I emphasized the deposit to the shareholders on the tenth day, starting from the day following the General Assembly

“Securities”: Payment of cash dividends does not exceed 30 days from the approval of the distributions

The Authority confirmed that the articles of association of the company may determine the distribution of annual, semi-annual or quarterly profits.

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The Securities and Commodities Authority said that the general assemblies of the listed companies determine the percentage that must be distributed to shareholders from the net profits after deducting the legal reserve and the optional reserve, noting that the company’s articles of association may determine the distribution of annual, semi-annual or quarterly profits.

The Authority stated, in a circular regarding the annual general assemblies of public joint stock companies, that the company must deposit cash dividends for registered shareholders on the tenth day starting from the day following the date of the meeting of the general assembly in which it was decided to distribute those profits, so that it does not exceed the cash dividend payment process. Shareholders have 30 days from the date of issuance of the decision approving these distributions, and the company must deposit cash profits in the market’s bank account, within the period and by the mechanism specified by the market.

She added that in the event that the company achieves profits and the Board of Directors recommends not to distribute profits to the shareholders, the Board of Directors must present to the shareholders in the assembly the justifications for the recommendation, and attach a copy of it with the request submitted to the Authority to approve the invitation to the assembly.

The Authority stated that the agenda should include a clear item on “considering approval of the Board of Directors’ recommendation not to distribute dividends to shareholders based on the justifications presented by the Board in its report to shareholders.”

She indicated that if the company achieved profits for the fiscal year ending on December 31, 2022, with accumulated losses from previous years, the accumulated losses must be fully amortized before any distribution is made to shareholders.

And the Authority indicated that when reducing the capital by the value of the accumulated losses, the company must adhere to the value of the accumulated losses shown in the last audited financial statements, unless the value of the accumulated losses has decreased in subsequent periodic financial statements, and the obligation to use the balance of reserves first to extinguish the losses, and then This is followed by a capital reduction with the value of the remaining accumulated losses.

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