The Ministry of Commerce and Industry referred a number of officials from 12 joint-stock and limited liability companies to the Bureau of Investigation and Public Prosecution for violations related to the provisions of the Companies Law, based on follow-up and complaints received.

The Ministry clarified that this brings the total number of companies whose officials have been referred to the Authority over the past few months to 24, comprising 12 joint-stock companies, 11 limited liability companies, and one liquidated partnership.

The Ministry indicated that the violations consisted of officials failing to comply with mandatory rules issued by regulations and decisions regarding the failure to disclose amendments to the company’s articles of association and register them with the Commercial Registry, failure to disclose to owners transactions in which the official has a personal interest, as well as delays in issuing annual financial statements, failure to provide shareholders or partners with annual reports on the companies" operations, and failure to allow partners to access company documents.

The violations also included failure to hold annual general meetings, failure to invite partners to decide on the continuation or dissolution of the company due to losses exceeding half of its capital—which constitutes a violation of Articles »23, 10, 66, 69, 84, 89, 164, 171, 172, 174, and 175 of the Companies Law, indicating that all necessary legal measures will be taken against those responsible in accordance with Article 229 of the Law.