115 / 129
ANNUAL REPORT
2016
N
otes To The Consolidated Financial Statements
AL MAZAYA HOLDING K.S.C.P. AND ITS SUBSIDIARIES
As At 31 December 2016
16. SHARE CAPITAL, SHARE PREMIUM, ANNUAL GENERAL ASSEMBLY AND CASH DIVIDEND
68,827,896 68,827,896
688,278,956 Shares of KD 0.100 each
2016
KD
Authorised, issued and fully paid
2015
KD
a) Share capital:
b) Share premium:
Share premium represents the cash received in excess of the par value of the share issued. This is not available for
distribution.
c) Dividend and annual general meeting:
The board of directors have proposed a cash dividend of 8% (2015: 7%) for the year ended 31 December 2016
which is subject to approval at the annual general meeting.
The annual general meeting of the shareholders held on 28 March 2016, has approved the cash dividend of 7%
for the fiscal year ended 31 December 2015.
d) Board of directors remuneration:
The board of directors’ have proposed directors’ remuneration for the year ended 31 December 2016 amounting
to KD 185,000 which is subject to approval by annual general assembly.
The proposed board of director’s remuneration amounting to KD 160,000 for the year ended 31 December 2015
was approved by the annual general assembly held on 28 March 2016.
17. RESERVES
i) Statutory reserve
In accordance with the Companies Law and the Parent Company’s Memorandum of Incorporation, 10% of the
profit for the year attributable to shareholders of the Parent Company (before contributions to KFAS, NLST, board
of directors’ remuneration and Zakat) has been transferred to statutory reserve. The Parent Company may resolve to
discontinue such annual transfers when the reserve totals 50% of the paid up share capital.
Distribution of the reserve is limited to the amount required to enable the payment of a dividend of 5% of paid up
share capital to be made in years when accumulated profits are not sufficient for such dividend payment.
ii) Voluntary reserve
The Parent Company’s Memorandum of Incorporation require that 10% of the profit for the year attributable to the
shareholders of the Parent Company (before contributions to KFAS, NLST, board of directors’ remuneration and
Zakat) has to be transferred to a voluntary reserve. There are no restrictions on distribution of voluntary reserve.
An amount equivalent to the cost of purchase of treasury shares have been earmarked as non-distributable from
voluntary reserve throughout the holding period of treasury shares.
112