SBG 2275/2015

This case involved whether there had been a transfer of shares to a claimant after he had paid for them under an assignment contract.

Background

The claimant said that he had bought from the defendant shares in the company which was the subject matter of the case under an assignment contract. Therefore the claimant requested the partners to sign decision No. 6 to amend the articles of association and to confirm the exiting of the defendant and to transfer the ownership of the defendant's shares to him.

Decision

The court issued a ruling in absentia confirming the transfer of the defendant's shares to the claimant. The defendant appealed the ruling and the court of appeal repealed the ruling.

The court of first instance said that the claimant had asked the court to confirm his ownership of the shares in the company and provided  evidence to substantiate the claims in the form of an assignment contract signed by the defendant plus a written undertaking. The contract and the undertaking proved that the ownership had been transferred therefore the defendant should deliver the commitments provided for in the contract.