SABIC shareholders to vote on amending bylaws on June 10

Saudi Basic Industries Corp.’s (SABIC) shareholders are set to vote on amending bylaws related to the articles of incorporation, during an extraordinary general assembly (EGM) on June 10, 2020.

According to a bourse filing, the bylaws are related to the head office, ownerships, participation and merger, shares ownership, capital hike and cut, and privileged shares.

Shareholders will also vote on bylaws related to the board of directors formation, authority and jurisdiction, as well as the remuneration of the chairman, CEO and board members, and appointment of auditor/comptroller.

The meeting's agenda also includes voting on amending bylaws related to dividend distribution, debt instruments, and formation of audit committee.

In addition, some bylaws have been proposed to be deleted from the articles of incorporation. This includes the article that says, the government - represented by the Public Investment Fund (PIF) – shall retain ownership of at least 25% of the shares of the corporation throughout the whole duration of the corporation.

The article further says that a portion of these retained shares may be sold by virtue of Cabinet decree (decision of the council of ministers) by the normal procedure followed in the public offering of the shares of joint stock companies for general subscription according to the relevant laws.

Any single person shall not be entitled to own more than the ratio of one of one percent (1%) of the corporation's capital, except for Saudi public corporations / organizations.

According to data available with Argaam, on March 27, 2019, Saudi Aramco signed a share purchase agreement to acquire a 70% majority stake in SABIC from the Public Investment Fund (PIF).

Saudi Aramco recently said that the planned acquisition of a 70% stake in SABIC from PIF is on track to close in Q2 2020.