CmaBoardReleases
Title: Announcement regarding issuance of Disciplinary Board Resolution No. (54/2022 Disciplinary Board) (22/2022 Authority) and imposition of a fine against: Wethaq Takaful Insurance Company for violating the rules of Disclosure and Transparency and Corporate Governance
Announcement regarding issuance of Disciplinary Board Resolution No. (54/2022 Disciplinary Board) (22/2022 Authority) and imposition of a fine against: Wethaq Takaful Insurance Company for violating the rules of Disclosure and Transparency and Corporate Governance.
For the following reasons:
- Provision of Article (1-3-3) Module Ten (Disclosure and Transparency) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
It was proven to the Authority holding a number of Board meetings during the trading session.
- Provision of Article (4-2-1) Module Ten (Disclosure and Transparency) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
It was proven to the Authority the Company’s delay in disclosing material information.
3) Provision of Items (1), (3) and (6) of Article (2-5) Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
The following was proven to the Authority:
a. The Company's Board of Directors did not hold any meetings during the second quarter of 2020.
b. A number of Board meetings invitations were not issued from the Chairman of the Board of Directors.
c. The Company provided the members of the Board of Directors with the agenda of a number of meetings within a period of less than three working days prior to the day of the Board meeting.
4) Provision of Article (11-4) Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
As it was proven to the Authority that systems and mechanisms for evaluating the members of the Board of Directors do not exist, which resulted in the Company not evaluating the performance of the members of the Board of Directors for the years 2019 and 2020, as specified in the Company’s letter dated 1/12/2021 with “None.”
The Resolution included the infliction of the following penalty: -
" Wethaq Takaful Insurance Company is fined an amount of one thousand Dinars for each of the four 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 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.