Alujain to undertake regulatory procedures to protect shareholders' rights

Alujain Corp said in a bourse statement that it will undertake all regulatory procedures to protect the interests and rights of its shareholders. 

Alujain explained that its former board of directors, before dismissal in 2017, approved amending NATPET's articles of incorporation.

Under the amendment, 75 percent of shareholders are required to vote for the board dismissal, while the remaining 25 percent can reject the dismissal decision.

NATPET current board of directors denied Alujain Corp its rights for board representation and voting on the financial and operational decisions. Accordingly, Alujain shareholders were affected, though the Saudi-listed company owns a majority stake in NATPET (a 57.4 percent stake).

Alujain Corp was also denied its voting rights. The company submitted a request to the Ministry of Commerce and Investment to adjust the related articles of incorporation.

NATPET however filed a lawsuit after being ordered by the ministry to adjust those articles, Alujain added.

In addition, Alujain's current board has tried to reach an amicable settlement with NATPET to achieve shareholders' interest, but no reasonable outcome was reached.

NATPET's board have also rejected or suspended Alujain requests to hold a general assembly meeting. The subsidiary's board members also have redrafted some agenda items with regard to the submission of financial statements, the audit committee regulations, voting on dividends and election of new board members.

More than two months have passed since NATPET's extraordinary general assembly has approved dividend distribution for fiscal year 2018. To date, the company failed to distribute those dividends in breach of the regulations of unlisted companies.

NATPET more than once delayed the delivery of quarterly and annual financial statements for and abstained from providing any operational or financial data under various pretexts.

Two months after Alujain Corp requested NATPET to submit Q2 2019 financial results, NATPET's CEO said the company cannot deliver its quarterly statements to Alujain as NATPET shareholders rejected the request.

Accordingly, Alujain Corp has provided full details on the situation to MOCI and the Capital Market Authority, offering solutions to protect its shareholders' interests.

Alujain also submitted a request to NATPET to convene a general assembly meeting as soon as possible to vote on certain items, such as ordering the board to submit quarterly statements on time to Alujain and electing a new one.