At its First Extraordinary General Assembly, held Thursday, April 6, 2017, Alinma Bank approved the distribution of SAR 745 million in dividends to shareholders for the 2016 fiscal year. The dividend payment equals 5% of the bank’s capital after deductions for Zakat. All registered shareholders as of the date of the assembly are eligible to receive their share of the dividend payment. Disbursements are set to begin on Wednesday, April 19, 2017.
Furthermore, the assembly approved that, henceforth, an amount of not more than 1% of the bank’s net profit would be allocated annually to a reserve account designated for corporate social responsibility efforts. Use of the funds will be subject to the oversight and approval of the Alinma Bank Board of Directors.
Additionally, the assembly approved all other agenda items presented during the course of the meeting, and specifically approved the following:
- Financial statements for the fiscal year that ended December 31, 2016
- The report of the board of directors for the fiscal year that ended December 31, 2016
- The independent auditor’s report on the bank’s accounts for the fiscal year that ended December 31, 2016
- Discharge of the members of the board of directors
- Formation of the bank’s audit committee (which began its 3-year term on May 21, 2016) along with definitions of its functions and procedures, and remuneration for its members
- The amendment of the Alinma Bank Articles of Association in accordance with new corporate regulations
- Appointment of independent auditors for the 2017 fiscal year, along with fees for their services
- Business and contracts between the Alinma Bank and Alinma Tokio Marine for the coming year
It is important to note that Alinma’s decision to formally allocate a percentage of its net profits to corporate social responsibility efforts is in line with its ongoing mission to be a force for good in the kingdom. Since its inception, Alinma has made significant contributions through both charitable work as well as internal programs designed to yield a net benefit to society. With the new reserve account, Alinma’s capabilities in this regard will be significantly enhanced.