Regulatory Alerts2013-11-18
Procedures and Instructions for Listed Companies with Accumulated Losses Reaching 20% or More of Share Capital
The Capital Market Authority of Saudi Arabia mandates immediate public disclosures and Exchange flagging for listed companies whose accumulated losses reach 20% or more of their share capital. Companies must report when losses cross the 20%, 35%, or 50% thresholds and submit external auditor reports detailing remedial steps to remove the flags. Shares will be delisted if losses remain unaddressed or if the extraordinary general assembly votes to dissolve the company.
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