Kuwait Court of Cassation principle number 1505

The general rule is that trading in shares of joint-stock companies takes place by commercial methods without dependence on any particular restriction. A shareholder’s assignment of his shares to a third party. It occurs by mere agreement. Its condition: entry of the disposition in the shareholders’ register. The effect of completion of registration. Cessation of shareholder status in the company and substitution of the assignee in all rights and obligations. Invoking that assignment against the company. Its condition. - The appellant company’s sale of the respondent’s shares in execution of an irrevocable judicial judgment, and the purchaser’s registration of his ownership in the company’s books before payment of the share dividends. Its effect. The purchaser’s entitlement to the dividends on those shares. The challenged judgment’s ruling that those dividends are an entitlement of their former owner. An error in the application of the law. - The connection of the offering of shares with public policy:-