Edarat board proposes raising authorized capital to SAR 50 mln

Logo of Edarat Communication and Information Technology Co.

Edarat Communications and Information Technology Co.'s (Edarat) board of directors proposed today, Sept. 10, amending the company’s bylaws, including an increase in authorized capital to SAR 50 million, according to a statement to Tadawul.

Edarat's issued capital amounts to SAR 12.6 million (fully paid), it added.

The proposal, to be looked into during the company's upcoming extraordinary general assembly meeting, comes in conformity with the new Companies Law and is based on the issuance of the amended Corporate Governance Regulations from the Capital Market Authority (CMA) and its executive regulations, the company stated.

The board also recommended the cancellation of the statutory reserve clause of the company’s bylaws and the transfer of the statutory reserve balance to retained earnings, effective as of the EGM date.

The company also indicated that these recommendations are subject to the approval of the EGM and the concerned authorities.