Material information related to listed corporates according to executive regulation of law No.7 for the year 2010, in regard to Money markets authority establishment and security regulation and their amendments, are any information at the listed corporate related to its activity, its legal personality, its financial position, or its management. The knowledge of it were not available to public and traders, it has an impact on assets, opponents, financial position, or general aspect for the company business, which could lead to modification in price, amount of security trading, or attract, or reluctance traders of security, and can affect the ability of the issuer to fulfill his obligations.
The Question Here…What are Material Information That the Listed Corporate in Stock Exchange Should Disclose?
In RHR for advocacy we answer this question through reviewing what were mentioned in the executive regulation of the law No.7 for the year 2010 in the tenth book (disclosure and visibility), after amending it by the Money markets authority’ decision No.31 for the year 2020, issued by the date 22/4/2020 about material information related to companies listed in stock exchange, that should disclose it at appropriate time, and that is for example, not limited to:
Material Information that the Corporate Listed in Stock Exchange Should Disclose:
- Engaging in common project or acquisition deal, which has effective impact on the listed company.
- Ratification or ending an effective contract.
- Selling or buying of an effective asset.
- Listing the company’s security in other stock exchange or foreign market.
- Existing of a new product, or new discovering, which could lead to significant improvement in revenue.
- Any effective modification in the listed company’s production environment, or its activity, like abundant resources, its availability, which could lead to improvement or significant decline in revenue.
- Any material impact as a result of issuance of laws or decisions from governmental entities, national or foreign, or international organizations or others.
- Any modification in accounting policies followed, adding to explanation of modification reasons, and its impact on financial data.
- Any change of formation of board of directors’ members, senior management members, judicial supervisory and executive members, or any change of the external auditor, or external jurisprudence auditing office.
- Important modifications that occur on obligations consequenced on listed company, whether short or long term, as gaining any finance or any form of effective credit facilities, or issuance of the listed company of debt instruments, besides mentioning issuance details and purpose for it.
- Any effective modification in capital investment plans, leading to significant improvement or decline in revenues, like: building factories, increase equipment, increase in production trends, target markets.
- Any significant change occurs on the capital structure.
- Failure to pay debts, obligations, or interests.
- Any lawsuit may affect general trend of the listed company’s business, activities, its financial position, or its legal entity, and any final adjudication issues about its subject and has a significant impact on it.
- Existing of disputation or argument may affect the general trend of the listed company business with any parties like: supplier customers, subcontractors, workers and employers.
- Any results for asset evaluation of assets possessed by the company, which has an impact on business results.
- Any deal between listed company and main corporate, subsiders and associates, or any related party, or any arrangement would either parties involve into, in any project or asset, or provides its finance, and has a significant impact which represents what worthies 5% or more of the listed company assets, including disclosure of the deal description, or arrangement, its value, its provision, the nature of interest, and the relation between deal or arrangement parties, also, it should be included in the annual report.
- Any credit rating for the listed corporate, and any modification occurs.
- Any change or amendment occurs for the purposes, activities of the listed company.
- Announcing any merge, conversion, partition, liquidation of the listed company, or any of its subsiders, associates, and has a significant impact on the listed company.
- Business operations whose non – recurring nature, which could take place, or taken over by the listed company, as for example, not limited to: real estate valuation, get compensation, paying a compensation for others. In this regard, it could affect listed company profits, and its financial position.
- Availability of material information related to subsiders, or associates of the listed company, have a significant impact on its financial position.
- Suspending of the listed company of doing business, or taking over one of its essential activities, with explaining reasons for this, whether it was as a result of disasters and fire, or sudden stop of the activity for another reason.
- Approval of the authority on selling, or buying treasury stocks as soon as they are issued.
- Disclosure of invitation to general assembly meeting holding, whereas this disclosure should contain a summery of meeting agenda items.
- Disclosure of board of directors meetings, in situations in which recommendations are made, or decisions related to capital raising or reduction, acquisition on a listed company, or reverse takeover of unlisted company, announcing financial statement whether interim or annual, or merge, convert, partition, liquidation, or amending the company contract, changing the auditor, declaring profits or distributing it, or taking legal actions which affects the financial position for the listed company, or any deal or contract, or effective measure.
- Disclosure of general assembly, or board of directors’ meetings results, and disclosure in case of postponement of meeting, and reasons that led to this postponing.
- Disclosure of financial statements (interim and annual).
- Disclosure of material information in regard of documents and bonds listed in the stock exchange.
While generally, disclosure should be of any significant modifications, whether by raising or reduction in assets, acquirements, revenues, and expenses of the listed company. Also, it should be disclosed of any material information weren’t mentioned, while the material information definition can be applied on it.
In all cases, the corporate’s board of directors of the listed company, should disclose on his evaluation about the expected impact for those material information on his financial position, excluded from that disclosing on effects which could never be expected or measured, also disclosing expected profits gained from tenders and practices, and what are alike of contracts, which results from disclosing its impact a damage to the listed company, and the listed company is required to provide Money markets authority by its justifications about excluded cases.
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