UAE’s Etisalat should be blocked from voting in Mobily meeting, lawyer says

Assem Al-Issa, a lawyer representing a number of Etihad Etisalat Co. (Mobily) shareholders, has called for the United Arab Emirates’ Etisalat to be excluded from voting at the Saudi telco’s upcoming general assembly.

He claims Etisalat, which owns a 27.5 percent stake in Mobily, was indirectly involved in accounting errors at the Saudi firm, along with other executives who are under investigation.

The letter was submitted to the kingdom’s ministry of commerce and industry (MOCI) and Capital Market Authority (CMA), the country’s market regulator, according to a statement released by Al-Issa.

Al-Issa has also requested adding a new item on the agenda for the general assembly for filing compensation claims against board members or executives who were allegedly involved in financial irregularities at Mobily.

At the September 15 meeting, shareholders are expected to discuss the election of a new board of directors and the telco’s major contracts from last year. A proposed SAR 1.9 billion dividend for Q1 and Q2-2014, which is set to be distributed at SAR 2.5 per share, is also on the agenda.