Kuwait Court of Cassation principle number 214

A shareholder in a shareholding company listed on the Kuwait Stock Exchange. His obligation to notify the Exchange and the company’s board of directors, by registered letter with acknowledgment of receipt, of every direct or indirect interest he has in the company’s shares whenever his shareholding is five percent or more. - Shareholding companies. Their obligation to disclose the names of their shareholders whose shareholding is less than five percent or more of their capital at any time, and every change in that percentage, within the prescribed time limits and by the means specified by the Exchange. - Management of the Kuwait Stock Exchange. Its obligation to take the necessary measures to verify the accuracy of the information it receives from shareholding companies, interested parties and third parties, and to submit it to the Exchange Committee to take such action as it deems appropriate. Its discovery of a violation of the provisions of Law No. 2 of 1999 concerning disclosure of interests in shares of shareholding companies or the decisions issued pursuant thereto. The effect thereof. Exclusion of the shares involved in the violation from the quorum necessary for the valid convening of the company’s general assembly and from the voting required on the resolutions it adopts, for two electoral terms. - The decision to exclude shares. A decision of a punitive nature. Like any administrative decision, it must rest on its justifying ground, namely violation of the provisions of the aforementioned Law. The judgment’s adherence to this. No defect. - An ineffective ground of challenge. Its inadmissibility.