5 years’ jail, SR5m fine for biz frauds

JEDDAH: Embezzlement or breach of trust by a company director, officer, member of the board of directors or auditor is an offense punishable with up to five years of imprisonment and a fine of SR5 million or both.
Citing the company regulations, local media reported that the same penalty applies to any aforementioned persons if they use the funds of the company for purposes against the best interests of the company, for personal purposes, to favor a company or person, or to use the project or transaction for his direct or indirect benefit.
According to regulations, any of these officials who fails to draw the attention of the company or partners, fails to do so by circumstances if it came to his knowledge the estimated losses or fails to declare such losses is also guilty and faces the same punishment.
The law elaborates that each liquidator responsible for the liquidation of the company who has used its funds or assets, and who is fully aware of the fact that it is contrary to the interests of the company or if his actions using the company funds accruing to the creditor to prefer one over another without legitimate reason will be held under the same category of crime.