KUWAIT CITY, Sept 23: The Court of Appeals fined media figure Aisha Al-Rasheed KD 30,000 for inciting sectarian strife and insulting Shiite citizens. In January, the Criminal Court fined Al- Rasheed KD 50,000, while the Public Prosecution released her on bail of KD 500. She was charged with violating the National Unity Law and insulting a segment of society (the Shiite sect) through her YouTube channel. Meanwhile, the Commercial Circuit of the Court of First Instance ordered a property owner to pay a citizen KD 35,000 and seven percent annual interest from the due date until full payment because the property owner had refused to hand over the apartment he sold to her in 2012. Lawyer Nasser Al-Farhoud explained that his client paid for the apartment with a cheque received by the defendant.

The defendant’s refusal to hand over the apartment constituted a breach of contract, prompting his client to file a lawsuit. Also, the Court of Cassation has issued a ruling to reject an appeal and uphold the rulings of both the Court of First Instance and the Court of Appeals, which dismissed a lawsuit seeking the removal of a director from a prominent company. In its reasoning, the court explained that a director may only be removed if it is proven that they committed fraud, gross negligence, intentionally harmed the company’s interests, gained personal benefit at the company’s expense, or engaged in activities that conflict with the company’s objectives. The appellants, the court noted, failed to substantiate any such claims in the case at hand. The mere lack of profits or the underperformance of certain activities does not justify dismissing a director, unless there is clear evidence of misconduct, breach of duty, or mismanagement.

The appellants, despite holding a relative majority of 51 percent, failed to follow the proper legal procedure of convening an extraordinary general assembly as required by the Companies Law and the company’s Articles of Association. This procedural lapse rendered their claim legally unfounded. The court reiterated that a director may only be dismissed if there is clear evidence of fraud, gross negligence, intentional harm to the company’s interests, personal gain at the company’s expense, or involvement in activities that conflict with the company’s objectives, none of which the appellants were able to substantiate in this case. Commenting on the ruling, Lawyer Dr. Fawaz Al-Khatib, who represented the director, explained that the decision reinforces the principle of stability in companies, and affirms that the removal of a director is not an arbitrary right held by partners, even if they form a majority. Such removal is subject to strict legal controls aimed at protecting the business entity and ensuring its sustainability within the investment environment. The ruling underscores the importance of following proper legal procedures as outlined in the Companies Law.

By Jaber Al-Hamoud Al-Seyassah/Arab Times Staff