National Gypsum Company (Gypsco), one of the companies listed on the Saudi Stock Exchange “Tadawul”, announced the postponement of the Extraordinary General Assembly meeting for the second time in a row, which was scheduled to be held on Wednesday, January 28, 2026. This postponement came as a result of not reaching the legal quorum required for the validity of the meeting, reflecting challenges in gathering sufficient participation from shareholders to make important decisions related to the future of the company.
According to the official statement issued by the company and published on the Saudi Stock Exchange (Tadawul), attendance at the first meeting, scheduled for 7:30 PM, was only 22%. The same percentage remained at 22% for the second meeting, which was called an hour later. This percentage is insufficient to hold the Extraordinary General Assembly, which, according to Saudi company law, requires a specific quorum to make decisions, thus necessitating its postponement to a later date.
General context and importance of the legal quorum
Extraordinary general meetings are pivotal events in the life of publicly traded companies, dedicated to discussing and approving fundamental amendments not covered by ordinary general meetings. These resolutions typically include increasing or decreasing capital, amending the company's articles of association, or mergers and acquisitions. A quorum is the minimum percentage of shareholders (or their representatives) required for the meeting to be legally valid and its resolutions binding. This requirement ensures that major strategic decisions are made only with broad participation and representation from the shareholder base, thus protecting their rights.
Expected impact on the company and investors
Postponing a meeting of this importance could impact the company's trajectory and strategic plans. As a major player in the Saudi Arabian building materials sector, Gypsum Co. (Gypsum Co.) may be poised to make expansion or financing decisions to support major projects related to Saudi Vision 2030. This delay means these decisions will be put on hold, potentially raising investor concerns about the company's ability to execute its strategies on schedule. It could also temporarily affect market confidence until a new date is set and a quorum is secured.
Future steps
In its statement, GEBSCO confirmed that it will convene a third meeting at a later date, pending approval from the relevant regulatory authorities. It is worth noting that the quorum requirements for a third meeting are typically more flexible, increasing the likelihood of its successful convening. Shareholders and investors will await further announcements to determine the fate of the items on the agenda.
