Legal Disclaimer: This text is published for reference and convenience only. While due care has been taken in reproducing and reviewing it, we accept no liability for any error, omission or inaccuracy that may occur during its transcription or formatting, and it may not reflect subsequent amendments. In all cases, the official text published in the Official Gazette "Kuwait Al-Youm" shall prevail.

Furthermore, this English version is an unofficial translation. We make no representation or warranty as to its accuracy and accept no liability arising from any reliance on it. In the event of any discrepancy or difference in interpretation between the English and Arabic texts, the Arabic text shall prevail.

Law No. 100 of 1983
on Certain Provisions Relating to the Settlement of Transactions in Company Shares Concluded on a Deferred Basis

Article 1

As of the date this Law comes into force, the debts arising from transactions in company shares concluded on a deferred basis and registered in accordance with the provisions of Decree-Law No. 57 of 1982 referred to above shall fall due if they have not fallen due by that date. Such debts shall be settled on the basis of the spot price on the day of contracting plus a percentage of profit representing the difference between the agreed forward purchase price and the spot price, in proportion to the period elapsed until the date on which such debts fall due, provided that this percentage does not exceed 25% per annum of the spot price.
Without prejudice to Paragraph (3) of Article (2) bis of Law No. 59 of 1982, the debtor shall, immediately upon this Law coming into force, pay the debt on the basis referred to in the preceding paragraph. If he delays doing so without an acceptable excuse, the Arbitration Panel may oblige him to pay appropriate compensation for the delay.
Nevertheless, the Arbitration Panel may cancel the profit percentage or reduce it below the limit referred to in the first paragraph if the circumstances so require. If it becomes apparent that such cancellation or reduction was made on the basis of incorrect information or fraud or deceit by the debtor, the Panel may in that case increase the profit percentage to the limit it deems appropriate.
The Arbitration Panel may also award more than the profit percentage provided for in the first paragraph, or the full agreed profit percentage, in cases where it is established to it that the debtor has concealed any of his assets or disposed of them to the detriment of his creditors or smuggled them abroad, or has in bad faith committed acts harmful to the national economy or the public interest.

* The competences of the Arbitration Panel were transferred to a circuit of the Court of First Instance composed of three judges, and the phrase “the competent circuit” replaced the phrase “the Arbitration Panel” or “the Panel”, and the phrase “the Office for the Liquidation of Deferred Share Transactions” replaced the phrase “the Corporation for the Settlement of Transactions in Company Shares Concluded on a Deferred Basis”, wherever they appear in this Law, pursuant to Articles 1 and 16 of Decree-Law No. 42 of 1988 (Kuwait Al-Youm, Issue No. 1782), effective as of 27 November 1988.

Article 2

Without prejudice to the provision of the second paragraph of Article (2) bis of Law No. 59 of 1982 referred to above, each party to transactions in company shares concluded on a deferred basis may invoke set-off between the rights he holds and the obligations he owes arising from such transactions.

Article 3

The provisions of this Law shall not prejudice judgments issued before it comes into force or amicable settlements ratified by the Arbitration Panel.
With respect to the debts of persons previously referred to the Corporation for the Settlement of Transactions in Company Shares Concluded on a Deferred Basis which the (Creditors’ Rights Guarantee Fund) has paid, the Fund shall re-settle them on the basis of adjusting the value of the debt in accordance with Article (1) of this Law. If what it has paid exceeds that value, the Fund shall bear the difference. A debtor to whom the descriptions set out in the fourth paragraph of Article (1) of this Law apply shall not benefit from this provision.

* “The competent circuit” replaced “the Arbitration Panel” or “the Panel” in this Article pursuant to Article 16 of Decree-Law No. 42 of 1988 (Kuwait Al-Youm, Issue No. 1782), effective as of 27 November 1988. See the footnote to Article 1.

Article 4

The Creditors’ Rights Guarantee Fund shall recover what it has paid to the creditor in priority to any other dues remaining to that creditor against his debtor by reason of transactions in company shares concluded on a deferred basis and registered in accordance with the provisions of Decree-Law No. 57 of 1982 referred to above.

Article 5

The Arbitration Panel shall reconsider its decisions issued before this Law comes into force regarding referral to the Corporation, prohibition of disposal, attachment of assets or other precautionary measures in light of the application of the provisions of this Law, and it may uphold or revoke its previous decision. If the decision of referral to the Corporation is upheld, the time limit for seeking an amicable settlement provided for in Article (8) of Law No. 75 of 1983 referred to above shall begin from the date of the Panel’s decision, and this time limit shall be amended to six months for every person referred to the Corporation.
The enforcement of civil and commercial orders and judgments issued after this Law comes into force, in matters other than transactions in company shares concluded on a deferred basis, against persons referred to the Corporation shall be stayed until their case is decided in accordance with the provisions of Law No. 75 of 1983 referred to above, except for judgments whose holders have mortgages, pledges or special liens.

Article 6

Repealed.

* Repealed by Article 18 of Decree-Law No. 42 of 1988 (Kuwait Al-Youm, Issue No. 1782), effective as of 27 November 1988.

Article 7

If the court does not specify, in the judgment declaring bankruptcy issued in accordance with Law No. 75 of 1983 referred to above, a provisional date for the cessation of payments, the date on which Decree-Law No. 57 of 1982 referred to above came into force shall be deemed the provisional date, and the court may not backdate the date of cessation of payments by more than two years from that date.

Article 8

Without prejudice to any more severe penalty, any person who submits incorrect data or information to the Arbitration Panel, or commits fraud or deceit, with the intent of proving his inability to pay the capital plus the 25% percentage provided for in Article (1) of this Law, shall be punished by imprisonment for a term not exceeding five years and a fine not exceeding five thousand dinars, or by either of these two penalties.

Article 9

Any provision that conflicts with the provisions of this Law is hereby repealed.

Article 10

The Prime Minister and the Ministers, each within his own competence, shall implement this Law, which shall come into force from the date of its publication in the Official Gazette.

Law No. 100 of 1983 on Certain Provisions Relating to the Settlement of Transactions in Company Shares Concluded on a Deferred Basis