SCA 1287/2019
This case involved a request for appointment of a judicial guardian over a company because the manager had failed to produce accounts or pay profits. A key issue was evidence that assets were at risk.
Background
A claimant filed a case against a company before the court. He requested the court to order the company to give him financial reports and appoint a judicial guardian for the company. He said that he was one of the co-founders and partners in the company and that the manager had failed to provide the financial reports for 2016 to him. The claimant also said that the manager had failed to pay him his share in the company's profits.
Decision
The court said that Article 211 of the Law of Legal Proceedings stipulated that the court had the right to appoint a judicial guardian if the claimant provided the court with solid justifications that their assets were in risk. The court said that the claimant had failed to provide the court with solid reasons for appointing a judicial guard.
The court dismissed the case.
The Court of Appeal – Jeddah upheld the ruling based on the same grounds.