Introduction

In Kuwait, managing a company’s assets—whether real estate, equipment, or financial holdings—requires strict legal compliance. To avoid mismanagement, many businesses and shareholders appoint legal professionals to oversee asset use, contracts, and transactions. This article explains the role of lawyers in corporate property oversight under Kuwaiti law, and the legal tools available to ensure proper governance.

Scope of Company Property

Company property includes:

• Land and buildings owned or leased by the company
• Bank accounts, cash reserves, and investment portfolios
• Machinery, vehicles, inventory, and intellectual property
• Contracts and receivables

Managing these assets must align with the company’s objectives, legal structure, and fiduciary obligations to partners, shareholders, or creditors.

Lawyer’s Role in Corporate Property Oversight

Lawyers in Kuwait can be appointed as internal legal advisors, board secretaries, or external supervisors. Their responsibilities include:

• Reviewing property transactions and contracts for compliance
• Advising the board of directors on legal risks in property management
• Ensuring that asset sales, leases, or transfers follow legal and procedural standards
• Participating in due diligence and audits

Legal Instruments for Oversight

To perform this role effectively, lawyers may request or be granted the following legal authorities:

• Special Power of Attorney: Issued by the company or shareholders authorizing access to property records or legal representation in asset-related disputes
• Board Resolution: Formally designating the lawyer as legal supervisor or compliance officer
• Judicial Appointment: In case of disputes, courts may assign a lawyer as a legal representative or judicial trustee to oversee company property

Relevant Laws and Articles

The following legal texts govern corporate property and legal supervision in Kuwait:

• Commercial Companies Law No. 1 of 2016: Defines the roles and liabilities of directors and mandates transparency in property use
• Civil Code: Provides rules for agency, fiduciary responsibility, and abuse of rights
• Lawyers’ Law No. 42 of 1964: Establishes the lawyer’s authority to act on behalf of clients in administrative and judicial matters

Benefits of Legal Oversight

• Reduces risk of misappropriation or unauthorized sales
• Ensures documentation and reporting comply with regulations
• Protects shareholder rights and avoids internal disputes
• Supports compliance with audits, tax obligations, and governmental review