CMA suspends AGMs until further notice

March 19, 2020

The Capital Market Authority (CMA) on Wednesday issued a notice asking public joint stock companies and investment funds to suspend their proposed annual general meetings (AGMs) until further notice.

‘The move comes after the decision of the Supreme Committee tasked with handling the developments resulting from the spread of the new coronavirus to suspend all gatherings, events and conferences in the sultanate effective from March 18 until further notice,’ CMA said in a press statement.

Earlier on Tuesday, the CMA had issued a notification in which it extended the deadline for holding AGMs to April 30 to help companies to readjust their dates following the measures announced by the government to curtail the spread of COVID-19.

However, following the new measures announced by the Supreme Committee late on Tuesday, the CMA decided to suspend organising all annual general meetings of listed companies and investment funds.

As per the regulations, the annual general meetings of public joint stock companies and investment funds should be convened within maximum 90 days from end of the financial year of the company. This year all publicly listed companies were required to hold AGMs by March 30, but the meetings have been suspended as part of the measures to control the spread of COVID-19.

As the companies are required to get shareholders’ approval for dividend distribution at their general meetings, it is likely that dividend payments by many companies will also be delayed this year.

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