1.8 million riyals fine for 9 officials in the "paper industry"

The Appeal Committee for Securities Disputes in the Saudi stock market issued a decision against a number of members of the Board of Directors of the Saudi Paper Industry Company and its senior executives, and fined them 1.8 million riyals, in the general criminal lawsuit filed by the Public Prosecution (and referred to it by the Capital Market Authority).

According to Al Arabiya Net, the decision included: Badr bin Suleiman bin Hamad Al-Sulaie, Saad bin Ammash bin Saad Al-Shammari, Suleiman bin Abdulaziz bin Abdulrahman Al-Zaben, Hassan bin Marizen bin Ali Asiri, Fahd bin Muhammad bin Saleh Al-Daoud, and Walid bin Muhammad bin Jasser. Al-Shabanat, Wathiq Muhammad Hassan Shehadeh, Fahd bin Saad bin Muhammad Al-Shuaibi, and Abdul Rahman bin Saleh bin Abdul Rahman Al Obaid.

The operative part of the decision ended with convicting the aforementioned of violating paragraph (a) of Article 49 of the Capital Market Law, for their participation - each according to his position - in preparing and approving the company's initial financial statements for the initial period ending on 06/30/2019, and the initial period ending on 06/30/2019. 30/09 in violation of the accounting standards approved by the Saudi Organization for Certified Public Accountants, which showed the company's financial position contrary to reality, and led to an incorrect impression regarding the value of the security.

The decision included imposing a number of penalties on them:

Imposing a fine on Badr bin Suleiman bin Hamad Al-Sulaie, at a value of 200 thousand riyals, and preventing him from working in companies whose shares are traded in the Saudi financial market for a period of 3 months.

Imposing a fine on Saad bin Ammash bin Saad Al-Shammari, at a value of 300 thousand riyals, and preventing him from working in companies whose shares are traded in the Saudi financial market for a period of 6 months.

Imposing a fine on Suleiman bin Abdulaziz bin Abdul Rahman Al-Zaben, at a value of 200 thousand riyals, and preventing him from working in companies whose shares are traded in the Saudi financial market for a period of 3 months.

Imposing a fine on Hassan bin Marizen bin Ali Asiri, at a value of 200 thousand riyals, and preventing him from working in companies whose shares are traded in the Saudi financial market for a period of 3 months.

Imposing a fine on Fahd bin Muhammad bin Saleh Al-Daoud, at a value of 300 thousand riyals, and preventing him from working in companies whose shares are traded in the Saudi financial market for a period of 6 months.

Imposing a fine on Walid bin Muhammad bin Jasser Al-Shabanat, at a value of 100 thousand riyals, and preventing him from working in companies whose shares are traded in the Saudi financial market for a period of 3 months.

Imposing a fine on Watheq Muhammad Hasan Shehadeh (in absentia), at a value of 100,000 riyals, and preventing him from working in companies whose shares are traded in the Saudi stock market for a period of 3 months.

Imposing a fine on Fahd bin Saad bin Muhammad Al-Shuaibi, at a value of 200 thousand riyals, and preventing him from working in companies whose shares are traded in the Saudi financial market for a period of 3 months.

- Signing a fine of 200,000 riyals on Abdul Rahman bin Saleh bin Abdul Rahman Al Obaiden, and preventing him from working in companies whose shares are traded in the Saudi financial market for a period of 3 months.

The Secretariat clarified that the person affected by the violations subject of this case has the right to submit an individual or collective lawsuit to the Adjudication Committee to claim compensation for the damage from these violations, provided that this is preceded by submitting a complaint to the Capital Market Authority in this regard, on the following link: (link to file a complaint). .

Note that the General Secretariat of the adjudication committees will announce to the public on its website when any class-action lawsuit is registered, so that the rest of the investors affected by the same violations can apply to the committee to join the class-action lawsuit.