On enterprises
LAW OF TURKMENISTAN
On amendment to the Law of Turkmenistan
«On Enterprises»
I. To amend the Law on Enterprises adopted on 15 June 2000 (Bulletin of the Mejlis (Parliament), 2000, No. 2, p. 13; 2009, No. 2, p. 33; 2012, No. 1, p. 48, No. 2, p. 51; 2013, No. 4, p. 82; 2015, No. 1, p. 31; 2016, No. 1,p. 71; 2017, No. 4, p. 147; 2018, No. 2, p. 43) as follows:
In article 8, paragraph 2, delete the words "and management";
Paragraph 5 of the first part of article 18 should be declared null and void;
In article 60, part 1, paragraph 5, the words "local authorities" should be replaced by the words "local public authorities";
In the second part of article 62, the words "local authorities, local executive bodies and" should be deleted.
II. This Law shall come into force on the date of its official publication.
President of Gurbanguly
Turkmenistan Berdimuhamedov
Ashgabat city
8 June 2019
№ 152-VI.
LAW OF TURKMENISTAN
On amendment to the Law of Turkmenistan
«On Enterprises»
((Bulletin of the Mejlis (Parliament), 2015, № 1, p. 31)
I. To amend the Law on Enterprises adopted on 15 June 2000 (Bulletin of the Mejlis (Parliament) 2000, No. 2, p. 13; 2009, No. 2, p. 33; 2012, No. 1, p. 48, No. 2, p. 51; 2013, No. 4, p. 82) as follows:
1. In the text of the Law in the national language, the following words: «filiallary», «filialyny», «filiallarynyň», «filialy», «filialyň», «filiallar», «filiallaryny», «adresi», «adrese», «adresini», «adresiniň», «ustawyny», «ustawy», «ustawda», «ustawynda», «ustaw», «ustawyň», «ustawynyň», «ustawydyr», «ustawyna», «ustawda», «punktunda», «punktlarynda», «suda», «sud», «suduň», «sudda», «kalendar», «kopiýasy», «walýuta», «walýutasynda», «prosentden», «prosentlerde», «prosentiniň», «kreditorlaryna», «kreditorlar», «kreditorlaryň», «kreditorlarynyň», «kreditora», «kreditorlary», «kreditorynyň», «kreditleri», «arhitektura» should be replaced correspondently by the words «şahamçalary», «şahamçasyny», «şahamçalarynyň», «şahamçasy», «şahamçanyň», «şahamçalar», «şahamçalaryny», «salgysy», «salga», «salgysyny», «salgysynyň», «tertipnamasyny», «tertipnamasy», «tertipnamada», «tertipnamasynda», «tertipnama», «tertipnamanyň», «tertipnamasynyň», «tertipnamasydyr», «tertipnamasyna», «tertipnamada», «bendinde», «bentlerinde», «kazyýete», «kazyýet», «kazyýetiň», «kazyýetde», «senenama», «göçürmesi», «pul», «pulunda», «göterimden», «göterimlerde», «göteriminiň», «algydarlaryna», «algydarlar», «algydarlaryň», «algydarlarynyň», «algydara», «algydarlary», «algydarynyň», «karzlary», «binagärlik».
2. In article 21, part two, paragraph 1, of the text of the Law in the national language, the words a «guramaçylyk-hukuk şekiliniň» should be replaced by the words «guramaçylyk-hukuk görnüşiniň».
3. The second paragraph of Article 31 should read as follows:
"The legal status of branches and representative offices of an enterprise is determined by the Civil Code of Turkmenistan.
4. Second sentence of Article 32 should be read as follows:
«The Order of establishment and activity of partnership are regulated by the Civil Code of Turkmenistan”.
5. In second part of Article 35 the words “By the Law of Turkmenistan” “About state statistics” should be replaced by the words “in the field of statistics”.
6. The text of Article 36 should read as follows:
«1. In accordance with the legislation of Turkmenistan, an enterprise has the right to open the bank accounts in credit institutions of Turkmenistan for storage of funds and exercising all types of settlement, credit and cash operations.
2. The procedure for opening bank accounts of enterprises in foreign credit institutions is established by the legislation of Turkmenistan.
3. The Enterprises shall be fully responsible for the observance of fiscal discipline referred to the settlement, credit and cash operations, exercised by them.”
7. Part 1 of Article 37 should be read as follows:
“1. As a rule, cash settlements of the enterprise under its obligations are made through credit institutions in a cashless manner.”.
8. Article 40 should be read as follows:
Article 40. Labor relations at the Enterprise
1. The Enterprise carries out its activities using the labor of its employees. Relations between the enterprise and the employee are regulated by labor legislation of Turkmenistan, an employment contract and a collective agreement.
The terms and conditions of the Labor Agreement, worsen the employee position compared with the Labor Legislation of Turkmenistan, should be invalid.
2. The enterprise provides its employees with the minimum wage as well as healthy and safe working conditions established in Turkmenistan.
3. The enterprise should be liable for the damage (harm) caused to the life and health of the employee in accordance with the procedure established by the legislation of Turkmenistan.
4. State pension insurance, voluntary medical insurance, pension security and social protection measures for enterprise employees are regulated by legislation of Turkmenistan.
5. Issues related to the social development of the enterprise, the form and system of remuneration of labor, work and rest regimes, labor protection and other labor and socio-economic issues may be regulated by a collective agreement in accordance with labor legislation of Turkmenistan.”
9. Text of Article 41 should be read as follows:
“The taxation of the Enterprise is carried out in accordance with the Tax legislation of Turkmenistan”.
10. In Article 44:
In the first part therein the words «with Law of Turkmenistan «On auditing activity in Turkmenistan» should be replaced by the words « with legislation of Turkmenistan in the field of auditing activity»;
In the second part in the national language the following words «kontrollyk we gözegçiligi» should be replaced «gözegçiligi we gözegçilik barlagyny».
11. The seventh part of the Article 50 should be read as follows:
«7. The authorized capital of a State enterprise may be reduced in accordance with the legislation of Turkmenistan.».
II. This Law shall come into force on the date of its official publication.
President of Gurbanguly
Turkmenistan Berdimuhamedov
Ashgabat city
28 February 2015
№ 197-V.
LAW OF TURKMENISTAN
On amendment to the Law of Turkmenistan
«On Enterprises»
(Bulletin of the Mejlis (Parliament), 2013, № 4, p. 82)
I. To amend the Law of Turkmenistan “On Entreprises”, adopted as of 15 June 2000 (Bulletin of the Mejlis (Parliament), 2000 ., № 2, p. 13; 2009 ., № 2, p. 33; 2012 ., № 1, p. 48, № 2, p. 51), as follows:
«3. The legal basis for the establishment of a public enterprise is an act on its establishment adopted by the Cabinet of Ministers or another authorized State body in accordance with its competence.
