Kuwait Court of Cassation principle number 1644

The de facto company doctrine. Its purpose. To avert the legal considerations arising from cases of company nullity that would affect established situations settled as a result of the company’s existence and dealings with third parties, so that the effect of such nullity is confined to the company’s future rather than its past, and the company is considered valid during the period between its formation and the judgment declaring it void, to protect appearances and ensure the stability of the legal positions of third parties and partners. - Application of the de facto company doctrine before a judgment declaring it void is rendered. Its condition. The company must have commenced its activities after formation, become a debtor and creditor, and acquired an existence in fact. Its failure to engage in any dealings. Its effect. It is not considered a de facto company even after a judgment declaring it void. - Determining whether a de facto company exists. A matter of fact. Its condition. 9- Foreign companies:-