Kuwait Airways declared shareholding company

Kuwait Airways Corporation was declared yesterday a shareholding company named “Kuwait Airways Company”, capping long-time efforts to privatize the corporation. Decree No. 22 was proclaimed, amending articles of the law No. 6 of 2008, stipulating the transformation of the KAC into a shareholding company. Article one of the decree, according to the amended version, declared the KAC a shareholding company, named Kuwait Airways Company, to be charged with all tasks of the corporation, to acquire all material and non-material assets as well as liabilities. The decree exempts the corporation’s rights and judicial rules against Iraqi Airways, the Republic of Iraq and other rights. The company shall seek execution of the relevant rules and deposit proceeds to the state treasury. The second provision of the decree affirms that that the company shall retain its rights and prerogatives, namely with regard of transportation, any prerogatives to be decided by the state for other air companies, with exemption of custom tariffs, fees of spare parts at Kuwait airport, contracts between the corporation and some state authorities as well as granted permits. Term three says the government shall cover losses of the corporation, that staff who desire to resign be granted end of service payments. And this task would be undertaken by the Ministry of Finance. Management of the newly-formed company shall be undertaken by a seven-member board, to be named by a decision by the minister of communication, for a three-year, renewable term. The minister is also entitled to name a board chairman. The board will embark on structuring the company, according to the commercial corporate law, namely the enactment of the constituent and by-laws – in addition to material and human power structuring. From Kuwaittimes