AYYAN shareholders OK SAR 200M rights issue

Logo of AYYAN Investment Co.

Shareholders of AYYAN Investment Co. approved the board's recommendation on raising capital by 24.80%, during the extraordinary general meeting (EGM) held on July 8.

The capital will be increased through a rights issue, AYYAN said in a statement to Tadawul.

Meanwhile, shareholders rejected an amendment to Article 16 of the company's bylaws, which deals with management.

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The Saudi Exchange (Tadawul) announced in a separate statement that the stock fluctuation limits will be based on a share price of SAR 16.28 for July 9, and the outstanding orders will be canceled.

Thus, AYYAN’s rights will be deposited into investor portfolios on July 11, 2024.

According to data available on Argaam, Article 16 of the company’s bylaws stipulated that the company is managed by a board consisting of seven members appointed by the ordinary general assembly for a period not exceeding three years, provided that cumulative voting is the election method.

The members of the board shall be jointly responsible for compensating the company, the shareholders, or others for the damage that arises from their mismanagement of the company’s affairs or their violation of the provisions of the law or the company’s bylaws. Any condition requiring otherwise shall be deemed null and void.

The responsibility falls on all members of the board if the error arises from a decision issued unanimously. As for decisions issued by a majority of votes, the opposing members shall not be deemed responsible as long as they expressly prove their objection in the minutes of the meeting.

Absence from the meeting in which the decision was issued is not a reason for exemption from responsibility, unless it is proven that the absent member was not aware of the decision or was unable to object to it later.

The proposed amendment states that the company is managed by a board of directors consisting of seven members, who are required to be natural persons. They are elected by the ordinary general assembly for a period not exceeding four years, and they may be re-elected for another term or terms.