Saudi Paper’s board recommends transfer of statutory reserve to retained earnings

Logo of Saudi Paper manufacturing Co.

Saudi Paper Manufacturing Co.’s board of directors recommended, on Feb. 13, to amend the company’s bylaws and align them with the rules and regulations stated in the new Companies Law and its executive regulations, the company said in a statement on Tadawul.

The changes also align with the revised corporate governance regulations of the Capital Market Authority (CMA).

The amendments focus on canceling the limit of the company’s term specified in its bylaws at 99 years as well as canceling the statutory reserve clause in the bylaws and transferring the entire balance to the retained earnings account.

These recommendations are subject to the approval of the competent authorities and the extraordinary general assembly.