NOTES TO FINANCIAL STATEMENT
Treasury shares and issued and paid up share capital
Issued and paid up share capital
The authorized share capital of the Company as per Articles of Association is AED 120,000,000 divided into 120,000,000 shares of AED 1 par value per share. As at 31 December 2018, the Company has 118,780,500 shares outstanding and issued of AED 1 par value per share.
In 2013, the Company obtained the necessary regulatory approvals to undertake a share buy-back program until 5 March 2017. A total of 1,219,500 shares were purchased from the market at an average price of AED 1.372 per share amounting to AED 1,673,587. During the Board of Directors meeting held on 4 November 2018, the cancellation of these treasury shares was approved.
In accordance with the UAE Federal Law No. (2) of 2015 concerning Commercial Companies and the Company’s Articles of Association, 10% of profit is to be transferred to non-distributable legal reserve until the balance of the legal reserve equals 50% of the Company’s paid up share capital. This reserve is not available for dividend distribution.