Dr. Mansour Faraj Alsaeed
Associate professor of private law – Kuwait International Law School

Abstract:

Corporations play a vital role in enriching national economies through their huge investments and thanks to their Large number of shareholders. Therefore, it is imperative to create a system that aims at establishing regulations and criteria to activate the management of the company through identifying the duties and responsibilities of the board of directors and the executive management, taking into account protecting shareholders, intersts.
The legal principles governing companies (company law) aim at achieving two targets: First, establishing the basis that maintains a sustainable relationship within the company, in a way that facilitates its operation . Second, to strike the balance between the interests of the different consistencies affected by the company’s operations.
Despite its legal and economic importance, Arabic legal literature on corporate governance is insufficient. Addressing corporate governance principles gains importance in Kuwait after the issuance of the new Kuwaiti Companies Law No. 25 of the Year 2012 which codified such principles.
This paper aims at defining corporate governance and high lighting its importance, rules, and role in elevating the company’s performance. Addition ally, this paper aims at explaining the rules and criteria of corporate governance in the current legislations, especially after the issuance of the new Kuwaiti Companies Law as well as exploring its legal framework in the companies legislations.
Moreover, the research sheds light on the experiences ad studies of both local and international economic organizations related to corporate of governance.

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