4. The minimum size of the statutory fund of a public enterprise is determined by the state body that adopted the act on its establishment.».
II. This Law shall come into force on the date of its official publication.
President of Gurbanguly
Turkmenistan Berdimuhamedov
Ashgabat city
9 November 2013
№ 452-IV.
LAW OF TURKMENISTAN
On amendment to the Law of Turkmenistan
«On Enterprises»
(Bulletin of the Mejlis (Parliament), 2012, № 2, p. 51)
I. To amend the Law of Turkmenistan “On Entreprises”, adopted as of 15 June 2000 (Bulletin of the Mejlis (Parliament), 2000., № 2, p. 13; 2009, № 2, p. 33; 2012., № 1, p. 48), as follows:
1. In the text of the Law on the national language the following words «ustaw hazynasy» should be replaced by the words «esaslyk maýasy».
2. Part second of Article 9 should be considered as invalid.
3. Part first of Article 24 should be read as follows:
«1. The Enterprise carry out its activity as following organizational-legal forms:
Public enterprise;
Individual Enterprise;
Cooperative Enterprise
Joint Venture;
Enterprise of the non-governmental organization;
Economic Society;
Joint-Stock Company.»
4. To supplement Article 271 with the following:
Article 271. Joint Stock
1. Joint venture is an enterprise established in accordance with the procedure set up by the legislation of Turkmenistan aimed to benefit from the generalization of the property of natural persons and/or legal entities of Turkmenistan and of individuals and/or legal entities of foreign countries.
2. A joint venture is established based on an agreement concluded between its founders. In this case, the share of each founder in the authorized capital should be at least 10 percent of the total property.
The property of a joint venture is formed by consolidation in the authorized capital the shares (deposits) of individuals and/or legal entities that are its participants as well as income.
4. The minimum size of the authorized capital of a joint venture shall be 100 times the minimum wage established in Turkmenistan.
5. A joint venture shall be responsible for the obligations undertaken within the limits of its ownership.
6. The highest body of a joint venture is the general meeting of its members. The terms and procedure for convening and holding the general meeting shall be defined in the constituent documents of the joint venture.
II. This Law shall come into force from the date of its official publication.
President Gurbanguly
Of Turkmenistan Berdimuhamedov
г. Ашхабад,
4 мая 2012 года
№ 300-IV.
LAW
OF TURKMENISTAN
«On Enterprises»
(Bulletin of the Mejlis (Parliament),, 2000 ., № 2,p.13)
(As amended and supplemented by the Laws of Turkmenistan
No. 32-IV of 18.04.2009, No. 297-IV of 31.03.2012, No. 300-IV of 04.05.2012, No. 452-IV of 09.11.2013, No. 197-V of 28.02.2015, No. 386-V of 26.03.2016, No. 636-V of 04.11.2017,
09.06.2018 № 41-VI and 08.06.2019 № 152-VI)
This Law defines the legal, economic and organizational basis for the creation, operation and termination of enterprises in Turkmenistan.
Chapter I. General provisions
Article 1. Enterprise
The enterprise is an independent subject of economic activity, established in accordance with this Law for the production of products, sale of goods, performance of work and provision of services to meet the needs of society and profit.
Article 2: Legislation on Enterprises
Legislation of Turkmenistan on Enterprises is based on the Constitution of Turkmenistan and includes this Law and other legislative acts regulating the relations in the area of enterprise activity.
Article 3: Legal status of the Enterprise
1. The legal status of an enterprise is a system of set forth rights and obligations of the enterprise as a subject of law.
2. An enterprise becomes a subject of law from the moment of its state registration.
3. An enterprise in its own name acquires and implements rights and takes responsibilities.
Article 4: Guarantees for Enterprise rights
1. The State guarantees the observance of the rights and legitimate interests of enterprises, provides them with equal opportunities to access material, financial, labor and other resources, and promotes free competition.
2. The protection of information including the official or commercial secrecy of the enterprise is ensured.
3.Public Authorities or their officials should not interfere in the activities of an enterprise, unless t in cases provided for by legislation of Turmenistan.
Article 5. Enterprise’s Attributes
1. The enterprise has its own name, legal address and seal.
2. The enterprise is entitled to have to have trademarks and other marks used in its activities.
Article 6. The name of the enterprise
1. The company has its own name. The Enterprise is subject to state registration under its name.
2. The name of the enterprise shall contain:
The particular name of the enterprise, distinguishing it from existing enterprises;
Full designation or abbreviation of the legal form.
An enterprise should not use the name that is identical or similar to the name of another enterprise already registered, by definition of the state registration authority,
3. Branches and representative offices of an enterprise shall operate under its name.
4. The enterprise registered its name shall have the exclusive right to use it on goods, their packaging, in advertising, signboards, prospectuses, invoices, official letterheads and other documentation related to its activities.
5. The name of an enterprise with foreign participation may include an indication of the state ownership of its founders.
Article 7: Legal address
The legal address of the enterprise is the address of the enterprise officially registered and entered in the Unified State Register of Legal Entities in accordance with the set forth procedure, determines its location.
2. An enterprise may have only one legal address.
Article 8: Seal and letterheads of the enterprise
The company uses seal, stamps and letterheads in its activities. Seal, stamp and letterheads of the company contain the official name of the company.
The seals and letterheads of enterprises, which are State-owned enterprises and are part of the system of State bodies, should include the name of their principal State body and the State emblem in accordance with the procedure set forth by the legislation of Turkmenistan.
Article 9. Enterprise’s management
1. The procedure for the enterprise management shall be determined in accordance with the present Law and other normative legal acts of Turkmenistan and fixed in the constituent documents of the enterprise.
Part 2 is invalid under Law of Turkmenistan No. 300-IV of 04 May 2012.
Article 10. Terms of the Enterprise’s operation
An enterprise shall be established without limitation of the term of its activity, unless other terms of activity are stipulated by the legislation or constituent documents of the enterprise.
Chapter II. Establishment of enterprises
Article 11: General conditions for an Enterprise establishment
1. An enterprise is established by the decision of its founder(s).
2. The founders of the enterprise may be legally capable natural persons and legal entities, including foreign countries.
3. An enterprise may be established based on the separation of one or more new enterprises from the enterprise, as well as resulted of its division.
