The Ministry of Commerce and Industry signed Monday a memorandum of understanding (MoU) with the Kuwait Clearing Company (KCC) to enforce the commercial companies law No. 425 of 2013.
As per the MoU, the KCC would be responsible for depositing the documents of the companies operatives in Kuwait and to supervise the proceedings and write reports about the outcome of their general assemblies.
"The Ministry of Commerce is keen on coordinating with the Kuwait Clearing Company to regulate the stock market in accordance with the provisions of the new commercial companies law," Deputy Prime Minister and Minister of Commerce and Industry Dr. Abdulmohsen Al-Madaj told reporters following the MoU signing ceremony.
He noted that the agreement comes within the framework of the Ministry's efforts to put in place the new law. The law assigns the KCC the task of depositing the documents of the companies and their shareholders.
"This required coordination between the Ministry and the KCC to implement the law to protect the interests of companies, shareholders and the state," the Minister added.
For his part, the KCC Chairman Ahmad Al-Haroun said that the MoU comprises the detailed mechanism of cooperation between the Ministry of Commerce and the KCC to execute the new law.
He pointed out that the MoU stipulates that the KCC would review the situation of the licensed companies and inform the Ministry about the companies which failed to provide the KCC with the shareholders' documents to take the required action as per the law.
He added that representatives of the KCC will also attend the companies' general assemblies to assess the full adherence to the transparency regulations. The KCC representatives will also have to make sure that invitations were sent to all shareholders and to calculate the number of attendants and their percentage.