• Salah Abdullah Al-attar - Editor-in-Chief

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Amending the mechanism for distributing profits of cooperative societies..

Minister of Social Affairs, Family and Childhood Affairs, Dr. Amthal Hadi Al-Huwayla, issued Decision No. (207) of 2026, regarding the amendment of Ministerial Decision No. (165/T) of 2013 concerning the Executive Regulations of Decree Law No. (24) of 1979 regarding Cooperative Societies, as amended by Law No. (118) of 2013. The decision stipulated the replacement of the provisions of Article (30) concerning the mechanism for distributing the net profits of cooperative societies, specifying the aspects of profit distribution and the percentages prescribed for each item. Under the amendment, 20% is allocated to the legal reserve until it reaches five times the actual capital, and then 2.5% is deducted annually thereafter. 15% is allocated to spending on social, cultural and recreational services in the association’s area of ​​operation for the benefit of its members, and 5% is allocated to support national projects determined by the ministry in coordination with the relevant federation.  The decision also authorized the distribution of dividends on shares at a rate not exceeding 2% of the capital, taking into account the date of the shareholder’s joining and the date of his election, in addition to granting a return on members’ purchases during the fiscal year ending at a maximum of 15% for each dinar, provided that the value of the annual purchases calculated does not exceed 10,000 Kuwaiti dinars for one member.The decision stipulated that no more than 10% of net profits be distributed as a bonus to board members, subject to the approval of the general assembly or the maximum amount determined by the minister, whichever is lower. The remaining amount is to be returned to the allocation stipulated in paragraph (2) of Article (29). The decision also affirmed the cancellation of any provision that conflicts with its provisions, and stipulated that it shall come into effect from the date of its publication in the Official Gazette, with the relevant authorities tasked with its implementation.