Riyadh – Mubasher: BAAN Holding Group has concluded its Extraordinary General Meeting (EGM), where shareholders approved the financial statements for 2025 and authorized a significant capital restructuring plan.
During the session held on 28 June 2026, investors voted to utilize the company’s share premium account to extinguish accumulated losses totaling SAR 263.64 million, marking a strategic move to stabilize the firm’s balance sheet.
The meeting, which took place at the company’s headquarters in the Al Murooj district of Riyadh and via modern technology platforms, saw a high level of engagement with a reported shareholder attendance rate of 73.69%.
The assembly was presided over by Chairman Sami bin Abdulmohsen Al Hokair, alongside Vice Chairman Faisal bin Mohammed Al Malik and other key board members and committee heads.
A primary focus of the assembly was the ratification of the company’s financial performance for 2025.
Shareholders reviewed and approved the Board of Directors’ report, the independent auditor’s report, and the annual financial statements.
Following these approvals, the assembly granted a formal discharge to the members of the Board of Directors for their management during the 2025 period and approved a total remuneration of SAR 1.50 million for the board members.
In a move aimed at improving the company’s financial health, the assembly approved Item 8 of the agenda, which authorizes the transfer of funds from the share premium account—originally generated from capital increases—to the accumulated losses account.
This transaction will effectively wipe out SAR 263.64 million in accumulated losses. The Board of Directors has been officially mandated to complete all necessary regulatory and accounting procedures to finalize this restructuring.
The assembly also addressed governance and related-party transactions. Shareholders approved the renewal of the board’s authority to engage in business and contracts where board members may have a direct or indirect interest, in accordance with Article 27 of the Companies Law.
Specifically, the board received authorization to continue activities related to hospitality and hotel operations for the coming year.
Significant related-party transactions involving the Abdulmohsen Al Hokair Holding Group were also ratified. These included lease agreements valued at SAR 43.66 million and service contracts totaling SAR 3.67 million for 2025.
The company noted that Chairman Sami Al Hokair and Vice Chairman Faisal Al Malik held indirect interests in these deals, which were conducted without preferential terms or conditions.
In May, the company rolled out a strategic plan to fully extinguish its accumulated losses before the end of the second quarter (Q2) of 2026.
