Riyadh – Mubasher: Al Rashid Industrial Company has announced that its shareholders approved a significant capital increase during the Extraordinary General Assembly meeting held on 17 June 2026.

The assembly authorized a 50% expansion of the company’s share capital through the capitalization of retained earnings, according to a bourse filing.

This strategic move, along with the election of a new Board of Directors and the approval of the 2025 financial reports, marks a pivotal transition for the industrial firm as it prepares for its next three-year corporate cycle.

The primary resolution passed during the meeting was the recommendation to increase the company’s capital to SAR 120 million.

Eligibility for the bonus shares is restricted to shareholders owning stock at the close of trading on the day of the Extraordinary General Assembly, provided they are registered with the Securities Depository Center (Edaa) by the end of the second trading day following the eligibility date.

The company clarified that any fractional shares resulting from the distribution will be consolidated into a single portfolio and sold at market price. The proceeds will then be distributed proportionally to eligible shareholders within a maximum period of 30 days.

To accommodate this change, the assembly approved amendments to Articles 7 and 8 of the company’s Bylaws, which govern capital and share subscription.

Beyond capital restructuring, the assembly reviewed and approved the Board of Directors’ report, the auditor’s report, and the financial statements for 2025.

Shareholders also voted to appoint PKF Al Bassam & Co. as the company’s external auditor for the 2026 fiscal year.

The audit firm is tasked with reviewing the semi-annual and annual financial statements for a fee of SAR 305,000.

The meeting also addressed corporate governance and related-party transactions. Shareholders ratified contracts valued at approximately SAR 10.47 million conducted with the Al Rashid Box and Plastic Products Establishment in the UAE.

These transactions involved the sale of company products and were noted to have been conducted without preferential treatment, despite the direct and indirect interests of Managing Director Mohammed Abdulaziz Al Rashid Al Humaid and Chairman Fahad Abdulaziz Al Rashid Al Humaid.

A new Board of Directors was elected for a three-year term commencing 2 July 2026 and concluding on 1 July 2029.

The elected board members include Fahad Abdulaziz Mohammed Al Rashid Al Humaid, Mohammed Abdulaziz Mohammed Al Rashid Al Humaid, and Abdullah Suleiman Fahad Al Issa. This is in addition to Ahmed Abdulrahman Abdulaziz Al Muhsen and Mohammed Hamad Al Rashid Al Humaid.

Furthermore, the board was granted the authority to distribute interim dividends for the 2026 fiscal year.

The assembly concluded by approving several internal policy updates, including amendments to the Corporate Governance Regulations, the Audit Committee Charter, and the Nomination and Remuneration Committee Charter.

New frameworks for board membership standards and general remuneration policies were also formally adopted to align with regulatory requirements.