CMA LAW: Announcement regarding issuance of Disciplinary Board Resolution No. (73/2023) Disciplinary Board - (121/2023) Authority, and imposition of a fine against: Humansoft Holding Company (KSCP) for violating the rules of Corporate Governance

Announcement regarding issuance of Disciplinary Board Resolution No. (73/2023) Disciplinary Board - (121/2023) Authority, and imposition of a fine against:

 Humansoft Holding Company (KSCP)

for violating the rules of Corporate Governance

For the following reasons:

1. Violation of the provisions of Articles (6-3) and (6-7) of Module Fifteen (Corporate Governance) of the Executive Bylaws of the mentioned Law. The Company’s internal audit and risk management departments are not independent, due to risk management tasks being assigned to the internal audit officer at the same time, according to the list of the Company’s employees that was provided to the Authority.

1. Violation of the provisions of Items (1) and (2) of Article (6-3) of the same Module:

The lack of studies and reports to follow up and measure the risks that the Company may face in the event of discontinuation of educational scholarships, especially since most of the Company’s revenues are from government scholarships, and the lack of such studies and reports indicates the inadequacy of the Company’s supervision aspect.

The Resolution included the infliction of the following penalty: -

Levying a fine against Humansoft Holding Company in an amount of KWD 5000 (five thousand Dinars) for the first violation, and an amount of KWD 2000 (two thousand Dinars) for the second attributed 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 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.

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