The shareholders of Shuaa Capital, one of the country’s largest investment banks, yesterday gave the green light to their management to continue operations and resolve a long-running dispute over a convertible bond.
According to national law, shareholders have the option to dissolve a company if its annual losses amount to more than half of its capital. Last year Shuaa posted a Dh949 million (US$258.3m) loss, compared with Dh550m in paid-up share capital.
Shareholders yesterday gave the board blanket permission to renegotiate the terms of the bond with Dubai Banking Group. As part of this, they also authorised the issue of more shares to pay for the bond, should that become necessary.
Shuaa has said it wanted to find “a creative solution” to end the dispute. The vote was unanimous on both issues.
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