CmaBoardReleases
Title: Announcement regarding issuance of Disciplinary Board Resolution No. (44/2022 Disciplinary Board) (14/2022 Authority) and imposition of a fine against: Arkan Al-Kuwait Real Estate Company for violating the rules of Disclosure and Transparency
Announcement regarding the issuance of Disciplinary Board Resolution No. (44/2022 Disciplinary Board) (14/2022 Authority) and imposition of a fine against: Arkan Al-Kuwait Real Estate Company for violating the rules of Disclosure and Transparency.
For the following reasons: Provision of Article (4-1-1) Module Ten (Disclosure and Transparency) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. The Company failed to disclose the financial impact resulting from the material information disclosed in Kuwait Securities Exchange on 03/06/2021 represented in concluding a contract with a company, which is represented in the “contract to use the site ---- to operate a (health club) - for an amount of KWD 4,212,000 (four million two hundred and twelve thousand Kuwaiti Dinars). The Company indicated in its disclosure that there is no financial impact at the present time, and it did not disclose the financial impact represented by the value of the contract subject of disclosure in the item “property and equipment” and the item “leasing obligations”, which was reflected in the Company’s financial statements for the year ending on 31/10/2021. The value of this contract represents about 8.5% of the Company's total assets, without clarifying this impact in the disclosure.
The Resolution included the infliction of the following penalty: -
"Arkan Al-Kuwait Real Estate Company is fined an amount of twenty thousand Kuwaiti Dinars 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 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.