CMA LAW: The Capital Markets Authority Announces Filing a Report with the Prosecutor General Regarding the Occurrence of a Crime

The Capital Markets Authority (CMA) announces the filing of a report with the Prosecutor General on 18/07/2023 regarding the occurrence of a crime stipulated under Item (3) of Article (127) of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and its amendments. Additionally, the report includes references to Articles No. (47, 48, 49, 50, 51, 53, 56, 231, 235, 236) of Law No. 16 of 1960 promulgating the Penal Code and its amendments, as well as Item (4) in Article (303, 304) of Law No. 1 of 2016 Promulgating the Companies Law and its amendments. This report was  filed based on the actions of the defendant (a licensed person and a listed company) and its subsidiary (a licensed person) through their legal representatives, some of its employees, and others, who collaborated as follows:

1- Providing the CMA with false and misleading information through the financial statements of the reported company, which it controls, for the financial years ending in 2019, 2020, 2021, and the disclosures made by the company to the securities exchange regarding this matter.

2- Exploiting its influence and control (which is concealed and unannounced) over the decisions of two listed companies’ Board of Directors to achieve substantial benefits in its favor, while causing severe financial damage to the financial position of the aforementioned listed companies and their shareholders. This was accomplished by arranging and executing transactions between these parties, resulting in the transfer of ownership of the significant, high-quality assets from the two listed companies to the reported company.

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