Article 12. Enterprise’s Constituent Agreement
The basis for the establishment and operation of the enterprise is the Constituent agreement, which is concluded by the founders of the enterprise. The Constituent Agreement is the founding document of the enterprise.
2. The Constituent Agreement is not concluded when establishing a state-owned enterprise, as well as if one founder establishes the enterprise.
3. The Constituent Agreement should contain:
The decision to establish an enterprise, its name and location;
List of founders with their name, legal address, bank details, if the founder is a legal person; or name, place of residence and identity document details, if the founder is a natural person;
Procedure for establishing a company;
Conditions for the founders to carry out the activities to establish the enterprise;
Determination of the powers of the founders, as well as other persons who are authorized to represent the interests of the enterprise being created in the process of its creation and registration;
The size of the authorized capital;
Information on the composition, amount and timing of each founder's monetary contribution to the authorized fund or monetary assessment of the contribution in kind or in the form of property rights;
The decision-making procedure for making additional contributions to the authorized capital, as well as the consequences of late contributions;
The decision on approval of the charter of the enterprise;
The procedure for distribution of profits and reimbursement of losses;
The procedure of founders (participants) resignation.
The Constituent Agreement of an enterprise may also include other conditions related to the establishment of the enterprise and its activities not contradicted this Law or other legislative acts of Turkmenistan.
4. The object and purposes of the enterprise's activity may be stipulated in the Constituent Agreement.
5. All founders or their authorized representatives should sign the agreement.
The representatives of the founders should have the corresponding powers, provided them the right to establish an enterprise and to sign the Constituent Agreement.
The heads of legal entities, being the founders may represent the legal entities on behalf of the respective legal entity without power of attorney.
6. The terms and conditions of Constituent Agreement are binding for the founders signed this agreement, as well as for new participants joined the company after its establishment and registration.
Article 13. Charter of the enterprise
1. The Charter of the enterprise is a document that defines the legal status of the enterprise as a legal entity. The Charter of the enterprise is the constituent document of the enterprise.
2. The Charter should contain:
Name, legal address of the enterprise;
list of founders (shareholders) of the enterprise with their name, legal address, bank details, if the founder is a legal entity; or name, place of residence and identity document details, if the founder is an individual;
purposes and activities of the enterprise;
information on the size of the authorized capital, shares of the founders in the property of the enterprise;
the procedure for the transfer of shares of participants in the enterprise;
information on the management and control bodies of the enterprise, the procedure of their formation and competence;
the procedure for distribution of profits and compensation of losses;
conditions of reorganization and termination of activities.
If one person creates an enterprise, its charter also defines the procedure of formation of property and distribution of income.
The charter may also contain other provisions not contrary to legislation of Turkmenistan.
3. The charter should be approved by the general meeting of founders unanimously and signed by all founders or their authorized representatives. If the founder of the enterprise is one person, the charter is approved and signed by the founder.
4. Copies of the charter, as well as all documents referred to its subsequent alterations, are kept in the state registration body.
Chapter III. State registration of enterprises
Article 14. Aims and objectives of state registration of enterprises
State registration of enterprises is carried out for the purpose:
To certify the establishment of an enterprise in Turkmenistan and its reorganization or liquidation;
To keep a single record of enterprises established in Turkmenistan and subject to reorganization or liquidation;
Providing legal entities and individuals with relevant information on enterprises established, reorganized or liquidated in Turkmenistan.
Article 15. State registration of enterprises
1. State registration of enterprises is carried out by the Ministry of Finance and Economy of Turkmenistan based on conclusions issued by its subdivisions in the provinces and Ashgabat.
2. Under article 17 of the Law, the State registration of enterprises requires the submission of documents, the list of which is set out in the Law.
3. A certificate of State registration is issued to the state registered enterprises.
4. State registration data are included in the Unified State Register of Legal Entities, held by the Ministry of Finances and Economy of Turkmenistan.
5. When a decision is taken on the registration of an enterprise, the Ministry of Finance and Economic Affairs should send an extract from the Unified State Register of Legal Entities to the State Statistics Committee, the State Customs Service and the Central Bank within 10 days.
Paragraph 2 of part 5 is null and void under Act No. 32-IV of 18 April 2009.
Article 16. State registration period of the enterprise
The decision on state registration of an enterprise or on refusal of state registration should be taken within two weeks from the date of submission-required documents by the founders.
Article 17. Documents to be submitted for the state registration of an enterprise
1.For the state registration of the enterprise the founders should submit the following:
application for the state registration of the enterprise, signed by the founder(s) or a person authorized by the founders to establish it;
constituent documents;
the document confirming the payment of the fee for the state registration of the enterprise, unless otherwise provided by the legislative acts of Turkmenistan.
2. The application for the registration of an enterprise should contain:
Name and legal address;
the size of the authorized capital;
a list of founders with their name, legal address, bank details, if the founder is a legal entity; or name, place of residence and identity document details, if the founder is a natural person.
The application is attached as follows:
when establishing a company with a non-monetary contribution - a document on assessment of the contribution;
a document confirming the payment of part of the authorized capital before the state registration of the enterprise.
Article 18. Refusal of state registration of an enterprise
Refusal of state registration of an enterprise is permitted as follows:
if constituent documents do not meet the requirements of this Law;
if founders fail to submit any of the documents specified in paragraph 1 of Article 17 of this Law;
in case of violation by the founders the procedure of establishment of the enterprise provided by this Law;
in cases when kinds of activity of the enterprise are prohibited by the legislation of Turkmenistan.
Refusal to register the enterprise on other grounds shall not be allowed.
In case of refusal in registration of the enterprise, the registration authority shall return to the applicant, the documents submitted for registration with explanation in written form of the reasons for refusal.
The refusal to register an enterprise, failure to comply with the deadline for registration of the enterprise may be appealed in Court against by the founder of the enterprise.
Article 19. Duplicate of the certificate of state registration
In case of loss of the State registration certificate, the Ministry of Finance and Economy of Turkmenistan issues a duplicate of the State registration certificate within five calendar days on the basis of a Enterprise’s written application.
Article 20. Fee for State registration of an enterprise
State registration of an enterprise is subject to a fee in accordance with the procedure and amounts determined by the Cabinet of Ministers of Turkmenistan.
Article 21. Reregistration of an enterprise
1. When introducing amendments and additions to the constituent documents, the enterprise within one week should notify the Ministry of Finance and Economy of Turkmenistan.
2. Changes in the constituent documents, involving the renaming of the enterprise, change of ownership or legal address, change in the founders membership, the size of the authorized fund, kind (kinds) of activity of the enterprise, its organizational and legal form, the establishment of a subsidiary, branch or representative office, shall come into force only from the moment of re-registration of the enterprise.
