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A branch of Herfy Food Services Co.
Herfy Food Services Co. received a letter from a shareholder, who owns more than 5% of the company’s capital, requesting convening a general assembly meeting to vote on the dismissal of a board member.
The request was submitted in accordance with Article 68 and Article 90 of the Companies Law, Herfy said in a statement to Tadawul.
The company will take the necessary regulatory procedures regarding the request, the statement added.
According to data compiled by Argaam, the list of major shareholders of Herfy includes Savola Group, which owns 49% of the company's shares, and Ahmed Al-Saeed who owns 19.16%.
According to the Saudi Companies Law, Article 68 provides that a board of directors, composed of a maximum of 11 members and a minimum of three members shall manage a joint stock company. Each shareholder has the right to nominate personally or nominate another person for the board membership, based on the percentage of ownership. The ordinary general meeting (OGM) shall elect board members for the term specified by the company’s articles of association, on condition that such term shall not exceed three years. The board of directors may be elected, unless otherwise provided by the articles of association. Meanwhile, the OGM has the right to dismiss all or some board members at any time, even if otherwise is provided by the articles of association.
Moreover, Article 90 of the same law provides that general or special assembly meetings shall be called by the board of directors. The board shall call for an OGM upon request of the auditor, the audit committee, or a group of shareholders representing at least 5% of capital. The auditor may call for an OGM if the board fails to do so within 30 days from the auditor’s request date.
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