Salama Insurance GA to discuss capital decrease to SR100 mln

The Board of Directors of Salama for Cooperative Insurance Company hereby cordially invites the shareholders to attend, participate and vote in the first Extraordinary General Assembly meeting, which will be held in presence and virtually through the modern technology means on Thuesday 16th Aug 2022G, at 18:30, corresponding to 18-01-1444H using Tadawulaty System.

Meeting Agenda:

1- To vote on the Board’ recommendation regarding decrease of the Company’s capital, as the following:

– Company’s capital before the decrease: (250,000,000) Saudi Riyal.

– Company’s capital after the decrease: (100,000,000) Saudi Riyal.

– Number of Shares before the decrease: (25,000,000) shares.

– Number of Shares after the decrease: (10,000,000) shares.

– The percentage of the capital decrease: 60% of the Company’s capital.

– Reasons for capital decrease: Restructuring of the capital in order to write-off (94.48%) of the accumulated losses as of 31 December 2022, an amount of (158,767,000) Saudi Riyal.

– Method of capital decrease: Cancellation a number of (15,000,000) of the Company’s shares, a mount of (150,000,000)Saudi Riyal, such that, 3 share shall be decreased per 5 share.

– Date of decrease: If the item is approved, reduction resolution shall be effective on the eligible shareholders who are holding shares on day of convening the Extra-Ordinary General Assembly and who are registered in the shareholders registry with the Securities Depository Center Company (“Edaa”) at the end of the second trading day following the date of convening the Extraordinary General Assembly meeting, in which the capital reduction was decided.

– Impact of Capital decrease on Company’s obligations: Capital decrease will not impact the Company financial obligations.

-To amend Article No. (8) of the Company’s Bylaw on Company’s capital (Attached).

2- To vote on the use of the amount (5,001,976) million riyals from the statutory reserves, which represents the entire value of the statutory reserves as in the period ending on 31/03/2022 to cover part of the company’s losses. This decision aims to reduce the company’s accumulated losses from (167,092) thousand riyals as in the period ending on March 31, 2022 (three months), (representing 66.84% of the capital).

The shareholders registered in Tadawulaty services may vote on the items of the General Assembly agenda online starting from Saturday 10:00 AM on 13 Aug 2022 corresponding to 15-01-1444H and shall continue until the end of General Assembly meeting. Please note that registration in Tadawulaty service and voting is provided free of charge for all shareholders through the following link:

www.tadawulaty.com.sa

Eligibility for Attendance Registration and Voting Ends upon the Convenience of the General Assembly’s Meeting. Eligibility for Voting on the Meeting Agenda Ends upon the Counting Committee Concludes Counting the Votes.

The quorum for holding the Extraordinary General Assembly meeting is 50% of the company’s capital overall.

In the absence of a quorum required for holding the meeting, a second meeting can be held one hour after the end of the period specified for the first meeting. The second meeting shall be valid if attended by shareholders representing at least 25% of the company’s capital.