Al Sagr shareholders disapprove business contracts with related parties

Logo of Al Sagr Cooperative Insurance

Al Sagr Cooperative Insurance Co.’s (Al Sagr) shareholders refused to approve the business contracts concluded between the insurer and other companies that have indirect interests in one of the board members with a valid membership, during the ordinary general meeting (OGM) held on June 17.

The company said in a bourse statement that shareholders also disapproved the business contracts that were concluded between Al Sagr and board members who have direct or indirect interests and whose membership is expired.

In accordance with the principles of corporate governance, the assembly decided to give these members a period of one year to resign from the board membership or to rescind the business contracts concluded with Al Sagr, otherwise their membership in the board will be considered terminated.

Shareholders also refused to approve the board and auditor reports, and financial statements for 2020.

They disapproved the appointment of Baker Tilly and Alkharashi & Co. as external auditors to review Q2, Q3 and 2021, and Q1 2022 financial statements.

Moreover, they refused to endorse the amendment of the policy of nomination criteria for board membership as well as the remuneration policy for the board of directors, committees and executive management.

However, they approved the payment of SAR 3.85 million in bonus to board members for 2020.

For more details about the business contracts refused to be approved by shareholders, refer below: