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Published on the same date

Imposition of a Fine on Sanad Insurance and Reinsurance Cooperative Co.

​The Capital Market Authority announces the issuance of a CMA Board resolution to impose fines of SR 700,000 (Seven Hundred Thousand Saudi Riyals) on Sanad Insurance and Reinsurance Cooperative Co. due to its violation of clause (A) of Article (46) of the Capital Market Law and clause (A) of Article (41) of the Listing Rules. The company failed to inform CMA and the public in a timely manner about its Board member Ali bin Mohammad Alsha’sha’s resignation. It also failed to inform CMA and the public in a timely manner about receiving the Saudi Monetary Agency’s letter on 29/06/2014 that included the last warning and a number of decisions and instructions to be followed by the company to correct its financial and administrative position. The company as well failed to inform CMA and the public in a timely manner that the Saudi Monetary Agency has prohibited it from accepting any new subscribers in any of its insurance activities or renewing insurance policies of any kind as of 07/09/2014 until a decision by the Agency is issued stating that the company has corrected its position. It also failed to inform CMA and the public in a timely manner about its board of directors’ approval on its plan to amend the company’s conditions as its accumulated losses reached %80 of its paid capital. In addition, the company violated sub-clause (3) of clause (B) of clause (2) of the Instructions for Companies’ Announcements Related to Administrative Changes as it did not mention in its announcement on 08/07/2014 the date where the Board of directors’ meeting was convened and Muhannad bin Abbas Al Abduljalil was appointed as a member of the Board. The company also violated clause (A) of Article (4) and clause (A) of Article (34) of the Listing Rules and the instructions mentioned in the electronic disclosure forms number (1), (5) and (6) which was approved by CMA’s Board resolution numbered (1-39-2012) and dated 23/12/2012 as it did not send the electronic disclosure form number (1) and did not update the electronic disclosure form number (5) and (6) once the change happened.