Al Mojil board of directors convicted of violating rules during post-IPO, fined SAR 1.5 mln

The General Secretariat of the Committees for the Resolution of Securities Disputes (GSCRSD) on Thursday announced the issuance of the resolution of the Appeal Committee for the Resolution of Securities Disputes (ACRSD), dated Feb 11, 2020, regarding the lawsuit filed by the Capital Market Authority (CMA) against a number of the board members of Mohammad Al Mojil Group Company (MMG).

These are Jasim bin Muhamad bin Ali Alansari, Abdullah bin Muhamad bin Saad Alhriqi, Zaki bin Mansour bin Ahmed Abuasoud and Ahmad bin Naser bin Yaquob Alsowaidan.

The decision concluded with the conviction of the aforementioned individuals for violating Article (44) of listing rules amended to Article (66) of the rules on offer of securities and continuing obligations.

The convicted individuals did not exercise their powers and carry out their duties in such a way as to serve the interest of the issuer (Mohammad Al Mojil Group Company) during the period of the company's post-IPO-stage for the years of 2008, 2009, 2010 and 2011.

The ACRSD decision included imposing fines upon them, according to the following:

-First Defendant: Jasim bin Muhamad bin Ali Alansari. Imposing a fine of SAR 500,000 on him.

-Second Defendant: Abdullah bin Muhamad bin Saad Alhriqi. Imposing a fine of SAR 100,000 on him.

-Third Defendant: Zaki bin Mansour bin Ahmed Abuasoud. Imposing a fine of SAR 500,000 on him.

-Fourth Defendant: Ahmad bin Naser bin Yaquob Alsowaidan. Imposing a fine of SAR 400,000 on him.

According to data available with Argaam, the General Secretariat of the Committees for the Resolution of Securities Disputes (GSCRSD) in April announced the issuance of the resolution of the Appeal Committee for the Resolution of Securities Disputes, dated March 2, 2020 regarding the class action filed by an investor against Mohammad Al-Mojil Group Co.’s (MMG) board of directors, top executives and auditor for irregularities related to the company’s initial public offering (IPO).