Slab in such a case would be monolithically casted with shear walls. Even if your connection arrangement allows rotation at the shear wall face, it would still be able to transfer the lateral load. It is just that your lateral load system is a simple shear wall system. Whereas, for a building where we have, say a concrete frame, and the connection b/w column and beam allows rotation, that system would fail under seismic as your lateral resistance for a moment frame comes from frame action of beam and column assembly. No frame action, no lateral resistance.
Thanks.