CMA LAW: Circular No. (3) of 2020 Regarding Holding the General Assemblies of the Financial Year that Ended on 31/12/2019 through the Electronic System

Chairman of the Board of Directors

Greetings,

The Capital Markets Authority (CMA) draws the attention of the companies listed in the Exchange and the closed shareholding companies that are licensed to practice any securities activities, whose financial year ended on 31/12/2019 and have not held its General Assemblies yet, to the issuance of the ministerial resolution no. (85) of 2020 on 31/03/2020 regarding the amendment of Article (118) of the Executive Bylaws of Law No. (1) of 2016 regarding the issuance of the Companies’ Law, which allowed the shareholders, their agents, and the representatives of the relevant supervisory entities and auditors to attend the meeting of the ordinary and extraordinary general assembly through the electronic system of the entity that is safekeeping the shareholders’ register. In addition to discussing and voting on the topics presented in the meeting through this system.

This comes due to the exceptional circumstances that Kuwait is going through, the strict health requirements, the precautionary measures required, and the desire to keep the latest up-to-date developments and benefit from the modern technology and means of communication applied in the global markets and in a manner that preserves the rights of shareholders. For this, the CMA invites those companies to hold their general assemblies through personal attendance in accordance with the health controls and requirements, or through the system of Kuwait Clearing Company (eAGM) not later than 11/06/2020, and to comply with the dates and procedures of the invitation to convene.

The companies who will not be able to hold the general assembly before the deadline, whether through physical attendance or through the electronic system, shall submit their written reasons and justifications no later than 07/05/2020 to the following email address: general-assembly@cma.gov.kw.

Additionally, the CMA has dedicated the following email address (annual-financials@cma.gov.kw) for the companies to submit a copy of their audited financial statements for the financial year that ended on 31/12/2019.

It is worth noting also that Kuwait Clearing Company has finished its preparations for the electronic system for conducting general assembly meetings electronically (eAGM) including supporting electronic voting. KCC will announce the start of receiving the requests of shareholders for their username and password, which is expected to start next Wednesday, April 15, 2020, by sending the requests to the e-mail for that and attaching the documents required to activate the service.

Kuwait Clearing Company will start coordinating with the shareholding companies to hold their general assemblies through this electronic system in accordance with the regulating policies and procedures.

Prof. Ahmad A. Al-Melhem

Issued on: 12/04/2020

Copy of the Official Document

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