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.
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.
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.
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
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. "
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.