CMA highlights companies law exceptions for listed firms

The Capital Market Authority (CMA) issued a clarification about the provisions suspended under the Companies Law for listed companies. 

First: With exception from Article 150 of the Companies Law:  

1. The period during which the board of directors must invite the extraordinary general assembly once the board of directors became aware of the losses of the joint-stock company reaching half of its paid-up capital, shall be extended to 60 days, from the date the board of directors become aware of the losses, for a period of two years starting from March 25, 2020.
  

2. The period during which the extraordinary general assembly meeting must be held shall be extended to 180 days from the date the board of directors become aware of the losses for a period of two years starting from March 25, 2020. 
 

Second: Article 150/2 of the Companies Law shall be suspended for a period of two years starting from March 25, 2020, and the joint-stock companies shall upon reaching the amount specified in Article 150/A continuously disclose updates on the losses in accordance with the regulatory rules.  

Third: With exception from Article 133/1 and Article 166 of the same law, joint-stock companies are permitted to re-appoint an auditor whose term of appointment has reached five continuous years, for two additional years maximum, as long as the total period of his appointment does not exceed seven continuous years for the audit office, and five continuous years for the partner who supervises the audit process, provided that this exception ends after two years as of March 25, 2020.  

The CMA added that it set regulatory rules that require listed companies with accumulated losses of 50% or more of their capital, to disclose the latest developments about those losses.