The Kuwait Capital Markets Authority issued a Disciplinary Board resolution imposing financial penalties on Ikttitab Holding Company and a range of current and former board members and executives for breaches of disclosure, transparency and corporate governance requirements. Ikttitab Holding Company was fined KD 10,000 for disclosure and transparency violations and KD 5,000 for a corporate governance violation. The findings included failures to disclose material events, including the dismissal of a board member, a subsidiary’s financial settlement agreement signed on 30 December 2021 with a value equivalent to 17% of the group’s total assets (per financial statements for the period ended 31 December 2020), and the termination of that agreement on 17 March 2022, as well as non-disclosure of Disciplinary Board decisions against the company and its board. The resolution also cited delays in disclosing material information (including the appointment of a compliance officer, a six working day delay in disclosing the CMA’s response on re-trading of the share, and failure to disclose a chief executive officer resignation 15 minutes before the next trading session). Governance breaches covered late circulation of board meeting agendas, lack of updated strategic planning and an approved approach to address accumulated losses, major investments and a KD 4,000,000 subsidiary capital increase without documented board approval, board minutes lacking recorded discussion or approval of the settlement agreement, and certain payments and transfers to non-affiliated entities, including transfers exceeding KD 5,000 without legal justification. Individual penalties comprised KD 5,000 fines on 10 current or former senior officials and KD 3,000 fines on four board members.
Kuwait Capital Markets Authority 2025-05-19
Kuwait Capital Markets Authority imposes KD 15,000 penalty on Ikttitab Holding Company and fines directors for disclosure and governance breaches
The Kuwait Capital Markets Authority fined Ikttitab Holding Company and several board members for breaches of disclosure, transparency, and corporate governance. Ikttitab was fined KD 10,000 for disclosure violations and KD 5,000 for governance breaches, including failures to disclose material events and delays in disclosing critical information. Individual penalties included KD 5,000 fines on 10 senior officials and KD 3,000 fines on four board members.