In December 2012, the Companies Law Decree No. 25 of 2012 has been promulgated in Kuwait. Later on, Law No. 97 of 2013 amending certain articles of Law Decree No. 25 has been promulgated.
The Companies Law Decree No. 25 of 2012, as amended by Law No. 97 of 2013, has replaced the Commercial Companies Law No. 15 of 1960. The old Law, enacted nearly 33 years ago, has been surpassed by the corporate organizational needs; became an obstacle in the management of business activities; and became irreconcilable with the newly established regulatory bodies such as the Capital Markets Authority (CMA).
The new Companies Law came to meet the aspirations of doing business in Kuwait and may be considered as a significant leap towards transforming Kuwait into a regional financial center.
With regard to the reconciliation grace period granted to companies to reconcile their conditions to accord with the New Companies Law, which expires on 28 May 2013, there is a tendency to extend the deadline thereof to be 6 months from the date of issuance of the Executive Regulations of the Companies Law No. 25 of 2012.