Title: Announcement regarding issuance of Disciplinary Board Resolution No. (70/2024 Disciplinary Board) (67,70/2024 Authority) and imposition of a fine against: 1- Al Taameer Real Estate Investment Company (K.S.C.C) , 2- Chairman of the Board of Directors, 3- Members of the Board of Directors 4- Vice Chairman of the Board of Directors and CEO, 5- The Company’s Financial Manager, 6-The Company’s External Auditor, for violating the Rules of Listing, Corporate Governance, and Securities Activities and Registered Persons.

Announcement regarding issuance of Disciplinary Board Resolution No. (70/2024 Disciplinary Board) (67,70/2024 Authority) and imposition of a fine against: 1-  Al Taameer Real Estate Investment Company (K.S.C.C) , 2- Chairman of the Board of Directors, 3- Members of the Board of Directors 4- Vice Chairman of the Board of Directors and CEO, 5- The Company’s Financial Manager, 6-The Company’s External Auditor, for violating the Rules of Listing, Corporate Governance, and Securities Activities and Registered Persons.

For the following reasons:
First: Al Taameer Real Estate Investment Company (K.S.C.C) violated the provision of Article (1-14) of Module Twelve (Listing Rules) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

It was proven to the Authority through reviewing the financial statements of Al Taameer Real Estate Investment Company (K.S.C.C) for the financial year ending on 31/12/2023 the Company’s failure to comply with International Financial Reporting Standard No. (1) (IAS 1) “Presentation of Financial Statements” in its financial statements in the aforementioned year that ended, due to the inaccuracy of the financial impact resulting from the in-kind capital increase in the Company during the financial year ending 31/12/2023, which was proven to be incorrect (the in-kind capital increase process) and the incompatibility of its procedures with the governing laws.

Second: the violation was proven that Members of the Board of Al Taameer Real Estate Investment Company (K.S.C.C):
1. Chairman of the Board of Directors.
2. Member of the Board of Directors.
3. Member of the Board of Directors.
4. Member of the Board of Directors.

They violated the provision of Item (5) of Article (3-7) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

It was proven to the Authority through reviewing the financial statements of Al Taameer Real Estate Investment Company (K.S.C.C) for the financial year ending on 31/12/2023 they failed to perform their role to ensure the Company’s compliance with International Financial Reporting Standard No. (1) (IAS 1) “Presentation of Financial Statements” in its financial statements in the aforementioned year that ended, due to the inaccuracy of the financial impact resulting from the in-kind capital increase in the Company during the financial year ending 31/12/2023, which was proven to be incorrect (the in-kind capital increase process) and the incompatibility of its procedures with the governing laws.

Third: Vice Chairman of the Board of Directors and CEO of Al Taameer Real Estate Investment Company (K.S.C.C), for violating the following:

1) the provision of Item (5) of Article (3-7) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

2) the provision of Item (4) of Article (3-10) of the aforementioned Module:

It was proven to the Authority through reviewing the financial statements of Al Taameer Real Estate Investment Company (K.S.C.C) for the financial year ending on 31/12/2023 they failed to perform their role to ensure the Company’s compliance with International Financial Reporting Standard No. (1) (IAS 1) “Presentation of Financial Statements” in its financial statements in the aforementioned year that ended, due to the inaccuracy of the financial impact resulting from the in-kind capital increase in the Company during the financial year ending 31/12/2023, which was proven to be incorrect (the in-kind capital increase process) and the incompatibility of its procedures with the governing laws.

Fourth: The Financial Manager of Al Taameer Real Estate Investment Company (K.S.C.C), for violating the provision of Item (4) of Article (3-10) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

It was proven to the Authority through reviewing the financial statements of Al Taameer Real Estate Investment Company (K.S.C.C) for the financial year ending on 31/12/2023 they failed to perform their role to ensure the Company’s compliance with International Financial Reporting Standard No. (1) (IAS 1) “Presentation of Financial Statements” in its financial statements in the aforementioned year that ended, due to the inaccuracy of the financial impact resulting from the in-kind capital increase in the Company during the financial year ending 31/12/2023, which was proven to be incorrect (the in-kind capital increase process) and the incompatibility of its procedures with the governing laws.

Fifth: The Company’s External Auditor of Al Taameer Real Estate Investment Company (K.S.C.C), violated the provision of Article (3-4-5) of Module Five (Securities Activities and Registered Persons) of the of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
It was proven to the CMA he failed to provide any remarks in his report prepared on the Company’s compliance with International Financial Reporting Standard No. (1) (IAS 1) “Presentation of Financial Statements” in its financial statements in the aforementioned year that ended, due to the inaccuracy of the financial impact resulting from the in-kind capital increase in the Company during the financial year ending 31/12/2023, which was proven to be incorrect (the in-kind capital increase process) and the incompatibility of its procedures with the governing laws.

The Resolution included the infliction of the following penalty: -
“First: Levying a fine on Al Taameer Real Estate Investment Company (K.S.C.C) in an amount of KWD 5,000 (five thousand Dinars) for the attributed violation.

Second: Levying a fine on the members of the Company’s Board of Directors, which are:
1. Chairman of the Board of Directors of Al Taameer Real Estate Investment Company (K.S.C.C).
2. Member of the Board of Directors of Al Taameer Real Estate Investment Company (K.S.C.C).
3. Member of the Board of Directors of Al Taameer Real Estate Investment Company (K.S.C.C).
4. Member of the Board of Directors of Al Taameer Real Estate Investment Company (K.S.C.C).

5- The Financial Manager Al Taameer Real Estate Investment Company (K.S.C.C)

6- External Auditor Al Taameer Real Estate Investment Company (K.S.C.C)
in an amount of KWD 2,000 (two thousand Dinars) on each one of them for the attributed violation.

Third: Levying a fine on Vice Chairman of the Board of Directors and CEO of Al Taameer Real Estate Investment Company (K.S.C.C) in an amount of KWD 3,000 (three thousand Dinars) for the attributed violation 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 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.