Kuwait Capital Markets Authority (CMA) Disciplinary Board issued a decision imposing financial penalties and warnings on Trade Centers Real Estate Company, its chair and vice-chair, several board members including the chief executive officer, and current and former audit committee members for breaches of the corporate governance rules in the Executive Bylaws to Law No. 7 of 2010. The company was found to have sold its shares in Intrados Tourism Development Company without integrated feasibility studies assessing the sale’s impact on business efficiency or the associated risks, and to have failed to present prior CMA Disciplinary Board decisions to shareholders at general assembly meetings for the fiscal years ended 31 December 2021 and 31 December 2022. Findings also covered failures by the board and executive management to manage resources optimally, including a state-leased equestrian resort and academy project still under development for 17 years without generating revenues, and overseas investment properties recorded at approximately KWD 16,906,728 where the company did not provide officially certified ownership documents, despite the assets representing 57% of total assets in the financial statements for the period ended 31 December 2023. The audit committee was found not to have performed its task of reviewing CMA Disciplinary Board decisions dated 25 May 2021, 4 July 2022, 13 July 2023 and 15 January 2024. Sanctions included fines of KWD 5,000 and KWD 2,000 on the company, a KWD 3,000 fine and a warning for the board chair, KWD 5,000 fines on four individuals (including the CEO and audit committee members) with warnings on a separate board-related violation, and KWD 2,000 fines on each of four former audit committee members.
Kuwait Capital Markets Authority 2025-07-07
Kuwait Capital Markets Authority fines Trade Centers Real Estate Company and board and audit committee members for corporate governance breaches
The Kuwait Capital Markets Authority Disciplinary Board fined Trade Centers Real Estate Company and its executives for corporate governance breaches, including unauthorized share sales, undisclosed disciplinary decisions, and resource mismanagement. Sanctions included KWD 5,000 and KWD 2,000 fines on the company, plus additional fines and warnings for the board chair, CEO, and audit committee members.