Cancellation of listing the shares of joint stock companies on the stock exchange

The executive regulations of Law No. 7 of 2010 establishing the Kuwait Capital Markets Authority and regulating securities activity, as amended, authorized the authority to cancel the listing of joint stock companies listed on the stock exchange in any of the following circumstances:

  1. If you fail to appoint a compliance officer after the Authority has notified you that he is required.
  2. If the company is dissolved under the provisions of the Companies Act.


  1. If the share trading suspension continues for six months without the company meeting the necessary requirements to resume trading.


  1. 4. If the company merges with another company or companies, resulting in the cancellation of the legal entity of the company.
  2. If the listed company ceases to conduct its business permanently or temporarily for a period of more than one year.
  3. In the case of a reverse takeover in accordance with Article (3-10) of Chapter Three of the Regulations’ Merger and Acquisition Book.
  4. If the company fails to meet one of the listing conditions outlined in these regulations or the stock exchange rules.
  5. If the Authority believes that delisting is necessary for investor protection or market regulation.


The obligations of the company for which a decision was issued to remove its shares from the stock exchange.

The board of directors of the company in respect of which a decision was issued to cancel the listing of its shares from the stock exchange is obligated to convene the general assembly to consider this decision, the company’s conditions, and the board of directors’ future plan in dealing with these situations, provided that the company’s general assembly is called for within three months of the decision’s issuance if they do not hold the general assembly during the specified period within two weeks of the date of the General Assembly meeting, the company must provide a copy of the minutes of the aforementioned approved General Assembly meeting to both the Authority and the Stock Exchange.



Voluntary withdrawal of joint stock company shares from the stock exchange

The regulation allows each listed joint stock company to request voluntary withdrawal from the stock exchange if the following conditions and procedures are met:


  1. Publicly disclosing, with reasons, the company’s board of directors’ recommendation to withdraw from the stock exchange.



  1. Obtaining General Assembly approval to withdraw, where the approval has been approved by the competent authorities and no more than one year has passed since this approval.


  1. Informing the Authority of the reasons for leaving the Stock Exchange.



  1. 4. Providing the Authority with an acknowledgement from the company guaranteeing payment of any amounts or obligations incurred by the company to the Stock Exchange during the period of its Stock Exchange listing.
  2. Providing the Authority with a declaration, in collaboration with a clearing agency, regarding the payment of any obligations owed to shareholders by the company, including cash dividends and bonus shares.
  3. Obtaining the Authority’s approval for the voluntary withdrawal and announcing it on the stock exchange.
  4. Announcing the date of withdrawal from the Stock Exchange for a period of no less than six months from the date of announcing the Authority’s approval, and no period of suspension of trading on the share shall be counted during this period.


Purchasing shares from shareholders who want to sell before withdrawing from the stock exchange


If the Authority approves the withdrawal request from the stock exchange, any person may submit an offer to purchase the shares of the shareholders who wish to sell before withdrawing from the stock exchange, provided that the purchase price is not less than the average price of the stock for the last six months of trading since the board of directors disclosed its recommendation to withdraw from the stock exchange. The exchange determines the regulatory rules for this process before the actual date of withdrawal.


Rejecting the application for voluntary withdrawal from the stock exchange.

If the company wishes to rescind the request for voluntary withdrawal from the stock exchange, it must do so before the Authority issues its decision on the request for voluntary withdrawal. The following documents must be attached to the revocation request by the company:

  1. A letter outlining the reasons for her decision to withdraw from the stock exchange.


  1. A copy of the company’s general assembly’s approved by the competent authorities decision to rescind the decision to withdraw from the stock exchange.


  1. The Commission may accept or reject the revocation request and continue to investigate the withdrawal request.

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