Kuwait Chamber of Commerce Law of 1959 (Repealed)

Kuwait Chamber of Commerce Law 1959

Definition and Legal Status of the Chamber of Commerce

Article 1

The Chamber of Commerce is a public-benefit institution whose purpose is to organise, represent and defend commercial and industrial interests and to work for their advancement. It shall be established upon the request of not less than thirty members from among the men of commerce and industry, who shall elect from among themselves a committee to determine the seat of the Chamber, its area of competence and the number of members of its Board of Directors, including the responsible President, provided that the number of members of the Board of Directors shall be twelve members only.

Article 2

The Chamber of Commerce shall have legal personality. Within the scope of this Law, it shall have the right to own, sell, buy, litigate, mortgage, accept donations and gifts, contract loans and carry out other acts falling within the limits of its competence.

Powers and Objectives of the Chamber of Commerce

Article 3

The Chamber of Commerce shall collect all information and statistics of interest to commerce and industry, classify and publish them, and supply the Government with data, information and opinions relating to commercial and industrial matters.

Article 4

Obtaining the opinion of the Chamber of Commerce, in matters relating to its areas of competence, shall be required in advance for the establishment of exchanges, ports, markets and exhibitions, for the granting of concession rights relating to public utilities, and for the study, drafting and amendment of draft laws and decrees of an economic and financial nature. The Chamber shall give its opinion within three months from the date of the request, and if the opinion is requested urgently, it shall be given within one month.
The Chamber of Commerce may, on its own initiative, submit opinions and proposals on all matters relating to economic affairs, in particular those leading to the stimulation, protection or direction of commerce and industry, such as customs tariffs, taxes, fees, means of transport, tourism and summer resorts, and all other matters relating to the progress of commerce and industry.

Article 5

The Chamber of Commerce may, within the limits of the laws and regulations (rules) in force, establish permanent exhibitions, museums, markets, commercial and industrial schools, and other industrial, commercial and agricultural establishments and institutes. The management of similar establishments and institutes belonging to the Government or to municipal or local councils may be entrusted to the Chamber.
The Chamber may also send study missions for specialisation in subjects useful to the advancement of commerce and industry.

Article 6

The powers of the Chamber of Commerce, according to its competence, include the following acts:
1- Registering the names of merchants and industrialists and classifying them into categories according to the financial solvency of each of them.
2- Certifying and issuing certificates of origin or source.
3- Certifying invoices of goods after checking them.
4- Certifying guarantees and the financial capacity of guarantors.
5- Certifying the authenticity of the signatures of merchants and industrialists.
6- Certifying the capacity and identity of applicants from among merchants and industrialists.
7- Certifying copies of papers registered with the Chamber of Commerce.
8- Certifying the dates of papers produced to the Chamber of Commerce.
9- Certifying all other commercial and industrial certificates.
10- Registering arbitration instruments submitted to the Chamber by the arbitrators concerned or by the parties to the arbitration.
11- Naming experts and representatives – at the request of public authorities, courts, municipalities or persons concerned from among the men of commerce and industry – to study matters of a commercial or industrial nature, including the examination of disputed goods, and certifying expert certificates in this regard.
12- Providing the prices of the principal commodities traded on specific dates in the local commercial markets, at the request of official departments and of persons concerned who are registered with the Chamber.
13- Determining commercial and industrial custom.
14- Representing commercial and industrial bodies on committees, bodies and institutions whose interest requires their participation therein.

Article 7

The Chamber may hold economic conferences, and it may participate in foreign economic conferences after agreement with the official departments.

Article 8

The Chamber may communicate directly with Government departments regarding all data and information it needs relating to the acts falling within its competence.

Article 9

Every certificate issued by the Chamber at the request of a Government department or a local court shall remain valid unless the contrary is proven.

Article 10

The Chamber of Commerce is prohibited from engaging in speculation, in acts harmful to the markets, or in political or religious matters, or from providing any assistance or aid to political parties (if any), directly or indirectly.

Article 11

The Chamber may, by arbitration, decide disputes submitted to it by agreement of the persons concerned.

Article 12

The Chamber may form, from among the members of its Board and its affiliates, committees for the various purposes falling within its competence, and the reports of the committees shall be submitted to the Chamber for approval.

Composition of the Chamber

Article 13

The Chamber of Commerce shall consist of a General Assembly, a Board of Directors and an Office.

