Alhokair Group GA Addresses Accumulated Losses or Company is dissolved by Companies Law

Abdulmohsen Alhokair Group for Tourism and Development Company announced on Monday that if the Extraordinary General Assembly is not convened to address the accumulated losses within 45 days from the date the Board of Directors became aware of the losses (which ends on 10/8/2022), or if the Assembly meets and is unable to issue a decision on the matter; the company will be considered dissolved by the force of the system according to what is stated in Article 150 of the Companies Law.
It said in a statement on Monday on Tadawul that the last day of the board of directors to call for the Extraordinary General Assembly Meeting, according to what was stated in Article 150 of the Companies Law 08.09.2022, and the last day of the General Assembly is not Regular treatment of accumulated losses according to Article 150 of the Companies Law 08.10.2022.
This comes with reference to the company’s announcement on 25.08.2022 pertaining to reaching accumulated losses of 52.1% of capital.
Additional Information:
We refer to Article (150) of the Companies Law which states that:
1. If the losses of a joint-stock company amount to half of the paid-up capital, at any time during the fiscal year, the company official or the auditor must immediately inform the Chairman of the Board of Directors, and the Chairman of the Board of Directors must inform the members of the Board The Board of Directors shall, within fifteen days of becoming aware of this, invite the extraordinary general assembly to meet within forty five days from the date of their knowledge of the losses to decide whether to increase or decrease the company’s capital – in accordance with the provisions of the Law – to the extent that the percentage of losses decreases to less than half of the paid-up capital, or the company is dissolved before the term specified in its articles of association.
2. The company is considered dissolved by force of law if the extraordinary general assembly did not meet within the period specified in paragraph (1) of this article, or if it met and was unable to issue a decision in the matter, or if it decided to increase the capital in accordance with the conditions prescribed in this article and the subscription was not completed In each capital increase within ninety days from the issuance of the Assembly’s decision to increase it.