- 21/01/2014: Mr. Waheed Shaikh submitted his resignation from Board Membership and accordingly Mr. Amin Shaker was temporally appointed to fill the vacant seat. The appointment of Mr. Shaker was approved by shareholders during the EGM that was held on 24/04/2014, in which cumulative voting method was exercised.
- 19/10/2014: the EGM approved the appointment of Mr. Saleh Binladen, Mr. Joseph Vecchiolla and Mr. Waheed Shaikh to fill the newly created seats and complete the current membership cycle (2012-2015), in which cumulative voting method was exercised.
The current 3-year cycle for Board Membership shall expire by 24/04/2015. Accordingly, Members of the Board of Directors will be reelected in the General Assembly Meeting that will be held in 2015, where cumulative voting method will be exercised as per Article (37) of the company’s by-laws.
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ANNUAL REPORT 2014
17. RELATED PARTY TRANSACTIONS
During FY2014, the Company continued the involvement in some of the contracts where some Board Members have interests in.
These contracts have been concluded during the previous years and are extension of ongoing relationships that began before 2014.
These contracts are summarized in the table below:
Board Member Details of the Interest
1 H.E. Mr. Amr Abdullah Al Dabbagh (Chairman of the Board)
Premier Paint Company (PPC), a subsidiary of Red Sea Housing Services Company concluded contracts with Petromin Company during FY 2014 in the amount of SAR 434,555.00 against the sales and application of paint products by PPC, where H.E. Mr. Amr Abdullah Al Dabbagh is chairman of the Board of Petromin Company and Red Sea Housing Services Company.
2 Mr. Jamal Abdullah Al Dabbagh
Mr. Jamal Abdullah Al Dabbagh owns 2% of SARL Red Sea Housing Ltd (Algeria).
There were no contracts between the companies in FY 2014. This item will be included in the Agenda for the coming General Assembly for voting by shareholders, and to approve the contracts for FY 2015, to purchase housing units.
3 Mr. Jamal Abdullah Al Dabbagh
The Company concluded contracts with Gulf General Cooperative Insurance Company (GGCIC) during FY 2014 in the amount of SAR 2,877,016.07 to provide insurance products and services to RSH, where Mr. Jamal Abdullah Al Dabbagh is the Chairman of GGCIC.
4 Mr. Mohamed Husnee Jazeel
The Company concluded contracts with Gulf General Cooperative Insurance Company (GGCIC) during FY 2014 in the amount of SAR 2,877,016.07 to provide insurance products and services to RSH, where Mr. Mohamed Husnee Jazeel is a Board Member in both companies.
Premier Paint Company (PPC), a subsidiary of Red Sea Housing Services Company concluded contracts with Petromin Company during FY 2014 in the amount of SAR 434,555.00 for the sales and application of paint products by PPC, where Mr.
Mohamed Husnee Jazeel is a Board Member in both companies.
5 Mr. Waheed Ahmed Shaikh
Premier Paint Company (PPC), a subsidiary of Red Sea Housing Services Company concluded contracts with Petromin Company during FY 2014 in the amount of SAR 434,555.00 for the sales and application of paint products by PPC, where Mr.
Waheed Ahmed Shaikh is a Board Member in both companies.
6 Dr. Muhammad Ali Ikhwan
The Company concluded contracts with Gulf General Cooperative Insurance Company (GGCIC) in the amount of SAR 2,877,016.07 to provide insurance products and services to RSH, where Dr. Muhammad Ali Ikhwan is a Board Member in both companies.
7 Mr. Saleh Mohammed Binladen
In 2013, Red Sea Housing Services Company concluded a 3-years agreement with Mr.
Saleh Mohammed Binladen, who was appointed as a Member of the Board in 2014, to lease a property that he owns in Rabigh to construct the camp for GS Engineering, for an annual amount SAR 883,390.95
Related parties principally comprise of Dabbagh Group Holding Company Limited and its affiliated entities (collectively the “Dabbagh Group”) which are the major shareholders of the company and the Group’s minority shareholders and their affiliated entities.
REDSEAHOUSING
The below tables summarizes the transactions for related parties during FY2014:
Name of the Related Party Relationship
Dabbagh Group Holding, Saudi Arabia Major Shareholder of the Company with 51% shareholding.
Eurotech Projects Development, Qatar Minority Shareholder in subsidiary Company, Red Sea Housing Services Company LLC, Qatar.
Petromin Company, Saudi Arabia An affiliate of the Company, as it is a subsidiary of major shareholder Dab- bagh Group Holding Company Limited.
National Scientific Company, Saudi Arabia Substantial shareholder of the Company with 5% shareholding.
Mr. Saleh Mohammed Binladen An Independent Board Member who was appointed by the shareholders dur- ing the EGM held on 19/10/2014.
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ANNUAL REPORT 2014
Related party Transaction details:
Dabbagh Group Holding Company, Kingdom of Saudi Arabia 2014 2013
Opening Balance – Payable/(Receivable) 57,790 8,845
Add: Purchase of Air Tickets, Hotel bookings and office equipment on behalf of Company
266,171
59,921
Less: Sale of pre-fabricated buildings (388,904) (10,975)
Closing Balance - Payable/(Receivable) (64,942) 57,790
Eurotech Project Development, Qatar 2014 2013
Opening Balance – Payable/(Receivable) -- (528,286)
Add: Purchases -- --
Less: Minority shareholder outstanding written off -- 528,286
Closing Balance - Payable/(Receivable) -- --
Petromin Company, Saudi Arabia 2014 2013
Opening Balance – Payable/(Receivable) -- --
Add: Receipts 509,305 --
Less: Sales and application of Paint products (434,555) --
Closing Balance - Payable/(Receivable) 74,750 --
National Scientific Company (NSC), Saudi Arabia 2014 2013
Opening Balance – Payable/(Receivable) (777,195) --
Add: Renting of office space and vehicles 969,208 747,191
Less: End of service benefits payable to employees transferred from NSC -- (1,524,386)
Closing Balance - Payable/(Receivable) 192,013 (777,195)
Mr. Saleh Mohammed Binladen 2014 2013
Opening Balance – Payable/(Receivable) -- --
Add: Lease of Land 883,390 883,390
Less: Payments for Lease of Land. (883,390) (883,390)
Closing Balance - Payable/(Receivable) -- --
REDSEAHOUSING