CMA refers Thimar chairman, board members to Public Prosecution for violations

The Capital Market Authority (CMA) announced today, March 2, 2021, referring several alleged violations by the chairman and board members of National Agricultural Marketing Co. (Thimar), based on its inspection and review of the company's accounts, to the Public Prosecution.

The referrals include suspected violating Article 49 (a) of the Capital Market Law by the chairman and a number of directors from Jan. 22, 2014, until Mar. 5, 2017, for their responsibility in approving the interim financial statements for the period ending Mar. 31, 2015, as well as the annual financial statements for the period ending Dec. 31, 2015, through misleading information that impacted the share price and resulted in creating a false and misleading impression about the stock.

Another referral is regarding the alleged violation of Article 49 (a) of the Capital Market Law and Article (7) of the Market Conduct Regulations by the company managing director for his responsibility for the announcement published on the Tadawul’s website on Mar. 31, 2015, regarding the sale procedures completion of a share in an affiliate, and Article 211 (b) of the Companies Law for using the company’s funds against its interests to fulfill personal purposes.

The CMA previously imposed fines of SAR 600,000 on the chairman, managing director and chief financial officer for their conviction of violating Article 213 (m) of the Companies Law, where they did not comply with the provisions of Article (221) of the Companies Law; as they failed to provide all the information and clarifications related to the inspection work to CMA representatives. This led to impeding the CMA representatives from reviewing the company’s papers, files, accounts and necessary documents according to Article 220 of the Companies Law.

The authority called upon all the boards of directors of listed companies to adhere to the statutory duties and responsibilities, and assured applying the law to enhance the capital market and investors protection from unfair practices.