Kuwait: Capital Markets Authority Issues Disciplinary Decisions Against Companies and Individuals

Mubasher, 11 June 2024: The Kuwait Capital Markets Authority has imposed nine disciplinary actions on individuals and companies.

According to the Authority, the first disciplinary Kuwait Capital Markets Authority Decision No. 84/2023 imposed a financial penalty on Capital Holding Company for violating disclosure and transparency rules.

The decision has fined Capital Holding Company 10,000 Kuwaiti dinars for two related violations.

As for the second violation, it relates to the issuance of Kuwait Capital Markets Authority Decision No. 84/2023 imposing a financial penalty on the Gulf Petroleum Investment Company for violating listing rules.

The company Gulf Petroleum Investment Company was fined 1,000 Kuwaiti dinars for a violation.

Regarding the third violation, Kuwait Capital Markets Authority Decision No. 85/2023 was issued, imposing a financial penalty on Agility Public Warehousing Company for violating listing rules.

The Authority has fined Agility Public Warehousing Company 3,000 Kuwaiti dinars for a violation.

For the fourth violation, the Kuwait Capital Markets Authority Decision No. 86/2023 fined Metals and Transformative Industries Company 1,000 Kuwaiti dinars for violating disclosure and transparency rules.

As for the fifth violation, Kuwait Capital Markets Authority Decision No. 88/2023 was issued, imposing a financial penalty on Wethaq Takaful Insurance Company for violating disclosure and transparency rules.

A financial penalty of 3,000 Kuwaiti dinars was imposed on the Insurance Company for the violation.

For the sixth violation, Kuwait Capital Markets Authority Decision No. 89/2023 fined Arabi Holding Group Company, its Chairman, Vice Chairman, four Board members, Financial Manager, and external auditor for violating disclosure, listing, governance, and securities rules.

The decision included imposing a financial penalty of 20,000 Kuwaiti dinars on Arabi Holding Group Company for the first violation, 1,000 Kuwaiti dinars for the second violation, and 3,000 Kuwaiti dinars for the third violation assigned to it with all its items.

A financial penalty of 3,000 Kuwaiti dinars was also imposed on each of the Vice Chairman of the Board of Directors of Arabi Holding Group Company, three members of the Board of Directors, and the Financial Manager of the company for the violation attributed to them with all its items.

Additionally, a 5,000 Kuwaiti dinar fine was imposed on an “Arabi Holding” Board member acting as CEO for related violations, and a 1,000 Kuwaiti dinar fine on the company’s auditor for two violations.

For the seventh violation, Kuwait Capital Markets Authority Decision No. 90/2023 fined Al-Midan Dental Clinic Company, its Chairman, former Vice Chairman, and two Board members for violating disclosure, transparency, and corporate governance rules.

The decision included imposing a financial penalty of 2,000 Kuwaiti dinars on Al-Midan Dental Clinic Company for violating the provisions of items (16) and (17) of Article (4-1-1) of Chapter 10 (Disclosure and Transparency) of the Executive Regulations of Kuwait Law No. 7/2010 and their amendments.

A 50,000 Kuwaiti dinar fine was imposed on the Chairman, former Vice Chairman, and two Board members of the “Al-Midan” Company for violating Articles 3(1) and 7(3) of Chapter 15 (Corporate Governance Rules) of the Executive Regulations of Kuwait Law No. 7/2010 and their amendments.

In the eighth violation, Kuwait Capital Markets Authority Decision No. 91/2023 was issued, imposing a financial penalty on Equipment Holding Company for violating listing rules.

The Authority has stated that this was for violating the provisions of Article 1-14 of Chapter 12 (Listing Rules) of the Executive Regulations of Kuwait Law No. 7/2010 and its amendments.

It continued that this was represented in the company’s non-compliance with International Financial Reporting Standard No. 9 (Financial Instruments) and the third qualification from the auditor’s report for the year ended 31 December 2022.

In addition to the company’s non-compliance with International Accounting Standard No. 16 “IAS 16” (Property, Plant and Equipment) and the fourth qualification from the auditor’s report for the year ended December 2022.

The decision included imposing a financial penalty of 5,000 Kuwaiti dinars on Equipment Holding Company for each of the two violations attributed to it.

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