LOC16:24
13:24 GMT
KUWAIT, March 18 (KUNA) -- Kuwaiti Minister of Commerce and Industry, Minister of State for Youth Affairs Khaled Al-Roudhan on Sunday issued Resolution 155/2018 stipulating new terms and measures for increasing or decreasing shareholding companies' capital.
The resolution sets a package of procedures that must be adhered to by shareholding and closed corporations with respect of hiking or slashing the capital.
It tackles funding capital hike, such as covering the increase with shares, value of which is paid according to one of the methods mentioned in Article 159 of the corporate law 1/2016 (amended).
Company's employees are entitled to buy stocks with adherence to the Ministerial Resolution 337/2004.
Application for increasing the capital must be attached with minutes of the company board meeting, including reasons for hiking the capital.
As to lowering the capital, it also requires minutes of the board session, along with the reasons for the move.
Regarding losses' amortization, the resolution says this procedure should be in phases and according to specific rules.
Third provision tackles capital deficit or "crumbling." In the case where losses of a company reach 75 percent of the paid-up capital, the board or the general assembly must ponder prospect of dissolving the company, or take any other proper measure.
In the event the board does not call for an extraordinary assembly or a decision cannot be taken, the ministry and any other stakeholder is entitled to ask the competent court to dissolve the company. (end)
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