Al Sorayai faces termination if EGM not held by Sept. 4

Al Sorayai Trading and Industrial Group Co. will face termination by Sept. 4 under the Saudi Companies Law if it fails to hold an extraordinary general assembly meeting within 45 days from the date its board of directors was informed of losses or shareholders fail to pass a resolution.

The group's board of directors can invite shareholders to attend an extraordinary general assembly meeting no later than Aug. 5 and the meeting should be held by Sept. 4. 

The board recommended holding an extraordinary general assembly meeting to discuss accumulated losses that accounted for over 50 percent of the company's capital.

Shareholders should either vote on addressing accumulated losses through restructuring capital to cut those losses below 50 percent of capital or on the company termination, Al Sorayai said in a bourse statement.

A capital hike could be implemented – subject to regulatory approvals - through the group's turnaround, investment diversification, and financial solvency enhancement, Al Sorayai added.

The trading group incurred net losses after zakat and tax of SAR 84.7 million for the first half of 2019, versus net profit of SAR 2.3 million a year earlier, Argaam reported.

Read: Al Sorayai posts SAR 85 mln loss in H1 2019