Why do economic companies and banks choose the month of March to hold their public associations?

Ayman shape

What is the relationship of December with meetings?

March of every year witnesses a density in the contract of public associations for economic companies and banks, which raises the question about the reason to choose this month to announce the financial results and the shareholders meeting.

To answer the question, the economic expert, Noura Al -Faihani, explained that banks and financial and economic institutions usually conclude the fiscal year in December of each year, and then begins with a review of their financial reports and its exposure to internal and external audit, which requires time to finish this scrutiny, and the appropriate period is in the range of 3 months.

Al -Faihani indicated that the economic institutions are working during that period to develop their work plans and strategies in the next stage, whether they will invest in new projects, or exit from another and take the approval of the shareholders on those plans and strategies, as well as presenting the achievements achieved, calculating profits and estimating budgets and determining the rates of estimated distributions for each share in the event if they have achieved profits, cash reserves and other matters Detailed.

She pointed out that the financial and economic institutions are committed to publishing the financial report and the agenda in the local newspapers, within a period of not less than 21 days from the date of the General Assembly, so that the shareholders and investors are given the opportunity to review all the details and express an opinion in it, and that the General Assembly is not held except by the completion of the quorum, which is more than half of the number of members, and in the event of the incompleteness of the quorum, the postponement will be postponed to a period of 7 days, and if the quorum is not completed at the second meeting, it is done. Delay again and a maximum of two weeks.

The economic expert confirmed that the financial and literary reports that are prepared to present to the General Assembly require a detailed and accurate review to avoid any error that can cause the general assembly to be postponed, to re -adjust a clause or correct a mistake, noting that all these reviews need a long time; Because it is presented to the internal and external auditor, which also needs a sting for its final report.

Al -Faihani explained that the General Assembly is an opportunity to elect the members of the new boards of directors for economic institutions, by voting for shareholders or in the way of presenting the list of members to them and taking approval or objection within the session, and drew attention to the existence of two types of public associations, which are regular and unusual, and the latter is held in the event of the need to take decisions that have been renewed during the year, and need the approval of the shareholders.