Title: Announcement regarding issuance of Disciplinary Board Resolution No. (36/2025 Disciplinary Board) (65/2025 Authority) and imposition of a fine against: 1- Ekttitab Holding Company, 2- Chairman of the Board of Directors - Chairman of the Nomination and Remuneration Committee 3- Vice Chairman of the Board of Directors – CEO - Member of the Risk Committee. 4- Member of the Board of Directors - Member of the Risk Committee. 5- Member of the Board of Directors- Chairman of the Risk Committee. 6- Member of the Board of Directors.7- Member of the Board of Directors (Formerly).8- Member of the Nomination and Remuneration Committee (Formerly). 9- Member of the Nomination and Remuneration Committee (Formerly).10- Chairman of the Nomination and Remuneration Committee (Formerly).11- Member of the Nomination and Remuneration Committee (Formerly).12- Member of the Board of Directors of Ekttitab Holding Company (Formerly), for violating the Rules of Disclosure and Transparency and Corporate Governance

Announcement regarding issuance of Disciplinary Board Resolution No. (36/2025 Disciplinary Board) (65/2025 Authority) and imposition of a fine against: 1- Ekttitab Holding Company, 2- Chairman of the Board of Directors - Chairman of the Nomination and Remuneration Committee 3- Vice Chairman of the Board of Directors – CEO - Member of the Risk Committee. 4- Member of the Board of Directors - Member of the Risk Committee. 5- Member of the Board of Directors- Chairman of the Risk Committee. 6- Member of the Board of Directors.7- Member of the Board of Directors (Formerly).8- Member of the Nomination and Remuneration Committee (Formerly). 9- Member of the Nomination and Remuneration Committee (Formerly).10- Chairman of the Nomination and Remuneration Committee (Formerly).11- Member of the Nomination and Remuneration Committee (Formerly).12- Member of the Board of Directors of Ekttitab Holding Company (Formerly), for violating the Rules of Disclosure and Transparency and Corporate Governance.

For the following reasons:
First: Ekttitab Holding Company violated the following:
1- Violation of the following:
a) Provision of Item (1) of Article (3-5-1) of Module Ten (Disclosure and Transparency) of the Executive Bylaws of Law No. 7 of 2010 and their amendments.
b) Provision of Article (3-1-2) of Module Ten (Disclosure and Transparency) of the Executive Bylaws of Law No. 7 of 2010 and their amendments.
It was proven to the CMA that the Company failed to include a law firm among the insiders.

2- Provision of Item No. (2/a) of Article (3-5-1) of Module Ten (Disclosure and Transparency) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. It was proven to the CMA that the Company was late to inform the CMA on the update of the list of insiders, as a company was appointed in July 2024 to provide a report on evaluating the investments in fair value through comprehensive income and investment in associate company.

3- Provision of Item (2) 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 CMA that the Company failed to disclose that it had entered into an important agreement with a company in July 2024 regarding the submission of a report on evaluating the investments in fair value through comprehensive income and investment in associate company, noting that the total decrease in the aforementioned value amounted to approximately KWD 6.89 million Kuwaiti Dinars.

4- Provision of Item (14) 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 CMA that the Company did not disclose that a company (subsidiary company) filed a lawsuit against a company on 06/02/2023, noting that the value of the claim in the aforementioned case amounts to approximately KWD 2,304,917.

5- Violating the following:
a) Provision of Item (26) of Article (4-1-1) of Module Ten (Disclosure and Transparency) of the Executive Bylaws of Law No. 7 of 2010 and their amendments.
b) Provision of Item (6) of Appendix No. (9) of Module Ten (Disclosure and Transparency) of the Executive Bylaws of Law No. 7 of 2010 and their amendments.
It was proven to the CMA that the Company did not disclose the Board of Directors’ Resolution by circulation No. (01/2024) issued on 2/5/2024 that approved the appointment of a new auditor for the Company for the financial year ending on 31/12/2024.

6- Provision of Article (4-2-1) of Module Ten (Disclosure and Transparency) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. It was proven to the CMA that the Company was late to disclose material information.

