Regulatory Alerts2010-04-18
Executive Procedures for Increasing Single-Person Ownership to 5% of Bank Capital
The Central Bank of Kuwait established executive procedures and a tiered reinstatement mechanism to permit single natural or legal persons to hold more than 5% of a local bank's capital. The framework requires quarterly shareholder data submissions, defines indirect ownership through common directorship and interrelated interests, and suspends voting rights for excess equity until prior regulatory approval is granted. Shareholders must dispose of ownership excesses within one to two years depending on the acquisition type, while the new three-segment system allows automatic reinstatement of previous ownership levels based on defined capital drop thresholds.
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