Title: Announcement regarding issuance of Disciplinary Board Resolution No. (07/2024 Disciplinary Board) – (145 and 146/2023 Authority) and imposition of a fine against each of: 1- Jiyad Holding Company, 2- Former Chairman of the Board of Directors, 3- Former Vice Chairman of the Board of Directors, 4- Former Members of the Board of Directors (3 members), 5- Former CEO, 6- The Company’s Financial Manager, 7- The Company’s Compliance Officer, 8- The Company’s External Auditor, for violating the Rules of Listing, Corporate Governance, and Securities Activities and Registered Persons.

Announcement regarding issuance of Disciplinary Board Resolution No. (07/2024 Disciplinary Board) – (145 and 146/2023 Authority) and imposition of a fine against each of: 1- Jiyad Holding Company, 2- Former Chairman of the Board of Directors, 3- Former Vice Chairman of the Board of Directors, 4- Former Members of the Board of Directors (3 members), 5- Former CEO, 6- The Company’s Financial Manager, 7- The Company’s Compliance Officer, 8- The Company’s External Auditor,  for violating the Rules of Listing, Corporate Governance, and Securities Activities and Registered Persons.

For the following reasons:
First: Jiyad Holding Company violated the provision of Article (1-14) of Module Twelve (Listing Rules) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

It was proven to the CMA through studying the financial statements of Jiyad Holding Company for the year that ended on 31/3/2023 and the financial period that ended on 30/6/2023 that the Company failed to comply with International Financial Reporting Standard 9 (IFRS 9) “Financial Instruments”, as it has not evaluated the following investments:

1. Listed Company in the value of KWD 813,600 (eight hundred and thirteen thousand, and six hundred Kuwaiti Dinars only) as on 30/06/2023.
2. Listed Company in the value of KWD 4,154,203 (four million, one hundred and fifty-four thousand, two hundred and three Kuwaiti Dinars only) as on 30/06/2023.
3. Listed Company in the value of KWD 808,275 (eight hundred and eight thousand, two hundred and seventy-five Kuwaiti Dinars only) as on 30/06/2023.
4. Listed Company in the value of KWD 3,228,727 (three million, two hundred and twenty-eight thousand, seven hundred and twenty-seven Kuwaiti Dinars only) as on 30/06/2023.
5. Listed Company in the value of KWD 1,179,587 (one million, one hundred and seventy-nine thousand, five hundred and eighty-seven Kuwaiti Dinars only) as on 30/06/2023.

Second: Each of:
1. Former Chairman of the Board of Directors of Jiyad Holding Company.
2. Former Vice Chairman of the Board of Directors of Jiyad Holding Company.
3. Former Members of the Board of Directors of Jiyad Holding Company.
4. Former Members of the Board of Directors of Jiyad Holding Company.
5. Former Members of the Board of Directors of Jiyad Holding Company.

They violated the provision of Item (5) of Article (3-7) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

Due to the following:
1. Former Chairman of the Board of Directors of Jiyad Holding Company:
2. Former Vice Chairman of the Board of Directors of Jiyad Holding Company:
3. Former Members of the Board of Directors of Jiyad Holding Company:
4. Former Members of the Board of Directors of Jiyad Holding Company:
5. Former Members of the Board of Directors of Jiyad Holding Company:

It was proven to the CMA that they failed to perform their duties with regards to the failure of Jiyad Holding Company to evaluate the investments included within the Item of “Investments in the fair value through the other comprehensive income” for the financial period that ended on 31/03/2023, which is considered non-compliance with the requirements of the International Financial Reporting Standard 9 (IFRS 9).

Third: Each of:
1. Former CEO of Jiyad Holding Company.
2. Financial Manager of Jiyad Holding Company.
3. Compliance Officer of Jiyad Holding Company.

They violated the following provisions:
1) The provision of Item (4) of Article (3-10) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
2)    The provision of Article (5-2) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
Due to the following:
1. Former CEO of Jiyad Holding Company:

It was proven to the CMA that he failed to perform his duties with regards to failure of Jiyad Holding Company to evaluate the investments included within the Item of “Investments in the fair value through the other comprehensive income” for the financial period that ended on 31/03/2023, which is considered non-compliance with the requirements of the International Financial Reporting Standard 9 (IFRS 9).

2. Financial Manager of Jiyad Holding Company:

3. Compliance Officer of Jiyad Holding Company:
It was proven to the CMA that they failed to perform their duties with regards to the failure of Jiyad Holding Company to evaluate the investments included within the Item of “Investments in the fair value through the other comprehensive income” for the financial period that ended on 31/03/2023, which is considered non-compliance with the requirements of the International Financial Reporting Standard 9 (IFRS 9).

Fourth: The External Auditor of Jiyad Holding Company violated the provision of Article (3-4-5) of Module Five (Securities Activities and Registered Persons) of the same Executive Bylaws:
It was proven to the CMA he failed to provide any remarks in his report prepared on the financial statements of the financial period that ended on 31/03/2023 and the financial period that ended on 30/06/2023 with regards to failure of Jiyad Holding Company to evaluate the investments included within the Item of “Investments in the fair value through the other comprehensive income”, which is considered non-compliance with the requirements of the International Financial Reporting Standard 9 (IFRS 9) “Financial Instruments”.

The Resolution included the infliction of the following penalty: -
“First: Levying a fine on Jiyad Holding Company in an amount of KWD 5,000 (five thousand Dinars) for the attributed violation.

Second: Levying a fine on the former members of the Company’s Board of Directors, which are:
1. Former Chairman of the Board of Directors of Jiyad Holding Company.
2. Former Members of the Board of Directors of Jiyad Holding Company.
3. Former Members of the Board of Directors of Jiyad Holding Company.
4. Former Members of the Board of Directors of Jiyad Holding Company.
in an amount of KWD 1,000 (one thousand Dinars) on each one of them for the attributed violation.

Third: Levying a fine on each of:
1- Former Vice Chairman of the Board of Directors and the CEO of Jiyad Holding Company.
2- Financial Manager of Jiyad Holding Company.
3- Compliance Officer of Jiyad Holding Company.
in an amount of KWD 2,000 (two thousand Dinars) on each one of them for the attributed violations.

Fourth: Levying a fine on the External Auditor of Jiyad Holding Company in an amount of KWD 2,000 (two thousand Dinars) for the attributed violations.”

In this regard, the CMA emphasizes the implementation of CMA Law and its Executive Bylaws on all persons dealing in securities activities, and urges them to comply with these Laws in order to promote investors' confidence, create a sound investment environment, and implement the Law according to the principles of fairness, transparency, and integrity in line with the best international practice.