The re-registration of the enterprise is carried out by the Ministry of Finance and economy of Turkmenistan in the order and terms provided for the registration of the enterprise.
Article 22. Cancellation of an enterprise registration
1. At the completion of procedures related to the liquidation of the enterprise, bankruptcy proceedings, as well as in cases of wrong registration or recognition by the Court the establishment of an enterprise as invalid, the body responsible for the state registration should the registration of this enterprise.
2. The registration may also be cancelled by court decision based on a claim of any of the participants of the enterprise or any third party.
3. The cancellation of the registration of an enterprise are resulted its exclusion from the Unified state register of legal entities.
Article 23. State registration of branches and representative offices of an enterprise
Branches and representative offices of an enterprise are subject to state registration in accordance with the procedure set forth for registration of enterprises and shall be included in the Unified State Register of Legal Entities.
2. The following documents shall be submitted for registration of a branch and representative office:
(a) Decision of the governing body of the enterprise on establishment of a branch or representative office;
b) Information on the subject of activity of the branch or representative office;
c) A copy of the charter of the enterprise establishing the branch or representative office;
d) Decision on appointment of the person to be responsible for running the affairs of the branch or representative office;
e) A certificate of registration of the enterprise establishing a branch or representative office.
(3) The establishment of a branch or representative office should be notified to the register at the location of the enterprise establishing the branch.
Chapter IV. Organizational and legal forms of enterprises
Article 24. Organizational and legal forms of enterprises
1. The enterprises carry out their activity in the following organizational and legal forms:
state enterprise;
individual enterprise;
cooperative enterprise;
joint enterprise;
public organization enterprise;
business company;
joint stock company.
2. Turkmen legislation may provide for the establishment of enterprises and other organizational and legal forms.
Article 25. A State enterprise
1. 1. A state enterprise is an enterprise established at the expense of state funds or transferred to the state ownership in accordance with the established procedure, which owns, uses and disposes of the property assigned to it.
2. 2. A State enterprise implements the rights of ownership, use and disposal of State property in accordance with the procedure and within the limits established by law.
3. The legal basis for the establishment of a State enterprise is the act on its establishment adopted by the Cabinet of Ministers or another authorized State body in accordance with its competence.
4. The minimum size of the authorized capital of a State enterprise is determined by the State body adopted the act on its establishment.
5. 5. The activity of a State enterprise is determined by its charter (regulation) registered in accordance with the established procedure.
6. 6. The founder has the right to establish a state enterprise:
obligatory works (tasks, orders);
prices and tariffs for goods, works, services, as well as rules for their calculation;
administrative positions, for which employees are appointed by the founder.
7. The structure of a state enterprise, as well as the procedure for managing a state enterprise is determined by its founder and is fixed in the constituent documents of the enterprise.
8. 8. A state enterprise is liable for its obligations with all its property.
A state enterprise is not liable for the obligations of its founder, and the founder of the enterprise, in addition to the property attached to the enterprise, is not liable for the obligations of the enterprise.
Article 26. Individual enterprise
1. An individual is an enterprise that is owned by one natural persons.
2 An individual enterprise is created by the decision of the owner of the property.
The constituent document of the individual enterprise is its charter approved by the owner.
3. An individual enterprise may also be created because of the acquisition by an individual of an enterprise owned by other owners.
4. Property of an individual enterprise is formed from the property of an natural person, income received and other legal sources.
5. Minimum size of the authorized capital of the individual enterprise should be 25 times size of established minimum of salary in Turkmenistan.
6. An individual enterprise is managed by its owner.
The owner of an individual enterprise has the right to transfer the commissions to manage the activity of the enterprise to third person (manager, executive director) under a contract (agreement).
7. The Owner of an individual enterprise shall bear full property responsibility for the obligations assumed by the individual enterprise.
Article 27. Cooperative enterprise
1. Cooperative is an enterprise based on the personal involvement of each member in its activities.
The assets of a cooperative enterprise are formed from the cash and property contributions of its members, as well as from income and other sources not prohibited by the legislation of Turkmenistan.
The minimum authorized capital of a cooperative enterprise must be 50 times the minimum wage established in Turkmenistan.
4. A cooperative enterprise is managed by the General Meeting of its members.
The General Meeting of the cooperative enterprise may form an executive body for the conduct of its business.
The management and conduct of affairs of a cooperative enterprise.The Articles of Associations shall determine
5. A cooperative enterprise shall be liable for its obligations within the limits of its property.
The shareholders of a cooperative enterprise shall be jointly and severally liable for the obligations of the enterprise within the limits of its share.
Article 27. Joint venture
1. A joint venture is an enterprise established in accordance with the procedure established by law in order to benefit from the generalization of the property of natural and/or legal persons of Turkmenistan and of natural and/or legal persons of foreign countries.
2. A joint venture is established based on an agreement concluded between its founders. Each founder's share in the charter capital must be at least 10 per cent of the total property.
The property of a joint venture is formed by combining in the authorized capital the shares (deposits) of individuals and/or legal entities that are its participants as well as income. 3.
4. The minimum size of the authorized capital of a joint venture shall be 100 times the minimum wage established in Turkmenistan.
5. A joint venture shall be responsible for the obligations it has undertaken within the limits of its ownership.
6. The highest body of a joint venture is the general meeting of its members. The terms and procedure for convening and holding the general meeting shall be determined by the constituent documents of the joint venture.
Article 28. Enterprise of public organization
1. Enterprises of public organizations are enterprises established by public associations, religious organizations, charity or other public funds.
2. The right of public organizations to establish enterprises should be set forth in their founding documents.
The activity of enterprises of public organizations should be related with the implementation of the main goals and tasks of public organizations.
3. Public organizations' enterprises are established at the expense of such organizations and/or other founders' funds, as well as other monetary and property resources not prohibited by the legislation of Turkmenistan.
4. The minimum authorized capital of an enterprise of public organization should be 100 times the minimum wage established in Turkmenistan.
5. The procedure for managing an enterprise of public organization is governed by the enterprise's Articles of Association.
6. An enterprise of public organization is responsible for its obligations with all the property belonging to it.
An enterprise of public organization is not responsible for the obligations of the owner of its property, and the owner of the enterprise is not responsible for the enterprise's obligations other than the property under it.
Article 29. Economic society
1. An economic society is an association of two or more individuals and/or legal entities for the purpose of joint activities carrying out.
