CMA LAW: Announcement regarding issuance of Disciplinary Board Resolution No. (94/2021 Disciplinary Board) (93/2021 Authority) and imposition of a fine of 2 thousand Dinars against: First:- Credit Rating & Collection Company (CRC) Second: Mr. Abdullah Mishari Al-Homaidhi in his capacity as Chairman of the Board of Directors of a Credit Rating & Collection Company (CRC)

Announcement regarding issuance of Disciplinary Board Resolution No. (94/2021 Disciplinary Board) (93/2021 Authority) and imposition of a fine of 2 thousand Dinars against: First:- Credit Rating & Collection Company (CRC) Second: Mr. Abdullah Mishari Al-Homaidhi in his capacity as Chairman of the Board of Directors of a Credit Rating & Collection Company (CRC) for violating the rules of Disclosure and Transparency and Corporate Governance.

For the following reasons:

First: Credit Rating & Collection Company (CRC) for violating the provisions of Article (1-3-3) of Module Ten (Disclosure and Transparency) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
The Company held several Board of Directors meetings at the same times as the trading sessions in the Exchange, in violation of the stipulations of the aforementioned Article, and this is indicated according to the following table:

Second: Mr. Abdullah Mishari Al-Homaidhi in his capacity as Chairman of the Board of Directors of Credit Rating & Collection Company (CRC) for violating the provisions of Article (3-1) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
This is due to the absence of any plans approved by the Board of Directors to extinguish the Company’s accumulated losses, which amounted to KWD 21,078,775, (twenty-one million and seventy-eight thousand seven hundred and seventy-five Kuwaiti Dinars only), which represents about (73%) of its capital. This is according to the Company’s financial statements for the period ending on 31/03/2021.

The Resolution included the infliction of the following penalty: -

Firstly: “Credit Rating & Collection Company (CRC) is fined an amount of one thousand Dinars for the attributed violation”.
Secondly: “Mr. Abdullah Mishari Al-Homaidhi in his capacity as Chairman of the Board of Directors of Credit Rating & Collection Company (CRC) is fined an amount of one thousand Dinars for the attributed violation”.

In this regard, the CMA emphasizes the implementation of CMA Law and its Executive Bylaws on all persons dealing in securities activities, and urges them to comply with these rules in order to promote investors' confidence, create a sound investment environment, and implement the Law according to the principles of fairness, transparency, and integrity in line with the best international practice. 

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