The crime of inflating in-kind shares and the crime of distributing fake profits is criminalized by an act of fraud and deceit that is encapsulated in a core activity of corporate activities. Due to their importance, UAE and Kuwaiti lawmakers organized these crimes with their respective corporate laws. This crime deals with important matters about the applicability of the crime to the assessment of the rights of contribution. The main issue is the extent to which criminalization is applicable in the light of Article (11) of the Kuwaiti Companies Law, which permits exaggeration if it does not reach 10% according to some jurisprudence and the existence of a contradiction between criminalization and the text of Article 11. We will also face the problem of criminalizing the distribution of profits if they violate the company's financial position, the reality of this text, its significance, and the extent to which criminal responsibility is imposed in the event of a General Assembly decision to approve and ratify a criminal act.
Bouaraki, Dr. Hussein
"The Penal Legislative Policy Regarding Fraud in the New UAE Companies Law: A Comparative Study with the French and Kuwaiti Laws,"
Journal Sharia and Law: Vol. 2018:
75, Article 3.
Available at: https://scholarworks.uaeu.ac.ae/sharia_and_law/vol2018/iss75/3