Saudi Cable's board member says justification for proposed dismissal 'illegal'

Nael Fayez, Board member at Saudi Cable

Board member and former CEO of Saudi Cable Co., Nael Fayez, said that the justification for the board of directors’ recommendation to dismiss him is illegal, as ruled by the Capital Market Authority (CMA).

Fayez told Alekhbariya TV that the board of directors' recommendation to dismiss him and board member Zeyad Al Barrak stemmed from a disagreement with the current board.

According to corporate governance and CMA regulations, a board member may express his opinion, whether by agreement or disagreement, said Fayez, considering the decision, as in some cases, a sign that it is made based on emotional reasons rather than institutional consideration.

Fayez went on to say that the company's shareholders and creditors will vote on the Commercial Court's decision regarding the financial reorganization proposal (FRP) within two weeks.

He emphasized the importance of a successful vote and approval of the ruling so that the company can return to its normal course of business instead of focusing on disputes that may lead to liquidation or bankruptcy.

Saudi Cable’s board of directors recommended last week the dismissal of Al Barak and Fayez, saying that the decision was based on a recommendation from the Nominations and Remuneration Committee and in commitment to protecting the interests of the company and its shareholders, according to data available with Argaam.

Meanwhile, the company announced today that it received a request from shareholders owning more than 10% of the capital to hold a general meeting to vote on dismissing the board members. Shareholders also requested to bring a liability lawsuit against those directors for attempting to harm the company’s shareholders.

Shareholders are set to vote on the FRP on June 4, 2024.