Sadirat board decides not to pursue liability case against former directors

Sadirat’s decision came after legal consultations and a prior court ruling

Saudi Industrial Export Co.’s (Sadirat) board of directors, decided, on Nov. 16, not to file a liability lawsuit against the former chairman and board members (for the eighth term), according to a statement to Tadawul.

The decision followed consultations with the company’s legal counsel, and were based on the opinion of the legal advisor.

In November 2017, Sadirat filed a lawsuit before the Commercial Court in Riyadh against the company’s former chairman, board members, and executive management over violations highlighted by the company’s external auditor, Argaam data showed.

These violations represented breaches committed by the former executives and the former external auditor (which resulted in provisioning of more than 75% of the company’s capital, recorded in the financial statements for 2014 and 2015) during the board’s term, and examined the extent to which they complied with professional standards related to the disclosure of the company’s financial transactions during that period.

The company announced in September 2025 the issuance of a preliminary ruling declaring the lack of jurisdiction in the lawsuit filed against the former chairman, board members, and executive management.

An appeal was filed against the ruling before the Court of Appeal, which overturned the decision and referred the case back to the Commercial Circuit for consideration on its merits. The company added that the lawsuit later ended with a ruling to dismiss it, which was subsequently upheld by the Court of Appeal.