Riyadh – Mubasher: Najran Cement Company has announced the results of its Ordinary General Meeting (OGM), held on 25 June 2026.
During the session, shareholders took the notable step of rejecting the auditor’s report for 2025 while simultaneously approving a mandate for the board of directors to distribute interim dividends for 2026.
The meeting, which was conducted via modern technology from the company’s headquarters in Najran, proceeded as a second session after the initial meeting failed to reach a legal quorum.
The second meeting was convened one hour after the scheduled time for the first session, in accordance with regulatory procedures.
Despite the lower attendance threshold required for a second meeting, the turnout represented 22.3% of the company’s capital.
The assembly was attended by key leadership figures, including Chairman Fahad bin Abdullah Al Rajhi, Vice Chairman Majed bin Ali bin Musallam, and several other board members and committee heads, ensuring the presence of the necessary governance oversight during the voting process.
In a significant development regarding the company’s financial reporting, the general assembly voted against approving the auditor’s report for the fiscal year ending 31 December 2025.
While the disclosure did not specify the reasons for the rejection, such a move typically indicates shareholder dissatisfaction or a requirement for further clarification regarding the auditing process or the presentation of the prior year’s financial statements.
Despite the rejection of the 2025 report, shareholders approved the appointment of United Accountants (RSM) as the company’s external auditor for the upcoming periods.
Based on the recommendation of the Audit Committee, RSM will be tasked with examining and auditing the financial statements for the second, third, and annual periods of 2026, as well as the first quarter (Q1) of 2027. The agreed-upon professional fees for these services are set at SAR 475,000, excluding Value Added Tax (VAT).
Shareholders voted to reject a proposal to delegate the General Assembly’s authority to the Board of Directors regarding the licensing requirements stipulated in Article 27 of the Companies Law. This article generally pertains to conflicts of interest and competing businesses, and the rejection means the board will not have the delegated power to authorize such matters for the typical one-year period or until the end of the current board cycle.
However, the board did receive a vote of confidence regarding capital distribution. The assembly approved the authorization of the Board of Directors to distribute interim dividends to shareholders on a semi-annual or quarterly basis for the fiscal year ending 31 December 2026.
This move provides the board with the necessary flexibility to manage liquidity and provide regular returns to investors throughout the current year, provided the company meets the regulatory requirements for such distributions.
