Al Sagr Cooperative’s shareholders approve liability lawsuits against former executives

ALSAGR INSURANCE
8180 -2.10% 11.63 -0.25

Riyadh – Mubasher: Al Sagr Cooperative Insurance Company has announced the results of its Ordinary General Assembly Meeting, held on June 22, 2026, where shareholders approved significant legal actions against former leadership and ratified the company’s financial and administrative frameworks. During the assembly, which recorded a 35.20% attendance rate, shareholders voted to initiate liability lawsuits against a former chairman and a former managing director, while also confirming the appointment of external auditors for the 2026 and 2027 fiscal periods.

The meeting was conducted both physically at the company’s headquarters in Dammam and via modern technological means, ensuring broad participation despite the attendance figure. Presided over by Chairman Majed bin Ahmed Al-Swaigh, the assembly was attended by the majority of the board of directors and the heads of the executive, audit, risk, and nomination and remuneration committees.

In a move that highlights the company’s focus on accountability and governance, the General Assembly approved the filing of liability lawsuits against two former high-ranking officials. The first legal action is directed at Saud Saleh Al-Arifi in his capacity as the former Chairman of the Board, though he remains a current board member.

The second lawsuit targets Dr. Yasser Mohammed Al-Harbi, who previously served as a board member and the company’s Managing Director. The board of directors has been officially authorized to take all necessary legal and regulatory measures to pursue these claims.

On the financial front, shareholders reviewed and discussed the board’s report and the financial statements for the fiscal year ending December 31, 2025. Following these discussions, the assembly approved the auditor’s report for the same period. To ensure continued financial oversight, the company appointed PKF Al-Bassam and Co. and BDO Dr. Mohamed Al-Amri as external auditors.

PKF was appointed for a fee of 740,000 SAR, while BDO was contracted for SAR 675,000. These firms will be responsible for examining and auditing the second and third quarters of 2026, the annual financial statements for 2026, and the first quarter of 2027.

The assembly also ratified several board appointments made during the current cycle. Shareholders approved the appointment of Rasheed Sulaiman Al-Rasheed as an independent director, effective from June 26, 2025, to fill the vacancy left by Dr. Yasser Mohammed Al-Harbi.

Additionally, the appointment of Naif Rashid Al-Arfaj as an independent director was confirmed, effective November 20, 2025, succeeding Abdullah Sulaiman Al-Hindi. Both members will complete the current board term, which is scheduled to conclude on November 22, 2026.

Further administrative approvals included the adoption of an updated charter for the Audit Committee and the authorization of the board of directors to exercise the powers granted under Article 27 of the Companies Law for a period of one year.

In recognition of recent leadership efforts, the assembly approved an exceptional bonus of SAR 125,000 for the Chairman of the Board for the 2025 fiscal year.

This payment was cited as a reward for his role in achieving institutional stability and enhancing the company’s governance framework within a short timeframe.

The resolutions passed during this meeting reflect a comprehensive effort by Al Sagr Cooperative to address past leadership issues while strengthening its current financial auditing processes and board composition. The company continues to operate with a capital of SAR 300 million under its established insurance license.

Source: Mubasher Source: {{details.article.source}}