Legal Issues of Observation – Bankruptcy Procedures Applicable by the Economic Court of Uzbekistan

Abstract

The Law of the Uzbekistan dated April 24, 2003 No. 474-II ‘On Bankruptcy’, the legal definition of the observation procedure is indicated: this is the bankruptcy procedure applied by the economic court to the debtor – legal entity from the moment the court accepts the application for declaring the debtor bankrupt until the next procedure in order to ensure the safety of the debtor's property, analysis of financial state of the debtor. The purpose of the article is to analyze the legal issues of observation (bankruptcy procedure applied by the Economic Court of the Uzbekistan). The article considers the goals of introducing the monitoring procedure, the functions and consequences of introducing the stages of the monitoring procedure, limiting the powers of the debtor during the monitoring. We conclude that the introduction of the monitoring procedure corresponds to the continuing type of bankruptcy legislation in the Uzbekistan, as it is aimed at preserving the debtor's assets and finding the possibility of restoring its solvency by analyzing the financial condition of the legal entity.