Logo of Al-Baha Investmen
Al-Baha Investment and Development Co. received on June 7, 2021, a report from the lawyer stating that the company's petition was rejected for the ruling issued on March 1, 2017, which obligates the former chairman and members of the board of directors to pay SAR 68.70 million to the company in addition to legal fees of SAR 1 million.
The company said in a bourse statement that it will work with its lawyer on studying the ruling, reviewing its reasons, and determining the appropriate option, which may include filing a new lawsuit, considering that the previous judgment had ruled that the lawsuit was premature.
Al-Baha is expected to receive a copy of the ruling on June 17, 2021, according to the statement, and updates will be announced in the event of any fundamental developments.
According to data compiled by Argaam, Al-Baha filed a lawsuit with the Administrative Court in Jeddah in June 2014 against the former chairman and members of the board of directors for violations committed against the company, demanding that they jointly pay the company an amount of SAR 100 million.
It represented the the difference between the market value of the assets purchased from Al Sateaa Modern Construction Co. and what was paid in implementation of the sale amounting to SAR 70 million.
In March 2017, the company received a ruling from the Administrative Court in Jeddah to obligethe former chairman and members of the board of directors to pay jointly to Al-Baha an amount of SAR 68.70 million and SAR 1 million in exchange for attorney fees.
In February 2017, the company obtained a ruling to stop the implementation until the order is corrected.
In July 2017, the Appeals Court ruled to overturn the judgment issued by the Administrative Court in Jeddah.
On April 15, 2018, the Jeddah Commercial Court ruled to reject the lawsuit filed by the company against the chairman and the former board members.
In March 2019, the Appeals Court upheld the ruling issued by the Jeddah Commercial Court regarding the rejection of the case against the two defendants (two members of the board of directors), and not accepting the case against the rest of the defendants to file it prematurely.
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