CMA LAW: Announcement regarding issuance of Disciplinary Board Resolution No. (03/2023 Disciplinary Board) (122/2022 Authority)

Announcement regarding issuance of Disciplinary Board Resolution No. (03/2023 Disciplinary Board) (122/2022 Authority) and imposition of a fine against each of:

1- Tareq Mohammad Saqer AL-Maousherji - Chairman of the Board of Directors of Arabi Holding Group Company.
2- Hamed Rasheed Abdulrahman Al-Bassam - Vice Chairman of the Board of Directors of Arabi Holding Group Company.
3- Khaled Abdulghani Mohammad Al-Abdulghani - Board Member of Arabi Holding Group Company.
4- Bader Ahmed Mohamad Al-Mansour - Board Member of Arabi Holding Group Company.
5- Qutaiba Ibrahim Majed Al-Shaheen - Board Member of Arabi Group Holding Company.
6- Salah Mohammad Saqer Al-Maousherji - Board Member & CEO of Arabi Holding Group Company.

For violating the rules of Corporate Governance.

For the following reasons:
They violated the provision of Article (3-1) and Article (7-1) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law no. 7 of 2010 and their amendments. It was proven that the Company’s Board of Directors and its CEO have exposed the Company’s assets to risks through providing a pledge represented by a company’s shares of a number of 195,000,000 million shares owned by it due to external parties’ obtain of bank facilities, which may harm the Company’s shareholders through the possibility of seizing those assets as a result of the failure of the external parties and the absence of any guarantee to protect the Company’s rights against providing those pledges to external parties.

The Resolution included the infliction of the following penalty: -
“Levying a financial fine on each of the following:
1- Tareq Mohammad Saqer AL-Maousherji - Chairman of the Board of Directors of Arabi Holding Group Company.
2- Hamed Rasheed Abdulrahman Al-Bassam - Vice Chairman of the Board of Directors of Arabi Holding Group Company.
3- Khaled Abdulghani Mohammad Al-Abdulghani - Board Member of Arabi Holding Group Company.
4- Bader Ahmed Mohamad Al-Mansour - Board Member of Arabi Holding Group Company.
5- Qutaiba Ibrahim Majed Al-Shaheen - Board Member of Arabi Group Holding Company.
6- Salah Mohammad Saqer Al-Maousherji - Board Member & CEO of Arabi Holding Group Company.
in an amount of 5,000 KD (five thousand Dinars) on the each one of them for the violation attributed to them.”

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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