Kuwait Court of Cassation principle number 631

The absence from the Commercial Companies Law and its amendments of a provision indicating that the convening of the general assembly of a joint-stock company is conditional upon the Central Bank expressing its opinion on its balance sheet. The inclusion in the amended Law on Currency, the Central Bank of Kuwait and the Regulation of the Banking Profession of a provision entrusting the Central Bank with supervising financial companies, directing their activities, inspecting them and coordinating between them and the banking system, and a provision requiring investment companies to submit information and statistical statements to the Central Bank, as well as submitting their general balance sheets for approval before presenting them to the general assembly, without linking this to a specified time limit. Its implication. The investment company’s balance sheet remaining with it without a determination until the company makes the amendments it considers appropriate does not signify its approval thereof or an administrative decision concerning it.