2. An economic society is established based of an agreement concluded between its founders.
3. The property of economic society shall be formed at the expense of the association of shares (deposits) of individuals and/or legal entities, which are members of the economic society in its authorized capital.
4. The minimum size of the authorized fund of a business entity shall be 100 times size of the established minimum wage in Turkmenistan.
5. The Supreme Body of economic society is the general meeting of its members. The terms and procedure for convening and holding the general meeting are determined by the constituent documents of the economic society.
The procedure for economic society managing and conducting its business is determined by its Articles of Association.
6. Depending on the forms of property liability, economic societies may be established, therein members are jointly and severally liable for the obligations of the company with all their property, as well as economic societies, therein members are liable to the extent of their contributions (shares) in the authorized capital of the company.
Article 30. Joint Stock Company
The procedure for establishing and operating a joint stock company is determined by the Law of Turkmenistan “On Joint Stock Companies”.
Chapter V. Subsidiaries, branches and representative offices
Article 31. Subsidiaries, branches and representative offices
- An enterprise have the right to establish subsidiaries with the right of a legal entity.
An enterprise with more than 50 but less than 100 per cent of its authorized capital or property is owned to another enterprise is in relation to the last subsidiary enterprise.
A subsidiary enterprise shall be subject to state registration in the procedure set forth by this Law for state registration of enterprises.
2. Enterprises have the right to establish branches and representative offices, which are not legal entities.
The legal status of branches and representative offices of an enterprise is determined by the Civil Code of Turkmenistan.
Branches and representative offices of an enterprise are subject to state registration in accordance with the provisions of article 23 of the present Law.
3. Under article 23 of the Civil Code, enterprises of Turkmenistan may establish subsidiary enterprises, branches, representative offices and other separate subdivisions in the territory of foreign States in accordance with their national legislation and on the basis of international agreements concluded by Turkmenistan.
Chapter VI. Joint activity. Enterprises merger
Article 32. Joint activities of enterprises
Enterprises under a joint venture agreement may merger into a partnership.
The procedure for establishing and operating the partnership is regulated by the Civil Code of Turkmenistan.
Article 33. Enterprises merger
1. Enterprises by the contract may merger into associations, concerns and other forms of associations with the right of a legal entity.
2. An enterprise, which is a member of an association, concern or other form of association, shall keep its independence, rights and obligations as a legal entity.
3. An association, concern or other form of association shall operate based on the Articles of Association approved by their constituent enterprises and shall perform its functions by virtue of contracts with them. The objectives of their activities and basic functions should be related to the activities or requirements of their enterprises- member.
4. An association, concern or other form of association is subject to State registration in accordance with the procedure established by this Law for the State registration of enterprises.
5. An association, concern or other form of association is not liable for the obligations of its constituent enterprises, while enterprises are not liable for the obligations of the association unless otherwise provided by the Articles of Association.
Chapter VII. Principles of economic activity of enterprises
Article 34. Scope of the enterprises’ activity
1. The scope of the enterprise's activity is not limited, if the activities, methods and means implemented are not prohibited by the legislation of Turkmenistan.
2. The Cabinet of Ministers of Turkmenistan may determine some kinds of activity exclusively carried out by State enterprises.
3. An enterprise may engage in one or more types of activity.
4. Turkmen law defines the types of activity of an enterprise, which may be carried out only with a special permit (license). Licenses are issued to enterprises after their State registration.
5. An enterprise may, on its own initiative, take all decisions and take any measures to use the property legally at its disposal, if they do not contradict to valid legislation of Turkmenistan.
Article 35. Accounting and reporting of enterprises
1. Enterprises keep accounting and reporting in accordance with the legislation and accounting standards provided in Turkmenistan.
For enterprises, carrying out specific kinds of activity other rules of accounting and reporting may be provided by the legislation of Turkmenistan.
2. Enterprises keep and submit statistical reports in accordance with the procedure provided by the legislation of Turkmenistan on statistics.
Article 36. Banking services provided to enterprises
1. In accordance with the legislation of Turkmenistan, an enterprise can open bank accounts in credit institutions of Turkmenistan for storage of funds and performance of all types of settlement, credit and cash operations.
2. The procedure for opening bank accounts of enterprises in foreign credit institutions is established by the legislation of Turkmenistan.
3. Enterprises are fully responsible for fiscal discipline in their settlement, credit and cash operations.
Article 37. Settlements of the enterprise
1. As a rule, cash settlements of the enterprise under its obligations are exercised via credit institutions in a cashless manner.
2. The enterprise's cash settlements are made in accordance with the procedure of settlement, credit and cash operations approved by the Central Bank of Turkmenistan.
Article 38: Pricing at enterprises
1. The enterprise sells its products, works, services and wastes under the prices and tariffs set forth independently or on a contractual basis, and in cases stipulated by legislative acts of Turkmenistan operates under state prices.
2. The State may regulate the prices of certain kinds of products, works and services.
Article 39. Foreign economic activity
Enterprises carry out foreign economic activity in accordance with the legislation of Turkmenistan.
Article 40. Labor relations at the enterprise
1. The enterprise carries out its activity using the labor of its employees. Relations between the enterprise and the employee are regulated by labor legislation of Turkmenistan, an employment contract and a collective agreement.
The terms and conditions of the employment contract, worsen the employee's position in comparison with labor legislation of Turkmenistan, are invalid.
2. The enterprise provides its employees with the minimum wage and healthy and safe working conditions set forth in Turkmenistan.
3. Under the procedure set forth by legislation of Turkmenistan the enterprise is responsible for damage or injury to the employee's life and health.
4. National pension insurance and voluntary medical insurance, pension provision and social protection measures for enterprise employees are governed by the legislation of Turkmenistan.
5. Issues related to the social development of the enterprise, the form and system of remuneration, working and rest hours, workers' labor protection and other labor and socio-economic issues might be regulated by collective agreement in accordance with labor legislation of Turkmenistan.
Article 41. Taxation of enterprises
Taxation of enterprises is carried out in accordance with tax legislation of Turkmenistan.
Article 42. Requirements for the quality of products, works and services
1. Enterprises are responsible for the quality of their products, work performed and services rendered.
2. Products, works, services that are subject to state standards, should meet these standards.
In the cases provided for by legislation of Turkmenistan, the products, works and services sold by the enterprises should provide the quality certificates or a certificate of conformity.
Article 43. Profit of the enterprise
1. Profit of the enterprise is a common indicator of its activity.
2. The enterprise has no right to dispose of profit before payment of taxes and other obligatory payments to the budget set forth by the legislation of Turkmenistan.
