In order to sidestep Article 23 of the Commercial Law which prevented non-Kuwaitis from owning more than 49% of a company's shares, the two non-Kuwaiti partners had greed via contract with a Kuwaiti person to officially establish a company in Kuwait with misrepresented shares being detailed in the company contract. The shares in the company contract were distributed 51-49 between the Kuwaiti and one non-Kuwaiti partner, whereas the 'customary' contract, falsely titled a joint venture, distributed the company's shares between the two non-Kuwaitis equally; without any shares being allocated to the Kuwaiti party.

The Court of Commercial Cassation's decision held void a company's company contract was void because it had wrongly stated the actual allocated shares of the company.