Salama says Article 150 of old Companies Law waived; capital hike procedures ongoing

Logo of Salama Cooperative Insurance Co.

Salama Cooperative Insurance Co. said that, as per the new Companies Law that entered into force on Jan. 19, it is not obliged to abide by the provisions of Article (150) of the old Companies Law due to the implementation of the new law, according to a statement to Tadawul.

The insurer also said it will start the procedures for updating its articles of association in accordance with the new Companies Law and its implementing regulations and related laws and regulations.

Meanwhile, Salama’s capital increase procedures are ongoing and it will announce any future development in this regard. It also noted that there is no related financial impact.

Shareholders approved, on Dec. 15, 2022 proceeding with capital hike procedures and obtaining the approval of the of the relevant authorities. Meanwhile, they rejected a proposal to dissolve the company after obtaining regulatory approvals.

Salama submitted, on Feb. 12, a rights offering application to the Capital Market Authority (CMA) to raise capital.

In November, 2022, the Saudi Central Bank (SAMA) approved the request received from the company to increase its capital from SAR 100 to SAR 200 million through a rights issue.