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Saudi Paper Manufacturing Co. logo
Saudi Paper Manufacturing Co. filed a liability lawsuit with the Commercial Court against ex-board member and CEO Hassan Asiree on Thursday, Jan. 28, 2021, the company said in a filing to Tadawul.
The company took this legal action due to financial and administrative violations committed by Asiree, with an estimated value of SAR 40.95 million, which includes the following:
1) Selling the company's factory in Morocco without receiving the sale amount, recovering it, or disclosing the relevant developments.
2) Participating in the responsibility for canceling the debt of SAR 17.3 million, which is part of the value of selling the company's land, in addition to not disclosing it in the financial statements.
3) Giving large credit facilities to a small client and receiving illegal bonds.
4) Other financial and administrative violations.
This legal action is expected to have a positive impact in case of refunding the amount of claim, the statement added.
The paper manufacturer noted that it obtained the legal advice, which confirmed its right to claim these amounts from Asiree, adding that it does not expect to have any responsibility due to its filing of the lawsuit.
The Tadawul-listed firm contacted the defendant and requested reconciliation in this regard, but he did not respond, according to the statement.
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