Advanced petrochemical Company prepared the dividend policy in accordance with the Article VII, paragraph (a) of the requirements of the Corporate Governance Regulations in Saudi Arabia, and in light of the Statute of the Company, the Corporate System, and the Registration and Listing Rules.
- This policy shows the company procedures for calculating and determining the amount of the profits, the announcement of distribution, and determining the payment method and timing.
- The company shall announce the distribution of profits in the light of the quarterly or annual results.
Announcement of dividend
- The General Assembly shall approve the distribution of the proposed dividend and the date of distribution, and profits either in cash dividends or bonus shares to eligible shareholders registered in the company’s records at the end of trading on the day of the General Assembly.
- The decision to announce the distribution of dividend must be dealt with separately in the agenda of the Ordinary General Assembly of the shareholders.
- The amount of dividend to be distributed must be determined based on the recommendation of the Board of Directors and during the initial distribution of the company’s net profit for the past year or quarter.
- The company shall inform shareholders about the distribution procedures of profits through the dissemination of this information on the site of the Capital Market Authority (Tadawul) and the company’s Web site .
Sources and amount of profit distribution
- The distribution of the company’s consolidated net profit to shareholders shall be done after the deduction of all general expenses, other costs, provisions including Zakat, and other provisions and reserves as follows:
- 10% of the net profits shall be avoided to form a statutory reserve. The Assembly has the right to stop this retainer once the reserves mentioned reached half of the capital.
- The Ordinary General Assembly ,based on the proposal of the Board of Directors, has the right to avoid a certain percentage of the net profits to form a reserve agreement for a purpose or specific purposes.
- Some of the remaining ,not less than 5% as a paid-up capital, shall be distributed to shareholders as a down payment either in cash or shares as a bonus once approved by the General Assembly and the Competent Authorities.
- Not more than 10% of the remaining shall be reserved as a reward to members of Board of Directors and taking into account the regulations and instructions issued by the Ministry of Commerce in this regard. The remaining shall be distributed to shareholders as an additional profits.
Distribution of the dividend
- Interest shall not be calculated on profits that are not claimed.
- The Company may ,for the purpose of the organization and the completion of the distribution of profits, to hire an external party like one of the banks that do business with. Use of an external party does not exempt the company from a legal responsibility to shareholders regarding the distribution of profits.