Title: Announcement Regarding Issuance of Disciplinary Board Resolution on Violation No. (80/2020 Disciplinary Board) (97/2020 Authority)
Date Publish 18 February 2021
The Capital Markets Authority announces the issuance of Disciplinary Board Resolution passed in its meeting held on Thursday February 18, 2021 on violation No. (80/2020 Disciplinary Board) (97/2020 Authority) against: First Investment Company.
The operative part of the Resolution resulted in the aforementioned being convicted of violating the 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. The Company did not include, in the Company's board meeting agenda that was disclosed to Boursa Kuwait Securities Company on April 20, 2020 regarding the meeting held by the Company's board of directors on April 22, 2020, about the following information: -
First: Discussing the capital reduction clause, which was discussed in the meeting held on April 22, 2020, where the board recommended amortization of the remaining part of the accumulated losses by reducing the issued and paid-up capital by an amount of KD 20,346,388 (twenty million three hundred and forty-six thousand three hundred and eighty-eight Kuwaiti dinars).
Second: Taking the provisions of impairment losses and expected credit losses in the amount of KD 22,638,895 (twenty-two million six hundred and thirty-eight thousand eight hundred and ninety-five Kuwaiti dinars).
Third: Taking the provision of legal claims in the amount of KD 22,139,666 (twenty-two million one hundred and thirty-nine thousand six hundred and sixty-six Kuwaiti dinars).
The decision included the infliction of the following penalty: -
“The violating Company is fined an amount of five thousand dinars for violating the rules of disclosure of material information”
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.
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.