SIIL urges QFMA to lift company’s share trading suspension

20/01/2012 08:20 AST

Finding no justification for the suspension of its shares from trading on the Qatar Exchange (QE) in view of a court case pertaining to the merger of its subsidiaries, Salam International Investments (SIIL) has held Qatar Financial Market Authority (QFMA) responsible for damages that may occur to its shareholders and the company.

The company’s shareholders, at the annual general assembly on Wednesday, also requested QFMA to lift the suspension without any delay.

“The general assembly has not found it necessary, and has not found any justification, to suspend and cease trading of the company shares, and the extension of its period; especially since the company fully disclosed whatever was required on QE website as well as to QFMA,” SIIL executive director Adnan Ali Steitieh said.

The (share trading) suspension has exceeded the time limits announced by the QFMA, which extended the suspension stating legal grounds. However, SIIL said the QFMA has so far not responded to its latest letter (January 9) requesting on what legal grounds SIIL shares were suspended from trading.

The suspension and cessation of share trading would damage the rights of shareholders, the interests of the company and the company’s relationship with customers, suppliers and banks, in a “way where the consequences that action might not be amendable in full, especially since the ruling was not final until the Court of Cassation reaches a decision”, SIIL said.

The general assembly was briefed on decision No 650/2010 of the Court of First Instance that was approved by the decisions of the Court of Appeal Numbers 71 and 104/2011 invalidating the executive procedures, without impairing the validity of the resolutions of the extraordinary general assembly concerning the merger of a number of companies in 2002 and 2005 and its legality in form or substance.

“The general assembly decided to hold the QFMA responsible for all damages, which may occur to the rights of shareholders and the interests of the company,” Steitieh said.

He said an extra-ordinary general assembly meeting has been called to consider the situation arising in case the appeal was rejected by the Court of Cassation, in case the court ruling was executed and in case the executive format was released.

SIIL said it has developed a precautionary action plan to handle the ruling of the Court of Appeal for the sake of caution and prudence and “it is to be applied only in case the appeal is rejected by Court of Cassation.

Steitieh said SIIL would take all possible measures to protect the rights of shareholders and comply with the legal provisions by correcting the execution procedures, in coordination with the Ministry of Business and Trade and with any other relevant body.

Gulf Times