In family-owned businesses or entities with closely held shareholding structures, disputes between partners or shareholders are among the most critical operational risks and may have serious consequences on the company’s stability or continuity. Kuwaiti law addresses such disputes through a combination of provisions in Companies Law No. 1 of 2016, the Civil Code, and arbitration rules.

 

At Taqneen Law Firm, we provide advanced legal representation, including:

• Offering strategic legal advice upon the emergence of disputes over management, profit sharing, share transfers, or abuse of authority.
• Representing clients in lawsuits related to nullification of general assembly or board resolutions, where such decisions are contrary to the law, company bylaws, or adopted in bad faith.
• Litigating partner expulsion cases, filing for appointment of an independent auditor, or initiating legal action to dissolve and liquidate the company upon a partner’s request.
• Preparing claims or defenses in cases of abuse of voting rights, or where decisions have been imposed without regard to the company’s interest.
• Advising on alternative dispute resolution mechanisms, including arbitration or mediation if provided in the shareholders’ agreement, and representing clients before recognized bodies such as the Kuwait Commercial Arbitration Center (KCAC).

 

We believe that most shareholder disputes can be prevented through proactive contractual planning—but when disputes do arise, our intervention is decisive, strategic, and preserves the company’s integrity.