Kuwait's Zain to Challenge Ruling on Board Election
Kuwaiti telecoms giant Zain said Monday it will challenge a court ruling that annulled the election of its board of directors, adding that the verdict will have no impact on its operations.
"The company will appeal against the ruling immediately after receiving the reasons" given by the court, Zain said in a statement posted on the Kuwait Stock Exchange website.
The lower court on Sunday scrapped an April election for Zain's board, saying it was legally flawed, according to lawyer Rashed al-Radaan who filed the suit on behalf of former board member Sheikh Khalifa Al-Sabah.
The suit was based on a commerce ministry report which cited a number of alleged irregularities at the April meeting, Radaan said.
"Company operations will not be impacted by the verdict... and the commitments and rights of the company and its shareholders will not be affected," Zain said.
If the ruling is upheld, Zain, which is currently negotiating to sell its operations in Saudi Arabia, will have to convene a new meeting of its general assembly to elect a replacement board of directors.