Al-Khodari faces termination if EGM not held before March 29

Abdullah A. M. Al-Khodari Sons Co. will face termination on March 29 under the Saudi Companies Law if it fails to hold an extraordinary general assembly meeting within 45 days from the date its board of directors were informed of losses, the company said in a bourse filing.

Last Thursday, the company’s shareholders are set to vote on a proposed capital restructuring plan on Mar. 13, 2019.

The board recommended raising the company’s capital ahead of its reduction to cut accumulated losses to less than 50 percent of paid-in capital.

The process is pending the approval of regulatory authorities.

In case the capital restructuring plan is rejected, shareholders will vote on financial restructuring as a procedure of bankruptcy, or on company dissolution if the previous two proposals are not adopted.

The company would face termination by force of law, if it failed to hold an extraordinary general assembly meeting under the Saudi Companies Law, or if its investors failed to take a decision on the aforementioned issues.

The stock will be suspended from trading, if the company files for financial restructuring, the statement added.