Flynas’ shareholders approves SAR 1.5bn related-party transactions at EGM
FLYNAS
4264 -2.08% 56.55 -1.20
Riyadh - Mubasher: Flynas Company has announced the results of its Extraordinary General Meeting (EGM), held on 25 June 2026, where shareholders approved several significant financial and governance resolutions.
Key outcomes of the meeting included the approval of 2025 financial statements, the transfer of SAR 43.50 million from the company’s statutory reserve to retained earnings, and the ratification of multiple related party transactions involving board members and major financial institutions.
The meeting, which was conducted virtually from Riyadh, achieved a quorum with a shareholder attendance rate of 70.56%.
The assembly was attended by prominent board members, including Chairman Ayedh Thawab Al Jeaid and Managing Director Bandar Abdulrahman Al Mohanna, alongside the heads of the executive, audit, and nomination and remuneration committees.
In a significant move regarding the company’s capital structure, shareholders voted to transfer the entire statutory reserve, totaling SAR 43.50 million, into the company’s retained earnings.
This decision aligns with the Saudi Companies Law issued under Cabinet Resolution No. 678 of 2022, which removed the mandatory requirement for a statutory reserve, granting companies the flexibility to manage reserves based on their specific operational needs.
The assembly also addressed governance and administrative matters for 2025. Shareholders approved the Board of Directors’ report, the auditor’s report, and the audited financial statements.
Furthermore, the board was discharged from liability for the year ending 31 December 2025, and a total remuneration of SAR 2.87 million was approved for board members for the same period.
For the upcoming financial periods, PricewaterhouseCoopers (PwC) was appointed as the external auditor to review the financial statements for the second and third quarters of 2026, the full 2026 fiscal year, and the first quarter (Q1) of 2027.
A substantial portion of the agenda focused on the ratification of transactions with related parties, ensuring transparency regarding overlapping interests of board members.
Shareholders approved transactions with Banque Saudi Fransi and Saudi Fransi Capital, where Vice Chairman Talal Ibrahim Al Maiman holds board positions.
These included Murabaha facilities with a balance of SAR 1.01 billion, financing costs of SAR 78.9 million, and IPO-related fees totaling SAR 45.3 million for services as lead manager, financial advisor, and underwriter.
Additional approvals were granted for dealings with National Air Services (NAS Holding) involving a SAR 150 million settlement related to IPO proceeds.
The assembly also ratified service agreements with NAS Private Aviation and the Saudi Air Navigation Services (SANS), totaling SAR 117 million and SAR 166.3 million, respectively. The company emphasized that all these transactions were conducted within the ordinary course of business and without any preferential terms or conditions.
Source: Mubasher Source: {{details.article.source}}