Ruling in favor of Al-Mojil shareholders ‘milestone’ in compensation mechanism development: ElKuwaiz

Mohammed ElKuwaiz, Chairman of the Capital Market Authority (CMA)

The issuance of a ruling in favor of another category of Mohammad Al-Moajil Group’s shareholders hit by violations represents a milestone in the development of compensation mechanisms and boosts investor confidence in the stock market, tweeted Mohammed ElKuwaiz, Chairman of the Capital Market Authority (CMA).
 

He added that after the first ruling issued in favor of Al-Mojil shareholders who were affected during the post-initial public offering (IPO) period, another ruling was issued in favor of another category of shareholders.
 

Mohammed ElKuwaiz, Chairman of Saudi Arabia’s Capital Market Authority (CMA), said a court ruling was issued to compensate another category of shareholders affected by Mohammad Al-Mojil Group’s violations.
 

This is considered a new stage in the development of shareholder compensation mechanisms, which boosts investor confidence in the market, he noted.
 

The CMA announced on June 12, the completion of procedures related to paying SAR 40 million in compensation for shareholders affected by Al-Mojil violations.
 

The General Secretariat of Committees for Resolution of Securities Disputes stated that the Appeal Committee for the Resolution of Securities Disputes (ACRSD) issued its final resolution, on May 6, 2021, in the class action filed by an investor against the officials accused of violations against Al-Mojil in the post-public subscription phase."
 

ACRSD affirmed the resolution issued by the Committee for Resolution of Securities Disputes (CRSD), which obligates defendants to pay SAR 40.21 million in compensation for affected investors who joined the class action.