Kuwait Court of Cassation principle number 1783

A shareholder in a joint-stock company listed on the Kuwait Stock Exchange. His obligation to notify the Exchange and the company’s board of directors, by registered letter with acknowledgment of receipt, of every direct or indirect interest he has in the company’s shares whenever his shareholding is 5% or more. - Joint-stock companies. They must disclose the names of their shareholders whose shareholdings are not less than 5% or more of their capital at any time, and every change occurring in that percentage, within the prescribed time limits and by the means specified by the Exchange. - The administration of the Kuwait Stock Exchange. It must take the necessary measures to verify the accuracy of the information it receives from joint-stock companies, interested parties, and third parties, and submit it to the Exchange Committee to take such action as it deems appropriate. Its discovery of a violation of the provisions of Law 2 of 1999 concerning Disclosure of Interests in Shares of Joint-Stock Companies or decisions issued pursuant thereto. Its effect. Exclusion of the shares involved in the violation from the quorum required for the valid convening of the company’s general assembly and from the voting required for its resolutions for 2 electoral terms. - The decision to exclude shares. A decision of a punitive nature. Like any administrative decision, it must rest on a justifying cause, namely violation of the provisions of the aforementioned law. The judgment’s adherence thereto. No defect.