Published in: News

Lawyer Hussien Al-Ghareeb: MPs may not join the board of directors of companies

Author Meshari Al Osaimi

Published on: January 18, 2010

Lawyer Hussien Al-Ghareeb has confirmed that the law prohibits members of the parliament to join the membership of the board of directors of companies, “but if the directorship preceded membership in the National Assembly, they may be combined, provided the MP is not re-appointed or elected in the company.”

Al-Ghareeb said in a lecture on the “role of the board of directors of joint stock companies from the perspective of the law”, that any shareholder in the company is entitled to file a case for the invalidity of the company general assembly if he was not informed of the date of holding it by the customary legal methods.”

The lecture addressed the legal organization of the general assembly and board of directors in joint stock companies, as per the Kuwaiti commercial companies law, and highlighted the most prominent practical problems facing the company shareholders in their relations with the board of directors and the Ministry of Commerce and Industry as a control authority, with an invitation to activate a number of legal provisions for the protection of the shareholders’ funds, particularly the minority.