Kuwait Court of Cassation principle number 1521

The right of a shareholder member in joint-stock companies to bring an action for nullity of any resolution issued by the general assembly. The condition therefor. That resolution’s violation of the law, public policy, the memorandum of association, or the company’s articles of association. - The extraordinary general assembly of joint-stock companies. Its competence. Amendment of the company’s memorandum and articles of association. - The right of shareholder members in a joint-stock company to object to the extraordinary assembly’s resolutions before the competent court. The condition therefor. - Failure of the company’s shareholder members to object within the prescribed time limit. Its effect. The extraordinary general assembly’s resolution is deemed valid and binding on the company and its shareholders. An example.