This Policy has been prepared in accordance with the requirements of Article (9) of the Corporate Governance Regulations and in accordance with the Companies Law and the Company’s Bylaws.
The Company shall execute the General Assembly resolution, or the Board resolution regarding distribution of dividends to the registered shareholders who owned shares on the eligibility date within 15 days from the due date determined in the General Assembly resolution, or Board resolution for distributing interim dividends.
1. Announcement for the Distribution of Interim Dividends:
The company is obliged to make a prompt disclosure and announcement on Tadawul, whenever a resolution is made by the Board for the distribution of interim dividends on a biannual or quarterly basis.
2. Announcement for the Distribution of Annual Dividends:
The Company shall present a recommendation for the distribution of annual profits to the General Assembly of Shareholders for voting whenever the Board decides. This will be promptly disclosed and announced on the Tadawul website.
The announcement must adhere to the Instructions for Companies Announcements set forth by the Capital Market Authority.
The Company may distribute interim dividends to its shareholders on a biannual or quarterly basis after fulfilling the following legal requirements:
1. The issuance of annual resolution by the General Assembly authorizing the Board to distribute interim dividends.
2. The Company shall enjoy regular positive profitability.
3. The Company shall enjoy reasonable liquidity, and able to reasonably foresee the scale of its profits.
4. The Company shall have distributable profits based on the latest audited financial statements. These profits shall be sufficient to cover the proposed dividend distribution, after deducting the amounts distributed and capitalized of the dividends, after the date of these financial statements. In addition to any official requirements that may be requested by any of the concerned bodies in KSA.
The implementation of this Policy depends on various factors that impact the profit distribution mechanism, including:
a. Any significant changes in the Company’s strategy and operations, including the business environment in which it operates.
b. Any substantial changes in laws, regulations, legislation, and related controls.
c. Any obligations or commitments that impose restrictions on dividend distributions.
Any shareholder who has not received profits from the Company may inquire about their unreceived profits by reaching out to the Company’s Investor Relations Department via email address: investors.relations@sadafco.com or through any inquiry method designated by the Company, and can claim the outstanding profits.
The entitlement of receiving dividends is for shareholders who owned shares in the due date specified in the Board resolution to distribute biannual or quarterly basis interim dividends, which will be announced on Tadawul. Alternatively, it is for those who owned the shares at the end of trading day of AGM meeting, and AGM approval to distribute annual dividends. The resolution shall highlight the entitlement and distribution dates, provided that this resolution shall be implemented in accordance with the stated rules and procedures issued for the implementation of the Bylaws of the listed joint stock companies.
1. The Board shall revise the content of this policy, as may be necessary.
2. This policy will be effective and enforceable after the approval of the Board.
3. Texts or rules, whatsoever, not stated in this policy, will be subject to the application of the Saudi Corporates’ Law, its regulations, Capital Market Authority law and its executive regulations, the Company Bylaws and resolutions issued by the concerned bodies.
4. This Policy has been drawn in Arabic and English texts. In case of any discrepancy or misinterpretation, the Arabic text shall prevail.