Saudi Cables: Bylaws Ambiguity on Termination of Membership by Board

The Saudi Cable Company issued a corrective statement via “Tadawul” following its previous announcement regarding the recommendation from the Nominations and Remuneration Committee. The Board of Directors, prioritizing the interests of the company and its shareholders, has proposed to the General Assembly the termination of the membership of Mr. Ziad bin Abdul Latif Albarrak and Mr. Nael bin Sameer Fayez, recommending their removal from the company’s Board of Directors.

Citing Article Sixteen of the company’s bylaws, the company highlighted the lack of clarity regarding the legal basis for the Board of Directors’ authority to recommend the termination of membership for reasons other than those specified in the provisions of the system, its relevant executive regulations, and the company’s system.