Article 14

A- The Chamber of Commerce shall be charged with drawing up unified internal rules for itself within four months from the date of issuance of this Law, specifying the procedures for convening meetings of the General Assembly, the Board of Directors and the Office of the Chamber; the manner of conducting sessions and recording their proceedings; the system of election and voting; the functions of the members of the Office; and the procedures for appointing the employees of the Chamber and their powers and responsibilities. The rules shall also specify the categories of affiliates and the conditions required for each of them, the arbitration procedures and the formation of the various committees, and shall also provide for the rules to be followed in managing its revenues and fees, the manner of collecting and disposing of them, and the rules for organising the records and accounts of the Chamber.
B- The General Assembly shall meet at least once every calendar year – except in the case of the first meeting – provided that this shall not be later than 18 months from the date of the previous meeting of the General Assembly.
Notice of the date, time and place of the meeting of the General Assembly, stating the business to be put before it for discussion, shall be sent to all members three weeks before the appointed date.

Affiliation with the Chamber of Commerce

Article 15

1- Commercial, industrial and financial establishments shall join the Chamber of Commerce.
2- Merchants, brokers and contractors shall, and owners of industrial crafts may, join the Chamber if they satisfy the following conditions:
A- The applicant shall have a commercial or industrial premises in the area of the Chamber (brokers being exempt from this condition) and shall be practising his commercial or industrial profession.
B- He shall enjoy his civil and political rights.
3- Official departments shall not accept transactions submitted to them by merchants and industrialists who are not registered with the Chamber, nor shall such persons be registered in the Commercial Register, when it exists, until after they have registered with the Chamber.

Article 16

1- The application for affiliation with the Chamber shall be submitted accompanied by the supporting documents specified in the internal rules.
2- The Office of the Chamber shall decide on the application within two weeks from the date of its submission complete with the legal requirements.
3- If the application for affiliation is rejected, the applicant may appeal to the Board of Directors of the Chamber, and the Board shall decide on the appeal within one month from its submission to it.

Article 17

An affiliate shall lose his membership of the General Assembly of the Chamber in the following cases:
1- Bankruptcy; a person whose commercial standing has been rehabilitated shall be entitled to join the Chamber again.
2- Loss of civil rights.
3- Loss of the capacity that qualified him to join the Chamber.

The General Assembly

Article 18

The General Assembly shall consist of all subscribers who have completed payment of the fees due from them to the Chamber, and its function shall be to elect the members of the Board of Directors under the conditions regulated by the internal regulations of the Chamber.

The Board of Directors of the Chamber of Commerce and Its Election

Article 19

The Chamber shall have a Board of Directors whose members shall be specified in the decision issued for its establishment in accordance with the provisions of Article (1) of this Law.

Article 20

A member of the Board of Directors shall, in addition to the conditions required of a voter, satisfy the following:
1- He shall be not less than thirty calendar years of age, reduced to twenty-five if he holds a university degree related to commercial and economic business, such as degrees in commerce, economics and law.
2- He shall be able to read and write well.
3- He shall have worked in business connected with commerce or industry for a period of five consecutive years, this period being reduced to three years if he holds a university degree related to commerce.

Article 21

Elections shall be organised in accordance with the internal regulations of the Chamber.

Article 22

Challenges to the election of the Board of Directors shall be submitted within a period of fifteen days from its conclusion to a committee called the Challenges Committee, composed of a judge of the court and two members of the Chamber appointed by the Board of Directors, provided that they are not members of the Board of Directors. The decision of the Committee shall be final.

Article 23

Any member who is in a case of ineligibility or in a case of disqualification from election provided for in this Law or in any other law shall forfeit the right of membership of the Chamber of Commerce and of the Board of Directors, whether such case arose or was discovered after his admission as a member of the Chamber and his election to the Board of Directors. Forfeiture shall be by a decision issued by the Challenges Committee.

Article 24

If the seat of a member of the Board of Directors becomes vacant by death, resignation, permanent absence or loss of any of the conditions of membership, it shall be filled by the first alternate in the last elections.
The membership of the new member filling the vacant seat shall last until the end of his predecessor’s term.
If the number of members of the Board falls at any time below half of its prescribed number, elections shall be held for a new Board.

Article 25

The Board of Directors shall meet at least once every month, at the invitation of its President, and the President shall be bound to call the Board to meet when one third of its members submit a written request to that effect. The deliberations of the Board shall not be valid unless more than half of the members attend the meeting. If this number is not complete, the meeting shall be postponed for not less than two days and not more than eight days, and all members shall be invited to attend the second meeting. The deliberations of the Board on the agenda of the postponed session shall be valid whatever the number of members present, and the decisions of the Board shall be taken by an absolute majority of the votes of those present. In the event of a tie, the side including the vote of the President shall prevail.

Article 26

Any member who is absent from the meetings of the Board for three consecutive sessions without an acceptable lawful excuse shall be warned thereof in writing, and this shall be recorded in the minutes of the session. If the unlawful absences recur three times in succession, he shall be deemed to have resigned, and this shall be recorded in the minutes of the session.

