CmaBoardReleases
Title: Announcement Regarding Issuance of Disciplinary Board Resolution No. (66/2021 Disciplinary Board) (13/2021 Complaint) and imposition of a fine of four thousand Dinars against YIACO Medical Company for violating the rules of Disclosure and Transparency and Corporate Governance.
Announcement Regarding Issuance of Disciplinary Board Resolution No. (66/2021 Disciplinary Board) (13/2021 Complaint) and imposition of a fine of four thousand Dinars against YIACO Medical Company for violating the rules of Disclosure and Transparency and Corporate Governance.
For the following reasons:
First: The defendant's failure to observe the minimum number of Board of Directors’ meetings, as it convened during the year 2020 three times only, in violation of the provision of Article (2-5) of Module Fifteen (Corporate Governance) of the Executive Bylaws of the Capital Markets Authority Law No. 7 of 2010 and its amendments.
Second: - The defendant’s purchase of a land without obtaining the approval of the Board of Directors, in violation of the provision (item 11/a) of Article (3-7) of Module Fifteen (Corporate Governance) of the Executive Bylaws of the Capital Markets Authority Law No. 7 of 2010 and its amendments.
Third: The defendant's failure to disclose in a timely manner material information that has a significant impact on reducing the Company's assets and revenues, in violation of the provision of Article (4-1-1) of Module Ten (Disclosure and Transparency) of the Executive Bylaws of the Capital Markets Authority Law No. 7 of 2010 and its amendments.
Fourth: - The defendant granted significant financial benefits to members of the senior management, as stated in the budget for the financial year ending December 31, 2017, despite the losses incurred by the Company as a result of mismanagement, which were mentioned in the budget for the years 2017/2018, in violation of the provision of Article (2-5) of Module Fifteen (Corporate Governance) of the Executive Bylaws of the Capital Markets Authority Law No. 7 of 2010 and its amendments.
The Resolution included the infliction of the following penalty: -
“The Company is fined an amount of one thousand Dinars for each 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 rules 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.