Gulf Union Alahlia clarifies measures to be taken after accumulated losses reach 51.13%

Measures After Announcing Accumulated Losses

Announcement of accumulated losses reaching 50% or more of capital   

May 17, 2021 

Notifying board of directors of accumulated loss 

May 10, 2021  

Deadline to call extraordinary general assembly meeting (EGM) as per Article 150 of the Companies Law

July 8, 2021 

Deadline for convening the EGM

Nov. 5, 2021 

If EGM not called within 45 days after board was notified of the losses or if no decision is taken at the EGM

According to the Royal Decree No. 15016, and according to Decision No. 348 issued by the Minister of Commerce, the company shall be deemed terminated by the operation of law if the extraordinary general assembly fails to meet during the period set forth (180 days from the date of the board of directors was notified of the accumulated losses, which ends on Nov. 5, 2021; or if the assembly convenes but fails to issue a decision on the matter).