UAE - Al Khazna reduces paid-capital to AED100 mn
Tuesday, 12 15 2020, Category: Insurance and Reinsurance, Country: U.A.E
The shareholders of Al Khazna Insurance Company gave the green signal to reduce the company’s paid-up capital from AED420 million to AED100 million, thus pruning the share capital by AED320 million or 76 per cent.
This exercise will help extinguish a large part of the accumulated losses that amounted to AED411.36 million as of the end of the fiscal year ending December 31, 2019.
The shareholders have also endorsed the board to consider the use of the legal reserve and the balance of the insurance premium in full to extinguish another part of the accumulated losses while complying with the provisions of Articles 202, 203, 204 of Federal Law No 2 of 2015 regarding commercial companies.
Al Khazna has been going through tough times for the past few years as it has been grappling with losses in most of the recent past quarters.