CmaBoardReleases
Title: Resolution No. (154) of 2022 Regarding Suspending the Trading of Wethaq Takaful Insurance Company's Shares from Boursa Kuwait Securities Exchange
Having Perused:
- Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities, its Executive Bylaws, and their amendments; and
- CMA Board of Commissioners Resolution passed in its meeting No. (36) of 2022 held on 05/10/2022.
The Following Was Resolved:
Article (1)
The trading of Wethaq Takaful Insurance Company's shares is hereby suspended from Boursa Kuwait Securities Exchange as of 06/10/2022, according to Items No. (3) and (5) of Article (1-20) of Module Twelve (Listing Rules) of the Executive Bylaws of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and their amendments, which stipulate the following:
“The Authority may temporarily suspend trading in the Exchange, and suspend the trading of any Security listed in the Exchange in any of the following cases:
….
3. Achieve investor protection in the markets.
….
5. If the Auditor has given a material, qualified opinion on the periodical or annual financial statements, or in the event that the contract with the Auditor was terminated as a result of a disagreement between the Listed Company and the Auditor.”
This is until the Company takes the necessary measures towards addressing the observations contained in the Company’s external auditor’s report on the financial statements ending on 31/12/2021 and the following periodical financial statements, in a manner that ensures that the balance of the financial statements are recorded in a fair and sound manner, particularly with regard to an item required from policy holders of about KWD 6.6 million and an interest-free loan for policy holders of about KWD 1.5 million to comply with Standard No. 9 of the International Financial Reporting Standards, and the resulting impact on those financial statements. The Company shall provide the CMA with financial statements that reflect the financial impact resulting from addressing those observations by the end of 31/03/2023.
Article (2)
The continuity of listing the shares of Wethaq Takaful Insurance Company in Boursa Kuwait Securities Exchange shall be considered in the event that the Company does not meet the supervisory requirements of the CMA stipulated in Article “First” of this Resolution.
Article (3)
Wethaq Takaful Insurance Company shall submit to the CMA a weekly report on the updates and procedures it is taking to address the situation of suspending the Company's shares from trading in Boursa Kuwait Securities Exchange, as of the date of this Resolution.
Article (4)
The concerned bodies shall execute this Resolution, each within its jurisdiction. This Resolution shall come into force from the date of its issuance, and it shall be published in the Official Gazette.
Prof. Ahmad A. Al-Melhem
Issued on: 05/10/2022.