The Saudi Cement Company has officially invited its shareholders to attend the upcoming General Assembly meeting set for April 30, 2025. This critical meeting will center on approving significant financial motions, including the board's recommendation to distribute cash dividends.
Shareholders will be asked to vote on a distribution of 1.5 riyals per share for the second half of 2024, amounting to a total of 229.5 million riyals, representing 15% of the company’s capital. Importantly, this dividend will be available to shareholders who own shares by the end of the meeting date and are recorded in the company’s shareholder registry at the securities depository by the end of the second trading day following the eligibility date. The disbursement of these dividends is scheduled to begin on May 12, 2025.
The agenda for the General Assembly includes several key activities intended to ensure transparency and uphold corporate governance. Shareholders will review the report from the Board of Directors which pertains to the financial year ending December 31, 2024. This report will be pivotal in fostering discussions about the company's performance and strategic direction.
In addition to reviewing the Board's report, the assembly will scrutinize the financial statements for the same fiscal year, allowing stakeholders to gain insights into the company’s financial health and operational outcomes. Following this review, shareholders will discuss and subsequently vote on the auditor's report concerning the company's financial accounts for the financial year.
Another important item on the agenda is the potential discharge of members of the Board of Directors for the financial year ending December 31, 2024. This discharge is a procedural step critical to affirming that the Board has fulfilled its fiduciary duties.
The assembly will also consider the appointment of auditors based on recommendations from the Audit Committee. These auditors will be tasked with reviewing and verifying the company's financial statements for the second and third quarters, as well as the annual accounts for the fiscal year 2025 and the first quarter of 2026. Part of this decision involves defining the fees associated with these auditing services.
Moreover, shareholders will deliberate over contracts between the company and Saudi Cement Products Company. Notably, this is significant as the board member Muhammad bin Ali Al-Qarni has an indirect interest in these transactions, which totaled 31.37 million riyals for the year 2024 primarily for the purchase of cement bags. Importantly, there are no preferential conditions associated with this type of contract.
Similarly, the assembly will consider contracts with the National Contracting Company, wherein board member Amin bin Musa Al-Afifi holds an indirect interest as well. The transactions in this case amounted to 6.26 million riyals for insuring the company’s assets, excluding medical insurance, also without any preferential conditions noted.
Another significant point of consideration is the authorization of the Board of Directors to distribute interim dividends for the financial year 2025 on either a semi-annual or quarterly basis. This motion reflects the company’s commitment to providing regular returns to its shareholders, ensuring financial engagement and satisfaction.
Beyond financial matters, the General Assembly will consider amending Article 3 of the company's articles of association, relating to the company’s purposes and activities. Such an amendment could align the company’s objectives more closely with evolving market dynamics and strategic goals.
As these proceedings unfold on April 30, 2025, the implications for shareholders and the strategy laid out by the Board are set to play a pivotal role in how the Saudi Cement Company positions itself in the competitive market landscape. The decisions made in this General Assembly will ultimately shape both the company’s immediate financial returns and its long-term strategic goals.
With this meeting on the horizon, shareholders are poised to engage in significant discussions that will guide the company toward its financial future.
