Public Listed Companies Prepare for AGMs.
Muscat, Feb 25 (ONA) --- With the annual general meetings' (AGMs)
season approaching, the companies are forwarding their applications
for approval of ordinary annual general meetings by the Capital Market
Authority (CMA) as most ordinary annual general meetings convene in
March every year.
On the importance of general meetings of the companies and
investment funds, Mohammed bin Saif al-Rashdi, Director of Legal
Affairs and Enforcement Department at CMA said the legislator
conferred on the general meetings a regulatory role that includes
protecting the rights of small shareholders and ensuring integrity,
prohibiting conflicts of interests between related parties as the general
meeting is the supreme authority of any company that takes all
resolutions in material matters over the powers of the board of directors
and their resolutions are final and mandatory.
He added the general meeting of the company has wide powers
as the shareholder can vote and contest its decisions, in addition to
measuring the competency of directors and their ability to contribute in
directing the management of the company, as well as electing the
directors to lead the company in the interest of the shareholders.
The legislator allows the shareholders who hold at least 5% of
the shares to suspend the resolutions of the general meeting resolved
in favor of specific group of shareholders or detrimental to them or for
the benefit of directors or others by presenting an objection to the
board of directors of CMA.
Al Rashdi said that the CMA commenced approval process of the
general meetings of public joint stock companies this season. He
added that the CMA is keen to provide protection of the shareholders to
exercise their rights by organizing the timetable of general meetings to
ensure attendance of the shareholder in all meetings of the companies
he/she invests in. The CMA will dispatch an observer to attend the
general meetings to ensure consistency of the resolutions with the law.
CMA is also monitoring the companies' disclosure through the MSM
system, the key resolutions taken by the general meeting in the day
following the day of the meeting in an adequate time prior of trading
Al Rashdi said the legislator has set out an integrated legal
framework ensuring the rights of shareholders in the general meeting
and provides for regulatory role in the general meeting as the matter
relates to exercising the rights and active participation in the works of
the general meetings.
Copyright (C) 2019. Oman News Agency. All rights reserved. Provided by SyndiGate Media Inc. ( Syndigate.info ).