The Capital Market Authority (CMA) announces the issuance of CMA Board resolutions regarding the Board of Directors of the National Agricultural Marketing Company “Thimar” for the Violation of the Companies Law, the Corporate Governance Regulations, the Rules on the Offer of Securities and Continuing Obligations, and the Listing Rules
Tuesday, September 22, 2020 at 5:07 PM
Tue Sep 22, 2020 17:07
In line with the Capital Market Authority’s (CMA) role to protect investors, and based on its jurisdiction of monitoring and supervising listed companies in the capital market and ensuring the enforcement of the provisions of the Capital Market Law and the Companies Law, the CMA announces the issuance of a CMA Board resolution to impose a fines amounting to (1,000,000) One Million Saudi Riyals on the chairman and the members of the board of directors of the National Agricultural Marketing Company “Thimar” during the period from 01/01/2019 to 13/05/2020, due to their violation of paragraphs (i) and (r) of Article (213) of the Companies Law and paragraph (9) of Article (22) of the Corporate Governance Regulations. Where they did not prepare nor approve the Company’s annual financial statements for the period ending on 31/12/2019, which entailed a neglect in performing the duty of publishing the Company’s financial statements to date. In addition to their violation of paragraphs (r) of Article (213) of the Companies Law and paragraph (9) of Article (22) of the Corporate Governance Regulations. Where they did not prepare nor approve the Company's interim financial statements for the period ending on 31/03/2020.
Furthermore, the CMA would like to announce to all investors and participants in the capital market that a CMA Board resolution has been previously issued to file a lawsuit before the Committee for the Resolution of Securities Disputes against the chairman and each board member of the National Agricultural Marketing Company’s “Thimar” board of directors during the period from 08/09/2015 to 03/03/2020, to request convicting them of violating Article (44) of the Listing Rules and Article (66) of the Rules on the Offer of Securities and Continuing Obligations, and demand imposing fines on each one of them, preventing them from working in listed companies, and compensating persons who have suffered damages as a result of the violation committed. Where they did not exercise their powers and fulfill their duties in the interest of the company; and the litigation procedures are still in progress.
The Capital Market Authority calls upon all the boards of directors of listed companies to adhere to all of the board’s statutory duties and responsibilities. The Capital Market Authority also assures its devotion to apply the Capital Market Law and the Companies Law and their Implementing Regulations to enhance the protection of the capital market and the investors from unfair practices.