Kuwait Court of Cassation principle number 1305

Collection of the remaining value of shares owed by the company’s shareholders upon its dissolution by a declaration of bankruptcy. This relates to two cases. The first is where the remaining value of the shares owed by the partners is sufficient to discharge the company’s debts, provided that the company’s assets are sufficient to discharge 20% of its debts. The second is where its assets are insufficient to discharge at least 20% of its debts; in that case, the court may order all or some of the members of the board of directors or managers to be liable jointly and severally or without joint and several liability. Basis thereof: the existence of a legal presumption that they caused the company’s debts.