Alujain CEO says NATPET's problem has no legal reason, harms reputation

The trading suspension placed on Alujain Corp's shares has only been attributed to NATPET's abstention from submitting its financial statements to the company, Alujain's acting CEO Khalid Al Dawood told Argaam in an exclusive.

"I do apologize to all shareholders for the problems caused by the prolonged trade suspension, without any legal reason, and in an inconvenient act that harms the reputation of the Saudi capital market," Al Dawood said.

This emergency case is attributed to the lack of integration between the compliance laws governing public and closed companies. Similar incidents are expected amid the challenges faced by the Saudi market and the need to bridge the gap between various laws.

"However, we – as officials – can never let shareholders pay the price of the lack of integration. In Alujain case, we believe we should refer to the laws governing public companies and to shareholders' rights to get information in a legal manner," Al Dawood explained.

Under these laws, affiliates and associates of listed companies are required to publish their quarterly financial statements or provide any other information.  

The official wondered as to what damage may be caused to an affiliate if it submits quarterly figures to the publicly-listed company, when compared to the damage caused by its abstention from doing so to shareholders and the capital market.

"We do not prefer to deem Alujain's situation as special. We urge affiliate companies to prioritize the public good and submit their quarterly financials as usual. It will take almost one week to review NATPET's figures and publish Alujain's quarterly results," Al Dawood said.

Suggesting alternative solutions, Al Dawood said Alujain could be temporarily exempted from issuing its quarterly figures, as the situation is out of its control.

The Ministry of Commerce can also order NATPET to convene a general assembly meeting and vote for delivering its quarterly statements as soon as possible.

Alujain has a majority vote on the matters that are not related to the dismissal of NATPET's board of directors or the amendment of its articles of incorporation. 

"In that case, there will be no material impact on both companies' operations. We're confident that everyone will prioritize the public good. Everyone will also aim to improve the compliance and governance laws of public and closed companies," Al Dawood asserted.

Other emergency cases, if any, should be referred to competent authorities for settlement.

Al Dawood added that Alujain's external auditor and audit committee are studying other technical options to resolve the crisis.

Special committees shall be formed and other procedures shall be adopted to settle similar cases going forward, Al Dawood concluded, hoping to find a solution for the current situation without depleting the resources of both companies.