Saudi Electricity Co.’s (SEC) shareholders are set to vote on treatment of the SAR 3.35 billion dividend owed to the Saudi Arabian Oil Co. (Saudi Aramco) since SEC’s inception until 2017 during the extraordinary general assembly meeting that will be held on Dec. 27, 2020.
This amount will be treated as a debt, in favor of the Ministry of Finance. The dividend referred to in the settlement and Mudarabah instrument signed between the company and the Ministry of Finance will be included in the financial liabilities owed to the government by the company.
Shareholders will also vote on allocating a consensual reserve to pay the profit rate of the Mudarabah instrument, in accordance with percentage and mechanism mentioned in that agreement.
They will also authorize the board of directors to transfer funds from the company's retained earnings to form the reserve, and use it in paying the Mudarabah instrument profit rate.
Meanwhile, shareholders will elect members of the board of directors for the upcoming three-year term starting on Jan. 21, 2021.
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