Highlights of Resolution no. 161/2020 regarding regulating Professional Law Firms:

Highlights of Resolution no. 161/2020 regarding regulating Professional Law Firms:

In coordination with the Kuwaiti Lawyers Association, the Ministry of Commerce and Industry issued the Ministerial Resolution No. 161/2020 that regulates the professional law firms in Kuwait. The resolution shall be in effect starting January 1st, 2021. The aforementioned resolution stipulates that the professional law firm shall be established by registered Kuwaiti Lawyers (First instance Lawyers- Appeal Lawyers- Constitutional and Cassation lawyers) and shall take the legal form of the closed stock Company, Limited liability, Limited partnership, or joint venture partnership.

The professional law firms shall subject to the supervision of the Kuwaiti Lawyers Association that will maintain a book keeping record for registering the professional law firms which shall be established in accordance with this resolution and subject to the provisions of Corporate law no. 1/2016 and its Exertive Bylaw provided that it is compatible with its nature and will subject also to the law no. 42/1964 regarding organizing the practice of the legal profession before the courts, its amendments, and the code of ethics and the norms of the Legal profession.

The license to establish the professional law firm shall be for a term of four years and the required capital no less than KWD 10,000 (Kuwaiti dinars ten thousands). The professional law firm shall submit an insurance policy for the compensation of the damages that result from the faults and the negligence of the partners, shareholders and the employees of the company. The said policy shall be renewed and remains valid for a term of six months after the termination of the memorandum of agreement of the company.

The Board of directors who manage the professional law stock company shall be composed of shareholders who are registered in the lawyers’ practitioners registry (Appeal lawyers- Constitutional and Cassation Lawyers).

The aforementioned resolution stated that a partner or a shareholder in a professional law company may not be a partner or a shareholder in another professional law company and the latter will not be considered a trader. Every partner or shareholder shall be liable personally of his faults towards the company, partners or shareholders. The company will be held liable for the faults of the partners that cause damages to third parties.

The above resolution added that the professional law firm shall only practice the legal profession and the legal consultations and is not permissible to practice commercial activities by establishing corporate companies or another professional law firms. The said resolution prohibits the professional law firm to issue more than one license to practice the legal profession, and is not permissible to open branches for the company.

The above-mentioned resolution added that the professional law company shall not provide its services to its clients except through the company, the shareholders, or the registered attorneys in the lawyers practitioners’ registry.

International Department Team Dr. Bader S. Al-Otaibi

Law Firm & Intl. Arbitration

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