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Monday, 14 October 2019 10:54
The Court of Appeal Upheld the Sentence Requiring a Holding Company to Pay the Amount of KD 32,437.500 for one of its former employees.
The Commercial Court of Appeal supported the primary judgment, obliging the legal representative of one of the holding companies that a sum of K.D. 32,437.500 shall be paid to a former employee in return of not handing him over certificates of shares allocated to him during his work; in addition to the expenses and attorney fees.
In the details: under a contract for the sale of shares dated on 27/12/2004; edited between the holding company and one of its employees, under which the latter has been allocated a number 25000 shares as stated within the terms of the contract, it is binding on the parties and may not be canceled as it is seen as a privilege that may not be abandoned in favor of the employee, and it was to remain mortgaged to the account of the company for three years from the date of the resolution of the allocation. Since the employee resigned from his work on 14/1/2006, and was surprised that the company refrain from handing over a certificate of ownership of the stock, citing that the shares were on condition of three year freezing and that it would not hand him stocks due to his resignation. Accordingly, the resigned employee resorted to Taher Law Firm Group office; lawyers Abdul Aziz and Khaled Taher AlKhateeb. The defense demanded the Justice of the Court to oblige the Company pay K.D. 5001 as a temporary compensation for damage and to return the stocks price to the latter being responsible for the impossibility of stocks recovery due to disposal; despite the allocation contract. Before the Court, the defense decided that the company committed a mistake by transferring paid shared to other parties, as it deprived the employee of the stocks, their profits, distributions and advantages, as well as depriving him from the exploitation of the above amount for the duration of the litigation. The court of First Instance then ruled to oblige the company's legal representative to pay to the resigned employee a sum of K.D. 32,437.500, the value of the shares and distributions at the time of filing the case, considering that returning the value of the shares along with the distributions is suuficient for reparation of the damage. Court of Appeal also supported the Judgment.