Woqod EGM approves key amendments
08 Jun 2017 - 1:12
By Mohammad Shoeb / The Peninsula
Qatar Fuel's (Woqod) Extraordinary General Assembly (EGM) gave approval to all items on the agenda meeting, including two key amendments in Articles of Associations exempting some State or State-backed entities, such as Qatar Investment Authority, from the maximum limit of company shares ownership.
Under the approved amendments, the State of Qatar, Qatar Foundation, Qatar Investment Authority and Qatar Holding Company will be exempted from the requirement for maximum limit of company shares ownership, provided for by Article (9-1) of the Articles of Associations, specifying the maximum ownership limit at 0.000333 of the share capital, currently equaling (33.140) shares.
The amendments in the Articles of Associations are in line with the recent legal and substantive developments witnessed by the company, including requisites of Corporate Governance System.
The EGM, which was postponed twice earlier due to lack of quorum (75 percent of share capital), was presided over by Ahmed Saif Al Sulaiti, Chairman of the Board of Directors on Tuesday.
Saad Rashid Al Muhannadi, CEO of Woqod, pointed out that this amendment was effected to cope with the requirements of the Decision No (1) of the year 2016 issued by Qatar Financial Markets Authority (QFMA) regarding the subject matter.
The amendments also included increasing the membership of the Board of Directors from seven members to nine members, by giving the National Retirement & Social Insurance Fund the right to appoint 2 more Board members, maintaining Qatar Petroleum right to appoint 3 members including the Chairman and the Vice-Chairman, and also the General Assembly right to elect four members.
Al Muhannadi said that the underlying reason for the proposal for the increase of the Board membership is to make the Board membership commensurable with the proportionate increase of company share capital, assets and the diversification and development of its projects, in addition to the National Retirement and Social Insurance Fund entering as a big shareholder with a 20 percent stake in the company share capital.
He also said that it is of crucial importance to preserve the private sector membership at four members, since the interests of the private sector will be jeopardised by maintaining board membership at seven members and at the same time selecting the Fund representatives by election, as this will result in decreasing the private sector representation in the Board.
Another important amendment comprised a change in the mechanism for issuing resolutions in the EGM.