Saudi Arabia Fines 7 Ex-Members of Mobily BOD, Current Member

Saudi Arabia Fines 7 Ex-Members of Mobily BOD, Current Member

Wednesday, 13 June, 2018 - 12:30
Riyadh- Asharq Al Awsat
The Capital Market Authority (CMA) announced that the Appeal Committee for the Resolution of Securities Disputes has issued its final verdict on the lawsuit filed by the CMA against the members of the board of directors (BOD) of Etihad Etisalat (Mobily).

The members are Ahmad bin Abdulkreem bin Mohammed Julphar, Ibrahim bin Mohammed bin Nasser al-Saif, Issa bin Abdulrasul bin Essa al-Haddad, Abdulrahman bin Abdullah bin Ahmed al-Fuhayd, Abdulaziz bin Hamad bin Abdulaziz al-Jomaih, Abdulaziz bin Saleh bin Abdullah al-Sughyir, Mohammed bin Ibrahim bin Abdulaziz al-Mansour and Saleh bin Nasser al-Ali al-Jasser.

The verdict concluded with the conviction of the mentioned defendants for violating Sub-paragraphs two and three of Paragraph (B) of Article (10) of the Corporate Governance Regulations and Article (44) of the Listing Rules for not fulfilling their duties in a manner that commits to the interests of the issuer and for not ensuring the integrity of the financial and accounting procedures relating to the preparation of the financial statements.

They also did not ensure the implementation of appropriate control measures to manage risks in the Company, for the financial year ended 31/12/2013, and the first, second and third quarters of 2014.

The Appeal Committee's decision included the imposition of a number of penalties against the defendants as it imposed a fine amounted to SR 400,000 ($106.7 thousand).

The Authority explained that it would like to assure that the criminal case filed by the Public Prosecution (referred to it by the CMA) against a number of executives of Etihad Etisalat (Mobily) for violating Article (49) of the Capital Market Law is still under consideration and study with the Committee for the Resolution of Securities Disputes.

The defendants were suspected to be performing actions, during their terms in the executive management, that gave untrue or misleading impression regarding the value of the company's security, and which was announced by the Authority to be filed with the Committee for the Resolution of Securities Disputes on October 12, 2017.

The CMA stressed its devotion to applying the Capital Market Law and its Implementing Regulations as well as protecting investors in the exchange market from illegal practices.

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