Emergency Medical Care Company announced the results of the Extraordinary General Assembly meeting (first meeting), which was held last Thursday, where shareholders approved a package of strategic decisions aimed at strengthening the company’s administrative structure and motivating human resources, according to an official statement published by the company on the Saudi Stock Exchange website.
Employee Stock Program Details
The assembly's decisions included approving the establishment of an employee stock ownership plan and initiating the company's purchase of up to 250,000 of its own shares. This initiative aims to allocate these shares within the employee incentive program, with the purchase to be financed through the company's own resources.
The General Assembly authorized the Board of Directors to complete the purchase within a maximum period of 12 months from the date of the resolution, specifying the program terms and the allocation price if applicable. The resolution also stipulated that the company retain the purchased shares for a maximum of five years until they are allocated to eligible beneficiaries, while adhering to all applicable regulations after this period.
The importance of incentive programs in enhancing institutional performance
The move by "Emergency" to adopt Employee Stock Ownership Programs (ESOPs) aligns with modern trends in corporate governance. These programs are an effective tool for fostering employee loyalty and aligning their interests with those of shareholders. By granting employees a stake in the company, they are incentivized to improve performance and productivity, which positively impacts the company's financial results and share price in the long term, particularly in a vital and competitive sector like healthcare.
Fundamental changes in governance and powers
In addition to the equity program, the General Assembly approved significant regulatory amendments, including:
– Amending the policy for remunerating members of the Board of Directors, subcommittees, and senior executives to ensure its compliance with sound governance standards.
– Amending Article (21) of the company's Articles of Association, which pertains to the powers of senior leadership positions (Chairman, Vice Chairman, Managing Director, and Secretary), thus granting greater flexibility in administrative decision-making.
Approval of transactions with related parties
In the interest of transparency, the General Assembly approved the planned transactions and contracts with "Urgent Care Pharmacy Company," in which board member Dr. Tariq Mohammed Suleiman Al-Hamdan has a direct interest as Vice Chairman of the Board. These transactions include the sale and purchase of medicines, medical supplies, and mobile clinics with an expected annual value of one million riyals, without any preferential terms. It should be noted that the previous year's transactions were zero.
These decisions collectively reflect Tawariyat Company’s endeavor to keep pace with developments in the Saudi market and to strengthen its internal structure in a way that serves future expansion and growth plans in the medical services sector.
