DLA Piper and the Union of Investment Companies explore amendments to new Companies Law

At a seminar for public and private sector representatives, 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 and Nader Al Awadhi, Partner at Al Wagayan, Al Awadhi & Al Saif Attorneys & Legal Consultants (NEN) discussed the scope of the latest amendments and the implications for businesses and foreign direct investors in the region.

Abdul Aziz Al-Yaqout, who was involved in the drafting of the new law said: "We are delighted to team up with the Union of Investment Companies to host this latest event. 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."

He continued: "Among the recent amendments, the most important are the extension of the compliance period for existing companies, the differentiation between listed and unlisted companies regarding the alienation of the position of CEO and Chairman, the definition of corporate governance and the distribution of the capital interests between Kuwait and foreign nationals. "

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. The amendments will come into force with its publication in the official gazette and the Ministry of Commerce and Industry will issue the executive regulations within 6 months from its publication.