Kuwait court adjourns Zain AGM case to Nov 23
Kuwait, October 26, 2011
A Kuwaiti court on Wednesday adjourned until November 23 an appeal from Zain against a ruling that invalidated the telecom operator's annual shareholders' meeting.
Last month, a Kuwaiti court ruled Zain's April shareholders meeting void, upholding a case brought by former board member Sheikh Khalifa Ali Al-Khalifa Al-Sabah, who opposed the process to elect the board -- to which he was not re-elected.
'International banks are enquiring about the case and its effect on the company after the first degree ruling ... we request for a verdict on the appeal as soon as possible so that the company's operations do not get affected,' Zain's lawyer Hussein al-Ghareeb told the court.
Shareholders at the meeting elected a new board including a top executive from Kuwait's family conglomerate Kharafi Group, and approved a $3 billion dividend for 2010. The dividend has already been distributed.
Last year, Sheikh Khalifa filed a lawsuit to halt due diligence in a $12 billion deal to sell a 46 percent stake in Zain to the UAE's Etisalat . The deal fell apart in March after Etisalat walked away.
Etisalat, the Gulf's largest telecoms firm, cited Zain's divided board as part of the reason it had quit the deal. - Reuters