In a dramatic turn of events, shareholders of Dubai-listed SHUAA Capital PSC have voted to hold their former CEO Jassim AlSeddiqi and the company’s auditors accountable for the financial turmoil of 2023.
Electronic boards displaying stock information flicker with urgency at the Dubai stock market, a scene that speaks volumes of the ongoing financial turbulence. In a decisive move, SHUAA’s general assembly resolved not to absolve AlSeddiqi or the unnamed auditors, despite the auditors’ identity being apparent from the 2023 financial statements audited by PwC.
2023 was a stormy year for SHUAA, an investment bank and asset manager, plagued by high-profile resignations and staggering losses amounting to AED 1.155 billion ($314 million). Amid this chaos, AlSeddiqi, despite his mid-year departure, pocketed AED 1.69 million in salaries and AED 1.85 million in bonuses.
In a recent meeting, the general assembly also voted against awarding annual remuneration to current board members and nixed shareholder dividends for 2023. The agenda had called for a crucial vote on whether to absolve various board members from liability. In the end, all were absolved except AlSeddiqi, who has since stepped down from multiple roles, including positions at Eshraq Investments PJSC, Dana Gas, and Islamic insurer Salama.
The shareholders also declined to absolve the auditors, hinting at potential legal actions ahead. SHUAA’s trading suspension, triggered by delayed financial result filings, remains in effect as the company undergoes restructuring. Additionally, shareholders agreed to amend the terms of the company’s $150 million sukuk, which had matured the previous year and was subsequently extended.
AlSeddiqi’s tenure, marked by the 2019 reverse merger of Abu Dhabi Financial Group with SHUAA Capital and his subsequent leadership, ended in 2023 amidst these upheavals. Notably, Eshraq Investments had acquired the Goldilocks Fund from SHUAA in a share swap deal in 2022, a fund still managed by SHUAA GMC.
The unfolding saga at SHUAA continues to captivate the financial community, a stark reminder of the volatility and high stakes in the world of finance.
