CMA LAW: Resolution No. (17) of 2012 of CMA Board of Commissioners Regarding Trading in Shares of Delisted Companies from KSE

Resolution No. (17) of 2012

of CMA Board of Commissioners Regarding Trading in Shares of Delisted Companies from KSE

Having perused:

• Law No. (7) of 2010 regarding Establishment of the Capital Markets Authority “CMA”, and
• Executive Bylaw of Law No. (7) of 2010 issued on 03.03.201; and
• Resolution No. 3 of 2011 regarding “Issuing the Kuwait Stock Exchange Listing Scheme”; and
• Resolution No. 5 of 2012 regarding “Companies whose shares were ceased from trading in Kuwait Stock Exchange”; and
• Resolution of CMA Board of Commissioners No. 7 of 2010 passed in its meeting on 27/3/2012 regarding “Delisted Companies from KSE Listing”; and
• Administrative Resolution No. 8 of 2012 issued on 2/4/2012 regarding Trading in Shares of Delisted Companies from KSE; and
• of CMA Board of Commissioners Resolution No. 24 of 2012 passed in its meeting on 22.10.2012 regarding Trading in Shares of Delisted Companies from KSE;

The Following was Resolved

Article (1)

The first Article of the Administrative Resolution No. (8) of 2012 issued on 02/04/2012 regarding “Trading in the shares of delisted companies from Kuwait Stock Exchange” shall be amended to become as follows:

Any transaction out of the trading hall, whether its purchase, sale, or transferring ownership of the shares of any delisted companies from Kuwait Stock Exchange by CMA is not allowed, unless the Board of Directors of the company or who has the authority - and immediately after delisting from the KSE - to invite the company's General Assembly to convene. Its agenda shall include a clause to inform the shareholders about the resolution of CMA and to discuss all reasons for delisting as well as the financial position of the company.

The following cases shall be excluded from such restriction on the transfer of shares ownership referred to above:

• The transfer of ownership as a result of inheritance and wills;
• Transfer of ownership as a result of a court ruling;
• Transfer of ownership to and from or among portfolios managed by licensed companies, provided that the transfer shall be in favor of the original owner of the shares;
• Any other case decided by the CMA.

Article (2): The concerned bodies, each within its capacity, should implement this Resolution, which comes into effect from the date of issuance thereof.

Dr. Mahdi Ismail Al Jazzaf

Vice Chairman, CMA Board of Commissioners

Issued on 24/10/2012

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