Kuwait Court of Cassation principle number 1517

The extraordinary general assembly of joint-stock companies. It is their supreme authority and may allocate the company's capital if it exceeds its needs or if a loss occurs and it considers reducing it to the value actually existing. It may amend the company's memorandum and articles of association and sell the entire undertaking established by the company, and may dissolve the company or merge it into another company. - Shareholder members in joint-stock companies whose total shareholdings are not less than 15% of the nominal value of the subscribed capital. They may challenge decisions of the extraordinary general assembly before the competent court within thirty days from their issuance. Its condition. They must not have approved that assembly's decisions. Its implication. Failure to object within the time limit makes those decisions valid and binding upon the company and its shareholders. - A decision to distribute compensation to shareholders. Does not require written approval from all shareholders.