KUWAIT CITY, Nov 3: The Court of First Instance has ruled that one person cannot run two companies doing the same business because of a conflict of interest, leading to the dismissal of the person from the management position. In a lawsuit filed by a citizen at the Commercial Court through his legal advisor Lawyer Jaber Al-Kandari of Dalal Al-Mulla Law Group, he pointed out that his partner, who manages his company, also ran another company involved in the same field, which constitutes a violation of the Commercial Companies Law no. 1/2016.

The action was brought to remove his partner from the management position and to seek compensation for damages suffered as a result of this breach. Attorney Al-Kandari presented evidence to show that his client’s partner violated the law by running a competing business and that his client’s firm suffered huge losses due to these actions.

According to art. 104 of Law no. 1/2016 of the Commercial Companies Law, associations are allowed to request the dismissal of a manager for engaging in unfair competition, causing serious damage or committing fraud. Based on this defense, Al-Kandari’s lawyer’s arguments led the court to rule on the request to dismiss the company manager.

By Jaber Al-Hamoud

Al-Seyassah/Arab Times staff