Kuwait Court of Cassation principle number 622

The bank managing debts purchased by the State. May supervise the management of pledged assets and the activities carried out in respect of them for the purpose of maximizing their value, increasing their returns, or preserving them. Subscription for new shares by taking advantage of the priority established by ownership of the pledged shares. Does not constitute maximization of the value of the latter shares. The reason for this. It is a purchase of new shares for a price that must be paid. Moreover, those shares do not necessarily, merely by purchase, become part of the pledged assets. The appellant's defence that its subscription for those shares falls within the duties of the managing bank in its capacity as representative of the State. A manifestly invalid defence. The judgment is not at fault for failing to respond to it.