3. Profits remaining after the payment of taxes and other obligatory payments and deductions are at the disposal of the enterprise, unless otherwise stipulated in its constituent documents.
Article 44. Control over the activities of enterprises
1. Control over the financial activities of enterprises subject to audit is carried out in accordance with the legislation on auditing.
2. Tax, environmental and other bodies, which are assigned by the Turkmenistan legislation with the functions of control and supervision over the enterprises' activity, within the limits of their competence, carry out the inspection of the enterprises' activity.
Chapter VIII. Property of the enterprise. Authorized capital
Article 45. Property of an Enterprise
The property of enterprises consists of the assets of legal entities and individuals, income received and other sources not prohibited by legislation of Turkmenistan.
2. Contributions to property may be in cash (in manat and/or foreign currency), securities, other things, property rights or other rights with monetary value.
Contributions in the form of personal non-property rights and other intangible benefits should not be made.
3. Property values contributed to the authorized fund should be the property of the founder (participant) and their description must be as specific as possible. The founders (participants) should agree upon evaluation of property contributions prior to the conclusion of the memorandum of association.
4. In cases where the right to use the property is transferred to the enterprise as a contribution, the amount of this contribution is determined by the fee for the use, calculated for the entire period specified in the constituent documents.
Without the consent of the general meeting, early withdrawal of property, the right to use which serves as a contribution to the authorized capital of the enterprise, is not allowed.
Unless otherwise provided in the constituent documents, the risk of accidental death or damage to the property transferred for the use of the enterprise rests on the owner of the property.
5. Legislative acts or constituent documents may provide for the creation of reserve and other funds by enterprises.
6. The property of the enterprise is accounted for on its balance sheet.
Article 46. Authorized fund of the enterprise
1. The authorized fund of the enterprise is formed from the contributions of its founders (participants) by means of monetary funds contributed by the founders (participants), as well as property (buildings, machinery, equipment, materials, etc.), property and other rights having monetary value.
2. Unless otherwise provided by the memorandum of association, the ratio of each participant's contribution to the total amount of the authorized capital is the participant's share in the authorized capital. Such share may be expressed as a part of the whole or as a percentage. The amount of contributions (shares) of founders (participants) in the authorized capital of the enterprise is established by agreement between founders (participants), unless otherwise provided by this Law.
3. The amount of the authorized capital of the enterprises of the corresponding organizational-legal forms cannot be less than the minimum size established by this Law.
4. The enterprise should not reduce the size of the authorized fund by using it for payment of wages, bonuses and other payments. The size of the authorized fund of an enterprise may be reduced only in cases provided by this Law.
Article 47. Terms for contributing (shares) to the authorized fund
1. The constituent documents of the enterprise should indicate specific terms of contribution (shares) by the founders (participants). Mandatory is the contribution of at least 50 percent of the established size of contributions by founders in the period after the signing of the constituent documents and before the application for registration of the enterprise.
2. The second part of the monetary and/or property contribution is made during the year after the registration of the enterprise.
3. In the case of incomplete payment of the authorized fund in the terms determined by this Law, the enterprise should announce the reduction of its authorized fund and register this fact in the established order or terminate its activities by liquidation.
Article 48. Legal Consequences of Delayed Contribution (Share)
1. If the founder (participant) has not contributed (share) to the authorized fund of the enterprise within the established terms and in the stipulated size, a warning is sent to him with an indication of a new term for contribution of the remaining part. The additional term for contribute the remaining part shall not exceed three months.
2. If the obligation to put the remaining part contribution (share) is not fulfilled even within the additional term, the meeting of members shall exclude the debtor from the membership of the enterprise and notify it.
(3) A participant excluded based of paragraph 2 of this Article shall be liable for the damage caused to the enterprise by non-payment of the contribution (share).
4. The contribution (share) of the excluded participant may be withdrawn from the authorized capital or the remaining participants of the enterprise may pay (contribute) the contribution (share) to the authorized capital in full in proportion to the amount of their contributions. Thus, their contribution (share) is increased by the amount of paid (contributed) amounts.
5. In case of withdrawal of the contribution (share) from the authorized fund or its payment (contribution) by the remaining participants, the excluded participant shall be entitled to return only the part of the contribution (share) paid by him to the authorized fund.
Article 49. Increasing of the enterprise authorized capital
1. The decision to increase the authorized capital of the enterprise with the introduction of amendments to the Articles of Association of the enterprise is taken by the general meeting of participants. Increase in the authorized capital of the enterprise is permitted after its full payment.
2. The increase of the authorized fund of an enterprise can be carried out by way:
a) Additional proportional contributions made by all participants of the enterprise;
b) Increase in the size of the authorized fund at the expense of the equity capital of the enterprise, including the reserve capital;
c) revaluation of net assets (equity capital) of the enterprise, the real value of which exceeds their book value. Only independent experts can carry out reevaluation;
d) making additional contributions by one or more participants with the consent of all other participants;
e) admission of new participants to the enterprise.
3. When increasing the size of the authorized capital in the manner prescribed by paragraphs "a", "b", "c" of the second part of this article, the size of shares of founders (participants) do not change.
4. When increasing the authorized fund in the order provided for in paragraphs "d" and "e" of the second part of this article, recalculation of shares of all participants in the authorized fund should be made taking into account the amount of their previous contribution.
Article 50. Reduction of the authorized capital of the enterprise. Refund of contributions (shares)
1. 1. Reduction of the authorized capital of the enterprise may be carried out by proportionate reduction of the amount of contributions of all participants of the enterprise or by full or partial repayment of shares of individual participants.
For this purpose, the general meeting of participants shall make a decision on amending the Articles of Association of the enterprise. The enterprise shall be entitled to make calculations related to the reduction of the authorized fund only after the re-registration of the enterprise in accordance with Article 21 of this Law.
2. In case, the following the results of activity for the next fiscal year, except for the first year of activity of the enterprise, the value of its net assets becomes less than the authorized fund, the enterprise is obliged to reduce it and register the reduction of the authorized fund in the established order. If the net asset value becomes less than the minimum amount of the authorized capital, the enterprise shall be subject to liquidation.
3. At reduction of the authorized capital by means of redemption of the participant's share therein the shares of other participants shall be changed proportionally.
4. Reduction in the authorized capital of the enterprise is allowed after notification of all its creditors. In this case, the latter shall have the right to demand early performance or termination of obligations of the enterprise and reimbursement of losses.
5. Management of the enterprise are obliged to publish the decision on reduction of the authorized capital, and notify the Creditors about it in writing within 15 days after the decision-making. The announcement shall contain a statement of readiness to provide collateral for the assumed obligations or to pay the creditors who do not agree with the reduction of the authorized capital.
