Title: Announcement regarding issuance of Disciplinary Board Resolution No. (21/2024 Disciplinary Board) - (170 /2023 Authority) and imposition of a fine against: 1- Al Maidan Clinic for Oral Health Services Company. 2-Chairman of the Board of Directors, Vice Chairman of the Board of Directors, and two Members of the Board of Directors. 3-Chairman and a Member of the Audit Committee for violating the rules of Corporate Governance

Announcement regarding issuance of Disciplinary Board Resolution No. (21/2024 Disciplinary Board) - (170 /2023 Authority) and imposition of a fine against: 1- Al Maidan Clinic for Oral Health Services Company. 2-Chairman of the Board of Directors, Vice Chairman of the Board of Directors, and two Members of the Board of Directors. 3-Chairman and a Member of the Audit Committee for violating the rules of Corporate Governance

For the following reasons:
a) Al-Maidan Clinic for Oral Health Services Company violated the provision of Items (2) of Article (5-7) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

It was proven to the CMA that Al-Maidan Clinic for Oral Health Services Company failed to disclose the compliance officer and the Company’s law office among its list of insiders.

b) Members of the Board of Al-Maidan Clinic for Oral Health Services Company:
1. Chairman of the Board of Directors of Al-Maidan Clinic for Oral Health Services Company.
2. Vice Chairman of the Board of Directors of Al-Maidan Clinic for Oral Health Services Company
3. Member of the Board of Directors of Al-Maidan Clinic for Oral Health Services Company.
4. Member of the Board of Directors of Al-Maidan Clinic for Oral Health Services Company.

They violated the provision of Item (1) of Article (5-8) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

It was proven to the CMA that the Company’s annual ordinary general assembly hired the external auditor on 12/07/2021, who was assigned to review the financial statements for the period ending on 31/03/2022, without a suggestion from the Company’s Board of Directors and a recommendation from the Audit Committee to hire him.

c) The Audit Committee of Al-Maidan Clinic for Oral Health Services Company:

1-Chairman of the Audit Committee of Al-Maidan Clinic for Oral Health Services Company.

2- Member of the Audit Committee of Al-Maidan Clinic for Oral Health Services Company.

It was proven that they violated the following:

1. The provision of Item (2) of Article (5-7) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

2. The provision of Item (1) of Article (5-8) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

It was proven to the CMA that there was no recommendation from the Audit Committee to hire an external auditor who was appointed to review the financial statements ending on 31/3/2022.

The Resolution included the infliction of the following penalty: -

“First: Levying a warning against Al-Maidan Clinic for Oral Health Services Company with consideration that it does not repeat it in the future.

Second: Levying a fine against each of:
1- Chairman of the Board of Directors of Al-Maidan Clinic for Oral Health Services Company.
2- Vice Chairman of the Board of Directors of Al-Maidan Clinic for Oral Health Services Company (formerly).
3- Member of the Board of Directors of Al-Maidan Clinic for Oral Health Services Company –in his capacity as Chairman of the Audit Committee.
4- Member of the Board of Directors of Al-Maidan Clinic for Oral Health Services Company –in her capacity as a Member of the Audit Committee.

In the amount of KWD 3000 (three thousand Dinars) on each of the first and second for the attributed violation, and an amount of KWD 5000 (five thousand Dinars) for the third and fourth for the attributed violations due to correlation”. 

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.