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Shareholders of Dubai-listed SHUAA Capital PSC have voted not to absolve Jassim AlSeddiqi, its former CEO, managing director and largest individual shareholder, or its auditor, for liability for the last financial year.
SHUAA did not name the auditor in its disclosure, but financial statements issued for 2023 were all audited by PwC.
The move comes after a tumultuous 2023 for the investment bank and asset manager, which saw a series of resignations at the senior management and board level as it incurred losses of AED 1.155 billion ($314 million) during the year.
SHUAA’s integrated report published on Thursday showed that AlSeddiqi received AED 1.69 million in aggregate salaries and bonuses of AED 1.85 million for the financial year of 2023, despite leaving part way through the year.
The general assembly (GA) on Friday approved a resolution to not pay annual remuneration to current board members or shareholder dividends for 2023.
The Dubai-listed entity’s GA invitation, published prior to the meeting, asked shareholders to vote on a resolution on whether to absolve named board members or not absolve them.
The company disclosed on Friday that shareholders had voted to absolve all members apart from AlSeddiqi, who resigned from SHUAA last year, and exited as a shareholder and stepped down. He also exited other board and chairman roles including at Abu Dhabi Securities Exchange-listed Eshraq Investments PJSC, Dana Gas and Dubai-listed Islamic insurer Salama.
Another resolution asked shareholders to consider whether to absolve auditors of liability for the financial year 2023 or not absolve and consider filing a lawsuit - Friday’s disclosure said shareholders voted not to absolve auditors.
SHUAA was suspended from trading last year due to late filing of financial results, and remains suspended, while simultaneously undergoing restructuring.
Shareholders also approved amending the terms of the entity’s outstanding $150 million sukuk, which matured last year and was extended.
AlSeddiqi was at the head of Abu Dhabi Financial Group (ADFG) when it carried out a reverse merger with SHUAA Capital in 2019 and served as managing director until his exit from the combined entities in 2023, having previously served as CEO.
During his tenure, Eshraq Investments acquired the Goldilocks Fund from SHUAA in a share swap deal in 2022, with the fund continuing to be managed by SHUAA GMC.
(Reporting by Imogen Lillywhite; editing by Seban Scaria)
