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Is the Chairman of the Board of Directors personally liable for losses incurred by the company as a result of his individual decisions, negligence, or violation of the provisions of the Companies Law and the Articles of Association?

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Yes, the Chairman of the Board of Directors is personally liable for the damages and losses incurred by the company if it is proven that they were caused by his individual decisions, gross negligence, or explicit violation of the provisions of the Companies Law or the Articles of Association, within...

Yes, the Chairman of the Board of Directors is personally liable for the damages and losses incurred by the company if it is proven that they were caused by his individual decisions, gross negligence, or explicit violation of the provisions of the Companies Law or the Articles of Association, within the scope of his tortious or contractual liability.
Source: Radiif.com (رديف) · Saudi Legal AI Platform

Legal References & Citations

1
نظام الشركات - Article 28

دون إخلال بحق الجهة الحكومية في تقييم أداء المتعاقد بحسب المادة (السادسة)، تُوقع الغرامة المناسبة في حال مخالفة أحكام اللائحة وفقاً للأحكام الواردة في هذا الباب.

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