AlFakhera Shareholders Reject Deal with Related Parties at AGM

AlFakhera Men’s Tailoring Co. said on Monday that its Ordinary General Assembly approved most agenda items, including financial statements and board reports, but rejected a proposed business deal involving related parties.

The assembly approved the company’s financial and audit reports for the fiscal year ending Dec. 31, 2024, and cleared board members of liability for the same period. RSM was appointed as the external auditor for the 2025 financial year, with fees set at SAR 150,000.

Shareholders also approved SAR 258,000 in remuneration and allowances for independent board members for 2024, and authorized the board to distribute interim dividends on a semi-annual or quarterly basis for 2025.

In a notable move, shareholders gave their nod to a transaction with Suleiman Hamad Al Yahya Trading Est., in which Chairman Suleiman Hamad Al Yahya has a direct interest. The SAR 619,318 contract, covering employee wages paid on behalf of the company, runs for seven months through July 31, 2024, and includes no preferential terms.

However, a second transaction involving Sulaiman Bin Hamad Al Yahya Real Estate and Contracting Co. was rejected. The deal, worth SAR 412,300, involved the leasing of showrooms and warehouses in Buraidah and Riyadh. Board members with a direct interest in the deal included Chairman Suleiman Hamad Al Yahya, Vice Chairman Hamad Suleiman Al Yahya, and Managing Director Abdulaziz Sulaiman Al Yahya.

As a result of the rejection, the assembly has given the concerned board members three months to withdraw from the transaction or rectify their position in line with Article 67(b) of the Executive Regulations of the Companies Law for listed joint-stock companies.