Lawyer Abdulaziz Al Hudaif
Abdulaziz Al Hudaif, lawyer of shareholders, who filed a class action against five former executives of Etihad Etisalat Co. (Mobily), said the ruling issued against such executives should be reconsidered to achieve a beneficial return for shareholders affected by violations.
In a phone interview with Argaam, Al Hudaif said the plaintiffs are dissatisfied with the ruling, highlighting the possibility of compensating the affected shareholders due to the lack of financial solvency of some convicts.
The Committee for the Resolution of Securities Disputes (CRSD) recently issued a resolution in the class action, ordering the defendants to pay SAR 1.225 billion to the 1,045 plaintiffs, according to data available with Argaam.
Concerning the compensation, the lawyer said it was estimated at approximately SAR 12.5 per share by the committee, based on the last day shareholders were affected in 2013 after the stock collapse and the first day shareholders were able to sell their stake and exit the market.
He stressed that the decision will be appealed within 30 days of its issuance to include the former board members, noting that some board members were aware of and responsible for the company's management and decisions regarding financial statements, internal audit, commitment and disclosure, as well as dividend beneficiaries.
"Does it make sense that only five convicts are responsible for all these losses? Some former board members own companies and can participate in compensating the affected shareholders," Al Hudaif said.
He further said former CEO Khalid Al-Kaf, appointed by the UAE’s Etisalat, is obligated, as per the ruling, to pay nearly SAR 180-200 million, which represents 15-20% of the total amount of SAR 1.225 billion.
The lawyer pointed to the possibility of implementing the judgment in the UAE after being ratified in the Saudi courts, as there are two defendants who hold the UAE nationality.
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