Riyadh – Mubasher: Tihama Advertising, Public Relations and Marketing Company has issued an addendum to its previous general assembly invitation, providing specific regulatory justifications for the proposed removal of board member Saleh Ghadeer Al Rasheed.
The clarification follows definitive rulings from the Appeal Committee for Resolution of Securities Disputes (ACRSD), which found the director in violation of the Capital Market Law and Market Conduct Regulations.
Shareholders are scheduled to vote on the dismissal during the upcoming Ordinary General Meeting (OGM).
The disclosure from Tihama Advertising serves as a formal explanation regarding the inclusion of an agenda item to terminate the membership of Saleh Ghadeer Al Rasheed. According to the company, the recommendation for dismissal is based on Paragraph (H) of Article Six of the Implementing Regulation of the Companies Law for Listed Joint Stock Companies.
This specific regulatory framework allows for the removal of board members under certain legal and compliance-related conditions.
The impetus for the board’s recommendation stems from two final and definitive decisions issued by the Appeal Committee for Resolution of Securities Disputes. The first ruling, No. 3816/L.S/2025, was dated 23 June 2025, while the second, No. 4084/L.S/2025, was issued on 28 December 2025.
These judicial decisions confirmed that Al-Rasheed had violated Article 49 of the Capital Market Law and Article 2 of the Market Conduct Regulations.
The violations pertain to trading activities involving the shares of a listed company conducted between 30 August 2021, and 6 July 2022. The judicial findings indicated that these actions constituted manipulative and fraudulent practices, designed to create a misleading and incorrect impression regarding the value and activity of the security in question.
Under the Saudi Capital Market Authority (CMA) framework, such findings of market manipulation often trigger mandatory reviews of an individual’s suitability to serve as a director of a listed entity.
Tihama Advertising emphasized that the inclusion of the vote to dismiss Al Rasheed is a direct response to these legal developments to ensure the company remains in compliance with the governance standards required for listed firms. The company noted that there is no immediate financial impact resulting from this clarification or the proposed change in board composition.
The upcoming OGM will provide shareholders the opportunity to exercise their voting rights on this matter. The board’s recommendation to remove the member is presented as a measure to uphold the integrity of the company’s leadership in light of the final rulings from the General Secretariat of the Committees for Resolution of Securities Disputes.
