CMA imposes SAR 1.9 mln fine on former Alujain chairman, board members for violations

The Capital Market Authority’s (CMA) Appeal Committee for the Resolution of Securities Disputes imposed a fine of SAR 1.9 million on former board chairman and members of Alujain Holding Corp. for violations committed during their membership on the company’s board of directors.

These include violation of Article 24/b of the Corporate Governance Regulations, whereby the Alujain’s former board chairman held the position of the board chairman and an executive position at the same time.

The violation by the former board chairman and members of Article (43) of the Corporate Governance Regulations, for their failure to develop an explicit and written policy to deal with actual and potential conflicts of interest situations, which may affect the performance of the board members, the executive management or any other employees of the company when dealing with the company or other stakeholder.

Finally, the violation of the former board chairman and members of Articles 60/a and 64/a of the Corporate Governance Regulations, for their failure to form a remuneration and nomination committee from among the board members (non-executive).

The CMA said it previously referred violations by several former board members of Alujain to the Public Prosecution, for alleged violation of paragraph Article 211/C of the Companies Law as they used the company’s voting rights in one of its subsidiaries against Alujain’s interest and in their own interests.

In addition, they alleged violation of paragraph Article 49/a of the Capital Market Law, for their failure to disclose material developments during their membership on Alujain board.

The authority praised the efforts and the cooperation with the oversight and anti-corruption authority, calling upon all the boards of directors of listed companies to adhere to all of the board’s statutory duties and responsibilities.