Kuwait Court of Cassation principle number 2705

Nullity means non-existence. - Giving effect to a void contract lacking its essential elements is contrary to public policy. - A judgment declaring a company void leaves behind a de facto company to be liquidated according to the general rules governing de facto companies; it may not be invoked against third parties acting in good faith and shareholders. - Extinction of the nullity action upon the lapse of fifteen years from the date of the contract. Article 186/3, Civil Code. There is no basis for invoking it when nullity is asserted by way of defence. Its connection with bringing an action. Reliance on the bankruptcy judgment in that regard. Impermissible.