Lazurde says EGM decision on withholding board remuneration ‘binding’

Logo of Lazurde Company for Jewelry

Lazurde Company for Jewelry stated that the decision of the extraordinary general meeting (EGM), dated June 30, 2022, on disapproving the disbursement of SAR 2.54 million in remuneration to members of the board and committees for 2021 is effective and binding, according to a filing to Tadawul.

The company added that the explanatory announcement published on Tadawul on Sept. 28 aims to clarify the statutory basis adopted by the company to specify the remuneration of the board and committee members for 2021.

On Sept. 28, the company said the remuneration of board members is due and disbursed based on the provisions of the company’s bylaw and remuneration policy as approved by the general assembly on June 2, 2021, as per the relevant provisions of the Companies Law.

The said remuneration includes fees due to members for attending board and committee meetings. The said fees were predetermined by the general assembly and therefore constituted binding legal and contractual obligations towards the company’s designated members of the board of directors and its committees.

During the EGM held on June 30, shareholders did not approve discharging board members from liability and paying SAR 2.54 million in remuneration for 2021, according to data available with Argaam.