CMA LAW: Announcement regarding issuance of Disciplinary Board Resolution No. (127/2022 Disciplinary Board) (148/2022 Authority) and imposition of a fine against Coast Investment and Development Company (KSCP) for violating the rules of Disclosure and Transparency and Corporate Governance

Announcement regarding issuance of Disciplinary Board Resolution No. (127/2022 Disciplinary Board) (148/2022 Authority) and imposition of a fine against:

Coast Investment and Development Company (KSCP).

For violating the rules of Disclosure and Transparency and Corporate Governance.

For the following reasons:

1. Violation of the provision of Article (1-3-3) of Module Ten (Disclosure and Transparency) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. It was proven to the CMA that the Company has held several Board of Directors’ meetings during the trading hours according to the minutes of those meetings.

2. Violation of the provision of Item (9) of Article (4-1-1) of the same Module. It was proven to the CMA that the Company did not disclose the change of the new Board of Directors pursuant to the minutes of its seventh meeting of 2022 held on 29/5/2022.

3. Violation of Item (1) of Article (2-3) Module Fifteen (Corporate Governance) of the Executive Bylaws of the mentioned Law. It was proven to the CMA that the independent Board Member of Coast Investment and Development Company occupies at the same time the position of Vice Chairman of the Board of Directors in a company that owns (31.65%) of Coast Investment and Development Company shares, which leads to his lack of independency as an independent Board Member.

The Resolution included the infliction of the following penalty: -

"First: - Levying a fine against Coast Investment and Development Company in an amount of KWD 2000 (two thousand Dinars) for each of the first and second violations, and an amount of KWD 3000 (three thousand Dinars) for the third attributed violation.

Second: - Notifying CMA Board of Commissioners and the concerned persons of this Resolution.”

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.

Disclaimer: The information provided on this page is for reference purposes only, visitors are encouraged to review and understand the information provided in the official scanned document attached in the link above (if available). The CMA endeavors to ensure that the information on this page is complete and accurate, but the CMA does not guarantee the quality, accuracy, or completeness of any content at any time. In the event the information on this page is different from the content in the official scanned document attached in the link (if available), the official scanned document attached shall take precedence.