He noted that within one month of election Board members must deposit their entire "qualifying shares" with an accredited bank. The amount required is the lesser of 1% of the total number of shares of the firm or KD7,500 - whichever is less.
Neither Al Ibrahim nor Al Juma managed to do this and so "voluntarily and out of respect for the law" they resigned. Shaykh Muhammad will be calling upon the "reserve directors" to serve in their place.
This is quite a remarkable story. And I'm not sure what to make of it. It's sort of like the old Ripley's "Believe It or Not".
- Did they buy the shares but the maid knocked the "post it" note "Deposit shares before 27 April" off the talaja and they missed the deadline?
- Did the two newly minted directors not know of this requirement? In which case one might ask about KIB's selection procedures for candidates. And its post election counseling of newly elected directors.
- Did the two directors know but just forgot? Again might this suggest slightly more stringent selection criteria?
- Did the two directors know but after sitting in on their first board meeting, decide that even such a modest purchase was an unwise investment?
- Did they want to purchase the shares but like many Kuwaitis find they are tapped out with the local bank to finance another purchase? Perhaps, the Majlis Al Umma's unceasing efforts to relieve the personal loan burden of Kuwaiti citizens have received yet another compelling reason to go forward.
And think of the embarrassment that this notice must be causing the two directors. I think that officially it should have been said that they wanted to spend more time with their families. As we all know or should, one's family is quite important in Kuwait. And then of course there's The Family which some say may be even more important in some cases. I'm sure there's a family or a Family involved here.
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