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Announcing the Issuance of ACRSD Final Decision Convicting Violator of the Companies Law

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. (3342/L.S/2024) of 1445 H., dated 26/11/1445 H., corresponding to 03/06/2024, on the public penal case filed by the Public Prosecution (referred to it by the Capital Market Authority (CMA) against: 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 decision concluded as follows:

The conviction of the above-mentioned individuals for violating Article (211/b) of the Companies Law issued by the Royal Decree No. (M/3) dated 28/01/1437 H., when they – 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 decision included the imposition of a number of sanctions upon them according to the following:

First: Hassan bin Shaker bin Saleh Alsahafi: