Article 146 of Companies Law

If it becomes apparent that the company was incorporated in violation of the provisions of the law, any interested party may, within ninety days from the date of publication, serve notice on it to rectify the non-compliant procedure. If the company does not proceed to make the rectification within thirty days from the date of the notice, the interested party may, within thirty days from the expiry of the aforementioned period, request the court to issue a judgment compelling the company to rectify that procedure or declaring the company void. The court may rule to compel the company to make the rectification or declare the company void if it finds that rectification of the non-compliant procedure is impossible. The partners may not invoke the company’s nullity against third parties. If a judgment declaring the company void is issued, it shall be liquidated as a de facto company. The right to bring this action shall lapse if the aforementioned time limits are not observed. The provisions of the preceding two paragraphs shall not prejudice the right of interested parties to bring an action for joint and several liability against the founders, the members of the first board of directors and the first auditors. This action shall be time-barred upon the lapse of three years from the date of the company’s registration in the commercial register or from the date of the final judgment declaring the company void, whichever is longer. If the violation constitutes a criminally punishable act, the liability action shall not be time-barred until the criminal action is time-barred. Chapter Three Capital Article 147 (1) The company’s capital must be in Kuwaiti currency. The Executive Regulations shall determine the minimum capital of the company according to the type of its activity, and the portion thereof to be paid upon incorporation. Amended by Law No. 15 of 2017 Law Index 1492 Home Page Companies Law Law No. 1 of 2016 Promulgating the Companies Law