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An Announcement from the Capital Market Authority regarding the decision issued by The Appeal Committee for the Resolution of Securities Disputes Convicting violators of the Capital Market Law and its Implementing Regulations

The Capital Market Authority announces that the Appeal Committee for the Resolution of Securities Disputes has issued its final decision dated 10/9/1439H corresponding to 25/5/2018G on the lawsuit filed by the Capital Market Authority against the board members of Etihad Etisalat (Mobily); and they are Ahmad bin Abdulkreem bin Mohammed Julphar, Ibrahim bin Mohammed bin Nasser Alsaif, Essa bin Abdulrasul bin Essa AlHaddad, Abdulrahman bin Abdullah bin Ahmed Alfuhayd, Abdulaziz bin Hamad bin Abdulaziz Aljomaih, Abdulaziz bin Saleh bin Abdullah Alsughyir, Mohammed bin Ibrahim bin Abdulaziz Almansour and Saleh bin Nasser Alali aljasser. The verdict concluded with the conviction of the mentioned defendants for violating Sub-paragraphs (2) and (3) of Paragraph (b) of Article (10) of the Corporate Governance Regulations and Article (44) of the Listing Rules, as they did not fulfil their duties in a manner that commits to the interests of the issuer, and for not ensuring the integrity of the financial and accounting procedures relating to the preparation of the financial statements, in addition to not ensuring the implementation of appropriate control measures to manage risks in the Company, for the financial year ended 31/12/2013, and the first, second and third quarters of 2014. The Appeal Committee's decision included the imposition of a number of penalties on the defendants, detailed as follows:

  • First defendant: (Ahmad bin Abdulkreem bin Mohammed Julphar)

Imposing a fine on him amounting to (400,000) Four Hundred Thousand Saudi Riyals.

  • Second defendant: (Ibrahim bin Mohammed bin Nasser Alsaif)

Imposing a fine on him amounting to (400,000) Four Hundred Thousand Saudi Riyals.

  • Third defendant: (Essa bin Abdulrasul bin Essa AlHaddad)

Imposing a fine on him amounting to (400,000) Four Hundred Thousand Saudi Riyals.

  • Fourth defendant: (Abdulrahman bin Abdullah bin Ahmed Alfuhayd)

Imposing a fine on him amounting to (400,000) Four Hundred Thousand Saudi Riyals.

  • Fifth defendant: (Abdulaziz bin Hamad bin Abdulaziz Aljomaih)

Imposing a fine on him amounting to (400,000) Four Hundred Thousand Saudi Riyals.

  • Sixth defendant: (Abdulaziz bin Saleh bin Abdullah Alsughyir)

Imposing a fine on him amounting to (400,000) Four Hundred Thousand Saudi Riyals.

  • Seventh defendant: (Mohammed bin Ibrahim bin Abdulaziz Almansour)

Imposing a fine on him amounting to (400,000) Four Hundred Thousand Saudi Riyals.

  • Eighth defendant: (Saleh bin Nasser Alali aljasser)

Imposing a fine on him amounting to (300,000) Three Hundred Thousand Saudi Riyals.

The Authority would like to assure that the criminal case filed by the Public Prosecution (referred to it by the Capital Market Authority) against a number of executives of Etihad Etisalat (Mobily) for violating Article (49) of the Capital Market Law, as they were suspected to be performing actions, during their terms in the executive management, that gave untrue or misleading impression regarding the value of the company's security, and which was announced by the Authority to be filed with the Committee for the Resolution of Securities Disputes on 22/1/1439 H corresponding to 12/10/2017, is still under consideration and study with the Committee for the Resolution of Securities Disputes.

The Capital Market Authority affirms on its devotion to apply the Capital Market Law and its Implementing Regulations as well as protecting investors in the Exchange from illegal practices.