Al-Roudhan contributions
the ministry of commerce and industry, represented by minister khalid al-roudhan and other senior officials, continue to pursue developmental project which was launched two years ago. they have reformed the administrative sector that greatly improved the business environment in kuwait and contributed to the development of the economy. kuwait, through its financial market has now emerged on the global i n v e s t m e n t map with the official announcement that kuwait will be upgraded in the msci emerging markets index, a third promotion after ftse russell and dow jones.
a few days ago, the national assembly approved a series of longawaited laws to amend and revise them, some of which date back to more than half a century. the assembly approved laws that prevent non-profit companies from becoming profitable and obliging the president of the general assembly of closed joint stock companies, secretary of the meeting and one of the shareholders of the company to record the decisions of the general assembly and any matters or objections or reservations expressed by members attending to any item of the meeting, and this is what we had asked the ministry of commerce a few months ago.
it has become possible to give the general assembly more flexibility in determining the periods of distribution of profits rather than distribution by the end of the fiscal year. as for the organization of the auditor’s work, and also on the basis of what we had earlier requested, the auditor is forbidden from doing business that affects his neutrality and will not be a partner in more than one accounting firm or company.
the auditor is also prevented from owning the shares of companies in which he audits the accounts and other long-awaited organizing rules.
with regard to regulating the work of insurance companies, the most important financial sector after the banks, whose organization has been neglected for at least half a century, the task of supervising it went to an independent unit directly subordinate to the minister of commerce.
the amendments provide that the director of an insurance company shall be a kuwaiti. the amendments also stressed on the need to tighten the solvency of each company, and that there must be a committee in the ministry to receive complaints from citizens and residents against insurance companies to prevent abuse.
the policyholders also have rights and privileges over others in the insurance company’s assets in the event of default or bankruptcy. the policyholders have the right to object to the merger of their insured company with another company, or when the insurance company sells their policies to another insurance company, and other important organizational matters.
these amendments and many others were long overdue, and the credit for their completion goes to the person and personality of the minister, and we hope he will continue to develop the ministry and dust away the rest of the flaccid laws.
