Kuwait Court of Cassation principle number 4039

Amendment of the company's contract and conversion of its legal entity into a limited liability company. Inclusion in the contract of a grant to its manager of broad powers and authority to conclude contracts, agreements and deals relating to the company's transactions. Establishment that the prohibition imposed on him is confined to prohibiting the sale or mortgage of the company's real estate, provision of guarantees, or contracting of loans without a collective resolution of the partners. His relinquishment of a contract for exploitation of an industrial plot, together with the buildings upon it and the movables it contains, in return for another company's waiver of a debt owed to it by his company, and the State's approval of the relinquishment. The consequence. Expiry of this contract and the inevitable fate of the structures erected on the plot becoming separation; they are regarded as movables by anticipation, disposition of which falls within the manager's powers. The challenged judgment's conclusion that his disposition entails a sale of real estate without a collective resolution of the partners, contrary to the prohibition in the contract, and its consequent determination that the disposition is void. An error in applying the law and defective reasoning.