Saudi Chemical shareholders approve withholding FY2019 dividend

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

Shareholders also delegated 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 also approved 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 assistance 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 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.

According to data compiled by Argaam, Saudi Chemical’s board of directors recommended, earlier this month, withholding cash dividend for FY2019