CmaBoardReleases
Title: Announcement regarding issuance of Disciplinary Board Resolution No. (120/2021) Disciplinary Board- (91/2021) Authority and imposition of a fine against: Ajwan Gulf Real Estate Company, Chairman of the Board of Directors (Former), Vice Chairman of the Board of Directors (Former), Members of the Board of Directors (Former), for violating the Rules of Listing, and Corporate Governance
Announcement regarding issuance of Disciplinary Board Resolution No. (120/2021) Disciplinary Board- (91/2021) Authority and imposition of a fine against:
Ajwan Gulf Real Estate Company, Chairman of the Board of Directors (Former), Vice Chairman of the Board of Directors (Former), Members of the Board of Directors (Former).
for violating the Rules of Listing, and Corporate Governance
For the following reasons:
First: Ajwan Gulf Real Estate Company, it was proven that it violated the provision of Article (1-13) of Module Twelve (Listing Rules) of the Executive Bylaws of Law No. 7 of 2010 and its amendments:
The Company did not comply with implementing International Financial Reporting Standard No. (9) “Financial Instruments”, as the Company did not evaluate its investment in a listed company under item financial assets at fair value through other comprehensive income for the financial year that ended on 31/12/2020, at a value of KWD 1,047,650. In addition, the Company did not maintain its books and records regarding relevant party approvals.
Second: Former Members of the Board of Directors of Ajwan Gulf Real Estate Company, it was proven they violated the following:
1. Provision of Article (3-1) of Module Fifteen (Corporate Governance) of the mentioned Executive Bylaws.
2. Provisions of Items (1,2,3) of Article (7-3) of the same Module.
Due to damage it caused the Company and the rights of its shareholders as a result of the investment practices and decisions taken by them due to not exercising the necessary care in the process of reviewing the evaluation of the investments and transactions that they carried out during that period, and determining their fair value prepared in this regard in a manner that protects the rights of the Company’s shareholders in violation of the provisions of the aforementioned articles.
The Resolution included the infliction of the following penalty: -
First: Levying a fine on Ajwan Gulf Real Estate Company in an amount of KWD 5,000 (five thousand Dinars) for the attributed violation.
Second: Levying a fine on the Former Members of the Board of Directors as follows:
- Each of:
- Chairman of the Board of Directors of Ajwan Gulf Real Estate Company (Former)
- Member of the Board of Directors of Ajwan Gulf Real Estate Company (Former).
an amount of KWD 50,000 (fifty thousand Dinars) for each of them for the attributed violation.
- Each of:
a. Vice Chairman of the Board of Directors of Ajwan Gulf Real Estate Company (Former)
b. Member of the Board of Directors of Ajwan Gulf Real Estate Company (Former).
an amount of KWD 30,000 (thirty thousand Dinars) for each of them for the attributed violation.
- Member of the Board of Directors of Ajwan Gulf Real Estate Company (Former).
an amount of KWD 20,000 (twenty thousand 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.