Al-Omran’s OGM refuses to discharge board liability, rejects related party deals

Logo of Al-Omran Industrial Trading Co.

Al-Omran Industrial Trading Co.’s shareholders withheld approval for certain items on the ordinary general meeting (OGM) agenda, on May 26.

Shareholders refused to discharge board members from liability for the fiscal year ended Dec. 31, 2023, according to a statement on Tadawul.

They also declined the related party transactions with Abaad Real Estate Investment Co., in which the board members Mohammed Al-Omran, Nasser Omran, and Abdul Rahman Omran, have an indirect interest. The deals represent financing worth SAR 382,000 in 2023 and rentals for employee housing and warehouses, where transactions in 2023 amounted to SAR 1.2 million.

Approval was also denied for the financing business and contracts concluded between the company and board member Abdul Rahman Omran, in which he has a direct interest. The transactions in 2023 amounted to SAR 800,000.

Shareholders disapproved the business and contracts concluded between the company and board member Nasser Omran, in which he has a direct interest, which represent purchasing assets, as the transactions in 2023 amounted to SAR 166,783.

On the other hand, shareholders approved the audit report for the fiscal year ended Dec. 31, 2023, and appointed Al-Kharashi & Co. (Mazars) to examine, review and audit the financial statements for Q2, Q3, FY 2024, and Q1 2025.

They further approved the related party transactions between the company and Abaad Real Estate, in which the board members Mohammed Al-Omran, Nasser Omran, and Abdul Rahman Omran, have an indirect interest, which include acting expenses of SAR 34,206 in 2023.

Due to the non-approval of certain items, the assembly specified a period of six months from the date of the OGM for the board members Mohammed Al-Omran, Nasser Omran, and Abdul Rahman Omran to reconcile their situations in accordance with the Companies Law, the statement noted.