Kazakhstan’s Agency for Regulation and Development of the Financial Market (ARDFM) plans to introduce a new form of corporate governance: the non-public joint-stock company (JSC). The initiative is part of the draft Capital Market Development Program for 2026–2030, presented by the agency’s deputy chairman, Nurzhan Tursunkhanov. The reform is being developed jointly with the National Bank and complements other market initiatives: Finteqstan previously reported that KASE proposed strengthening self-regulation in Kazakhstan's stock market.
What Happened
The new format will occupy an intermediate position between a limited liability partnership (LLP) and a classic public JSC. The main difference is that until reaching a certain business scale and number of shareholders, companies will be able to operate without forming a board of directors.
At the same time, non-public JSCs will gain access to stock market instruments. They will be able to issue different classes of shares, convertible financial instruments, and employee stock ownership plans (ESOPs). Relationships between owners can be detailed in the charter and shareholder agreements.
Shareholder records will be kept entirely in electronic form through the Central Securities Depository or a professional registrar.
Country and Market
Currently, growing Kazakh businesses have to choose between two polar options. An LLP limits opportunities for complex equity structuring and attracting venture investments. A public JSC requires complex and expensive corporate governance, which is excessive for early-stage growth companies.
Why It Matters
The draft program covers 35 market development measures, and introducing non-public JSCs is a key initiative for the corporate sector. The regulator expects to give companies a flexible legal mechanism to attract investment and retain teams through options, while reducing administrative costs.