Kuwait Court of Cassation principle number 1790

The general rule concerning the transferability of shares is that it is unrestricted. The exception. - A provision in the company's articles granting the general assembly the right to restrict a shareholder's freedom to transfer their shares. Inclusion in the articles of association of joint-stock companies of a scheme to incentivize and reward their employees or managers. Permissible subject to certain conditions. An example concerning a judgment awarding entitlement to company shares in accordance with the provisions of the Commerce Law relating to the purchase and ownership of shares offered through public subscription, rather than the exceptional conditions laid down by the company's articles, thereby vitiating the judgment and requiring its cassation for error in the application of the law. Commercial books