CMA LAW: Announcement regarding issuance of Disciplinary Board Resolution No. (41/2024 Disciplinary Board) (25/2024 Authority), and imposition of a warning against: Kuwait National Cinema Company for violating the rules of Disclosure and Transparency.

Announcement regarding issuance of Disciplinary Board Resolution No. (41/2024 Disciplinary Board) (25/2024 Authority), and imposition of a warning against: Kuwait National Cinema Company for violating the rules of Disclosure and Transparency.

For violating the provision of Article (4-1-1) of Module Ten (Disclosure and Transparency) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. The Company failed to disclose at Boursa Kuwait the financial impact of converting the classification of a complex from a property under development to an investment property under the item “Real Estate Investments” worth KWD 19,064,450 (nineteen million sixty-four thousand and four hundred and fifty Kuwaiti dinars), which includes:

1. KWD 7,950,191 (seven million nine hundred and fifty thousand and one hundred and ninety-one Kuwaiti dinars) as a result of re-evaluating the property.

2. KWD 11,114,259 (eleven million one hundred and fourteen thousand and two hundred and fifty-nine Kuwaiti dinars) as an increase in the right to use leased assets.

Kuwait National Cinema Company disclosed on Boursa Kuwait Securities Exchange’s website the date of the opening of the complex and specified that the financial impact cannot be determined at the present time, and it will be disclosed in the second half of the financial year. However, the Company has not disclosed the financial impact yet.

The Resolution included the infliction of the following penalty: -
“Levying a warning against Kuwait National Cinema Company for the attributed violation with consideration that it does not repeat it in the future”.

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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