The legal framework and mandatory strength of the shareholders’ agreements in accordance with the Kuwaiti Companies Act (Analytical and Comparative Study)

Abstract

The shareholders agreement is a new legal tool that is considered somewhat modern in the business environment around the world. Concluding such agreement could results in fill the loopholes in the companies’ law and the companies’ articles of association, in addition such agreements aim at balancing between all the shareholders’ interests whether major shareholder or minority shareholders. Thud, regulating such legal tools can be protective for minority shareholders as well as positive issue for attracting foreign capitals. Therefore, in this research we will discuss the content of Article 30 of the Kuwaiti Companies Law after its amendment, as the research will address the general and specific objective conditions that must be met in such agreements in accordance with the Laws in Kuwait, and it will discuss what shareholders can agree on in such agreements, as well as the power of enforceability of such agreement in the State of Kuwait, and at the conclusion a number of recommendations will be addressed to endure the well- application of the shareholders’ agreements in Kuwait.