Batic sets June 30, 2022, deadline for 2 board members with interest in rejected contracts

Logo of Batic Investments and Logistics Co.

Batic Investments and Logistics Co. granted two board members a period until June 30, 2022, after the company’s general assembly rejected the terms of the contracts where the two members have an indirect interest.

The decision was based on Article 48 of the Corporate Governance Regulations, issued by the Capital Market Authority (CMA), the company said in a bourse statement.

Article 48 of the Corporate Governance Regulation stipulates that if the general assembly rejects granting the authorization pursuant to Article (72) of the Companies Law and Article (46), the member of the board must resign within a period specified by the general assembly.

Failing this, his/her membership in the board will be deemed terminated, unless he/she decides to withdraw from competing the company or regularize his/her situation, in accordance with the Companies Law and its implementing regulations, prior to the end of the period set by the general assembly.

According to data compiled by Argaam, shareholders rejected the contracts made between Batic and Hazon, during the extraordinary general assembly meeting (EGM) held on Dec. 6.

Under these contracts, Batic would have acquired the entire stake owned by Hazon, which represents 20 shares, or 2% of Smart City Solutions for Communications and Information Technology, as well as its rights and obligations at a total value of SAR 6 million without any preferential conditions.

Chairman Ahmed Al-Sanea and board member Feras Al-Bawardi have an indirect interest in the deal, as they hold stakes in Smart City Solutions.