Option as inseparable part of transaction: Kazakh practice

Nowadays the investment activity of Kazakh and foreign investors mostly takes the form of purchase of stocks (OJSC) or shares of interest in companies (Ltd), i.e. equity finance. In addition, a transaction founding a joint business or purchasing part of one involves previous agreements, letters on liabilities, sale-purchase agreements for the stocks or shares interesting question, investment agreements and others.

Often such transactions include what is known as an ‘option contract?, by which current business owners agree on possible re-allocation of shares between themselves in the future, or the acceptance of new shareholder with defined conditions.