CMA LAW: Announcement regarding issuance of Disciplinary Board Resolution No. (14/2024 Disciplinary Board) (02/2024 Authority), and imposition of a fine against: A Member of the Board of Directors of Kuwait Real Estate Company for violating the rules of Disclosure and Transparency

Announcement regarding issuance of Disciplinary Board Resolution No. (14/2024 Disciplinary Board) (02/2024 Authority), and imposition of a fine against: A Member of the Board of Directors of Kuwait Real Estate Company for violating the rules of Disclosure and Transparency

For the following reasons:
1- Violation of the provision of Item (1) of Article (3-4-1) of Module Ten (Disclosure and Transparency) of the Executive Bylaws of Law No. 7 of 2010 and their amendments.
2- Violation of the provision of Item (2) of Article (3-6-1) of the same Module:

It was proven to the Authority that the Company, in which the Chairman of the Board of Directors, has been trading in the shares of Kuwait Real Estate Company, despite being one of the insiders due to his involvement in its Board of Directors, and therefore is considered an representative for the Company’s dealings, without complying to provide the required disclosure in accordance with Appendix No. (6) of Module Ten (Disclosure and Transparency) of the Executive Bylaws of Law No. 7 of 2010 and its amendments “Corporate Insiders Disclosure Form after Dealing in Listed Company’s Shares or Parent Company’s Shares”.

The Authority has conclusively confirmed that the Company has concluded 3,063 transactions on the shares of Kuwait Real Estate Company during the periods of prohibition on dealing for insiders, without complying to provide the required disclosure as well.

The Resolution included the infliction of the following penalty: -
“Levying a fine against a Member of the Board of Directors of Kuwait Real Estate Company in an amount of KWD 50,000 (fifty thousand Dinars) for each of the attributed violations”.

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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