Al Jouf Cement’s OGM approves suing former Chairman, 3 board members

Logo of Al Jouf Cement Co.

Al Jouf Cement Co.’s ordinary general meeting (OGM), held on Feb. 19, approved the decision to file a liability lawsuit against the former chairman in relation to the fine imposed by the General Authority for Competition (GAC) in 2018, totaling SAR 10 million.

Additionally, the OGM agreed to sue three former board members who held both direct and indirect executive powers through subsidiaries. This action is related to the total loss of the company's investment in Eastern Industrial Co., amounting to SAR 136 million.

The grounds for pursuing this legal action encompass several factors, including the complete loss of the abovementioned SAR 136 million investment. This is besides engaging in transactions with related parties without obtaining the necessary approval from the company's general assembly.

Furthermore, the OGM raised concerns about the suspected forgery of the former deputy Chairman's signature for the approval of investment in Eastern Industrial, as well as the violation of Al Jouf Cement’s bylaws by using company funds for purposes not designated by the cement producer.

Additionally, the reasons for taking legal action include the provision of misleading information regarding investment in Eastern Industrial, the breach of powers outlined in the company's bylaws by responsible members, and the failure of said members to reimburse development expenses in the project, totaling SAR 6 million.

Another aspect involves the misleading of shareholders by not promptly disclosing losses in the financial statements.

The board of directors was authorized to undertake all necessary legal actions to file liability lawsuits. Furthermore, they were given the authority to appoint representatives to represent the company before the competent courts, subject to the approval of the first and second items.