The Arab Shield Cooperative Insurance Company has set a date for the Extraordinary General Assembly meeting on December 9, 2021 to discuss the capital increase after the merger with Al-Ahly Takaful Company.
According to Arabiya Net, the Arab Shield clarified in a statement that the general assembly will vote on merging Al-Ahly Takaful Company into the Arab Shield Insurance Company in accordance with the provisions of Articles 191, 192 and 193 of the Companies Law.
The company indicated the issuance of 1.4 new shares in Al-Dara Insurance Company for each share owned in Al-Ahly Takaful Company.
This comes in implementation of the binding merger agreement signed between Al-Dara Insurance Company and Al-Ahly Takaful Company on July 12, 2021.
The General Assembly will consider voting to increase the capital of the Arab Shield Insurance Company from 400 million riyals to 638.524 million riyals, in accordance with the terms and conditions of the merger agreement, provided that this increase will take effect upon the entry into force of the merger in accordance with the provisions of the Companies Law and the merger agreement.
The Assembly will also vote on the proposed amendments to the Articles of Association of the Arab Shield Insurance Company in accordance with the formula shown in Annex (1) to this invitation, provided that these amendments shall take effect immediately.
The assembly will also consider voting on amending Article 15 of the company’s articles of association related to the company’s management, as well as voting on amending Article 22 of the company’s articles of association, which is related to the quorum of the board meeting.
In a separate statement, Al-Ahly Takaful announced that the Extraordinary General Assembly will be held on December 9, 2021 to vote on the offer submitted by the Arab Shield Cooperative Insurance Company for the purpose of merging.
