CMA LAW: Announcement regarding issuance of Disciplinary Board Resolution No. (59/2023 Disciplinary Board) - (78/2022 Authority), and imposition of a fine against Palms Agro Production Company for violating the rules of Disclosure and Transparency

Announcement regarding issuance of Disciplinary Board Resolution No. (59/2023 Disciplinary Board) - (78/2022 Authority), and imposition of a fine against Palms Agro Production Company for violating the rules of Disclosure and Transparency.

For the following reasons:
Violation of the provision of Item (14) of Article (4-1-1) of Module Ten (Disclosure and Transparency) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. This is due to the Company’s failure to disclose to Boursa Kuwait Securities Exchange the judgment of the Appeals Court regarding annulment of the judgment of Court of First Instance and requiring the defendant Company to pay the amount of 357,999,697 Dinars. It was also proven that the Company failed to disclose the financial impact resulting from that judgement, which is to return the allocation of 358,000 that was made during 2021.

The Resolution included the infliction of the following penalty: -
“Levying a fine against Palms Agro Production Company in an amount of KWD 2,000 (two thousand Dinars) for the attributed violation in its two parts”.

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.

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