Al-Jouf Cement GA approves Filing Liability Lawsuit against 3 former BM’s regarding loss of SAR 136 MLN

20 Feb 2024

Riyadh - Maaal

Al-Jouf Cement announced the results of the Ordinary General Assembly (GA) (first meeting) held on Monday, where the Assembly agreed to file a liability lawsuit against three former members of the Board of Directors (BM) who enjoy direct and indirect executive powers through subsidiaries regarding the loss of the entire investment in the Eastern Industrial Company. The loss amounts to SAR 136 mln. According to the reasons mentioned in the following Board of Directors recommendation:

1. Loss of the entire investment amounting to one hundred and thirty-six million riyals (136,000,000 riyals).

2. The existence of transactions with related parties for which the approval of the company’s general assembly has not been obtained.

اقرأ المزيد

3. Suspicion of forging the signature of the former Vice Chairman of the Council approving the investment in the project.

4. Investing the company’s funds in violation of the Articles of Association for purposes other than the company’s.

5. Providing misleading information about investment in the project.

6. The responsible members violate their powers as per the company’s Articles of Association.

7. The responsible members did not refund the development expenses of the project amounting to six million riyals (SAR 6,000,000).

8. Misleading shareholders by failing to announce losses in the financial statements in a timely manner.

The rest of the voting results on the Assembly’s agenda were as follows:

– Approval of filing a liability lawsuit against the former Chairman of the Board of Directors regarding the fine issued by the Competition Authority in 2018, amounting to (SARv 10 mln).

Third – Approval of Authorizing the Board of Directors to carry out the regulatory procedures to file liability claims and to appoint whomever it deems appropriate to represent the company before the competent courts in the event of approval of the first and second clauses.

Fourth – Approval of the Social Responsibility Regulations.