Tihama takes legal actions as accumulated losses hit 63.6% of capital

Tihama Advertising and Public Relations Co. announced today, Aug. 28, taking the required legal procedures after its accumulated losses reached 63.6% of capital, according to a bourse statement.

The board was notified of the accumulated losses on Aug. 24, and the deadline for the board to invite for an extraordinary general meeting (EGM) as per Article 150 of the Companies Law is Sept. 8.

If the EGM is not convened within 45 days from notifying the board of directors of the losses, which ends on Oct. 8, or if the meeting is convened but no decision is taken, the company will be considered dissolved as per Article 150 of the Companies Law.

Article 150 of the Companies Law states that if the losses of a joint-stock company amount to 50% or more of the paid-up capital, at any time during the fiscal year, the company official or auditor must immediately inform the Chairman, and the Chairman must inform board members immediately. The board should, within 15 days of notification, invite for an EGM within 45 days from the date of notifying them of the losses, to decide whether to increase or decrease the company’s capital, as per the provisions of the law, to the extent the losses decrease to less than 50% of the paid-up capital, or the company is dissolved before the term specified in its articles of association.

The company is considered dissolved by force of law if the EGM did not meet within the specified period; or if it meets and fails to issue a decision on the matter; or if it decides to increase the capital, in accordance with the conditions prescribed in this article, and the subscription was not completed within 90 days from the EGM decision date.