Companies Law

Without prejudice to any harsher penalty under any other law, the following persons shall be subject to imprisonment for a period not exceeding three years and a fine not exceeding five million riyals, or to either penalty: a) Any manager, officer, board member, auditor, or liquidator who intentionally provides misleading information or data in the company’s financial statements, the reports prepared thereby, the statements relating to the capital decrease of a company or the sufficiency of its assets to pay its debts upon liquidation, and any other report or statement presented to the partners, Companies Law general assembly, or shareholders in accordance with the provisions of this Law, or who intentionally omits material facts from the aforementioned statements and reports with the intention of misrepresenting the company’s financial position. b) Any manager, officer, or board member who knowingly uses the company’s funds, or his authority or voting power in a manner that is against the company’s interests to achieve personal gain, favor a company or person, or benefit from a project or transaction in which he has a direct or indirect interest. c) Any liquidator who knowingly uses the company’s funds or assets, or its claims against third parties in a manner that is against the company’s interests or intentionally causes damage to the partners, shareholders, or creditors to achieve personal gain, favor a company or person, benefit from a project or transaction in which he has a direct or indirect interest, or favor a creditor over another in satisfying his dues without a legitimate reason.