Cabinet Approves Draft Decree-Law Amending Certain Provisions of the Companies Law
The Kuwaiti Cabinet approved amendments to the Companies Law to facilitate establishment, abolish the partnership company, and submit the draft to the Emir.
Translated by Qiyas from كونا — Original source
Kuwait City, 29 September (KUNA) -- The Council of Ministers approved on Tuesday a draft law decree amending certain provisions of the Companies Law issued by Law No. 1 of 2016, with the aim of facilitating the establishment of companies and enhancing confidence in dealing with them, in line with the state’s direction toward a more flexible and transparent business environment.
Deputy Prime Minister and Minister of State for Cabinet Affairs Shari’id Al-Muwasharji said in a statement that this decision came during a Council of Ministers meeting held in the conference hall of the administrative building at the third phase of the Martyr’s Park, presided over by His Highness Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah, Prime Minister, may God protect him.
He clarified that the aforementioned draft law decree exempted all procedures and legal acts related to companies, from their establishment throughout their existence and any amendments to their contracts and articles of association, from the requirement of notarization. It sufficed for these documents to be written and signed by the partners or their representatives, and made registration in the Commercial Register equivalent to notarization, thereby giving effect to the company’s contract, its amendments, and its extraordinary general assembly resolutions against third parties. It also abolished the “muhasasa” (silent partnership) company, as it is not subject to registration or publication.
He added that the draft law decree permitted free professionals to establish a professional company with a single person, and included transitional provisions granting existing offices and companies a one-year period to regularize their status, while preserving the validity of contracts and companies established prior to the law’s implementation.
He noted that the Council of Ministers submitted the draft law decree amending certain provisions of the Companies Law issued by Law No. 1 of 2016 to His Highness the Amir of Kuwait, Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah, may God protect and guard him. (End) M.A.A.
