CMA LAW: Announcement regarding issuance of Disciplinary Board Resolution No. (17/2025 Disciplinary Board) (194,195/2022 Authority), and imposition of a fine against each of: 1) Chairman of the Board of Directors of Jiyad Holding Company (formerly), 2) Member of the Board of Directors of Jiyad Holding Company (formerly) For violating the Rules of Corporate Governance

Announcement regarding issuance of Disciplinary Board Resolution No. (17/2025 Disciplinary Board) (194,195/2022 Authority), and imposition of a fine against each of: 1) Chairman of the Board of Directors of Jiyad Holding Company (formerly), 2) Member of the Board of Directors of Jiyad Holding Company (formerly) For violating the Rules of Corporate Governance.

For the following reasons:
They violated the provision of Article (3-1) and (7-1) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. 

It was proven to the CMA through reviewing the financial statements of Jiyad Holding Company for the financial year that ended on 31-12-2021, the financial period that ended on 31-03-2022, and the financial period that ended on 30-06-2022, that the Board members of Jiyad Holding Company have stripped the Company’s assets for the benefit of related parties, as an amount of KWD 1,950,000 (one million, nine hundred and fifty thousand Kuwaiti Dinars) was transferred to a related company on 04-10-2018 to purchase an asset, without any evidence that Jiyad Holding Company received any equivalent assets to date, in addition to the failure to conclude any contract or document regulating the association between the two parties, even though the company has taken full allocation for the amount during the financial year ending on 31-12-2021, which harmed the company’s shareholders.

The Resolution included the infliction of the following penalty: -
“Levying a fine on each of Chairman of the Board of Directors of Jiyad Holding Company (formerly), and Member of the Board of Directors of the mentioned Company (formerly) in an amount of KWD 30,000 (thirty thousand Dinars) on each one of them for the attributed violation.”

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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