KDY was one of the top three starship manufacturers in the galaxy, along with the Corellian Engineering Corporation and Sienar Fleet Systems. KDY was controlled by the ruling families of the planet Kuat, with each new ruler being chosen from among the most competent in a vote. However, it was determined that the Kuat family had the most aptitude for running the huge corporation, and the ruling families established the Inheritance Exemption. This allowed control of KDY to pass from one generation of the Kuat family to the next, thereby ensuring that the most able of the Kuat minds was continually in control of the corporation. This meant that KDY was always generating vast amounts of wealth for all the ruling families. Kuat Drive Yards remained independent from any governmental body, from the time of its inception during the Old Republic throughout the New Order of Emperor Palpatine. It was perhaps most famous for its production of the Imperial-class Star Destroyer. It also produced many shipboard components, as well as the Nebulon-B frigate. KDY began experimenting with the development of massive starships shortly before the onset of the Clone Wars, then aligned itself with the Empire, and remained pro-Imperial after the Battle of Endor. During the last decades of the Old Republic, KDY was part of the Trade Federation. However, during the Eriadu Conference, the Neimoidians staged their bloody takeover of the Federation, killing several top Kuati officials. It was then than KDY severed all ties with the Federation and provided its knowledge and facilities to the Old Republic. KDY was also one of the original Signatory Sponsors of the Corporate Sector Authority. Unknown to most buyers, every ship which left Kuat Drive Yards was given a regulator subcode in its computer system. This trapdoor allowed Kuat Drive Yards engineers to obtain control of a ship for diagnostics and repairs. These codes could also be used to break into a ship and take control from its user. This fact was never revealed, in part to save KDY from the wrath of Emperor Palpatine. During the last days of the New Order, shortly before the Battle of Endor, much of Kuat Drive Yards was destroyed by Kuat of Kuat. He hoped to ensure that no one - not the Empire, the Alliance, or Kodir of Kuhlvult - would take control of the operation. He acted nobly, but was unaware of the forces around him. In fact, the bounty hunter Boba Fett was his greatest ally, and helped expose Kodir's treacherous plans. The future leaders of KDY maintained Kuat of Kuat's series of explosives, which could be detonated if the facilities ever were in danger of being captured.
