Tashkent, Uzbekistan (UzDaily.com) -- At the forty-eighth plenary meeting of the Senate, the Law “On amendments and additions to certain legislative acts of the Republic of Uzbekistan in connection with the adoption of the Law of the Republic of Uzbekistan “On Insolvency” was discussed.

The adoption of the Law “On Insolvency” made it necessary to bring the norms of existing legislative acts into conformity with it for the uniform application of its provisions.

The law introduces amendments and additions to the laws and codes of the Republic of Uzbekistan, providing for clarification of the signs of insolvency of individuals and legal entities, as well as the grounds for prosecution for violation of insolvency legislation.

In particular, instead of the term “bankruptcy”, the term “insolvency” is introduced in codes and laws, implying the financial recovery of business entities that are in an economically disadvantaged state.

The Criminal Code also establishes criminal liability for false insolvency and deliberate insolvency.

A new rule on the insolvency of an individual is introduced into the Civil Code (Article 261), according to which an individual may be declared insolvent by the court if he is unable to fully satisfy the claims of creditors for monetary obligations and (or) fulfill his obligations regarding taxes and fees.

Another important change is being made to the Tax Code, according to which, in the process of rehabilitation of legal entities and individuals, entrepreneurs who find themselves in a state of insolvency, they are allowed to suspend the payment of current tax payments and pay off tax debt in equal shares within six months after completion of this procedure.

The senators emphasized that the Law serves to ensure the effective organization of the implementation of the Law “On Insolvency”, eliminating discrepancies and contradictions in the application of its legal provisions.

At the end of the discussion, the Law was approved by the senators.