ACIG shareholders disapprove business contracts with related parties

Logo of ACIG

Shareholders of Allied Cooperative Insurance Group (ACIG) refused to approve the business contracts that were concluded with several companies, during the ordinary general assembly meeting (OGM) held on June 15, according to a bourse filing.

These include business contracts concluded between ACIG and companies that have indirect interests in some members of the board of directors, and the business contracts concluded with the board members who have a direct interest in their personal capacity or family ties and whose membership in the the board is must.

The OGM decided to give these members a period of 90 days ending on Sept. 13, 2021, to resign from the board membership or to rescind the business contracts concluded with United Group Cooperative Insurance Co., otherwise the board membership will be considered terminated.

Shareholders also disapproved the board report for 2020, in addition to the appointment of Khaled Soliman Al-Jasser and Abdullah Al-Harbi as independent board members, to complete the current board term ending on May 17, 2022.

However, they approved the audited financial statements and audit report for 2020, as well as appointing Al Azem, Al Sudairy, Al Shaikh & Co. CPAs and Dr. Mohammad Al-Amari & Co. as external auditors to review and audit financial statements of Q2, Q3, Q4, and 2021, and Q1 2022.

They also endorsed the payment of SAR 1.15 million as remuneration for board members and discharge the board members from liability for 2020.

For more details about the contracts, please refer below: