03/11/2024
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03/11/2024
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KUWAIT CITY, Nov 3:The Court of First Instance has ruled that an individual cannot manage two companies engaged in the same activity due to a conflict of interest, leading to the dismissal of the individual from their management position. In a lawsuit filed by a citizen in the Commercial Court through his legal counsel Lawyer Jaber Al-Kandari from Dalal Al-Mulla Law Group, he highlighted that his partner, who manages their company, was also managing another company involved in the same field, which is a violation of company Law No. 1/2016.
The lawsuit was filed in pursuit of his partner’s removal from the management position and to demand compensation for the damages incurred as a result of this violation. Lawyer Al-Kandari presented evidence to prove that his client’s partner violated the law by managing a competing business and that his client’s company had incurred huge losses due to these actions.
According to Article 104 of Law No. 1/2016 of the Companies Law, partners are permitted to request the dismissal of a manager for engaging in unfair competition, causing serious damages, or committing fraud. Based on this defense, Lawyer Al- Kandari’s arguments led the court to rule on the request for the dismissal of the company’s manager.
By Jaber Al-Hamoud
Al-Seyassah/Arab Times Staff
