Saudi Paper says CEO dismissal lacks legal justification

Saudi Paper Manufacturing Co. (SPM)  said that the decision of the board of directors to dismiss CEO and Managing Director Hassan Asiree from the board membership lacked a legal justification.

The company said in bourse filing that such a decision should be taken by the general assembly.

The company further noted that it will take a legal action against those who made a donation of SAR 226,200 to a local charity including Asiree to pay back the money.

SPM’s board approved on Jan. 21, 2020, terminating the membership of CEO Hassan Asiree from the board based on Article 80 of the Labor Law, Argaam earlier reported.

Asiree said the company's previous announcement on terminating his board membership lacks credibility and fabricates the truth of what happened in the board meeting held on Jan. 21.