CMA LAW: Announcement regarding issuance of Disciplinary Board Resolution No. (47/2024) Disciplinary Board (45/2024 Authority) and imposition of a fine against Equipment Holding Company for violating the rules of Disclosure and Transparency

Announcement regarding issuance of Disciplinary Board Resolution No. (47/2024) Disciplinary Board (45/2024 Authority) and imposition of a fine against Equipment Holding Company for violating the rules of Disclosure and Transparency

For the following reasons:
Violation of 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. It was proven to the Authority that the Company failed to disclose at Boursa Kuwait Securities Exchange material information, which are as follows:

• Selling inventory with a book value of KWD 6,164,091 (six million one hundred and sixty-four thousand and ninety-one Kuwaiti dinars only) for an amount of KWD 2,354,502 (two million three hundred and fifty-four thousand five hundred and two Kuwaiti dinars only), which represents 38% of the Company’s assets as in the financial statements for the year ending on December 31, 2023.

• Creating provisions in the amount of KWD 2,001,228 (two million one thousand two hundred and twenty-eight Kuwaiti dinars only) during March 2024 on lawsuits filed by the group against a “Company”, which represents approximately 25% of the Company’s assets as in the financial statements for the year ending December 31, 2023.

The Resolution included the infliction of the following penalty: -
“Levying a fine against Equipment Holding Company in an amount of KWD 10,000 (ten thousand Dinars) for the attributed violations in both elements”.

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.

Disclaimer: The information provided on this page is for reference purposes only, visitors are encouraged to review and understand the information provided in the official scanned document attached in the link above (if available). The CMA endeavors to ensure that the information on this page is complete and accurate, but the CMA does not guarantee the quality, accuracy, or completeness of any content at any time. In the event the information on this page is different from the content in the official scanned document attached in the link (if available), the official scanned document attached shall take precedence.