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CMA imposes SAR 60,000 fines on 2 insurance companies

CMA imposes SAR 60,000 fines on 2 insurance companies
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ALLIANZ SF
8040
0.71% 28.30 0.20
ALALAMIYA
8280
-2.18% 16.16 -0.36

Riyadh - Mubasher: The Capital Market Authority’s (CMA) board has issued two separate resolutions to impose fines two insurance companies, according to a statement on the Saudi Stock Exchange (Tadawul).

Fines of SAR 10,000 and SAR 50,000 have been imposed on Allianz Saudi Fransi Cooperative Insurance Company, and Al Alamiya for Cooperative Insurance Company, respectively.

The fine imposed on Allianz Saudi Fransi is due to its violation of articles 101 and 224 of the Companies Law, as the company did not determine the rewards of the audit committee members by a resolution of the ordinary general assembly meeting (OGM), during the specified period granted to the companies which ended on 21 April 2017.

As for Al Alamiya, the CMA said that it has violated article 71 of the same law, as it failed to obtain a prior approval from the ordinary general assembly meeting (OGM) regarding the agreement with Riyad Bank on 27 April, to provide insurance coverage on the mortgage program of the Bank, in which two members of the company's board of directors (BOD) have an interest in.