The entire board of Saudi construction services firm Mohammad Al-Mojil Group (MMG) resigned Sunday, effective immediately.
The board said its decision to resign is, in part, due to concerns about the unlimited director and executive liabilities in Saudi Arabia.
The resignations come shortly after a decision by the Saudi Arabia’s Capital Market Authority’s Committee for the Resolution to fine the company after its chairman and his son were sentenced for misrepresenting the company’s value.
The board said that from its appointment, it worked toward achieving success for the company and its employees during difficult market and company conditions, resulting in a net profit for the first quarter this year — the first net profit since 2012.
Substantial losses have been recuperated by the board, including the settlement of legacy contracts such as the Ibn Rushd claim.
The board said the decision by the Committee for the Resolution of Securities Disputes severely impacted its capability to deliver the company’s strategy.
Recent events show the need for a systematic overhaul of the construction sector in Saudi Arabia as well as the regulations governing these firms.
