The Dubai Financial Services Authority announced remedial action and enforcement sanctions against Damas International Limited, a multinational luxury goods retailer, and its Board of Directors for their failure to exercise appropriate corporate governance over the company and its subsidiaries.
The remedial action includes the resignation of the Damas Board, the appointment of a new Board to govern Damas, and measures to enhance the governance, systems and controls of Damas so as to protect the company, its assets and shareholders’ interests. Damas has also agreed to the appointment of new auditors for the fiscal year commencing 1 April 2010.
The sanctions include financial penalties against Damas, Tawhid, Tawfique and Tamjid Abdullah, and voluntary bans, for periods up to 10 years, on the Abdullah Brothers from acting as Directors of Damas or any company in the Dubai International Financial Centre.
Today’s announcement follows an investigation by the DFSA into “unauthorised transactions” that were announced to the market by Damas on 15 October 2009.