Petro Rabigh’s EGM nods amending some articles related to profit distribution

Logo of Rabigh Refining & Petrochemical Co. (Petro Rabigh) 

Rabigh Refining & Petrochemical Co.’s (Petro Rabigh) shareholders approved amending some Articles of Association during the extraordinary general meeting (EGM) held on Dec. 13, the company said in a statement on Tadawul.

They approved amending Articles 3 and 46 related to the petrochemical producer’s purpose and profit distribution.

Accordingly, the first paragraph of Article 46 will be amended to be as follows: "Ten percent (10%) of the annual net profits shall be set aside to form a statutory reserve. Such setting aside may be discontinued by the ordinary general assembly when said reserve equals [30% of paid-up capital].”

The amendment to the profit distribution article entailed that 10% of the net profit shall be set aside to form Petro Rabigh’s statutory reserve. The general assembly reserves the right to hold back on this when the aforementioned reserve reaches 30% of paid-up capital — not when it hits 50% as previously stipulated.