Riyadh - Mubasher: Tourism Enterprise Company (Shams) has officially invited its shareholders to an Ordinary General Assembly meeting scheduled for 16 July 2026, to vote on a high-stakes proposal to dismiss the current Board of Directors.
The request for dismissal, submitted by a group of shareholders representing 10.04% of the company’s capital, cites significant dissatisfaction with the firm’s financial trajectory, operational results, and the erosion of shareholder equity through accumulated losses.
The meeting is slated to take place at 7:00 PM at the Palm Beach Resort in Al Khobar, with provisions for shareholders to participate both in person and virtually via modern technological platforms.
This dual-attendance format ensures broad accessibility for the investor base as they prepare to decide on the future leadership of the organization.
The primary agenda item is a vote on the removal of the sitting Board of Directors.
This motion was spearheaded by three major stakeholders: Mr. Saeed bin Saleh bin Abdulaziz Babiker, Lama International Investment Company, and Saleh Abdulaziz Babiker Sons Trading and Contracting Company.
Collectively, these entities hold a 10.04% stake in Shams, providing them the regulatory standing to call for such a vote.
The justifications provided by the petitioning shareholders for the dismissal are centered on three critical areas of concern.
First, they assert that the company’s financial and operational performance has consistently failed to meet investor expectations. Second, they highlight the impact of accumulated losses, which have led to a persistent decline in total shareholders' equity.
Finally, the group alleges a failure by the current leadership to optimally utilize available resources to expand or develop the company’s core business activities.
Should the assembly approve the dismissal of the current board, the second item on the agenda involves the election of a new Board of Directors from a pool of candidates.
The proposed term for the new board would span four years, beginning on 17 July 2026 and concluding on 16 July 2030.
To ensure a valid session, the Ordinary General Assembly requires a quorum of at least 25% of the company’s shares. If this threshold is not met during the first call, a second meeting will be convened one hour later.
Under Saudi regulatory frameworks, the second meeting is considered valid regardless of the number of shares represented.
Shareholders registered in the company’s records at the Securities Depository Center (Edaa) by the end of the trading session prior to the meeting are eligible to attend and vote.
Electronic voting through the Tadawulaty service is scheduled to begin at 1:00 AM on 12 July, and will remain open until the conclusion of the assembly.
