MoSA submits draft amendments to coop societies law to boost governance

The Ministry of Social Affairs announced on Thursday that it has submitted a draft law proposing amendments to the Cooperative Societies and Unions Law, in line with directives from Kuwait’s political leadership to reinforce governance, transparency, and accountability within the cooperative sector.

The ministry emphasized that the amendments aim to strengthen oversight mechanisms, enhance employee efficiency, and ensure the integrity of cooperative operations. The proposed changes clearly outline new eligibility criteria for candidates seeking election to the boards of directors of cooperative societies, reports Al-Rai daily.

These criteria include specific age limits, educational qualifications, and relevant professional experience. Additionally, candidates must own real estate in the area of the cooperative and must complete a mandatory training program focused on cooperative work, governance, and management.

The draft law also introduces key reforms to prevent misuse of authority and protect shareholders’ interests. Among the most notable provisions is a ban on individuals previously dismissed or whose boards were dissolved due to significant administrative or financial violations from running for board positions for two consecutive election cycles.

Further, the amendments call for the adoption of international governance standards and require the implementation of a comprehensive electronic financial and administrative system. Cooperative societies will also be obligated to adopt a Kuwaitization policy, giving employment and leadership priority to qualified Kuwaiti nationals.

The ministry affirmed that the draft law includes stricter penalties for negligence or misconduct that could jeopardize public funds or shareholders’ interests. These measures are designed to instill a culture of responsibility and strengthen public confidence in cooperative institutions.

The Ministry of Social Affairs reiterated its commitment to advancing these reforms and elevating the standards of cooperative work in Kuwait to better serve shareholders and align with the country’s development goals.