CmaBoardReleases
Title: Announcement Regarding Issuance of Disciplinary Board Resolution on Violation No. (47/2017 Disciplinary Board) (120/2017 Authority)
The Capital Markets Authority announces issuance of a Disciplinary Board Resolution passed in its meeting held on Wednesday 23/08/2017 on violation No. (47/2017 Disciplinary Board) (120/2017 Authority) filed against:
Equipment Holding Co.
The Company shall pay a fine of KWD 3000 for each of the first and second violations. It violated the rules of disclosure of material information.
This punishment is due to the following violations:
1- The Company’s board of directors has accepted on 22/03/2017 the resignation of Mr. Ahmed Bader Al-Essa, who holds the Company’s CEO position, and Mr. Adel Abdulwahab Al-Dakhil in its capacity as member in the company’s board, and the company only disclosed this on 04/04/2017, which violates the provision of clause (9) and the second paragraph of Article (4-1-1) of Module Ten (Disclosure and Transparency) of the Executive Bylaws of Law No. 7 of 2010 and their amendments.
2- The Company did not promptly disclose the fines imposed on some of its projects, which led to net operational loss in the total of KWD 5,048,107 which is registered in the company’s financial statements for the year that ended on 31/12/2016, by violating the provision of the second paragraph of Article (4-1-1) of Module Ten (Disclosure and Transparency) of the Executive Bylaws of Law No. 7 of 2010 and their amendments.
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.