Hilal Cement Company held its Extraordinary General Meeting (EGM) at the company’s headquarters on Tuesday, 21 June 2022, and approved the Board of Directors’ recommendation to reduce the Company’s issued and fully paid capital, since it exceeds the company’s need as reflected in the interim financial statements for the interim period ended  31 March 2022, during which the Company amortized the remaining portion of its debts and realized profits. The Company’s capital was reduced by canceling 20 million shares at a nominal value of 100 fils per share, at an aggregate amount of KWD 2 million, by reducing the issued and fully paid capital from KWD 5 million to KWD 3 million distributed over 30 million ordinary shares, at the share nominal value, and all shares are in cash.
The Company’s issued and fully paid-up capital was reduced by 40% (40 shares for every 100 shares) and the Board of Directors is authorized to determine the record date for this reduction after the completion of the month’s procedures, and to determine the date of distribution to the shareholders registered in the company’s records on the record date, pro rata to each shareholder’s interest in the Company. The board of directors is also authorized to dispose of the fractional shares that may result from the capital reduction, and to delegate whomever they deem fit to move forward on implementing this process, fulfill the requirements and obtain the required approvals in line with the provisions of the law, regulations and resolutions issued by the regulatory authorities.
Accordingly, Article (6) of the Memorandum of Incorporation and Article (5) of Chapter One (B) of the Articles of Association were amended, as follows: The Company’s authorized capital was set at KWD 5 million, distributed over 50 million shares, all of which are in cash. The Company’s issued and fully paid-up capital was set at KWD 3 million, distributed over 30 million shares, at a nominal value of 100 fils per share, all of which are in cash shares, subject to receiving regulatory approvals.