Lazurde clarifies reasons for rejection of 2021 board remuneration

Logo of Lazurde Company for Jewelry

Lazurde Company for Jewelry said it obtained consultation from an external legal firm regarding the statutory bases that were relied on to determine the remuneration of the members of the board of directors and its committees, according to a bourse filing today, Sept. 28.

Accordingly, the remuneration of board members is due and disbursed based on the provisions of the company’s bylaw and remuneration policy as approved by the general assembly on June 2, 2021, as per the relevant provisions of the Companies Law.

The said remuneration includes fees due to members for attending board and committee meetings. The said fees were predetermined by the general assembly and therefore constituted binding legal and contractual obligations towards the company’s designated members of the board of directors and its committees.

Lazurde added that the aforementioned remunerations due to each board member do not, in all cases, exceed the cap stipulated in Article 76 (3) of the Companies Law, which is SAR 500,000.

Further, these payments are not considered an additional bonus or bonus associated with achieving a specific performance goal or profit. The company also indicated that no bonuses or amounts were paid to the board members as a percentage of the company's profits during all board sessions.

After reviewing all relevant laws and regulations, it became clear that the payments/remunerations related to the board and committee members for their work during the financial year ending on Dec. 31, 2021, are due and disbursed by the company based on applicable standards and statutory provisions.

During the extraordinary general meeting (EGM) held on June 30, the company's shareholders did not approve discharging board members from liability and paying SAR 2.54 million in remuneration for 2021, according to data available with Argaam.