Kuwait Court of Cassation principle number 1789

An employee of a joint-stock company exercising the share option. Its condition. His payment of the value of the shares allocated to him. His resignation before exercising that option. Effect thereof. Lapse of his right to that option. The company is under no obligation to accept completion of whatever the employee may have paid towards the value of the shares before his resignation. Reason therefor. - The share option scheme. Its rationale: retaining competent employees in the company, enhancing their loyalty to it, attracting human resources and encouraging retention of talented human capital. Decision of the Minister of Commerce and Industry 1337 of 2004. Its condition: the employee's resignation from the company before exercising this option. Example.