The Kuwait Capital Markets Authority issued a Disciplinary Board decision imposing financial penalties on Iktib Holding Company and a range of current and former board and committee members for violations of disclosure, transparency and corporate governance requirements under the executive bylaws to Law No. 7 of 2010. The breaches attributed to the company included failures and delays in maintaining and notifying updates to its insiders list, non-disclosure of an effective contract signed in July 2024 related to fair value investment valuation with an associated decrease of about KWD 6.89 million, non-disclosure of a subsidiary’s lawsuit filed on 6 February 2023 with a claim value of about KWD 2,304,917, and non-disclosure of a board decision approving the appointment of a new auditor for the financial year ending 31 December 2024. The decision also cited late disclosure of material information and corporate governance shortcomings, including a vacant investor affairs unit and the absence of a company website. Individual findings covered board failures to adopt strategies to address increasing accumulated losses since 2020, weaknesses around establishing and documenting ownership interests in a newly established subsidiary structure, inconsistencies in accounting for salary-related payments involving Human Investment Company, nomination and remuneration committee failings around executive appointments, risk committee deficiencies in feasibility and risk assessment and risk reporting, and a breach of CEO duties. Penalties included fines on Iktib Holding of KWD 20,000 for the first six violations and KWD 10,000 for the seventh and eighth; KWD 40,000 on the vice chairman and CEO; KWD 30,000 on the board chair; KWD 20,000 each on three serving board members; KWD 10,000 each on two former board members; KWD 5,000 each on five nomination and remuneration committee members; and KWD 10,000 each on three risk committee members.
Kuwait Capital Markets Authority 2025-11-10
Kuwait Capital Markets Authority imposes fines of up to KWD 40,000 on Iktib Holding and directors for disclosure and corporate governance breaches
The Kuwait Capital Markets Authority fined Iktib Holding Company and board members for breaches of disclosure, transparency, and corporate governance under Law No. 7 of 2010. Violations included non-disclosure of significant contracts and lawsuits, corporate governance shortcomings, and failures in risk and remuneration committee functions. Penalties totaled KWD 20,000 for Iktib Holding and varying amounts for board members, with the vice chairman and CEO fined KWD 40,000.