Kuwait Court of Cassation principle number 1498

The State, public institutions, and Kuwaiti joint-stock companies holding shares in another joint-stock company. May delegate representatives to its board of directors in proportion to their shareholdings, and the number of these representatives is deducted from the total number of board members. They have the same rights and duties as elected members. - Shares in joint-stock companies. Their negotiability by commercial methods without following procedures for assignment of rights. The consequence thereof. A shareholder may transfer his shares to a third party who replaces him in rights and obligations, and this transaction may not be invoked against the company except from the date it is entered in the shareholders' register maintained by the company.