The Kuwait Capital Markets Authority’s Disciplinary Board issued a resolution imposing financial penalties on five current and former directors and audit committee members of Bayan Investment Holding Company for breaching corporate governance requirements on oversight of internal control systems at a wholly owned subsidiary. The breaches related to Item 18/A of Article 3-7 of Module Fifteen (Corporate Governance) of the Executive Bylaws to Law No. 7 of 2010, as amended. The Authority found the individuals did not fulfil essential control responsibilities and did not verify the adequacy and effectiveness of internal, financial and accounting controls at the subsidiary during a period when a financial department executive also held vice chairman and managing director roles at the subsidiary, which was assessed as a serious failure of supervision that led to influential financial abuses. Penalties were set at KD 5,000 each for the company’s chairman and one board member, and KD 6,000 each for the vice chairman who chaired the internal audit committee and two other current or former board and internal audit committee members.
Kuwait Capital Markets Authority 2026-02-09
Kuwait Capital Markets Authority imposes KD 5,000 to KD 6,000 penalties on Bayan Investment Holding directors for corporate governance control failures
The Kuwait Capital Markets Authority's Disciplinary Board imposed financial penalties on five directors and audit committee members of Bayan Investment Holding Company for breaching corporate governance requirements related to oversight of internal control systems at a subsidiary. The penalties, ranging from KD 5,000 to KD 6,000, were due to failures in verifying the adequacy of internal controls, leading to significant financial abuses.