Important amendments to the Kuwait Companies Law (Law No. 1 of 2016) governing Extraordinary General Meetings (EGMs) for With Limited Liability companies have been introduced to address challenges arising often from shareholder-management disputes which impact on quorum and voting thresholds.
Key Amendments:
- Quorum:
The quorum for the initial EGM remains three-quarters of the total share capital. Critically, if this quorum is not met, the quorum for a reconvened EGM is now reduced to half the total share capital. This provides greater flexibility and efficiency in decision-making.
- Voting:
EGM resolutions now pass with the approval of shareholders holding more than half the total share capital. This is a change from the previous three-quarters threshold facilitating more streamlined decision-making.
- Convening EGMs:
The Ministry of Commerce and Industry (MOCI) – which has primary regulatory oversight over Kuwait companies – can now convene an EGM if a company’s management fails to do so upon a reasoned request from shareholders holding at least half the total share capital. This provision, previously applicable only to Ordinary General Meetings, now empowers shareholders in EGM contexts.
ASAR is ready to provide expert guidance on these significant legal developments and their implications for your business. Contact us to discuss your specific needs.