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One of Al Jouf Cement's factories
Al Jouf Cement Co. received a notice from its legal counsel indicating that a complaint was filed with the Capital Market Authority (CMA) against three former board members who held both direct and indirect executive powers.
In a statement to Tadawul, the company detailed the grounds for its complaint. The allegations include a significant loss of investment totaling SAR 136 million, transactions with related parties conducted without approval from the company's shareholders, and suspicion of signature forgery by a former vice chairman to authorize a project investment.
The complaint further asserts that company funds were invested contrary to the provisions outlined in the company's Articles of Association.
Additionally, the former board members are accused of violating their powers under the company's Articles of Association, failing to reimburse project development expenses amounting to SAR 6 million, and misleading shareholders by withholding disclosure of financial losses at the appropriate times.
The company emphasized that the complaint file underwent thorough review by multiple legal advisory bodies, and received offers for legal representation to pursue the matter with the relevant authorities.
Shareholders will continue to receive updates on any developments related to the complaint, the statement added.
According to data available on Argaam, Al Jouf Cement’s ordinary general meeting (OGM), held in February 2024, 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.
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