The liability of other parties is limited to their personal capital contribution to the company. A Memorandum and Articles of Association detailing the identity of the partners, the nature and scope of the company and all information relating to its trading activities must be submitted to the Commercial Register. All partners are limited in their personal liability and are issued with non-negotiable shares of equal value. The number of shares held by any partner is determined by the amount contributed. Shares are transferable between members.
Members have first right to purchase outgoing shares at the minimum level of third party bids.
A Memorandum of Association is issued in the form of a notarized deed. This states the name of the company, personal details of the members, its objectives, capital and duration. The shareholders are issued with negotiable shares of equal value and their liability is limited to the nominal value of their shareholding. Public subscription may be invited. The accounts of a Joint Stock Company must be audited by independent auditors licenced to practice in Kuwait.