CMA LAW: Announcement regarding issuance of Disciplinary Board Resolution No. (06/2025 Disciplinary Board) (98/2024 Authority) and imposition of a fine against: 1- Kuwait & Gulf Link Transport Company (KGL), 2- Chairman of the Board of Directors, 3-Vice Chairman of the Board of Directors, 4- (3) Members of the Board of Directors (Formerly), 5- The Company’s Chief Executive Officer for Financial Affairs, for Violating the Listing Rules and Corporate Governance

Announcement regarding issuance of Disciplinary Board Resolution No. (06/2025 Disciplinary Board) (98/2024 Authority) and imposition of a fine against: 1- Kuwait & Gulf Link Transport Company (KGL), 2- Chairman of the Board of Directors, 3-Vice Chairman of the Board of Directors, 4- (3) Members of the Board of Directors (Formerly), 5- The Company’s Chief Executive Officer for Financial Affairs, for Violating the Listing Rules and Corporate Governance.

For the following reasons:
A) Kuwait & Gulf Link Transport Company (KGL) violated the provision of Article (1-14) of Module Twelve (Listing Rules) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

This is due to the Company’s non-compliance with the requirements of the International Accounting Standard No. (13) “IFRS 13- Fair Value Measurement” under Paragraph (22) and Paragraph (36) when preparing the evaluation document for the impairment test of the associate company, as the Company did not prepare an accurate evaluation that reflects the fair value of the associate company’s real estate asset.

B) The Members of the Board of Directors of Kuwait & Gulf Link Transport Company (KGL):
1. Chairman of the Board of Directors.
2. Vice Chairman of the Board of Directors.
3. Member of the Board of Directors (formerly).
4. Member of the Board of Directors (formerly).
5. Member of the Board of Directors (formerly).

Due to their violation of the provision of Item (5) of Article (3-7) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

They did not perform the role assigned to them through ensuring the Company’s compliance with the International Accounting Standard No. (13) “IFRS 13- Fair Value Measurement”, under Paragraph (22) and Paragraph (36) when preparing the evaluation document for the impairment test of the associate company, as the Company did not prepare an accurate evaluation that reflects the fair value of the associate company’s real estate asset.

C) The Company’s Chief Executive Officer for Financial Affairs of Kuwait & Gulf Link Transport Company (KGL). It was proven that he violated the provision of Item (4) of Article (3-10) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

He did not perform the role assigned to him through ensuring the Company’s compliance with the International Accounting Standard No. (13) “IFRS 13- Fair Value Measurement” under Paragraph (22) and Paragraph (36) when preparing the evaluation document for the impairment test of the associate company, as the Company did not prepare an accurate evaluation that reflects the fair value of the associate company’s real estate asset.

The Resolution included the infliction of the following penalty: -
“First: Levying a fine on Kuwait & Gulf Link Transport Company (KGL) in an amount of KWD 10,000 (ten thousand Dinars) for the attributed violation.

Second: Levying a fine on each of the following:
1. Chairman of the Board of Directors.
2. Vice Chairman of the Board of Directors. 
3. Member of the Board of Directors (Formerly).
4. Member of the Board of Directors (Formerly).
5. Member of the Board of Directors (Formerly).
6. The Company’s Chief Executive Officer for Financial Affairs.

in an amount of KWD 5,000 (five thousand Dinars) on each one 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.