Saudi Arabian Amiantit Co. said accumulated losses fell to SAR 149.59 million, representing 43.42% of capital, according to the auditor’s report issued on Sept. 6, 2020.
The decline in losses was attributed to cutting statutory reserve by 30.2% to offset accumulated losses, the company said in a bourse filing.
A sum of SAR 57.3 million was transferred from the statutory reserve of SAR 189.47 million to partially offset SAR 206.88 million worth of accumulated losses. Thus, the company's accumulated losses stood at SAR 149.59 million, the company said in a bourse statement.
On Aug. 27, Amiantit said that its board of directors should invite shareholders to hold an extraordinary general meeting (EGM) before Sept. 4, and the EGM should convene maximum by Oct. 5, 2020.
In case the company failed to hold the general meeting within 45 days ending on Oct.5, 2020, or if the general meeting was held and failed to issue a decision, the company would be considered terminated, as per the Corporate Law.
The company added that with this announcement, rules of Article 150 of the Companies Law are no longer applicable to Amiantit as its accumulated losses fell below 50% of capital.
Last month, the company’s board decided cutting statutory reserve by 30.2% to partially offset accumulated losses, according to data compiled by Argaam.
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