SABIC shareholders approve amending bylaws

Saudi Basic Industries Corp.’s (SABIC) shareholders approved amending bylaws related to the articles of incorporation, during an extraordinary general assembly meeting (EGM) held on June 10, 2020, it said in a bourse statement.

The bylaws are related to the head office, ownerships, objectives, partnership and merger, capital hike and cut, and privileged shares.

Shareholders approved bylaws related to the board of directors’ formation, authority and jurisdiction, as well as vacancy for board membership, remuneration for board and committee members, and appointment of auditor/comptroller.

They also approved amending bylaws related to dividend distribution, debt instruments, and formation of audit committee.

In addition, the shareholders approved some bylaws to be deleted from the articles of incorporation. This includes the article that says, the government - represented by the Public Investment Fund (PIF) – shall retain ownership of at least 25% of the shares of the corporation throughout the whole duration of the corporation.

The article further says that a portion of these retained shares may be sold by virtue of a Cabinet decree through the normal procedures followed in initial public offerings, according to the relevant laws.

Any single person shall not be entitled to own more than 1% of the corporation's capital, except for Saudi public organizations.