7- The provision of Article (8-7) 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 the position of Investor Affairs Unit at the Company was vacant, in accordance with the organizational structure approved by the Company.

8- Provision of Article (8-8) 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 failed to provide a website that displays all the information and data that would assist current and potential shareholders and investors in exercising their rights and evaluating the Company’s performance.

Second: Members of the Board of Directors of Ekttitab Holding Company, for violating the following:
1. Chairman of the Board of Directors of Ekttitab Holding Company.
2. Vice Chairman of the Board of Directors of Ekttitab Holding Company.
3. Member of the Board of Directors of Ekttitab Holding Company.
4. Member of the Board of Directors of Ekttitab Holding Company.
5. Member of the Board of Directors of Ekttitab Holding Company.

They violated the following:
1. Provision of Item (1/a) 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 CMA that the they failed to perform the role assigned to them as they hold the position of Chairman and members of the Board of Directors of the Company, due to the lack of any comprehensive strategies and main work plans approved by the Board of Directors regarding how to deal with the accumulated losses of the Company for the years (from 2020 until the date of the end of the field inspection of the Company), despite the increase in those losses over the aforementioned five years.

2. Provision of Item (3) 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 CMA that they failed to perform the role assigned to them as Chairman and members of the Board of Directors of the Company, due to the following: 

a. The Company's Board of Directors failed to take any appropriate and suitable measures to optimally manage the Company's resources with regard to the establishment of a company (100% subsidiary) for its subsidiary company on 29/01/2024, for the following reasons:

• The company has not commenced operations since its establishment, which resulted in losses amounting to KWD 493,169, according to the administrative financial statements for the period ending on 31/12/2024.
• The company does not have bank accounts despite being established for one year and two months.
• The aforementioned company does not have accounts for its capital.

b. The Company’s Board of Directors failed to take any measures to maintain the interests of the Company’s shareholders with regard to the collection of data of a company (100% subsidiary), even though the Company’s direct ownership is (50%), and the remainder is indirect ownership registered in the name of a related party. The Company’s Board of Directors was satisfied with a letter of waiver signed on an (A4) sheet that was undated and not validated by the official and legal authorities in the country, which may result in legal and financial problems and risks in the future, in addition to the potential loss of the Company’s shareholders’ rights.

b) Each of the following: 
1. Chairman of the Board of Directors of Ekttitab Holding Company. 
2. Member of the Board of Directors of Ekttitab Holding Company (Formerly).
3. Member of the Board of Directors of Ekttitab Holding Company (Formerly).

It was proven they violated the provision of Item (18/a) 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 CMA that they failed to fulfill their assigned roles as Chairman and members of the Board of Directors of the Company, due to nonconformity of the accounts related to the amounts due to the Human Investment Company for the Company's employees' salaries for the months of September, October, November, and December of 2022, totaling KWD 21,659, as follows:

a) There were salary transfers issued by one company to employees of another company for the months of September, October, November, and December of 2022, amounting to KWD 21,660, according to the accounting entries provided to the inspection team.

b) In return, the Company issued a check in the value of (KWD 39,000) to a company in exchange of transferring the employees’ salaries for the same months and for the same year 2022 on 12/12/2022 (i.e. before the salaries of December were due).
Members of the Nomination and Remuneration Committee, which are:

1. Chairman of the Nomination and Remuneration Committee of Ekttitab Holding Company.
2. Member of the Nomination and Remuneration Committee of Ekttitab Holding Company (Formerly).
3. Member of the Nomination and Remuneration Committee of Ekttitab Holding Company (Formerly).
4. Chairman of the Nomination and Remuneration Committee of Ekttitab Holding Company (Formerly).
5. Member of the Nomination and Remuneration Committee of Ekttitab Holding Company.

It was proven that they violated the provisions of Item (1) of Article (4-3) 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 they did not perform the role assigned to them Chairman and members of the Nominations and Remuneration Committee of the Company, as the Company has appointed the CEO on 05/04/2022, and the Director of Risk Management on 03/11/2022, without any recommendation from the Nominations and Remuneration Committee emanating from the Board of Directors.

