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Welcome to the latest edition of Law Update titled “Rise of Generative AI.”
In this edition, we dive into the dynamic world of Technology, Media, and Telecommunications (TMT) across the Middle East and North Africa (MENA) region. TMT continues to play a vital role in positioning the region as an international business and social hub, driving significant growth and innovation.
Our focus in this Law Update is on the sector’s ongoing potential to advance and propel the region toward a more digital economy. We explore the benefits of embracing a digital transformation and how local authorities have responded by enhancing regulations to accommodate the evolving TMT landscape.
This edition covers a range of topics, including – the new Telecommunications & Information Technology Law in Saudi Arabia, the intricacies of trademarks in the Metaverse, and the legal challenges faced by the video game industry. Additionally, we take a regional perspective, discussing jurisdictions such as Kuwait, Saudi Arabia, UAE, Oman, and Bahrain to provide a comprehensive understanding of the TMT landscape.
We hope you thoroughly enjoy this packed issue of Law Update, filled with captivating articles that address key legal issues within a vital sector for the region.Read the full edition
The Ministry of Commerce and Industry (“MOCI”) issued Resolution No. 60 for the year 2023 in the Kuwait Gazette dated 16 April 2023 (“Resolution 60/2023”) , which amends Decree No. 287 for the Year 2016 (“Executive Regulations”) of Law No. 1 of 2016, promulgating the Companies Law (“Companies Law”).
Division of companies is not a new concept and has been addressed in the Companies Law and its Executive Regulations.
Chapter (3) of the Companies Law (Articles 263-265) deals with division of companies and provides that a company may be divided even if it is in the liquidation phase, into two or more companies, resulting in winding up the company or its continuance. The companies created from the division may take any of the legal forms stipulated in the Companies Law. If a company wants to be divided, an extraordinary general assembly must be convened to take a resolution to divide, determining the number of shareholders or partners, their names, shares/units of each one of them in the companies created from the division, the rights and obligations of such companies and method of distribution of assets and liabilities among them.
Resolution 60/2023 has now been introduced as per Article 263 of the Companies Law to provide for the procedures, terms and conditions for the division of companies.
The manager of a company or the board of directors, as the case may be, shall present a detailed division report including assets and liabilities which belong to the dividing company as a result of such division to be submitted at the extraordinary general assembly of the company in line with Article 117 of the Companies Law.
In addition to the detailed division report, the following documents should be presented :
The dividing company and its shareholders have the right to object to the division in accordance with Article 220 of the Companies Law.
The MOCI will accept division requests that fulfill the requirements of Resolution 60/2023, the Executive Regulations and the Companies Law.
Once the division of the company has been approved by the MOCI, a publication will be issued in the Kuwait Gazette with a (30) day objection period.
For further information regarding Resolution 60/2023 please feel free to reach out to Ola Saab and Lulwa Alhammad.
Head of Corporate Commercial - Kuwaito.email@example.com
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