Judicial principle — Kuwait Court of Cassation

Kuwait Court of Cassation principle number 1744

State of Kuwait · Commercial and Labour — Volume 9 · Ministry of Justice — Court of Cassation — Technical Office

English translation of the principle

Prohibition of expelling a shareholder from a joint-stock company and selling his shares against his will. His right to remain in the company and to assign his shares. Among the fundamental rights that cannot be infringed. Its application to joint-stock companies whose shares are offered for public subscription or which are closed to their founders. - The right of partners in general and limited partnerships to request the expulsion of a partner whose conduct constitutes a justifiable ground for dissolving the partnership; this rule does not apply to a joint-stock company except where a shareholder delays payment of the instalments on his shares when due after being formally notified
Arabic original
حظر فصل المساهم من الشركة المساهمة وبيع أسهمه جبراً عنه. حقه في البقاء في الشركة والتنازل عن أسهمه. من الحقوق الأساسية التي لا يمكن المساس بها. سريانه على شركات المساهمة التي تطرح أسهمها للاكتتاب العام أو المقفلة على مؤسسيها. - حق الشركاء في شركات التضامن والتوصية في طلب فصل الشريك الذي تعد تصرفاته سبباً مسوغاً لحل الشركة عدم سريان هذا الحكم على شركة المساهمة إلا في حالة تأخر المساهم في سداد أقساط أسهمه في مواعيدها بعد إنذاره
Original Arabic judgment citations

(الطعن ٢١٢/١٩٨٩ تجاري جلسة ١٨/١٢/١٩٨٩ مج القسم الثاني - المجلد الأول ص ٤٣٢)

Source: Court of Cassation legal principles collection — Commercial and Labour — Volume 9 — Ministry of Justice — Court of Cassation — Technical Office. Printed page 304. PDF pages: 304.

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