Title: Press Release: Resolution No. (139) of 2022 Regarding Developing the Mechanism of Participating in the General Assemblies of the Companies Listed in Boursa Kuwait Securities Exchange

Kuwait, September 3, 2022 - Within the framework of the Capital Markets Authority’s (CMA) pursuit to adopt and implement the best international practice for developing the financial markets in the State of Kuwait, as well as strengthening the principles of justice, competency, and transparency that lead to achieving the protection of traders in accordance with the provisions of Law No. 7 of 2010  and its Executive Bylaws, and in order to execute the project of developing the mechanism of participating in the general assemblies of the companies listed in Boursa Kuwait Securities Exchange that will be implemented in two phases in cooperation with Kuwait Clearing Company in its capacity as the central depository entity of securities.
On September 1, 2022, the CMA has issued Resolution No. (139) of 2022 of implementing the first phase of the project of developing the mechanism of participating in the general assemblies of the companies listed in Boursa Kuwait Securities Exchange in which the CMA aims to achieve the following:
- Enable and encourage the shareholders and the small shareholders in particular, inside and outside the State of Kuwait, to participate in the general assemblies of listed companies remotely, and enable them to practice their rights in decision making through the electronic means.
- Provide the shareholders with adequate time to study what will be discussed in the general assembly and provide the companies and the clearing agency with adequate opportunity to organize the convening of the general assembly and communicate with the shareholders that have the right to attend (in particular the foreign shareholders and the shareholders that own indirectly).
- Facilitate the companies’ achievement of the required percentage for holding the general assemblies with the required quorum in a contribution to the management of the company’s plans, especially the ones whose implementation is associated with a timetable.
- Regulate the roles and responsibilities of Kuwait Clearing Company regarding holding the general assemblies of listed companies.
This resolution also included the amendments of implementing the first phase of the project, the most prominent of which were the following:
- Addition of the definition of “Electronic System of Participation” that is the electronic system that is offered by the clearing agency to the listed companies to enable the shareholders of those companies to participate in the general assembly without their need to attend in person. Their participation is calculated within the quorum of attendance and voting at the general assembly.
- Setting a new mechanism for determining who has the right to attend the general assembly through adding a new clear definition that is “The Date of the Right to Attend the General Assembly” which is the tenth Business Day prior to the date of the general assembly.
- Apply some technical changes on the electronic system for participating in the general assemblies by Kuwait Clearing Company.
- Obligate some of the listed companies to offer the electronic system of Kuwait Clearing Company to the shareholders to participate in the general assembly.
- Regulate disclosure of the details of the general assembly through issuing a new form for this purpose.
Furthermore, the Resolution stipulated the amendment of Article (2-4-8) and Article (2-9-2) of Chapter 2 of Module Four (Securities Exchanges and Clearing Agencies), and Article (4-1-1) of Chapter 4 of Module Ten (Disclosure and Transparency), in addition to amending some articles from Chapter 1 of Module Twelve (Listing Rules) and adding Article (1-11) to the same Module.
In conclusion, the CMA works continuously on developing the provisions of the Executive Bylaws in regards with the listed companies which aims to provide protection to the investors and the persons dealing in the markets and enabling the small shareholders to practice their rights in making the decisions related to the company.

Ends –
Notes to Editors:
The Capital Markets Authority was established pursuant to Law No. 7/2010, approved by the Kuwaiti Parliament in February 2010. Pursuant to the Law, the CMA shall regulate and supervise the securities activities, achieve transparency and fairness, observe listed companies’ execution of Corporate Governance regulations, and protect investors from unfair practices which violate the CMA's Law.
Furthermore, the Law's provisions stipulate the supervision of mergers, acquisitions, and disclosure operations. The CMA also aims to provide awareness programs related to securities activities.
For further information, please contact:
Public Relations & Media Office
Tel: 22903062
Fax: 22903505
Email: pr-media@cma.gov.kw