Kuwait’s Capital Markets Authority (CMA) announced Wednesday that it is extending the deadline for companies to implement corporate governance rules from December 31, 2014 to June 30, 2016 in order to ease and ensure full application.
The authority is sparing no effort in enhancing the domestic financial sector through the issuance of decisions and instructions in accordance with the best international practices in place, the regulation of security activities in a fair, competitive and transparent way, and providing protection for companies who deal in the field.
Applying the rules of good governance is aimed at upgrading corporate governance and increasing performance in order to enhance financial capacity, namely defending and coping with crises that may threaten the financial markets, said a CMA statement.
CMA noted as a result resolution No.25 for the year 2013 in June 27 2013 was issued with regard to rules of corporate governance and as a direct result of what was produced by the financial crisis and the recent global economic crisis and consequent emergence of the concept of corporate governance to the forefront.
CMA also stressed on the need to continue providing models on the ability to apply the rules of corporate governance by the companies and so on a quarterly basis.
CMA added that the main objective of these models is to identify abilities of companies in applying the specified application parameters and controls contained in the rules in question and to communicate with them and work to improve their ability in applying the rules of governance.