MoSA eyes fundamental changes to regulate establishing of co-ops

This news has been read 11829 times!

MoU signed in field of spreading arbitration, legal awareness

KUWAIT CITY, Oct 27: The Ministry of Social Affairs, represented by the Cooperative Sector, intends to introduce fundamental amendments to the decisions regulating the establishment of cooperative societies in the country, especially the stipulated value of the paid up capital upon official declaration of the cooperative, reports Al- Jarida daily quoting sources. Sources revealed the current paid up capital value is 5,000 and above; while the proposed amount is KD100,000.

Sources pointed out the current amount is very low, compared to the vital role that cooperatives play in society, which is to provide high quality commodities at reasonable prices. Sources said the regulation on the official declaration of charitable associations, for example, requires the submission of a bank certificate from a local bank affirming the deposit of 50,000 under the name of the association. Sources added the ministry is also studying the possibility of obligating the boards of directors of cooperatives to form main committees consisting of non-members.

Non-approval
Sources said the ministry is contemplating on the nonapproval of the formation of the administrative body of a cooperative, including the board chairman, if the distribution of all remaining positions like the secretary and fund manager is not completed. Sources clarified this is aimed at preventing the problem that the ministry encountered in the past – the reluctance of some members to run in the election for certain positions, under the pretext that they are not as influential and efficient as others.

Meanwhile, the Head of the Fatwa and Legislation Department of the Council of Ministers, Counselor Salah Al-Masad, signed with Chairman of the Board of Directors of the Kuwait Center for Commercial Arbitration of the Kuwait Chamber of Commerce and Industry Abdulwahab Al-Wazzan, a memorandum of understanding between the two sides on achieving cooperation and spreading arbitration and legal awareness.

The Fatwa and Legislation said in a statement to Kuwait News Agency (KUNA) on Wednesday that the memorandum includes reviewing the nature of the work of the Fatwa and Legislation Department, which is the legal reference and expert in charge of protecting the state’s public treasury. It added that the memorandum aims to provide the best protection for the interests of the state and achieve the common desire to establish cooperation between the two parties in several areas related to arbitration, which will contribute to the promotion and development of legal thought and the development of the arbitration system. It explained that this will be done through events, conferences and specialized training programs needed by those involved in legal affairs to expand their legal knowledge base, improve professional performance and realize the importance of preparing a generation of arbitrators and legal professionals who are scientifically and practically capable of settling disputes.

This news has been read 11829 times!