Review of Co-op Laws in Kuwait (1997)

This document has been made available in electronic format
by the International Co-operative Alliance (ICA)

Part II - Review of Country Laws in Kuwait (1997)

Source: Co-operative Laws in Asia and the Pacific
by G.K. Sharma (pp.112-113)

The beginning of co-operatives in Kuwait could be linked with the
first school of co-operatives in 1941 in Moubarkiya School followed
by number of other school co-operatives.

In 1958 consumer co-operatives were established first one for the staff
of Social Affairs Department and another one for Information Department.
All these co-operatives were subjected to social institute and club law. In
1962 the first co-operative law was enacted followed by an another law in
1979 which is in operation presently. This law has 48 articles in 7

Article 1 defines "A Co-operative Society shall mean any society established by natural or juristic person, pursuant to the provisions of
this law, whether for a limited or unlimited term, with a view to raising
the socio-economic standard of its members through the adoption of the
co-operative principles outlined in the rules for implementation of this law."

Under article 8 registration period is one month and in case of refusal
appeal can be made within two weeks to a committee appointed for the
purpose which will include representative of cooperative federation also.
The Committee must dispose of the appeal within two weeks.

Under article 10 persons over the age of 21 shall be active members
and below 21 years shall be affiliated members without rights to
participate in the management.

Under article 11 the Board shall have not less than six and not more
than nine members and one third of them shall retire every year.
The tenure will be 3 years.

The article also authorises government to nominate one or more
directors but not more than one third of the total board members. 

Under article 14 General Body is to appoint a qualified person as
an auditor. The audit report has to go to the Ministry of Social Affairs,
Law and Labour also.

Under article 18 board members can be paid remuneration but not
more than 10% of net profit and maximum limit fixed by the

Article 31 details the conditions under which government can order
winding up of a co-operative. However, rules do provide voluntary
dissolution also.

Under article 35 government can issue a grounded decision dissolving
the board and appoint a manager or nominate a board of any co-operative.
Articles 36-38 provide penalties. Under Article 39 Government may
exempt some or all co-operatives from all or any custom duties and
other fees.