Troubled contractor releases statement to DFM inviting shareholders to attend scheduled General Assembly Meeting
Drake and Scull International, the Dubai-based contractor, has invited its shareholders to attend a scheduled General Assembly Meeting of the company on September 27, 2018, to undertake a special resolution on whether to dissolve the company or to continue carrying out its activities.
In a release to Dubai Financial Market, the firm – which has faced losses since 2015 – explained that it is calling the general assembly meeting in accordance with Article 302 of the UAE Companies Law No. (2) of 2015. This law requires firms to vote on whether they should continue operations once losses exceed 50% of the issued share capital.
“Article 302 of the UAE Companies Law No. (2) of 2015 requires the board of directors of Public Joint Stock companies, in case the losses of a Joint Stock company reach half of its capital, to call for the General Assembly of the Public Joint Stock company to convene, in order to take resolution to dissolve the company before the expiry of its term or to continue in carrying out its activity,” the statement said.
Furthermore, the release said that shareholders would also be informed by the board of directors on the current situation of the company and its future plans. In addition, the release said that shareholders would be updated on developments in the investigation conducted by the new management, with regards to the previous executive management.
According to the latest stock market results, DSI’s share prices saw a 10% drop. The company reported a second quarter loss of $49.2 million compared to a previous year’s loss of $49.8 million.
In a follow up statement, the board of directors and its executive management reiterated that it is ‘exerting all efforts, and will continue to do so, to safeguard the best interests of all its shareholders, and to ensure the seamless operation of the company and its continuity and financial results, and the reflection on the return on shareholder’s equity’.
“The board of directors would also like to note that the inclusion of an item relating to a special resolution to continue the operations of the company in the General Assembly Agenda disclosed this morning is a mere legal requirement in accordance with the Articles of Association of the Company (Article 65) and Federal Law No. (2) of 2015 on Commercial Companies in the United Arab Emirates (Article 302) and is a procedural step that needs to taken; and doesn’t mean that there is an intent to dissolve the company prior to the expiry of its term.”