Amendment to Kuwait Companies Law: Enhancing Decision Making Flexibility
Type
Practical Guidance
Document type
Practice Note
Date
24 Oct 2024
Jurisdiction
Kuwait
Taxonomy
Companies & Corporate Bodies
Copyright
LexisNexis
Overview
On 20 October 2024, Kuwait introduced a significant amendment to article 116 of Kuwait Law No. 1/2016 On the Issuance of the Companies Law governing companies. This change was made to address practical challenges faced by companies, especially those with limited liability structures, in convening and making decisions in extraordinary general assemblies. The previous version of article 116 of Kuwait Law No. 1/2016 required a high threshold of attendance and voting power, which often delayed or completely halted essential decision making processes. The new amendment aims to enhance operational flexibility, empowering companies to proceed with their affairs in a more streamlined and efficient manner.