6. Creditors' consent to the reduction of the statutory fund shall be deemed received if they do not declare of the disagreement in writing within 30 days after publication or personal notification.
7. The authorized capital of a State enterprise may be reduced in accordance with the legislation of Turkmenistan.
8. Refund of the contribution may take place after 12 (twelve) months after the registration of the fact of reduction of the authorized fund. The amount of the authorized fund of the enterprise after its reduction at the expense of return of the participant's contribution may not be less than the minimum amount established by this Law.
Chapter IX. Reorganization of the enterprise
Article 51. Reorganization of the enterprise
1. Reorganization is the transformation of an enterprise without a liquidation procedure.
2. Reorganization of the enterprise in the form of a merger, consolidation, division, separation, transformation can be carried out voluntarily by the decision of its founder or the supreme management body of the enterprise, authorized to that by the constituent documents.
3. In cases established by legislative acts, the reorganization of an enterprise in the form of its division or separation from its structure of one or more enterprises is carried out by the decision of the authorized state bodies or by court decision.
4. In cases established by legislation of Turkmenistan, reorganization in the form of a merger or acquisition may take place only with the consent of the authorized State bodies.
5. The successors of all rights and obligations of a reorganized enterprise are new enterprises established through reorganization and continuing their activities after the registration of the enterprise. The property of a reorganized enterprise shall be transferred to its successor at the time of its registration, unless otherwise provided by legislative acts or a decision on its reorganization.
6. The reorganized enterprise shall be subject to state registration in the manner prescribed by the present Law.
Article 52. Merger, acquisition of enterprises
1. The merger of two or more enterprises is carried out through the establishment of a new enterprise based on the complete merger of their property. The enterprises involved in the merger cease to operate. In this case, all rights and obligations of each of them are transferred to the newly established enterprise in accordance with the transfer act.
If the rights and obligations of the participants of the merged enterprises were not based on the principle of equity participation in the authorized capital, the decision on the merger of enterprises should determine the rights and obligations of the participants of the new enterprise.
2. Accession of one or more enterprises to another enterprise shall be carried out by including the property of the enterprises to be merged in the property of the enterprise to be merged. In this case, the attached enterprises cease to operate as legal entities, and all their rights and obligations are transferred in accordance with the transfer act to the attaching enterprise, the constituent documents of which are made changes related to the reorganization.
The ratio of share participation in the authorized capital of the participants of the joining enterprises, which existed before the accession, may be changed in accordance with the conditions of entering into the structure of the joining them enterprise.
On the basis of a decision or agreement on the merger, the accession of the participants of the merging, joining enterprises develop and sign the constituent meeting of the founding agreement, and in case of a merger also approve the Articles of Association of the newly formed enterprise and elect its executive and other bodies.
Article 53. Division, separation of enterprise
1. The division of an enterprise shall be carried out by dividing the property of such enterprise between two or more newly emerging enterprises. In this case, the rights and obligations of the enterprise being divided shall be transferred to the newly established enterprises in accordance with the separation balance sheet. The division of a company shall entail the termination of its existence as a legal entity.
2. The separation of one or more enterprises from an enterprise shall be carried out by means of the separation of a part of property belonging to it and its transfer to one or more newly established enterprises. In this case, a part of the rights and obligations of the reorganized enterprise shall be transferred to the newly emerging enterprises in accordance with the separation balance sheet. The enterprise from which the separation of another enterprise took place remains an independent subject of economic activity.
Unless otherwise provided by the Articles of Association of an enterprise based on the principle of share participation in the authorized capital, at its separation, each participant has the right to receive a share in the authorized capital of each of the newly established enterprises, equal to its share in the authorized capital of the reorganized enterprise. In case of a division or separation of an enterprise, the ratio of shares of participants in the authorized capital that existed before the division may be changed in newly established enterprises.
Article 54. Consequences of execution of the decision of the authorized state body or court on forced division, separation of enterprise
1. If the executive bodies of the enterprise, authorized to carry out the division, separation in case of forced reorganization by court decision, will not carry out the division, separation of the enterprise in the period determined in the court decision, in such cases the court appoints a trustee manager of the property of such enterprise and instructs him to carry out the division, separation.
2. From the moment of the appointment of the trustee the powers on the management of the enterprise are transferred to him.
3. Trustee acts on behalf of the enterprise in court, draws up a separation balance sheet and submits it to the court for approval, together with the constituent documents of the enterprises arising from the division, separation. The approval these documents by the Court is the basis for state registration of newly established enterprises.
Article 55. Transformation of the enterprise
1. Transformation of the enterprise is to change its organizational-legal form.
2. Transformation of an enterprise from one legal form of organization to another involves the termination of the existence of the enterprise being transformed and formation on its basis a new enterprise.
3. The newly formed enterprise is the successor of the transformed enterprise in accordance with the transfer act.
4. In the transformation of the enterprise the ratio of equity participation of the founders, existed before the change of its legal form, in the newly formed enterprise may be changed.
Article 56. Transfer deed and separation balance sheet at reorganization of an enterprise
1. The transfer deed and the separation balance sheet during reorganization of the enterprise should contain provisions on the succession of all obligations of the reorganized enterprise in respect of all its creditors and debtors, including obligations disputed by the parties.
2. The transfer deed and the separation balance sheet shall be approved by the members of the enterprise or the body that made the decision on the reorganization of the enterprise.
3. The transfer deed and separation balance sheet are submitted together with the constituent documents for the state registration of the newly established enterprises or making changes to the constituent documents of the existing enterprises.
Failure to submit the transfer deed and dividing balance sheet with the constituent documents, as well as the absence the provisions on the succession on the obligations of the re-organized enterprise result to the refusal in the state registration of the newly formed enterprise.
Article 57. Guarantees of the rights of creditors of the re-organized enterprise
1. Each enterprise participating in the reorganization is obliged, from the moment of making the decision on reorganization, to notify in writing the creditors of the enterprise being reorganized about this decision or to publish the corresponding notice (announcement) in the official press bodies.
2. The creditor of the enterprise being reorganized has the right to demand from the debtor early performance of obligations or termination of obligations in a lawful manner (by means of set-off, termination of the contract) and compensation for the losses caused by this.
3. If the separation balance sheet does not make it possible to determine the legal successors of the reorganized enterprise, the newly established enterprises shall bear joint and several liability for the obligations of the reorganized enterprise to its creditors.
