Saudi Chemical shareholders to vote on withholding FY2019 dividend on May 7

Saudi Chemical Holding Co.’s shareholders are set to vote on withholding cash dividend for the fiscal year 2019 during the extraordinary general meeting that will be held on May 7, 2020, the company said in a bourse statement.

Shareholders will also vote on delegating the company’s board of directors to distribute interim dividend for FY2020 on a semi-annual or a quarterly basis.

Dividend’s eligibility and payment will be determined according to the Companies Law, in line with the firm’s financial position and cash flow.

Shareholders will also vote on amending Article 3 of the company’s bylaws related to the company’s purposes by omitting the following paragraphs:

- Manufacturing, selling and purchasing civilian and military explosives and related products.

- Providing assisting services related to the use of explosives and other related materials.

- Manufacturing, selling and purchasing pharmaceuticals, medical and chemical solutions.

- Obtaining, through purchase or any other means, movable and immovable property, permissions, licenses, concessions, and other rights inside or outside the Kingdom, in addition to the sale and use of the aforementioned property and rights in any way it deems appropriate to achieve its purposes.

- To act as an agent or distributor for any other company within the scope of its purposes.

The bylaws after amendments will include a paragraph stating that affiliated companies are not permitted to own stakes or shares in the company, and any action that transfers ownership of stakes or shares from the company to the subsidiary is null and void.

Meanwhile, shareholders will also vote on audited financial statements and board and audit reports for FY2019 as well as discharging members of the board of directors from liabilities during the same period.

According to data compiled by Argaam, Saudi Chemical’s board of directors recommended, earlier this month, withholding cash dividend for FY2019 to support under construction projects, as well as financing existing and future projects.