Al Jouf Cement to vote on suing chairman, 3 former board members on Feb. 19

A manufacturing facility of Al Jouf Cement Co.

Al Jouf Cement Co. will hold an ordinary general meeting (OGM) on Feb. 19 to vote on filing a liability suit against the former chairman in relation to the SAR 10 million fine imposed by the General Authority for Competition (GAC) in 2018.

The company’s shareholders will also vote on filing a liability lawsuit against three former board members who have direct and indirect executive powers through subsidiaries in relation to the loss of the entire investment in Eastern Industrial Co., totaling SAR 136 million, according to a statement to Tadawul.

The company cited several reasons for this decision, including a total loss of investment of SAR 136 million, and engaging in transactions with related parties without securing the requisite approval from the company's general assembly adds another layer of concern.

A more troubling allegation involves the suspected forgery of the former vice chairman's signature to approve the investment in the project.

Further aggravating the situation is the investment of company funds in contravention of the company's bylaws, diverting resources away from their intended purposes.

The provision of misleading information regarding the investment in the project compounds the issue. Equally concerning is the violation of authorities specified in the company's bylaws by responsible members, the statement added.

The failure of responsible members to reimburse development expenses in the project, totaling SAR 6 million, as well as the misleading of shareholders by not disclosing losses in the financial statements at the appropriate time also led to pursuing this legal action.

The company clarified that the OGM will also vote to authorize the board of directors to take necessary legal action, including filing liability lawsuits. If the first and second items are approved, the board will be delegated the authority to appoint a representative to appear before the competent courts on behalf of the company.