Capital Markets Authority Penalizes Companies For Violations

There have been several fines and penalties imposed by the Capital Markets Authority's Disciplinary Board on 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 failing to disclose critical information, failing to respond to a press interview, and making inaccurate comments that were deemed misleading. Concerns were raised about the company's evaluation of properties and assets after the financial statement period.

Company Executives and Directors: The Chairman of the Company's Board of Directors, his deputy, and three board members each received financial penalties of 50,000 dinars for failing to ensure the interests of shareholders regarding the company's real estate holdings. The board's decision noted that the assets were registered in the names of parties related to the company, potentially posing legal and financial risks. In addition, the board criticized the company's decision to deposit local real estate revenue into accounts not owned by the company.

CEO and Head of Financial Sector: Both the CEO and chief executive officer were fined 50,000 dinars each. They were found liable for failing to protect the company's shareholders' interests regarding its real estate assets, which were registered in the names of related parties, resulting in potential legal and financial problems.

Additional Penalties and Warnings: A 20,000 dinar fine was imposed 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 violating disclosure and transparency rules. For violating securities dealing rules, Kuwait Real Estate Company received a warning.

Azian Capital Company faced significant penalties, including a 10,000 dinar fine for multiple violations and a 20,000 dinar fine for another violation. In addition, the Chairman of the Audit Committee and its members were each fined 1,000 dinars.

Kuwait's Capital Markets Authority's decisions reflect its commitment to maintaining transparency, accountability, and regulatory compliance.

 

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