Title: Press Release: The Capital Markets Authority Issues New Informative Guide for Shareholders in General Assemblies of Listed Companies

Kuwait, September 16, 2024 – The Capital Markets Authority (CMA) published today through its website the latest electronic informative issuance dedicated to the general assemblies of shareholders. The CMA considers this publication as a simplified guide for shareholders of listed companies, aiming to provide them with the minimum required knowledge on various aspects related to the types of general assemblies, and culminating in mechanisms for effective participation in these assemblies to protect their rights and ensure that they fulfill their obligations in a legal manner.

The CMA’s electronic informative publication, the 23rd of its kind, considers  the general assembly meetings of listed companies a very important opportunity for the shareholders to understand the company’s reality in all aspects, especially the financial ones, and to be informed about its most important future directions.

The publication commenced by providing a definition of shareholders’ assemblies before presenting in detail the types of general assemblies, which divided into constituent, ordinary, and extraordinary, in addition to the competences of each. It also explained the legal quorum for the validity of meetings of such assemblies, the timing for their convening, and the mechanisms for decision-making  and the rights shareholders therein.

The second part of the publication presented in detail the main parties in the general assemblies and the roles of each, starting with the company's board of directors, the chairman of the general assembly, and the auditor, and ending with the roles of the related regulatory entities. It also dedicated a large space to reviewing the shareholders’ roles in the assembly meetings, their rights and their obligations related to those meetings.

Moreover, the publication addressed the mechanisms for participation and voting in these meetings, including of course, electronic participation and remote voting.

The last part of the publication presented the subjects in which shareholders are prohibited from participating in the general assembly meetings, and the requirements of effective participation in those meetings, such as serious participation in their discussions, a full understanding of rights and obligations, exercising voting rights, and participating in decision-makings. The publication concluded with presenting the most common mistakes of general assembly meetings, such as the delay of some companies in holding them or the lack of the required data and information, as well as the failure to discuss all items presented to shareholders, or the failure to provide them with the required opportunity to discuss them, or the discussion of items that are not on the agenda, in addition to other common mistakes.

Finally, it is worth noting that CMA’s informative publications are one of its tools for achieving the required awareness, whether those aimed for introducing CMA’s main legislative and regulatory directions and developments related to securities activities in general, or those aimed for the awareness of various issues of an importance to the investors of such activities and those concerned with them by providing them with the support to obtain the elements of wise investment decision and determine their rights and obligations. Such issuances also ensure that the importance of CMA’s awareness role is not only generated from its being a legal entitlement pursuant to Article (3) of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and its amendments, which stipulate “Enhance public awareness of Securities activities and of the benefits, risks and obligations arising from investments in Securities and encourage their development”, but it is for its important role in achieving other objectives according to the same Article, the most prominent of which is protection of securities activities investors and reducing systemic risks expected to occur therein.

Ends-
Notes to Editors:
The Capital Markets Authority (CMA) of Kuwait was established pursuant to Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities, and its amendments, approved by the Kuwaiti Parliament in February 2010. Under this Law, the CMA regulates and supervises securities activities, ensures transparency, fairness, efficiency, and observes listed companies’ implementation of Corporate Governance regulations. The CMA also protects investors from unfair practices and violations of the CMA's Law.
Furthermore, the Law's provisions stipulate the supervision of mergers, acquisitions, and disclosure operations. The CMA also aims to provide awareness programs related to securities activities.
For further information, please contact:
Public Relations & Media Office
Tel: 22903062
Fax: 22903505
Email: pr-media@cma.gov.kw