After a legal battle lasting more than 40 years, the General Court in Riyadh has ruled on the capital contributions of shareholders in the Al-Ghazal Real Estate Office case—the oldest such case in the Kingdom—which has affected more than 22,000 shareholders.
The hearing was attended by a number of shareholders, while the representative of the heirs of the office’s owner was also present.
The ruling will compel the heirs of the office’s owner to restore the rights to their rightful owners. The ruling will become final in about a month unless the defendant’s heirs file an objection; after that, the shareholders will be entitled to apply to the Enforcement Court to enforce the ruling.
The ruling comes as part of several measures taken by the Real Estate Shares Department, which referred a number of real estate share holders to the Public Prosecution to investigate their violation of Cabinet Decision No. (220) dated 22 Sha’ban 1426 AH, and the appointment of experts—including appraisers, certified public accountants, and attorneys—to pursue those in default on payments owed to Al-Ghazal Office for six real estate investment schemes, involving a total of 22,000 shareholders, The rulings and decisions issued by the Chamber also included an examination of profit differentials in certain contributions.
It had previously commissioned a law firm to pursue debtors in the investment and also engaged a certified public accounting firm, which began by requesting updated shareholder data, and then transferring them to a local bank pending the disbursement of their entitlements. The liquidation process pertains specifically to those shareholders who have not yet received their entitlements, and this measure followed the appointment of a law firm to pursue claims against debtors in accordance with the Sharia Litigation System and its implementing regulations.
The General Court had called on the debtors in the joint-stock company to promptly consult the appointed attorney to complete the liquidation procedures and return the entitlements to their rightful owners, and the General Court warned that it would take legal action against those who refuse to pay as soon as the specified review period ends.
It is worth noting that the Al-Ghazal real estate contribution case spanned several years, beginning with the Ministry of Commerce and Industry’s handling of the case at the time, followed by the Real Estate Contributions Committee after its establishment, after which it was referred to the Supreme Judicial Council, then returned to the Real Estate Contributions Division of the General Court, which addressed the contribution case that had been pending for over 40 years.
