Dubai – The UAE’s Securities and Commodities Authority (SCA) has said that Dubai-listed Marka’s board proposal to cut capital then raise it again required subsequent legal measures.
The SCA stated that it would examine the proposal both finally and legally as well as its impact on shareholders.
After SCA’s approval, the proposal should then be presented to the company’s shareholders, whose attendance should represent at least 50% capital, while approvals should make up at least 75% of shares present, during the meeting, for such special decisions, SCA said via Twitter.
On Wednesday, Marka said its board had proposed trimming capital by AED 450 million, the raising it again by up to AED 250 million "with an option of AED 150 million to be offered to a strategic investor proposed by the board."
Moreover, AED 100 million would be offered to shareholders for subscription, Marka had said, adding that a shareholder meeting was to convene on 4 November, subject to an approval from SCA, to discuss this capital cut and increase.
The SCA stressed that it would investigate the deals carried out by Marka’s previous board, noting that it would take the necessary legal measures if violations had been made.
Results of the investigation will be announced once it is done and once an audit by an international company is completed, the SCA added via Twitter.
Marka last announced trimming its losses to AED 19.98 million in the first six months of 2018 from AED 153.89 million in the year-ago period.
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