Kuwait Court of Cassation principle number 3093

Offering company shares for subscription. The legislature regulated it, required that subscription be genuine and prohibited sham subscription or subscription under fictitious names. Contravention thereof. Its effect. Absolute nullity, which every interested party may invoke and which the court may declare of its own motion. - The appellant's purchase from Kuwaiti citizens holding civil identification cards of their right to subscribe publicly for shares in a company for his account, with the intention of reselling that right to the respondent pursuant to a contract executed between them, seeking profit and gain for both parties. A purchase that does not represent a genuine reality but is a sham prohibited by the legislature, which expressly prescribed its nullity as a matter of public policy, extending to the contract arising and resulting from it. The appellant's assertion that nullity is confined to the subscription and not the agreement to purchase the right thereto. Has no effect. The reason. A subject matter of an obligation that contravenes the law, public policy or good morals renders the contract void.