Raydan announces Measures, Time Frames on Accumulated ‎Losses reached 53.16 % of Capital

Reference to the company’s announcement on 25-08-2022 pertaining to reaching accumulated losses of 53.16% of capital, Raydan Food Company announces about taking the required legal procedures in this regard. In case the above mentioned Extraordinary General Assembly Meeting is not Convened within 45 Days from the date of the Board of Directors’ Knowledge of the Losses (Which Ends on 08-10-2022) or in Case the Meeting is Convened but No Decision is Taken, the Company will be Considered Dissolved by Force of Law as per Article 150 of the Companies Law.

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.