Abu Dhabi : The Dubai Financial Services Authority (DFSA) yesterday handed down a Dh13.5 million fine to Damas, the Middle East's largest jeweller by number of outlets, and dismissed its board of directors for violating corporate rules.
According to the DFSA ruling, Damas' majority owners, the Abdullah brothers Tawhid, Tamjid and Tawfiq have been banned from acting as directors of Damas or any company in the Dubai International Financial Centre for 10 years.
They will also have to pay back Dh365 million to the company and the value of 1.94 million grams of gold to compensate for utilising company funds for personal use in 2008 and 2009.
"This action will remind directors of public companies that they owe a duty to the company and their shareholders, which supersedes any duty they have to their private interests," DFSA Chief Executive Paul Koster said in a statement.
According to the investigation findings, DFSA said the Abdullah brothers used company funds for purchases ranging from fuel to real estate and stocks.
They also loaned Dubai Investment Group $80 million (Dh294.2 million) to purchase stock in Damas in July, 2008 when the company had to meet the minimum 25 per cent listing requirement in Nasdaq Dubai.
At the time of going to the press, Damas had not responded to Gulf News requests for comment.