The Capital Market Authority (CMA) announces the issuance of the Appeal Committee for Resolution of Securities Disputes' (ACRSD) final decision convicting nine members of the Board of Directors of Raydan Food Co. for violating Article (211/b) of the Companies Law issued by the Royal Decree No. (M/3) dated 28/01/1437., H and obligating them to pay SAR 36 million, with each being fined SAR 4 million.

According to the ACRSD, the final decision was issued convicting each of Hassan bin Shaker bin Saleh Alsahafi, Abdulraouf bin Alsadiq bin Albakr Alqaidi, Saud bin Sa'eed  bin Aqel Alsulami, Muhammad bin Awadhallah bin Ahmad Alsulami, Khalid bin Awadhallah bin Ahmad Alsulami, Mish'al bin Awadhallah bin Ahmad Alsulami, Nasser bin Awadhallah bin Ahmad Alsulami, Mansour bin Awadhallah bin Ahmad Alsulami, and Awadhallah bin Ahmad bin Ayedh Alsulami. The final decision was issued after it was evidenced that the above-mentioned individuals, in their capacities as members of the Board of Directors of Raydan Food Co. (Listed Company), used the Company's funds to favor the owners of Aljonah Company, one of the two owners was a former member in the Board of Directors of the Raydan Food Co., both of whom are family relatives with a number of the convicted individuals – signed a partnership agreement between the two companies on 01/09/2018, in which Raydan Food Co. owns (30%) of Aljouna Company as well as (30%) of Aljouna's (90%) share in Alhana Sweet Factory. In addition to that, the convicted individuals disregarded to claim to re-register the additional financing and general reserve in Aljouna's Company annual financial statements for the year 2018, which was transferred to the retained earnings account and distributed it between the partners of Aljouna Company according to the proportion of each partner in the Company's capital prior to the entry of the new partner (Raydan Food Co.) or revalue the investment. Also, they disregarded the claim to register the value of Raydan Food Co. investment as an increase in the capital of Aljouna Company instead of accepting its transfer to current accounts of previous owners in Aljouna Company. Such acts resulted in showing the financial position of Raydan Food Co. to be contrary to the truth, hence led to inflating the value of the Aljouna Company.

The ACRSD's decision came as a result of joint coordination and cooperation between the CMA and the relevant concerned authorities, and in light of the public penal lawsuit filed by the Public Prosecution, referred to it by the CMA, against the nine violators.

The CMA stresses the importance of investors' confidence in the capital market for its growth and prosperity. The CMA continuously monitors any violating behaviors of the Capital Market Law, its Implementing Regulations, and the regulations enforced by the CMA, identifies the perpetrators, and processes the necessary procedures to impose deterrent penalties against them, in order to enhance the CMA's efforts aimed at creating an attractive investment environment to all categories of investors and safe from unfair or unsound practices or that involve fraud, cheating, deception or manipulation.

Furthermore, any person affected by these violations, in this case, is entitled to file a compensation claim (as individual or class action) against those convicted persons with the Committee for Resolution of Securities Disputes (CRSD) for the damage he/she suffered from due to these violations, provided that such claim is preceded by a complaint filed with the CMA on this regard, via the following link:(File Complaint). The General Secretariat of the Committee for Resolution of Securities Disputes (GS-CRSD) will announce to the public on its website in case of registering any class action in order to enable the rest of investors affected by such violations to apply to the CRSD to join the class action.

It is worth noting that the GS-CRSD announced to the public on its website the identity of the violators after the violations and penalties were proven and the final decision was issued by the ACRSD against everyone who violated the capital market laws and implementing regulations. It can be viewed through the following link:

Announcement from the General Secretariat of the Committees for Resolution of Securities Disputes Click Here​

​