Earlier this month, 90 percent of shareholders in attendance at a general assembly in Dubai voted to file for bankruptcy following a failure to turn the company's finances around.
A vote by Dubai retailer Marka’s shareholders to not approve the continuity of the company does not constitute their approval to dissolve and liquidate the firm, the company clarified in a note posted to the Dubai Financial Market (DFM).
Earlier this month, 90 percent of shareholders in attendance at a general assembly in Dubai voted to file for bankruptcy following a failure to turn the company’s finances around.
The company, which was the first retailer to list on the DFM in 2014, saw its share price drop 90 percent last year due to consecutive quarterly losses. It then had its shares suspended in April 2018 by the Securities and Commodities Authority (SCA).
“The shareholders voted to liquidate the company,” board chairman Khalid bin Kalban told Gulf News after the meeting had ended.
In its most recent statement to the DFM, Marka said that federal laws “have granted the authority to present the continuity of the company and liquidate it to the board of directors of the company only, and clearly instructed the board of directors to convene another general assembly meeting for this purpose" following SCA approval.
During the upcoming assembly, continuity will first be considered and in case the required percentage is not reached, then voting on liquidation will take place.
"Therefore, the decision to not approve the continuity of the company resolved at the general assembly meeting held on the 15th of May 2019 does not constitute the approval of the shareholders to dissolve the liquidate the company," the statement added.
Marka operates brands including Lebanese restaurant chain Reem Al Bawadi, Italian ice cream café Morelli’s Gelato, Italian street food restaurant Vicolo and jewellery brand Dinh Van.For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.