CmaBoardReleases
Title: Press Release: The Capital Markets Authority Issues a Resolution Concerning Amending Some Provisions of the Executive Bylaws
Kuwait, June 5, 2022 – Within the framework of the Capital Markets Authority’s (CMA) pursuit to adopt and implement the best international practice for developing the financial markets in the State of Kuwait, as well as strengthening the principles of justice, competency, and transparency that lead to achieving the protection of traders and minorities from the listed companies’ shareholders in accordance with the provisions of Law No. 7 of 2010 and its Executive Bylaws.
On 05/06/2022, the CMA issued Resolution No. (103) of 2022 regarding amending Article (1-15-5) of Chapter One (General Provisions and Scope of Application) and Article (2-1-2) of Chapter Two (Listing Shares of Shareholding Companies in the Exchange) of Module Twelve (Listing Rules) of the Executive Bylaws of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and their amendments.
This Resolution included some amendments related to the cases in which the Board of Directors of the listed company was held accountable, the most prominent of which is holding the Board of Directors accountable if the listed company did not hold its annual ordinary general assembly following the end of the financial year within two months from the disclosure date of its audited annual financial statements, whether the share was suspended from trading or not.
The Resolution also included new provisions regarding requiring the companies that were delisted or approved to be withdrawn from the Exchange to register in the unlisted securities system at the Exchange through the continuous trading in order to facilitate the trading process and discover the prices for the shareholders intending to exit from the company.
Finally, the Resolution amended the numbering of an article in Module Eleven (Dealing in Securities) mentioned in Article (2-1-2) of Module Twelve (Listing Rules) to be in line with the amendments that were executed pursuant to Resolution No. 28 of 2022 regarding amending Module Eleven (Dealing in Securities).
Such amendments aim to provide protection to traders in the companies listed in Boursa Kuwait from the companies that issue financial statements whose validity and accuracy has a material doubt, and establish necessary motivations to manage the company and the Board of Directors to address the aspects related to its financial statements through the continuous and detailed disclosure to the public investors and the invitation to the general assembly during the specified periods. They also aim to protect the minorities of the listed companies’ shareholders by facilitating the trading process after the company’s cancellation or withdrawal from the Exchange.
In conclusion, the CMA works continuously on developing the provisions of the Executive Bylaws in regards with the listed companies which aim to provide protection to the investors and the persons dealing in the markets.
Ends-
Notes to Editors:
The Capital Markets Authority was established pursuant to Law No. 7/2010, approved by the Kuwaiti Parliament in February 2010. Pursuant to the Law, the CMA shall regulate and supervise the securities activities, achieve transparency and fairness, observe listed companies’ execution of Corporate Governance regulations, and protect investors from unfair practices which violate the CMA's Law.
Furthermore, the Law's provisions stipulate the supervision of mergers, acquisitions, and disclosure operations. The CMA also aims to provide awareness programs related to securities activities.
For further information, please contact:
Public Relations & Media Office
Tel: 22903062
Fax: 22903505
Email: pr-media@cma.gov.kw