CMA LAW: Announcement regarding issuance of Disciplinary Board Resolution No. (61/2023 Disciplinary Board) – (07/2023 Complaint) and imposition of a fine against: Chairman of the Board of Directors of Salbookh Trading Company for violating the rules of Disclosure and Transparency and Corporate Governance.

Announcement regarding issuance of Disciplinary Board Resolution No. (61/2023 Disciplinary Board) – (07/2023 Complaint) and imposition of a fine against: Chairman of the Board of Directors of Salbookh Trading Company for violating the rules of Disclosure and Transparency and Corporate Governance.

For the following reasons:
This is due to his violation of the duties and obligations imposed by the provisions of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities, Articles (3-3-1) and (4-6-3) of Module Ten (Disclosure and Transparency), and Articles (3-2) and (3-8) of Module Fifteen (Corporate Governance). The violations were as follows: the delay to disclose the termination of services of the Financial Manager on 30/3/2023 and disclosed the said on 11/4/2023; the inconsistency in disclosures, as they disclosed the invitation for the Board of Directors’ meeting on 11/5/2023 to accept the complainant’s resignation on 15/5/2023, a minute later, the resignation was accepted with the reservation of the Chairman and members of the Board of Directors; the failure to disclose the resignation of an elected member of the Board of Directors for his being a government employee and is unable to fulfil his membership; in addition, the Secretary of the Board of Directors was appointed and is not from the Company’s employees, and he was a relative of the defendant, further to the defendant’s sale of the Company’s equipment and assets as scrap without being evaluated by a recognized valuator and obtaining the approval of all the members of the Board of Directors thereon or submitting it to the Audit Committee.

The Resolution included the infliction of the following penalty: -
“Levying a fine on the defendant, the Chairman of the Board of Directors of Salbookh Trading Company, in an amount of KWD 1,000 (one thousand Dinars) for each of the two attributed violations as set out through the reasons.”

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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