The State Assets Management Agency of the republic of Uzbekistan

The Law of the Republic of Uzbekistan (2024, February 21, LRU-911) "On Amendments and additions to certain legislative acts of the Republic of Uzbekistan in connection with the adoption of the Insolvency Law of the Republic of Uzbekistan" was adopted.

This Law amended and supplemented 7 codes and 18 laws. They include:

1) In connection with the introduction of insolvency of individuals under the Insolvency Law, Articles 180, 181 and 1811 of the Criminal Code were amended and criminal liability was established for individuals for false insolvency, concealment of insolvency or willful creation of insolvency.

Also, Article 1795 of the Administrative Liability Code was amended and establishes administrative liability for an individual who willfully creates insolvency.

2) The Law supplemented the Civil Code with Article 261, according to which an individual may be recognized by a court as insolvent if he/she is unable to fully satisfy creditors' claims on monetary obligations or fulfill his/her obligations on taxes and duties.

Article 48 of this Code has been amended, according to which, if the insolvency of a legal entity is caused by unlawful actions of a person acting as a founder (participant) or owner of the property of the legal entity, who has the right to give instructions binding on the legal entity, or a person who is a member of the governing body of the legal entity, or a person who manages the affairs of the debtor, then such a person, in accordance with the law, in case of insufficiency of the property of the legal entity may be charged a subsidy to the debtor.

3) Article 19 of the Law on State Fees was supplemented with part 29, and the court administrator, in order to fulfill his rights and obligations in the process of insolvency case, was granted the right to file lawsuits and other applications with the court without paying state fees.

4) Article 97 of the Tax Code was supplemented with part thirteenth and the payment of tax payments arising in the process of judicial rehabilitation or external management in the insolvency case is suspended, and after the completion of this procedure, the possibility of paying the tax debt in equal installments over a period of six months was provided.

Also, Article 304 of the Tax Code was supplemented with paragraph 21, and it is established not to consider as income the part of proceeds from the sale of property of debtor legal entities and individuals or individual entrepreneurs recognized as bankrupt, aimed at repayment of debts.

5) Part 3 of Article 3 of the Law "On Advocacy" was supplemented with the seventh paragraph, and lawyers licensed to conduct civil and economic court cases were granted the right to act as court administrators.

6) The term "bankruptcy" in the codes and laws was replaced by the term "insolvency", which is understood as financial rehabilitation of business entities that have fallen into economic distress.

The present Law is intended to increase the efficiency of recovery and liquidation of unpromising enterprises by bringing the existing legislative documents in compliance with the Law "On Insolvency" and application of remedial measures to enterprises in insolvency.

The Law entered into force on the day of its official publication.