Arabian Pipes clarifies measures after accumulated losses reach 77.8% of capital

Measures and Time Frames For Accumulated Losses

Date of announcing accumulated losses reached 50% or more of its capital

June 9, 2021

Date of notifying board of directors about the accumulated losses

June 8, 2021

Date of the period given to the board to invite the extraordinary general meeting (EGM) as per Article 150 of the Companies Law

Aug. 7, 2021

Deadline for convening the EGM to address accumulated losses as per Article 150 of the Companies Law

Dec. 5, 2021

Non-convening of the EGM within 45 days from board’s knowledge of the losses or if the meeting was convened but no decision taken

Paragraph No. 2 of Article 150 of Companies Law dictates that in case on non-conveying of EGM within 180 days from the date the board came to know of the accumulated losses (which expires on Sept. 21, 2021), or in case the general assembly fails to resolve the subject matter, the company will be lapsed by the force of the law