The General Secretariat of the Committees for Resolution of Securities Disputes (GS-CRSD) announces the issuance of the Appeal Committee for the Resolution of Securities Disputes' (ACRSD) final decision No. (2763/L.S/2022) of 1444 H., dated 02/06/1444 H., corresponding to 26/12/2022, on the public penal case filed by the Public Prosecution (referred to it by the Capital Market Authority (CMA)) against a number of members of board of directors and senior executives in the Saudi Paper Manufacturing Company; being: Bader bin Suleiman bin Hamad Alsulaie (vice-chairman of board of directors), Saad bin Ammash bin Saad Alshammari (member of board of directors and chairman of the audit committee), Suleiman bin Abdulaziz bin Abdulrahman Alzaben (member of board of directors), Hassaan bin Murizen bin Ali Asiri (member of board of directors, managing directors, CEO), Fahad bin Muhammad bin Saleh Aldaoud (member of board of directors and member of the audit committee), Walid bin Muhammad bin Jaser Alshabanat (member of the audit committee), Watheq Muhammad Hassan Shehadeh (financial manager), Fahad bin Saad bin Muhammad Alshuaibi (member of board of directors), and Abdulrahman bin Saleh bin Abdulrahman Alobaid (chairman of board of directors).

The decision concluded with the conviction of the abovementioned individuals for violating Article (49/a) of the Capital Market Law, by participating, each through his own position, in preparing and approving the financial statements of the Saudi Paper Manufacturing Company for the initial period ending on 30/06/2019 and the initial period ending on 30/09/2019, in violation of the accounting standards endorsed by the Saudi Organization for Chartered and Professional Accountants (SOCPA), hence not showing the true and factual financial position of the Company, leading to a false and misleading impression of the value of the Company's security.

The decision included the imposition of a number of sanctions upon them according to the following:

First: Bader bin Suleiman bin Hamad Alsulaie:

1. Imposing a fine upon him amounting to (SR. 200,000) two hundred thousand Saudi Riyals.
2. Banning him from working in companies listed in the Exchange for a period of Three months.

Second: Saad bin Ammash bin Saad Alshammari:

1. Imposing a fine upon him amounting to (SR. 300,000) three hundred thousand Saudi Riyals.
2. Banning him from working in companies listed in the Exchange for a period of Six months.

Third: Suleiman bin Abdulaziz bin Abdulrahman Alzaben:

1. Imposing a fine upon him amounting to (SR. 200,000) two hundred thousand Saudi Riyals.
2. Banning him from working in companies listed in the Exchange for a period of Three months.

Forth; Hassaan bin Murizen bin Ali Asiri:

1. Imposing a fine upon him amounting to (SR. 200,000) two hundred thousand Saudi Riyals.
2. Banning him from working in companies listed in the Exchange for a period of Three months.

Fifth: Fahad bin Muhammad bin Saleh Aldaoud:

1. Imposing a fine upon him amounting to (SR. 300,000) three hundred thousand Saudi Riyals.
2. Banning him from working in companies listed in the Exchange for a period of Six months.

Sixth: Walid bin Muhammad bin Jaser Alshabanat:

1. Imposing a fine upon him amounting to (SR. 100,000) one hundred thousand Saudi Riyals.
2. Banning him from working in companies listed in the Exchange for a period of Three months.

Seventh: Watheq Muhammad Hassan Shehadeh (in absentia):

1. Imposing a fine upon him amounting to (SR. 100,000) one hundred thousand Saudi Riyals.
2. Banning him from working in companies listed in the Exchange for a period of Three months.

Eighth: Fahad bin Saad bin Muhammad Alshuaibi:

1. Imposing a fine upon him amounting to (SR. 200,000) two hundred thousand Saudi Riyals.
2. Banning him from working in companies listed in the Exchange for a period of Three months.

Ninth: Abdulrahman bin Saleh bin Abdulrahman Alobaid:

1. Imposing a fine upon him amounting to (SR. 200,000) two hundred thousand Saudi Riyals.
2. Banning him from working in companies listed in the Exchange for a period of Three months.​
   

Furthermore, any person affected by these violations in this case is entitled to file a compensation claim (as individual or class action) with the 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)

However, the 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.

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