Thimar authorizes board to sue former board members over violations

Thimar seeks to initiate liability proceedings against former board members for violations

Thimar Development Holding Co.’s shareholders authorized the board of directors to initiate liability proceedings against former board members for the period from March 6, 2017, until July 3, 2021, on their violations during their membership term or the previous one.

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The decision came during the ordinary general meeting (OGM) held on Sept. 2, according to a statement to Tadawul.

The board was also authorized to take all necessary legal measures in this regard, complete all the currently filed lawsuit procedures, and file any subsequent lawsuits regarding all violations.

These violations include, without limitation, breaches of the Companies Law, the Capital Market Law and its Implementing Regulations, or any other applicable laws and regulations, in order to safeguard the rights of the company and its shareholders.

In March 2023, Thimar had filed a complaint with the Capital Market Authority (CMA) against former board members for the two terms spanning from March 6, 2017, to July 4, 2021. The complaint included claims for compensation in the amount of SAR 230 million, in addition to litigation-related damages, Argaam data showed.