The Capital Markets Authority’s Disciplinary Board has taken decisive action by imposing fines and penalties on several companies and their executives for various violations related to disclosure, transparency, securities dealing, and corporate governance.
Land United Real Estate Company: The board imposed a financial penalty of 50,000 dinars on Land United Real Estate Company for multiple violations, including delayed disclosure of crucial information, failure to comment on a press interview, and providing inaccurate comments that were deemed misleading. The company was also found to have evaluated properties and assets after the financial statement period, raising concerns.
Company Executives and Directors: The Chairman of the Company’s Board of Directors, his deputy, and three board members received financial penalties of 50,000 dinars each for their roles in failing to safeguard the interests of the company’s shareholders regarding its real estate holdings. The board’s decision pointed out that the assets were registered in the names of parties related to the company, potentially leading to legal and financial risks. Additionally, the board criticized the company’s depositing of revenues related to local real estate into accounts not owned by the company itself.
Company CEO and Financial Sector Head: The CEO of the company and the head of its financial sector were also penalized, with fines of 50,000 dinars each. They were found responsible for failing to protect the company’s shareholders’ interests concerning its real estate assets, which were registered in the names of related parties, leading to potential legal and financial issues.
Additional Penalties and Warnings: The Disciplinary Board also imposed a 20,000 dinar fine on Kuwait and Middle East Financial Investment Company (KMEFIC) for violations related to the Executive Regulations of Law No. (7) of 2010. The National Real Estate Company was fined 1,000 dinars for disclosure and transparency rule violations. Kuwait Real Estate Company received a warning for breaching securities dealing rules.
Azian Capital Company faced significant penalties, including a 10,000 dinar fine for multiple violations and a 20,000 dinar penalty for another violation. The Chairman of the Audit Committee and its members were also fined 1,000 dinars each.
The board’s decisions reflect the Capital Markets Authority’s commitment to maintaining transparency, accountability, and adherence to regulations within Kuwait’s financial markets.