In line with the precautionary measures to curb the spread of Coronavirus pandemic and to cope with the digital transformation, the Capital Market Authority is preparing to receive the requests for convening annual general meetings of public joint stock companies and investment funds. To this end, the CMA issued a circular to the public joint stock companies, investment funds, audit firms and law firms emphasizing the importance of complying with the provisions of the Commercial Companies Law  governing general meetings as well as the rules for convening general meetings of companies and funds via electronic means.

Circular  No. 4/2021 included the procedures to be taken into account for convening general meetings such as specifying the venue of the meeting in the notice  whereas the shareholder or unitholder can exercise the right attend the general meeting and vote on its resolutions whether attending personally or via electronic means administered by Muscat Clearing and Depository Company (MCD). The circular urged the directors and those who are legally required to attend the meeting to be present in the venue of the meeting to interact with the shareholders and unitholders attending personally or via the portal.

The circular states the  notice and the agenda of the general meeting must be sent to the shareholders and unitholder 15 days before the date appointed for the meeting. The circular points out that the notice to the shareholders and unitholder will be through the general meetings portal administered by MCD without the companies being obliged to send the notice to each shareholder on the address registered in the shareholders’ register.

General meetings of companies and fund have broad powers and the shareholder has the right to vote or object the resolutions further to measuring the efficiency of the directors and their ability to direct the  executive management  of the company in addition to electing the members of the board of directors to achieve the interests of the shareholders.

It is noteworthy that 171 general meetings were approved before the spread of the pandemic last year. Then, after the decision to suspend the general meetings and  then to  resume convening general meeting via the electronic portal,  new agenda were approved cancelling the previously approved agenda, 174 general meetings were held through the portal.  Two general meetings were also held for the bondholders of Dhofar Insurance Company through the portal in 2020.