CMA LAW: Announcement regarding issuance of Disciplinary Board Resolution No. (11/2025 Disciplinary Board) (26/2022 Authority), and imposition of a fine against: 1) Vice Chairman of the Board of Directors of Al Mudon International Real Estate Company (formerly), 2) Member of the Board of Directors of Al Mudon International Real Estate Company (formerly) For violating the Rules of Corporate Governance

Announcement regarding issuance of Disciplinary Board Resolution No. (11/2025 Disciplinary Board) (26/2022 Authority), and imposition of a fine against: 1) Vice Chairman of the Board of Directors of Al Mudon International Real Estate Company (formerly), 2) Member of the Board of Directors of Al Mudon International Real Estate Company (formerly) For violating the Rules of Corporate Governance.

For the following reasons:
They violated the provision of Article (3-1) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. 
In their capacities as Members of the Company’s Board of Directors, they did not perform the tasks assigned to them, represented by enhancing the Company’s competitive capacity, achieving high growth rates, increasing profits, for the following reasons:
a- The Company’s investment in a company:
1) The Company has entered into that investment without having prior studies on the return of the investment.
2) The Company did not achieve any profits since its investment in the company on 10/5/2014 until the end of inspection, without taking any procedures to reduce the accumulation of that loss or to exit.
3) The Company still does not have any official documents from a company that prove that it’s actually taking any procedures to establish the project or even start its procedures.
b- The Company’s investment in a company (associate company):
1) The value of the mentioned investment decreased in the amount of KWD 544,114 to become KWD 6,955,886 according to financial statements for the period that ended on 31/12/2020, noting that the value of the mentioned investment was KWD 7,500,000 at the beginning of the investment, without taking any procedures to reduce the accumulation of those losses or to exit the mentioned investment.
2) Unavailability of sufficient liquidity to the project which resulted in the delay of its constructions.
c- Administrative structure of the Company:
1) It was proven that there was no Compliance Officer at the Company.
2) It was proven that there was no Investors Affairs Officer at the Company.
3) It was proven that there was no Risk Management Officer at the Company, and no qualified cadres to perform the tasks of the mentioned department.
4) It was proven that there was no Internal Audit Officer at the Company, and no qualified cadres to perform the tasks of the mentioned department.
5) It was proven that there was no administers and professionals qualified for the Company’s management to enable it to enhance its competitive capacity and achieve and increase its profits and maintain balanced growth rates for its profits.

The Resolution included the infliction of the following penalty: -
“First: Levying a fine on each of Vice Chairman of the Board of Directors of Al Mudon International Real Estate Company (formerly), and Member of the Board of Directors of the mentioned Company (formerly) in an amount of KWD 10,000 (ten thousand Dinars) on each one of them for the attributed violations.”

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 rules 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.

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