The Securities and Commodities Authority (SCA) has set some rules and regulations in place to protect small shareholders. The provisions of the Commercial Companies Law and the Commission's decisions include a number of means of protection for investors holding minority shares in listed companies.
The Authority explained, in an awareness bulletin obtained by «Emirates Today» a copy of it, four legal ways to ensure this and are as follows:
1- Review the transactions
The Authority stated that if the company enters into any transactions with the related parties, the owner shareholder shall be entitled to a percentage of (5%) or more of the shares of the company: the request to look at the company's books and documents and any documents or documents related to such transactions, In order to oblige the parties to the transaction to provide all information, documents and documents relating to such transactions, whether they directly prove the facts of the case or are relevant to them or lead to the discovery of information that helps to uncover the real facts.
If it is proved that the transaction is unfair, involves conflicting interests and damages the rest of the shareholders, the competent civil court may rule on canceling the transaction and obliging the party concerned to make any profit or benefit to the company, as well as compensation if damage is proven to the company.
2. Invitation to the General Assembly Meeting
The Securities Authority has confirmed that the Authority, the auditor or one or more shareholders may hold at least 20% of the company's capital, and for serious reasons, submit a request to the Board of Directors of the Company to hold the General Assembly. Within five days from the date of submission of the application.
The Shareholders have the right to call the General Assembly of shareholders for an emergency meeting by submitting a request to the General Assembly for a special decision, together with all supporting documents.
3. To include an item in the agenda of the Assembly
The Authority indicated that prior to the date of the AGM, after the issuance of the invitation, shareholders holding 5% of the Company's shares shall have the right to apply to the Commission for the inclusion of an additional item or items on the agenda of the Assembly within five working days from the date of The company is invited to the General Assembly.
During the General Assembly meeting, the listing request must be submitted by a number of shareholders representing 10% of the share capital of the listed company. The new item should be clear and specific, and should not conflict with the provisions of the Companies Law or the resolutions and regulations issued to implement it. The request for listing must be written and signed by the applicant, in addition to submitting the request for listing to the chairman of the general meeting before starting the discussion of the agenda. The president of the meeting must also agree to include the item. If the applicant rejects the right to request the offer to the assembly To consider the inclusion of Whether or not, before starting to discuss the agenda of the General Assembly, and voting on the inclusion of the majority of the shares represented at the meeting.
4- Suspension of the General Assembly Resolution
The Authority indicated that it may, at the request of the holder of at least 5% of the company's shares, issue a decision to suspend the resolutions of the general assembly of the company that have been harmed or issued in favor of a certain class of shareholders, or to bring special benefit to the members of the board of directors or others, When proven to have serious reasons for the request.
It stated that it did not accept the request to suspend the implementation of the resolutions of the General Assembly, after three working days from the date of issuance of those resolutions.
- Shareholders, owners of 10%
Of the company's shares, invited the General Assembly to an emergency meeting.