CmaBoardReleases
Title: Announcement Regarding Issuance of Disciplinary Board Resolution on Violation No. (69/2017 Disciplinary Board) (199/2017 Authority)
The Capital Markets Authority announces issuance of a Disciplinary Board Resolution passed in its meeting held on Thursday 7/12/2017 on violation No. (69/2017 Disciplinary Board) (199/2017 Authority) against:
Kuwait Gypsum Manufacturing & Trading Company
The Company shall pay KWD 1000 for the violations, renewed monthly as of 30/3/2018 if the violations are not corrected and until the withdrawal from the Exchange. The Company did not establish a risk management office and an internal audit office in accordance with the governance requirements.
The punishment is due to violating the following:
Article (6-3) and Article (6-7) of Chapter Six of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. The Company did not include an independent risk management unit in its organizational structure, which shall primarily measure, monitor, and mitigate all types of risks encountered by the company. Additionally, it did not establish a department/ an office/ an independent internal audit unit from the date of implementing the governance rules as on 30/6/2016 up to this date.
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.