Majid Osman
Kuwait: Kuwait’s Capital Market Authority (CMA) recently decided to undertake the first phase of a project to develop a mechanism for participation in general meetings of companies listed in Bursa Kuwait. In an exclusive interview with The Times of Kuwait, Ahmad Almerhem, Chairman, Commissioner and Managing Director of the Capital Markets His Authority, discussed the new mechanism in detail and elaborated on the purpose of implementing it. did.
Some companies don’t have a choice whether or not to implement the new system, Melhem said. “This new mechanism is optional for companies at first, but there is a provision that allows the authorities to require companies to hold online general meetings in case they decide it is necessary to intervene. It is on the CMA regulatory list to protect the rights of minority shareholders at general meetings.”
“The CMA will mandate the holding of shareholder meetings under the new system due to the existence of internal disputes with shareholders of some companies, in addition to companies with voluntary resignation clauses. We have been informed that the minority shareholders of these companies have exchanged them because they have been challenged.The authorities will receive a recorded copy of the general meeting that will be published on the stock exchange,” Melhem said. I’m here.
“The new mechanism is intended to record and archive these meetings to enable future review of the events of these meetings and any disputes that may arise among shareholders. It will also allow companies to hold meetings in person, whether regular or extraordinary, without having to postpone them because all shareholders are unable to attend the meeting in person,” he said.
Melhem emphasized the importance of the new system for foreign investors. “It is also a great opportunity for foreign investors to attend the minutes of the meeting and vote on its provisions. Attendance at the meeting and online voting are of course available to foreign investor custodians. No. It is a worthwhile step for the authorities, especially to encourage both passive and active investors to attend the general meeting, achieve a quorum and contribute to making decisions that achieve their interests. ” he said.
“The Kuwait Clearing Company is the authority responsible for holding shareholder meetings and has a registered list of shareholders and is therefore the one implementing the new online system for shareholder meetings. Or we are preparing a technical system to hold it physically.At this stage, shareholders can choose to attend the general meeting of shareholders in person or remotely, which means that shareholders can participate in the online system. It can be seen as the first step to qualify for full migration,” explained Melhem.
“We will contribute to avoiding market risks and ensuring smooth future fulfillment of open contracts, upgrading the CMA level or inclusion in the FTSE Russell indices,” said Melhem. .
“We are prepared to prepare a registry for financial analysts. Instead of being held legally responsible as a result of publishing via social media without a license, we will publish according to rules of impartiality and objectivity.” and you will be given a financial analysis license that will help you avoid conflicts of interest,” he noted.
Regarding the implementation of the new system for companies not listed on stock exchanges, he said: Therefore, the implementation of this new mechanism will be through us. However, it is allowed because the Ministry of Commerce is the supervisor of unlisted companies and keeps shareholder registers in the Kuwait Liquidation Company to benefit from this system. Our system was developed in consultation with the Ministry of Commerce, Bursa Kuwait and the Kuwait Clearing Company, in addition to the Capital Market Authority. The joint effort has been previously approved by the aforementioned authorities and they are able to implement it. ”
