Title: Announcement regarding issuance of Disciplinary Board Resolution No. (72/2023) Disciplinary Board – (67/2023) Authority and imposition of a fine against each of: Chairman of the Board of Directors, Vice Chairman of the Board of Directors, Members of the Board of Directors of Al-Kout Industrial Projects Company for violating the rules of Corporate Governance.

Announcement regarding issuance of Disciplinary Board Resolution No. (72/2023) Disciplinary Board – (67/2023) Authority and imposition of a fine against each of:

Chairman of the Board of Directors, Vice Chairman of the Board of Directors, Members of the Board of Directors of Al-Kout Industrial Projects Company 

For violating the rules of Corporate Governance.

For the following reasons:

This is due to their violation of the provisions of Article (3-1) and Item (1) of Article (3-7) of Module Fifteen for not approving the policies and procedures manual for the accounting department by the Company’s Board of Directors, where a section was added related to investment in associate companies, as the Company had previously been warned of the necessity of not repeating this violation, in addition to the Company’s undertaking to comply with the provisions of Law No. 7 of 2010, its Executive Bylaws and their amendments, and the resolutions and instructions issued within the framework of the Authority’s Law, while acknowledging that the violation will not be repeated in the future.

The Resolution included the infliction of the following penalty: -

“Levying a fine on each of the following:

Chairman of the Board of Directors, Vice Chairman of the Board of Directors, Members of the Board of Directors of Al-Kout Industrial Projects Company, in an amount of KWD 1,000 (one thousand Dinars) for each of them 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 Laws 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.