Kuwait Court of Cassation principle number 1532

Collection of the outstanding value of shares owed by a company's shareholders upon its dissolution through a declaration of bankruptcy. It relates to two cases. The first is where the outstanding value of shares owed by the partners is sufficient to discharge the company's debts, provided that the company's assets are sufficient to discharge 20% of its debts. The second is where its assets are insufficient to cover at least 20% of its debts; in this case, the court may order all or some members of the board of directors or managers to be liable jointly and severally or without joint and several liability. The basis for this: the existence of a legal presumption that they caused the company's debts.