Chapter X. Suspension and termination of Enterprises operations
Liquidation of the enterprise
Article 58. Grounds and procedure for suspension and termination of enterprises
1. The activity of the enterprise may be terminated voluntarily or forcibly as well as in case of occurrence of circumstances provided for by this Article.
2. The activity of an enterprise shall be voluntarily terminated at any time based on the decision taken:
the owner of the state enterprise, enterprise of public organization;
all participants of the enterprise based on the right of share (participant) ownership. The decision to terminate the activities of the enterprise shall be deemed adopted if half of its participants voted for it, unless otherwise provided by its constituent documents.
3. In the compulsory procedure, the activity of the enterprise shall be terminated by court decision in the following cases:
a) Bankruptcy;
(b) Invalidation of the registration of the enterprise in connection with violations of the law of Turkmenistan committed during registration, which are irreversible;
(c) Carrying out activity without a license, if it is subject to licensing, or activity prohibited by legislation of Turkmenistan;
(d) Carrying out activities repeatedly during the calendar year or in gross violation of legislation of Turkmenistan;
(e) In other cases stipulated by legislative acts.
4. In addition to the grounds stipulated in paragraphs 2 and 3 of this article, the activity of the enterprise ceases when the following circumstances occur:
The end of the period of enterprise activity specified in the enterprise's charter;
If, as a result of the reduction of the authorized capital, its amount becomes less than the minimum amount envisaged by this Law for enterprises of the corresponding legal form;
If the participants do not form the statutory fund of the enterprise within the period specified in this Law;
In appropriate cases in the course of reorganization of the enterprise.
5. The requirement to terminate the activity of the enterprise on the grounds provided in paragraphs "b", "c", "d" of part three of this article may be declared to the court by the registering authority, state bodies authorized to issue licenses and exercise control functions, creditors, respectively.
6. In cases provided for in paragraph "d" of part three of this Article, the court, instead of the decision to terminate the activity of the enterprise, may make a decision to suspend its activity.
The bodies in charge of taxation, issuance of licenses, ecology, sanitation, architecture, safety and fire protection shall have the right to make a decision on suspension of the enterprise's activity. Disputes arising shall be settled in court.
7. The activity of the enterprise shall be considered terminated from the moment of its exclusion from the Unified State Register of Legal Entities.
Article 59. Liquidation of Enterprise
1. Liquidation of the Enterprise entails termination of its activity without transfer of rights and obligations in succession to other enterprises.
2. The Owner, court or body, which has established the enterprise, make a decision on liquidation of the enterprise. They establish the order and terms of liquidation, appoint the liquidation commission (liquidator).
The executive body of the enterprise from the date of liquidation commission (liquidator) appointment losses the right to manage the enterprise. The liquidation commission (liquidator) performs its functions.
3. Liquidation Commission (liquidator) informs state registration authority about the change of the status of the enterprise and provides it with information about the Commission (liquidator). Meanwhile, a note that the enterprise is being in the process of liquidation is made in the Unified state register of legal entities.
4. Liquidation Commission (liquidator) represents the liquidated enterprise in court, takes measures to identify creditors and receiving of accounts receivable.
The liquidated enterprise may conclude the transactions only related to its liquidation, as well as transactions provided for in the decision on liquidation. The enterprise is responsible for the activities of the liquidation commission (liquidator).
5. Each creditor is notified in writing on liquidation of the enterprise. In the official mass media, a notice (announcement) of the liquidation of the enterprise and the procedure and terms of submission of claims by its creditors should be placed. This period may not be less than two months from the date of publication on the liquidation of the enterprise.
6. After the expiration of the established term for submission of claims by creditors, the liquidation commission shall draw up an interim liquidation balance sheet, which should reflect the information on the composition of the property of the enterprise being liquidated, the list of claims submitted by creditors and the results of their consideration. The interim liquidation balance sheet is subject to approval by the founders (participants) of the enterprise or by the management body of the enterprise, which took a decision on the liquidation of the enterprise.
7. The liquidation commission (liquidator) exercises the settlements with creditors. If the funds available at the enterprise are not sufficient to meet the requirements of creditors, the liquidation commission (liquidator) may sale the property of the liquidated enterprise from public auction.
8. If the liquidated state enterprise is not enough property to meet the demands of creditors, the latter have the right to appeal to the court with a claim for satisfaction of the remaining part of the requirements at the expense of the Owner of the property of the enterprise.
9. After the completion of settlements with creditors, the liquidation commission draws up the liquidation balance sheet, which is approved by the founders (participants) of the enterprise or the management body of the enterprise, which took a decision on the liquidation of the enterprise, as well as confirmed by an independent auditor.
10. Liquidation of the enterprise is considered completed, and the enterprise ceased to operate after its exclusion from the Unified state register of legal entities.
Article 60. Distribution of property during liquidation of the company
1. In case of liquidation of the enterprise the demands of its creditors are satisfied as follows:
First, the claims of citizens before whom the liquidated enterprise is responsible for causing harm to life or health should be satisfied;
Second priority - payments of severance pay and wages to persons working at the enterprise under an employment contract (agreement), as well as the payment of remuneration under copyright contracts;
Thirdly, the claims of creditors under obligations secured by a pledge of the property of the enterprise being liquidated are satisfied;
In the fourth turn - debt on mandatory tax and other payments to the state and local government bodies, as well as debt on bank loans are repaid;
In the fifth turn - settlements with other creditors are exercised.
The requirements of each position should be satisfied after full satisfaction of the requirements of the previous position.
The property of the enterprise under liquidation remained after the creditors' claims have been satisfied should be transferred to its participants having the proprietary rights to the property or mandatory rights in respect of that enterprise.
Article 61.Liquidation due to insolvency (bankruptcy) of the enterprise
The grounds for declaring an enterprise bankrupt by the court or declaring it bankrupt, as well as the procedure for dissolving such an enterprise, are set forth in the Law of Turkmenistan “ On Bankruptcy”.
Chapter XI. Responsibility for violations of the legislation of enterprises. Disputes settlement
Article 62. Responsibility for violation of the legislation of Turkmenistan on Enterprises
1. Carrying out its activities, the enterprise should not violate the legislative of Turkmenistan, as well as the rights and legally protected interests of citizens, other enterprises and the State.
2. Governmental and local officials should bear the responsibilities for violation of the present Law and other legislative acts regulating the activity of enterprises.
Article 63. Disputes Settlement
Disputes of Enterprises are subject to settle in order, set forth by the legislation of Turkmenistan.
President of Turkmenistan Saparmyrat Turkmenbashi
Ashgabat
15 June 2000
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