Etihad Atheeb recommends required procedures as losses exceed 50% of capital

Etihad Atheeb Telecom

Etihad Atheeb Telecom Co. (GO) said that measures and procedures for listed companies with accumulated losses above 50% of capital will apply as its accumulated losses as of March 31, 2021, reached SAR 116.79 million, representing 51.1% of capital.

According to the Companies Law, the board of directors will, within 60 days of becoming aware of losses, invite the extraordinary general assembly (EGM) to meet within 180 days to decide whether to increase or decrease the company’s capital - in accordance with the provisions of the law - to the extent that the percentage of losses decreases to less than half of the paid-up capital, or the company is dissolved before the term specified in its Articles of Association.

In case of non-convening of the EGM within 180 days from the date of the board of directors becoming aware regarding the accumulated losses, expiring on Dec. 23, 2021, or in case the general assembly is unable to resolve the subject matter, the company will be lapsed by the force of the law.

According to the data available with Argaam, the company's accumulated losses amounted to SAR 116.79 million at the end of the fiscal year ending in March 2021, representing 51.10% of the capital.