Profit Distribution Policy
In accordance with the provisions of Article (51) of the Articles of Association of the Company, which provides for the distribution of the company’s annual net profits after deduction of all other expenses and costs, including zakat legally imposed as follows:
(10%) of the net profits shall be avoided to form the statutory reserve of the Company. The Ordinary General Assembly may decide to discontinue such reserve when the said reserve reaches (30%) of the paid up share capital.
2. The Ordinary General Assembly may, on the proposal of the Governing Council, avoid a certain percentage of net profits to form a statutory reserve for the purposes specified by the Assembly.
3. The Ordinary General Assembly may decide to make other reserves, to the extent that it serves the interest of the Company or to ensure the distribution of fixed profits to the shareholders as much as possible. The Assembly may also deduct from the net profits amounts to establish social institutions for the company’s employees or to assist them.
4. The remainder shall be distributed to shareholders at the rate of 5% of the paid-up capital of the Company. The Ordinary General Assembly may also decide to distribute dividends to shareholders from the balance of retained earnings.
5. Subject to the provisions of article 30 of this Statute and Article 76 of the Companies Law, 7.5 per cent of the remainder shall be allocated to the Board of Directors, provided that the remuneration is commensurate with the number of meetings attended by the Member.
6. The remainder shall then be distributed to the shareholders as an additional share of the profits.
7. The Ordinary General Assembly may decide to distribute interim dividends to its shareholders on a quarterly or semi-annual basis, and may delegate the Board of Directors to do so in accordance with a resolution determined annually.