CMA LAW: Announcement regarding issuance of Disciplinary Board Resolution No. (82/2023) Disciplinary Board - (128/2023) Authority, and imposition of a fine against Equipment Holding Company for violating the rules of Disclosure and Transparency

Announcement regarding issuance of Disciplinary Board Resolution No. (82/2023) Disciplinary Board - (128/2023) Authority, and imposition of a fine against Equipment Holding Company.

For violating the rules of Disclosure and Transparency.

For the following reasons:
Violation of the provision of Items (14) and (15) of Article (4-1-1) of Module Ten (Disclosure and Transparency) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. This is due to the Company’s failure to disclose at Boursa Kuwait Securities Exchange three pieces of material information, which are as follows:

1. The Company voided the contract signed with (a Subsidiary Company to Equipment Holding Company) which amounted to KWD 5,876,000 (five million, eight hundred and seventy-six thousand Kuwaiti Dinars only), despite the fact that a company’s voidance to contract is considered a material work that has a significant effect, especially that it resulted in filing a lawsuit by a company as a result of voiding the contract. 
2. Issuance of first instance judgement for the case filed by (a Subsidiary Company to Equipment Holding Company) to dismiss the lawsuit on 19/3/2023.
3. Issuance of first instance judgement to require a company to pay Equipment Holding Company an amount of KWD 415,513 (four hundred and fifteen thousand and five hundred and thirteen Kuwaiti dinars only).

The Resolution included the infliction of the following penalty: -
“Levying a fine against Equipment Holding Company in an amount of KWD 5,000 (five thousand Dinars) for the attributed violations in all its elements”.

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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