‎Al Jouf Cement’s OGM approves filing lawsuit against former chairman, 3 board members

‎Al Jouf Cement’s OGM approves filing lawsuit against former chairman, 3 board members

Logo design of Al Jouf Cement Co.


Al Jouf Cement Co.‘s normal basic conference(OGM), hung on Feb. 19, authorized the choice to submit a liability claim versus the previous chairman in relation to the great enforced by the General Authority for Competition (GAC) in 2018, amounting to SAR 10 million.

In addition, the OGM accepted take legal action against 3 previous board members who held both direct and indirect executive powers through subsidiaries. This action is associated with the overall loss of the business’s financial investment in Eastern Industrial Co., totaling up to SAR 136 million.

The premises for pursuing this legal action incorporate a number of elements, consisting of the total loss of the abovementioned SAR 136 million financial investment. This is besides taking part in deals with associated celebrations without getting the required approval from the business’s basic assembly.

The OGM raised issues about the presumed forgery of the previous deputy Chairman’s signature for the approval of financial investment in Eastern Industrial, as well as the infraction of Al Jouf Cement’s laws by utilizing business funds for functions not designated by the cement manufacturer.

Furthermore, the factors for taking legal action consist of the arrangement of misguiding info concerning financial investment in Eastern Industrial, the breach of powers detailed in the business’s laws by accountable members, and the failure of stated members to compensate advancement expenditures in the job, amounting to SAR 6 million.

Another element includes the deceptive of investors by not quickly divulging losses in the monetary declarations.

The board of directors was licensed to carry out all required legal actions to submit liability suits. They were provided the authority to select agents to represent the business before the proficient courts, subject to the approval of the very first and 2nd products.

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