Friday, November 8, 2024
3 employees of a Company fined with 3.95 million riyals and one jailed for 6 months
Three company employees were penalized by the Capital Market Authority (CMA) for violating multiple sections of the Capital Market Law. Three employees will each be fined SR 3.95 million and one will serve a six-month prison sentence as part of the penalty. Trending : Can issuing Iqama be delayed for domestic workers in probation period
Three workers of Abdullah A. M. Al-Khodari Sons Co. were found guilty of breaking numerous provisions of the Capital Market Law and the Companies Law by the Appeal Committee for the Resolution of Securities Disputes (ACRSD) under CMA.
The following individuals have been found guilty by the ACRSD, Sohail Sa'eed Mohammed Sa'eed, who is the director of the company's financial department; Kailash Nath Sadangi, who is the chief financial officer of the company and Fawaz bin Abdullah bin Abdulmohsen Alkhodari, who is the chief executive officer of the company.
Their offenses include breaching Article 49/a of the Capital Market Law and Article 7 of the Market Conduct Regulations, for their actions in inflating the revenues of four construction projects in the company's financial statements from 2010 to 2017.
The actual expenditures recorded by the organization did not match up with the costs utilized to determine the percentage of project completion. Recommend : IPL 2025 mega auction to be held in Jeddah
As part of its final decision, the ACRSD convicted Fawaz bin Abdullah bin Abdulmohsen Alkhudari, the company's chief executive officer, of breaking Article 211/a of the Companies Law.
He was found guilty of failing to disclose in the financial statements of the fiscal year ending on December 31, 2017, the losses associated with six construction projects that were withdrawn from the company.
The purpose of this failure was to conceal the company's financial position, which is a violation of both the International Accounting Standard and the International Financial Reporting Standard. See Also : Procedure to issue final exit, after the death of employer
Sentenced to six months in prison and fined SR3.25 million for breaking the Companies Law and SR400,000 for violating the Capital Market Law and its implementing rules, Fawaz bin Abdullah bin Abdulmohsen Alkhudari had a turbulent legal career.
There was also a 100,000 riyals fine for Sohail Sa'eed Mohammed Sa'eed and 200,000 riyals fine for Kailash Nath Sadangi. For three years, the Saudi Arabian government banned the three convicted persons from holding positions with companies whose stock is listed on the Saudi Exchange. Join Saudi Expatriates channel on Instagram
3 employees of a Company fined with 3.95 million riyals and one jailed for 6 months