Fourth: Members of the Risk Committee, which are:
1) Chairman of the Risk Committee of Ekttitab Holding Company.
2) Member of the Risk Committee of Ekttitab Holding Company.
3) Member of the Risk Committee of Ekttitab Holding Company.

It was proven that they violated the following:
1- Provision of Article (6-2) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments, it was proven to CMA that they failed to fulfill their assigned roles as Chairman and members of the Company's Risk Committee. This was due to the Board of Directors' approval of the establishment of a company without comprehensive studies assessing the feasibility of the establishment on the efficiency of the parent company's operations, as well as a failure to evaluate the risks that the Company might face as a result of this establishment. The study was deficient in several ways, including but not limited to:

• The lack of a clear implementation timeline outlining the operational and completion phases with timetables.
• The lack of an emergency plan or alternative plan for the failure of the main plan.
• The financial statements lacked clear justification.
• High reliance on external financing sources without clarifying the financing terms or their impact on the ownership structure.

2- Provision of Item (2) of Article (6-3) 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 they failed to fulfill their assigned roles as Chairman and members of the Company's Risk Committee, due to the lack of any reports prepared by the risk management department to monitor and moderate all the financial risks facing the Company, noting that its accumulated losses have reached (74%) of the capital, according to the financial statements for the period ending on 31/12/2024.

3- Provision of Item (8) of Article (6-5) 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 they failed to fulfill their assigned roles as Chairman and members of the Company's Risk Committee, due to the failure of the risk management department to prepare periodic reports to be presented to the risk committee emanating from the Board of Directors, in accordance with the company’s risk policy approved by the Board of Directors.

Fifth: Chief Executive Officer of Ekttitab Holding Company violated the provision of Item (5) of Article (3-11) 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 he did not perform his assigned role as the CEO of the Company.

The Resolution included the infliction of the following penalty: -
“First: Levying a fine on Ekttitab Holding Company in an amount of KWD 20,000 (twenty thousand Dinars) for the first six attributed violations due to correlation, and an amount of KWD 10,000 (ten thousand Dinars) for the seventh and eighth attributed violation due to correlation.

Second: Levying a fine on Chairman of the Board of Directors of Ekttitab Holding Company in an amount of KWD 30,000 (thirty thousand Dinars) for the attributed violations.

Third: Levying a fine on each of:
1. Member of the Board of Directors of Ekttitab Holding Company. 
2. Member of the Board of Directors of Ekttitab Holding Company. 
3. Member of the Board of Directors of Ekttitab Holding Company. 
In the amount of KWD 20,000 (twenty thousand Dinars) on each of them for the attributed violations.

Fourth: Levying a fine on each of:
1. Member of the Board of Directors of Ekttitab Holding Company (Formerly). 
2. Member of the Board of Directors of Ekttitab Holding Company (Formerly). 
In the amount of KWD 10,000 (ten thousand Dinars) on each of them for the attributed violations.

Fifth: Levying a fine on Vice Chairman of the Board of Directors of Ekttitab Holding Company and CEO in the amount of KWD 40,000 (forty thousand Dinars) for the attributed violations due to correlation.

Sixth: Levying a fine on each of:
1. Chairman of the Nomination and Remuneration Committee of Ekttitab Holding Company.
2. Member of the Nomination and Remuneration Committee of Ekttitab Holding Company (Formerly).
3. Member of the Nomination and Remuneration Committee of Ekttitab Holding Company (Formerly).
4. Chairman of the Nomination and Remuneration Committee of Ekttitab Holding Company (Formerly).
5. Member of the Nomination and Remuneration Committee of Ekttitab Holding Company.
In the amount of KWD 5,000 (five thousand Dinars) on each one of them for the attributed violations.

Seventh: Levying a find on each of:
1. Chairman of the Risk Committee of Ekttitab Holding Company.
2. Member of the Risk Committee of Ekttitab Holding Company.
3. Member of the Risk Committee of Ekttitab Holding Company.
In the amount of KWD 10,000 (ten thousand Dinars) on each one of them for the attributed violations”

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.