CMA LAW: Announcement regarding issuance of Disciplinary Board Resolution No. (11/2024 Disciplinary Board) – (150/2023 Authority) and imposition of a fine against: Kuwait Portland Cement Company for violating the Rules of Disclosure and Transparency and Corporate Governance.

Announcement regarding issuance of Disciplinary Board Resolution No. (11/2024 Disciplinary Board) – (150/2023 Authority) and imposition of a fine against: Kuwait Portland Cement Company for violating the Rules of Disclosure and Transparency and Corporate Governance.

For the following reasons:
1) Provision of Article (1-3-3) of Module Ten (Disclosure and Transparency) of the Executive Bylaws of Law No. 7 of 2010:
It was proven to the CMA in a strict manner that the Company’s Board of Directors held a meeting during the trading period.

2) Provision of Item (2) of Article (3-1-2) of Module Ten (Disclosure and Transparency):
It was proven to the CMA in a strict manner that the Company failed to include some law firms, which it deals with, within the insiders watchlist.

3) Provision of Item (2) of Article (4-1-1) of Module Ten (Disclosure and Transparency):
It was proven to the CMA in a strict manner that the Company failed to disclose material information.

4) Provision of Article (10-1) of Module Fifteen (Corporate Governance):
It was proven to the CMA in a strict manner that the Company failed to conclude work contracts between the Company and the law firms that were assigned to represent the Company before the judiciary, noting that the existence of work contract is important for regulating the rights and obligations of the two parties.

5) Provision of Item (2) of Article (10-4) of Module Fifteen (Corporate Governance):
It was proven to the CMA in a strict manner that the Company failed to conclude work contracts between the Company and the law firms that were assigned to represent the Company before the judiciary, noting that the existence of work contract is important for regulating the rights and obligations of the two parties.
It was also proven that the Company paid financial entitlements for some of the mentioned firms and lawyers without the existence of any contract between them.

The Resolution included the infliction of the following penalty: -
“Levying a fine on Kuwait Portland Cement Company in an amount of KWD 1,000 (one 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 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.
 

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