil Mamytbekov, these measures will help
stabilize the work in the constructional market as well as to protect
shareholders' investments.

Yedil Mamytbekov, Deputy prime-minister for trade and industry of RK:
- Instead of the earlier established general license we will introduce a one
time only license for organisation of housing construction by means of
attracting shareholders' money. This measure will help local executive
authorities control the intended use of shareholders' money for every unit.