• For the first time ever, speculators depose members of the board of directors of Alujain company


            In the Saudi stock market, the application of the new corporate system and the depose of the board members of the company, on the request of nine members representing 5.028% of the capital of the company, a number of specialists in the field, it shows the awareness of the speculators and their desire to change and exercise their right to maintain the results The company, noting that the conglomeration of small investors is a message addressed to serve the economic entities.
    Lahem Al Nasser, a banking consultant, explained that the depose  of Aluajain board members for the first time ever in the Saudi stock market, an indication of the speculators awareness and their ability to change and perform their right to preserve their rights instead of complaints. "When a small group of investors and their access to the agreement with major investors not represented on the council so as not to conflict with interests, they were able to change and exercise their rights," he said. Nasser pointed out that the Capital Market Authority has played a role in educating the shareholders and facilities provided. The electronic voting has saved many of the time, effort and losses incurred, especially on small investors, giving them the space of facilities and services provided. The Saudi stock market prompted small investors to form conglomerates so that they would have a clear voice to express instead of dispersing votes. Small voices would have gathered and agreed to be a conglomerate for the company.
    Commenting on the board members deposing, Al Nasser said: "There are positive long-term effects in improving the performance of the company when voting for a new board of directors capable of change, and becomes more interested because of the awareness of speculators and their ability to have  their right and to remove the board of directors. In the near term, there may be an adverse reaction on board members and the sale of their shares to lower the share price, which is unexpected, especially as it has established laws and regulations that specify the mechanism of sale for such cases. For his part, Abdullah Katab, an economic analyst, said that the isolation of board members is the first precedent in the Saudi market, and is a healthy situation to break the monopoly of the boards, because it wins the voice of a shareholder who has suffered in the past lack of transparency and non-disclosure, saying " Serves the economic entities, and we hope to continue with the correct image, which is concerned with the management of work in the best case. "
    As for Allujain pointed that the members of the Board of Directors have submitted 17 recommendations to the General Assembly, only two recommendations have been approved. All recommendations have been suspended, including the selection of an external auditor, which is a statutory requirement. "It is not right for speculators to determine the auditor because it is a requirement. The company survival without an accountant may expose it to stop-up procedures. Therefore, the speculators reaction is strong towards the board members. It is clear that there are many accumulations due to the concentration of board members in a certain group, deposing is now an attempt to introduce new people who aspire to better results to enter the market better.
    A source, speaking on condition of anonymity, said that the removal of AlLujain board members represents a pioneering step in activating the role of shareholders in managing their companies. Complaining speculators no longer have an argument after the vote is approved, and the cumulative vote. Many of the members of the board of directors, inactive or unfair, have put their hands on their hearts waiting for their role, after the corruption in the companies with no obseravation.
    This will have a significant impact on the company, he said, because it would put the new board of directors at a high risk of introducing an improvement to the speculators, or else its fate would be similar to that of its predecessors.

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