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Dubai-listed Islamic Arab Insurance Co. (Salama) clarified today, Oct. 15, that Mustafa Ghazi Kheriba is still a member of its board.
The update came after Tadawul-listed Salama Cooperative Insurance Co. announced in a bourse filing on Oct. 14 that two major shareholders, owning more than 5% of capital, requested to hold an ordinary general meeting (OGM) to vote on the dismissal of board director, Mustafa Kheriba.
Islamic Arab Insurance, in a statement to Dubai Financial Market (DFM), noted that the announcement by the Saudi firm does not have any impact, or relationship, to Kheriba’s capacity as its board member.
The Dubai firm said that Saudi Salama elected Kheriba to its board during a general assembly on Oct. 12, after he was nominated as a shareholder in the capital of the Saudi company.
Kheriba, in his capacity as a board member of Saudi Salama, requested for company documents and reports to ensure he could discharge his duties, in accordance with the provisions of the corporate governance regulations issued by Saudi Arabia’s Capital Market Authority (CMA), Islamic Arab Insurance said.
He also notified his reservations on irregular procedures in the running of Saudi Salama, during a board of directors meeting on Oct. 13, but he was surprised that his requests were ignored. He was informed directly that a shareholder, who owns more than 5% of the company’s shares, has notified the board of directors that he wanted to call an ordinary general assembly meeting to revoke Kheriba’s position as member of Saudi Salama’s board, the statement added.
Following this, Kheriba sent an official letter to the Saudi Arabian Monetary Authority (SAMA) on Oct. 14, leaving the matter in its custody, confident that the Saudi regulatory bodies will take the necessary measures in the regard, Islamic Arab Insurance said.
Therefore, the matter does not affect Kheriba’s position as a member of board of directors of Islamic Arab Insurance, the statement added.
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