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Sadyr Japarov approves imposition of external management on companies

Law was signed on amending some legislative acts of the Kyrgyz Republic (the Law on Joint Stock Companies, the Criminal Code). Presidential press service reported.

Sadyr Japarov approved the bill adopted by the deputies of the Parliament on May 6. The main purpose of the law is to introduce norms governing the grounds and procedure for imposition of external management on companies that have violated the requirements of subsoil protection, environmental and industrial safety, posing an immediate threat to the life or health of people working or living in the zone of influence of the work.

In addition, the Criminal Code has been supplemented with an article providing for liability for violation of restrictions on the management bodies of a joint-stock company in case of imposition of temporary external management.

The law comes into force on the day of its official publication.

Earlier, the deputies adopted a law allowing imposing external management at the enterprise. In addition, there is a court decision to recover a compensation in the amount of more than $ 3 billion for environmental damage from the company.

Centerra Gold Inc. announced that it became aware of a number of legal and political developments in Kyrgyzstan that may have an impact on the ownership and its rights of Kumtor mine under the revised 2009 project agreements.

Accordingly, the company understands that the adopted law on external management would apply in circumstances where Kumtor Gold Company (KGC) violates certain Kyrgyz laws relating to safety and thereby creates an immediate threat to the life or health of people:

  • Prohibits KGC’s managers from managing the mine (or else face criminal sanctions);
  • And enables the Prime Minister of the Kyrgyz Republic to appoint an external manager to take control of all management activities of KGC, including its bank accounts.
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