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Title: Announcement Regarding Issuance of Disciplinary Board Resolution on Violation No. (20/2021 Disciplinary Board) (10/2021 Authority)
Date Publish 01 April 2021


The Capital Markets Authority announces the issuance of Disciplinary Board Resolution passed in its meeting held on Thursday April 1, 2021 on violation No. (20/2021 Disciplinary Board) (10/2020 Authority) against: Commercial Facilities Company.

The operative part of the Resolution resulted in the aforementioned being convicted of violating the following:

First:- Repetition of violating the provisions of Item (7) of Article (5-6) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments, as the Disciplinary Board had previously issued a decision to notify the Company to the need to adhere to the law in the future on violation. No. (93/2018 Disciplinary Board - 158/2018 Authority) on December 20, 2018.

Second:- Violating the provisions of Item (2) of Article (5-7) of Module Fifteen (Corporate Governance). The audit committee did not recommend the reappointment of the external auditor assigned to study the financial statements for the period that will end on December 31, 2020, and his fees have not been determined by the mentioned Committee.

Third:- Violating the provisions of Item (8) of Article (5-7) of the mentioned Module, as it has been proven that the Vice-Chairman of the Board of Directors and the CEO approved the assessment of the internal audit officer for the financial period ending on December 31, 2019.

Fourth:- Violating the provisions of Item (1) of Article (5-8) of the mentioned Module, as it is proven that the Ordinary General Assembly held on June 30, 2020 has reappointed the company's external auditor for the financial period that will end on December 31, 2020 without the availability of any recommendation by the audit committee in this regard.

Fifth:- Violating the provisions of Item (3) of Article (6-3) of the mentioned Module, as it is proven that the Vice Chairman and the CEO approved the assessment of the Risk Management Officer for the financial period ending on December 31, 2019, which constitutes a conflict with the independence of that department.

The decision included the infliction of the following penalty: -
“The violating Company is fined an amount of one thousand dinars for each of the five offenses attributed to it”.

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.
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