Kuwait Court of Cassation principle number 1523

The capital of a joint-stock company. Its increase through the issue of new shares and the application of subscription provisions thereto. Failure to take up all the shares of that increase. Its effect. The company’s obligation to rescind a resolution for the increase or reduce it by the amount of the increase not covered. Article 82 of the Commercial Companies Law. - Subscription for all shares of the capital increase. A shareholder may pay the value of these shares in a single payment or in several installments. The two conditions for installments: not less than 20% of the share value, and payment of the full value within five years. - A joint-stock company has the right to collect the value of the increase installments from shareholders without resorting to judicial proceedings. The shareholder’s obligation to pay those installments on their due dates. Delay in payment. Its effect. Payment of default interest without notice. Example.