Kuwait – Mubasher: The Kuwaiti capital market authority has announced the issuance of a disciplinary board decision and the imposition of a fine against the National Shooting Company, its officials and others; For violating the rules of trading in securities, the rules of listing, corporate governance and market conduct.
According to a statement issued by the government today, Monday, the fine was signed against the company, Saleh Al-Saleh, its chairman, Fahd Al-Huwaidi, vice-chairman, Abdullah Al-Shehab and Abdullah Al-Rabban, and Nawaf Al-Mishri, members of the board.
The fine was also imposed on Ahmed Badr, in his capacity as one of the owners of Fischersoft Information Systems and its chairman of the board of directors, and Samah Abdul Wahed, as one of the owners and a member of the board of directors of pharmaceutical products. Soft information systems.
In its statement, the government attributed the disciplinary decision to the failure of “Al Remaya” to conduct a fair evaluation of investment properties in the Emirate of Dubai, United Arab Emirates, for (41) apartments for the year ending December 31, to do. , 2020, recorded on the book at a value of 26.18 million dirhams, in addition to the absence of a document of ownership for that investment property.
As for the second violation, it came to the company’s violation of the International Financial Reporting Standard IFRS 9 – “Financial instruments” in the classification and measurement of financial assets, as it has been conclusively proven to the Authority that on 31 December 2020 it did not make a fair assessment for direct investment in a company’s unlisted foreign preference shares.
And thirdly, it is conclusive proof to the Authority that the company has failed to commit to the appointment of an independent expert on any transaction between the company and any related party when the value of the transaction is equal to 10% or more of the company’s total assets, with the completion of the first transaction on May 23, 2021. The value of the transaction (sale of a company) is 11.4 million dinars, representing approximately 29% of the company’s total assets..
The company’s fourth infringement was its failure to take into account the risks of acquiring a company and forcing it to offer a compulsory acquisition of company shares. the same share in a company with a value of 15.1 million Kuwaiti dinars.
It was also proved that the employee of the above-mentioned stakeholder in the National Shooting Company benefited from the second transaction by selling a 93% stake in Fischery Soft Company for Information Systems at a value of 11.3 million Kuwaiti dinars, at despite the fact that the fair value of this share is equal to about 6 million dinars.Kuwaitse.
Sixth, it is conclusive proof to the Authority that the company did not disclose its information or data on its website, as the last information the company published on its website was the disclosure published on 28 March 2019 regarding the financial statements for the year end on 31 December 2018, without providing any information or recent data on the company’s activity and performance to shareholders or investors.
As for the violations of Al Remaya’s board of directors, it is conclusive proof to the government that they have not established an integrated accounting system that keeps books and records that reflect the financial statements and revenue accounts in a large and accurate manner. which makes it possible to preserve the company’s assets and prepare financial statements in accordance with international accounting standards approved by the Capital Markets Authority.
This is due to the following reasons: The failure to conduct an evaluation of investment properties in the Emirate of Dubai in the United Arab Emirates of (41) apartments, and the failure to conduct a fair evaluation on 31 December 2020 for direct investment in the foreign unlisted preference shares of a company.
As for the second offense, it has been conclusively proven to the authorities that the company owns the most important asset of the National Shooting Company, which is a property under development on Reem Island, with a book value of about KD 27.2 million transferred. , without a fair evaluation thereof, in exchange for the acquisition of shares in a company with a fair value This is about 6 million Kuwaiti dinars.
And thirdly, it has been categorically proven to the authorities that the board of directors of the National Shooting Company did not carry out the tasks entrusted to it with regard to the approval of the transactions carried out by the company (the first transaction on 23 May 2021, and the second transaction on 31 May 2021), as it was not inferred that the minutes of a meeting of the board regarding the approval of These transactions are only approved by the legal representative of the company without consideration by the Board.
The fourth violation was to ensure the accuracy and integrity of the data and information to be disclosed, based on the reservations contained in the auditor’s report for the periods of 31 December 2020 and 31 March 2021, in particular with regard to the preparation of assessments of real estate assets and securities..
Fifthly, it has been categorically proven to the Authority that the company’s board of directors did not take into account the risks of acquiring the Federal Information Systems Company, which is obliged to make a compulsory acquisition of the shares of a company. offer..
As for the transgressions of the Fedshri members, it is conclusive proof to the government, as owners of a company, that they have given misleading and incorrect information that could affect the price of a company’s shares through a debt of 7 million KD to hide while selling a company to a company.
The decision included a fine of 10,000 dinars for the National Shooting Company for the first offense, 2,000 dinars for each of the second and sixth offenses, 20,000 dinars for each of the third and fifth offenses and 5,000 dinars for the fourth infringement.
The company’s chairman, deputy and the aforementioned members were also fined 2,000 dinars for the first offense, 20,000 dinars for the second offense, 10,000 dinars for the third and fourth offenses and 30,000 dinars for the fifth offense.
This comes with their dismissal from the Board of Directors and their impediment to engaging in any of the licensed activities, positions and positions required to be registered with the Capital Markets Authority for a period of 3 years from the date of the resolution.
In addition to this, Ahmed Badr, as one of the owners of Fishery Soft Information Systems and its chairman of the board of directors, and Samah Abdul Wahed, as one of the owners of Fishery Soft Information Systems and a member of his board of directors. , will be fined 50 thousand dinars and prevent them from practicing any of the licensed activities, positions and works required to be registered with the Authority Capital Markets for a period of 3 years from the date of issue of the decision .
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