Al Mulla Rental and Leasing Company held its Extraordinary General Meeting (EGM) on 20 March  2022, and passed a resolution to amend Article (47) of its Articles of Association in accordance with Law No. 79 of 2019 amending Provisions of Law No. 1 of 2016 of the Promulgation of the Companies Law No. 1 of 2016 as follows: Net profits are distributed in the following order:

First: Upon a resolution issued by the Annual General Meeting (AGM) based on the Board of Directors’ recommendation, at least 10% percent of the annual profit shall be reserved as a statutory reserve fund. The statutory reserve may not be used to cover the company’s losses or to secure the distribution of shareholders’ profits at a rate not exceeding 5% of the paid-up capital in the years in which profits do not allow the distribution of this percentage, due to the absence of a voluntary reserve that allows the distribution of this percentage of profits. The amount deducted from the statutory reserve shall be compensated when there is enough profits to cover that amount in the following years, unless this reserve exceeds half of the issued capital. 

Second: 1% shall be allocated to the Kuwait Foundation for the Advancement of Sciences (KFAS)
Third: The AGM, based on the Board of Directors’ recommendation may issue a resolution to deduct 10% of the net profits to form a voluntary reserve to be allocated for the purposes determined by the AGM.

Fourth: A portion of the profits as determined by the AGM shall be deducted to meet the obligations incurred by the company pursuant to the labor law and social security law. These funds may not be distributed to shareholders, and companies may establish a special fund to assist their workers and employees.

Fifth: Subject to the provisions of the Company’s Memorandum of Incorporation, the AGM may, upon the Board of Directors’ recommendation, distribute profits to shareholders at the end of the financial year or the end of each financial period. For those distributions to be valid, it must be deducted from actual profits in accordance with the generally accepted accounting principles. This distribution shall not affect the company’s paid-up capital.