CmaBoardReleases
Title: Announcement regarding issuance of Disciplinary Board Resolution No. (07/2022 Disciplinary Board) (127/2021 Authority) and the imposition of a fine against Senergy Holding Company for violating the Listing Rules and Corporate Governance.
Announcement regarding issuance of Disciplinary Board Resolution No. (07/2022 Disciplinary Board) (127/2021 Authority) and the imposition of a fine against Senergy Holding Company for violating the Listing Rules and Corporate Governance.
For the following reasons:
- Provision of Article (1-13) of Module Twelve (Listing Rules) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
The Company did not allocate any provisions regarding the lawsuit initiated against Senergy Energy Services Company (a subsidiary company) to face any negative impacts that may affect the Company’s financial position if the Judgement was in favor of the defendant, noting that the amount of the case was approximately 3 million Kuwaiti Dinars.
- Provision of Article (11-4) o Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
This is due to lack of performance evaluation for each member of the company’s Board of Directors, noting that the governance report of the year that ended on 31/12/2020 mentioned the availability of a mechanism for evaluating each member of the Board of Directors as well as the availability of performance measurement indicators for determining the weaknesses and strengths and proposals to address them. However, the evaluations provided for the inspection team were evaluating the board as a whole and not evaluating the performance of each member of the Board of Directors separately and accurately.
The Resolution included the infliction of the following penalty: -
“Senergy Holding Company is fined an amount of five thousand Dinars for the first violation and two thousand Dinars for the second 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 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.