Wafrah faces termination if EGM not held by April 11

Wafrah for Industry & Development Co. (Wafrah) will be deemed terminated by April 11 under the Saudi Companies Law, if it fails to hold an extraordinary general meeting (EGM) within 45 days from the date its board of directors was informed of losses or shareholders fail to pass a resolution.

The EGM, slated for April 1, was postponed due to the lack of quorum.

In March, Wafrah invited its shareholders to vote on a 61.4% capital cut to SAR 77.17 million from SAR 200 million in order to offset accumulative losses worth SAR 122.83 million.

The company will adopt electronic voting after the Capital Market Authority (CMA) issued a circular to enable shareholders to participate and vote on general meeting agenda items through Tadawulaty system in line with the government’s efforts to prevent the spread of coronavirus.