Title: Announcement regarding issuance of Disciplinary Board Resolution No. (111/2022) Disciplinary Board (44/2022) Authority, and imposition of a fine and a warning against each of: 1. Adel Taher Hasan Al-Nakas in his capacity as Chairman of the Board of Directors of Sharq Investment Company, 2- Abdulmalik Badr Isamel Al-Awadhi in his capacity as Vice Chairman of the Board of Directors of Sharq Investment Company, 3-Fahad Basem Abdulrahman Al Mulla in his capacity as Board Member of Sharq Investment Company, 4- Abdullah Ali Abdullah Al-Baghli in his capacity as Board Member of Sharq Investment Company 5- Khaled Khalil Awad in his capacity as Board Member & CEO of Sharq Investment Company for violating the rules of Corporate Governance

Announcement regarding issuance of Disciplinary Board Resolution No. (111/2022) Disciplinary Board (44/2022) Authority, and imposition of a fine and a warning against each of:

1. Adel Taher Hasan Al-Nakas in his capacity as Chairman of the Board of Directors of Sharq Investment Company
2. Abdulmalik Badr Isamel Al-Awadhi in his capacity as Vice Chairman of the Board of Directors of Sharq Investment Company
3. Fahad Basem Abdulrahman Al Mulla in his capacity as Board Member of Sharq Investment Company
4. Abdullah Ali Abdullah Al-Baghli in his capacity as Board Member of Sharq Investment Company
5. Khaled Khalil Awad in his capacity as Board Member & CEO of Sharq Investment Company for violating the rules of Corporate Governance

for violating the rules of Corporate Governance.

For the following reasons: 

First each of:

1. Adel Taher Hasan Al-Nakas in his capacity as Chairman of the Board of Directors of Sharq Investment Company
2. Abdulmalik Badr Isamel Al-Awadhi in his capacity as Vice Chairman of the Board of Directors of Sharq Investment Company
3. Fahad Basem Abdulrahman Al Mulla in his capacity as Board Member of Sharq Investment Company
4. Abdullah Ali Abdullah Al-Baghli in his capacity as Board Member Sharq Investment Company
5. Khaled Khalil Awad in his capacity as Board Member of Sharq Investment Company

They violated the provisions of Items (4) and (13a) of Article (3-7) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

It was proven to the Authority that the Company did not ensure compliance of the Company with the policies and procedures that procure the Company’s compliance with the rules and regulations, in addition to that they did not ensure that the executive management’s work is in accordance with policies and conditions approved by the Board of Directors, by not complying with item “Fifth: Maximum limits for concentrations in the components of investment portfolios for each type of security, sector, country and issuer of the security” from the Appendix “Features related to the investment portfolio managed by Sharq Investment Company” approved on 10/10/2021 by the Board of Directors and emanating from the investment portfolio management policy.

Second: Khaled Khalil Awad in his capacity as CEO of Sharq Investment Company.

For violating the provision of Item (1) of Article (3-10) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

It was proven to the Authority that he did not execute all Company internal policies and regulations which are approved by the Board of Directors, and that is because the Company did not comply with item “Fifth: Maximum limits for concentrations in the components of investment portfolios for each type of security, sector, country and issuer of the security” from the Appendix “Features related to the investment portfolio managed by Sharq Investment Company” approved on 10/10/2021 by the Board of Directors and emanating from the investment portfolio management policy prepared and approved by the Company.

The Resolution included the infliction of the following penalty: -

"First: - Levying a warning for each of:

1. Adel Taher Hasan Al-Nakas in his capacity as Chairman of the Board of Directors of Sharq Investment Company.
2. Abdulmalik Badr Isamel Al-Awadhi in his capacity as Vice Chairman of the Board of Directors of Sharq Investment Company.
3. Fahad Basem Abdulrahman Al Mulla in his capacity as Board Member of Sharq Investment Company.
4. Abdullah Ali Abdullah Al-Baghli in his capacity as Board Member of Sharq Investment Company.

for the attributed violation.

Second: - Levying a fine against Khaled Khalil Awad in his capacity as Board Member & CEO of Sharq Investment Company in an amount of KWD 2,000 (two thousand Dinars) for the two attributed violations due to his connection.”

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.