Logo of Tihama Advertising and Public Relations Co.
Tihama Advertising and Public Relations Co.’s board member, Sultan Al-Nugali (non-executive member), unilaterally filed an appeal against the preliminary ruling issued by the Commercial Court in Riyadh, which rejected and terminated a proposal for a financial restructuring procedure (FRP), according to a statement to Tadawul.
In violation of regulations, Al-Nugali bypassed the board of directors’ decision not to appeal and uphold the court’s ruling in accordance with the board’s majority decision (in compliance with Article 80/3 of the Companies Law) on Jan. 23.
The company confirmed Al-Nugali’s action is unilateral, without any statutory powers or authorization from the board of directors, adding that it is taking legal measures to protect the company, its interests, and shareholders.
Tihama’s board decided not to appeal the aforementioned ruling after comprehensive legal and financial studies and after seeking the opinions of FRP specialists.
Tihama said this action will increase costs, but the relevant impact is still unclear, adding it will announce any other developments in due course.
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