CMA identifies additional disclosure requirements for firms

Updated 17 March 2015
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CMA identifies additional disclosure requirements for firms

The Capital Market Authority (CMA) emphasizes the importance of following up on the listed companies’ disclosures by the investors and traders in the market.
The follow up would ensure taking sound investment decisions according to detailed data that reflect the operational and financial state of the company.
In this aspect, CMA has pointed out the additional disclosure requirements that must be met by the companies with accumulated losses (whose accumulated losses have reached 50 percent or more of its capital and up to the losses reaching to 100 percent of its capital).
The requirements are aimed to enable the investors and traders to follow the status of the company and its mechanism on a regular basis and inform them of the expected risks, thus help them to make their investment decisions with all the needed information available.
The Instructions and Procedures related to Listed Companies with Accumulated Losses that were applied since July 2014 state that companies whose accumulated losses have reached 50 percent of its capital should announce by the end of each month (according to its fiscal year’s calendar) its management financial statements.
That is for a period not exceeding the next 10 days of the end of each month. Monthly briefing on those statements should be available to the public until the company succeeds to reduce its losses below 50 percent of its capital.
The authority also explained that there are additional disclosure requirements for the companies with accumulated losses reaching 75 percent or more of its capital and up to the losses reaching to 100 percent of its capital and have an orange or red flag displayed in front of their name on Tadawul.
The disclosures include, in addition to the monthly financial statements approved by the board, forming a committee with at least three members - including a member of the board of directors — which is responsible for implementing the plan and informing the company’s board of directors of any related updates.
The company must also quarterly announce to the public the details of the plan implementation, including the disclosure of the quarterly and annual financial forecasts compared to the actual quarterly and annual financial statements.
CMA ensures that the companies with accumulated losses who are applicable to those procedures should also comply with all the rules and regulations mentioned on the Capital Market Law and its related implementing regulations.
The companies should comply to issue their quarterly and annual financial statements in the specified time on the regulations related. That is in addition to issuing monthly management statements.
The authority started applying those procedures based on tasks assigned to it by the Capital Market Law.
Clause (6) of Article (5) of the CML states that the authority should regulate and monitor the full disclosure of information regarding securities and their issuers, the dealings of informed persons and major shareholders and investors, and define and make available information which the participants in the market should provide and disclose to shareholders and the public.


UN compensation panel pays out $270m for Kuwait oil company

Updated 56 min 48 sec ago
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UN compensation panel pays out $270m for Kuwait oil company

  • The panel has approved 1.5 million claims brought by over 100 governments and international organizations
  • Some $3.7 billion of its $14.7 billion claim for oil production and sales losses resulting from damage to the country’s oil fields remains to be paid

BERLIN: A United Nations panel that oversees compensation claims stemming from Iraq’s 1990-1991 invasion of Kuwait says it has paid out $270 million to Kuwait’s national oil company.
The Geneva-based UN Compensation Commission said Tuesday the tranche brings to $48.7 billion the amount it has paid out. Iraq must currently set aside 1.5% of proceeds from oil exports for the compensation fund and payments are made once per quarter.
The panel has approved 1.5 million claims brought by over 100 governments and international organizations, with all but one fully paid out.
The remaining claim, which includes the latest payment, comes from the Kuwait Petroleum Corporation. Some $3.7 billion of its $14.7 billion claim for oil production and sales losses resulting from damage to the country’s oil fields remains to be paid.