DLA Piper hosts business audience to explore the new Companies Law for Kuwait

Abdul Aziz Al-Yaqout, Regional Managing Partner at DLA Piper Middle East and Tarek Yehya, Senior Legal Consultant in DLA Piper's Kuwait office, who were involved in the drafting of the new law discussed its scope and implications for businesses.

Nader Al Awadhi, Partner at Al Wagayan, Al Awadhi & Al Saif Attorneys & Legal Consultants (NEN) also presented on the newly introduced crimes and penalties according to the new law and clarified the roles of the Ministry of Trade and Industry in monitoring and inspecting violating companies.

Participants listened to the explanation of the main features and aspects which are provided by the new law which was published in November 2012, and summarized a range of new concepts and principles that have been developed to reflect the nature of the practical working environment of companies in Kuwait and how commercial authorities operate in the State. The recent changes were put in place in order to encourage investment and give reassurance to investors in Kuwait.

Abdul Aziz Al-Yaqout, who was involved in the drafting of the new law said: "We are very pleased to have hosted this seminar this week to discuss the main basis of this law and its significance moving forward regarding commercial companies operating in Kuwait which will improve investors' confidence. The new law brings with it greater clarity in terms of the powers and responsibilities of shareholders, partners, boards of directors and the foundations of governance or good governance as well as other principles and practical solutions that will undoubtedly enhance the image of Kuwait to the foreign investor. The new law also required Kuwaiti companies to comply with best practice related to corporate governance which will enhance transparency and efficiency, and is considered to be one of the fundamental factors to attract foreign and domestic investments."

The new law was finalised with the participation of the Ministry of Commerce and Industry, the Central Bank of Kuwait, the Capital Markets Authority, the Kuwait Investment Authority, private sector representatives and lawyers from DLA Piper who include Abdul Aziz Al-Yaqout and Tarek Yehya. It came into force with its publication and has given companies six months to comply with the new regulations.