The Office of the Chamber of Commerce

Article 27

A- The Board of Directors shall elect, by secret ballot from among its members, a President and two Vice-Presidents, and the Board shall consist, in addition to these three, of a Treasurer and a Secretary as well. The election shall be repeated every two years, and members whose term has expired may be re-elected. The Office shall supervise the departments of the Chamber and the treasury and shall implement the resolutions of the Board of Directors of the Chamber.
B- The Board of Directors shall appoint a secretary and a cashier who shall be salaried employees working full-time for the Chamber. These two persons may not become members of the Chamber, nor shall they be permitted to engage in commerce or other business for their own account.
The secretary shall keep all non-financial and non-accounting records, and the secretary and the cashier shall attend the meetings of the Office without having the right to vote. The secretary and the cashier shall – each within the limits of his own section – carry out the business of the Chamber from day to day under the supervision of the Executive Office.

Article 28

The meetings of the Board of Directors and the Office of the Chamber shall be held in accordance with the internal regulations of the Chamber.

Article 29

A member of the Board of Directors may not participate in the sessions of the Board, the Office of the Chamber or any of the committees of the Chamber when considering matters in which he has interests of his own, or of his principal, or of a person of whom he is guardian.

Article 30

The President of the Chamber of Commerce shall represent the Chamber on occasions and before the courts, whether as plaintiff or defendant, and shall chair the Board of Directors of the Chamber.

Article 31

The President shall have the right to delegate whomever he wishes from among the members of the Office, the Board of Directors and the employees of the Chamber to carry out the acts he deems fit that fall within the competence of the Chamber. In the event of the absence, travel or resignation of the President, his powers and competences shall pass to one of his two Vice-Presidents, and in the event of the absence of the President and both Vice-Presidents, the Board shall choose from among its members a person to carry out the functions of the presidency.

Finances of the Chamber

Article 32

The resources of the Chamber of Commerce shall consist of registration and subscription fees, fees for guarantees and certificates, and all documents it issues or certifies against specified fees; of fees for arbitration, certification of petitions and passports, endorsement of commercial books, certification of signatures, certification certificates, registration of company contracts, certification of lease and rental certificates, and other fees that may be collected according to the rules and resolutions relating thereto; and also of the income from the real estate, gifts and donations it owns and what it earns from the investment of its funds.

Article 33

The amounts of the various fees collected by the Chamber shall be based on fixed foundations determined by the internal regulations and rules.

Article 34

The funds arising from the various heads of revenue shall be invested in the purposes for which the Chamber of Commerce was established, as provided for in this Law.
They may also be invested in other forms of investment guaranteed by the Government, such as Government bonds and shares and bonds of banks guaranteed by the Government.

Article 35

The Board of Directors of the Chamber shall designate a bank in which the funds of the Chamber shall be deposited. No sum of money may be withdrawn except with the signature of the President, or of one of his two Vice-Presidents in his absence, together with the signature of the cashier. The cashier may not keep in the Chamber’s safe a sum exceeding two thousand rupees to meet urgent unforeseen needs.

Article 36

The cashier shall supervise the preparation of the budget of the Chamber, and all documents relating to the treasury or to the funds that are to be deposited in the bank designated by the Board shall be in his custody. In the event of the absence of the treasurer, he shall delegate one of his colleagues to act in his place. If this is not possible, the Board shall delegate a person to act in place of the treasurer.

Article 37

The financial year of the Chamber shall begin at the start of each financial year, that is, on the first of January of each year, and the Office of the Chamber shall submit a draft budget to the Board of Directors for approval one month before the beginning of the new financial year.

Article 38

No sum of the Chamber’s funds that is not provided for in the budget may be spent except by a decision of the Board of Directors approving it.

Article 39

The Office of the Chamber shall prepare a list containing the names, titles and places of residence of merchants who have defaulted in paying any fee due from them. After its certification, it shall be sent with a memorandum to the competent authorities for the collection of these fees by the finance collectors under the Collection Law, after the defaulters have been given notice to pay for a period of ten days from the date on which they, or their places of residence, were notified of their refusal to pay.

Article 40

Registration fees shall be paid as soon as the merchant is admitted to the General Assembly of the Chamber – and registration may not take place – before payment of the fee.

Article 41

The Board of Directors of the Chamber shall appoint a chartered auditor for the accounts and the budget, and the cashier shall make available to the auditor the books of the Chamber and the documents relating to its finances.

Article 42

In the event that the competence of one chamber is merged into another, its funds shall be merged with the funds of the chamber into which its competence has been merged.

Published in the Official Gazette Kuwait Al-Youm on 28 June 1959.