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The shareholders of Dubai Financial Market Company (PJSC) have approved the Balance Sheet and Income Statement for the financial year ending 31 December 2017, during the Annual General Meeting held on Wednesday, 28 March 2018. The DFM Company shareholders ratified the Board of Director’s report on the company’s performance and its financial position for the fiscal year ending 31 December 2017, the external auditor’s report as well as the Fatwa and Sharia’a Supervisory Board’s report.
The shareholders approved BOD’s recommendation of a cash dividend of 5% of the Company’s capital equivalent to AED 400 million.
Additionally, the shareholders ratified two special resolutions, the first is on reorganizing the DFM’s activities in line with international best practices, through establishing independent companies for each activity, provided that, to be in compliance with laws and the Articles of Association, and upon the required approvals of all related authorities. The plan includes establishing independent companies for clearing and depository, as part of a comprehensive development of the post-trade functions, in addition to an independent company that runs the trading function. The new companies will be under the umbrella of a listed joint stock holding company.
This step will further enhance the operational efficiency and risk management for each function.
The second special resolution in on executing deals of not more than 30% of the company’s capital with related parties (companies under ownership/control of government), provided that deals be presented at the AGM and that such transactions shall be submitted to the AGM in future for ratification.
The shareholders also discharged members of the Board of Directors and the External Auditors from their liabilities for the fiscal year ending 31 December 2017 and appointed KPMG as the external auditors for the fiscal year 2018 as well as determined their fees.
During the meeting, the Fatwa and Shari’a Supervisory Board members have been re-appointed for the year 2018.
According to the Fatwa and Shari’a Supervisory Board’s report, the Zakat of shares for the year 2017 has been calculated according to the Net Assets Method at AED 9.03 per 1000 shares. The Shari’a Board urged shareholders to distribute this Zakat as per their shareholdings. The Shari’a Board also calculated the Non-compliance with Shari’a income of the company’s operations, including revenues from Nasdaq Dubai and this part was valued at AED 64.2 million for the years 2016 and 2017, equivalent to AED 8.03 per 1000 shares and the Board urged shareholders to spend this on charity purposes .
It is noteworthy that the Company posted a consolidated net profit of AED 233.5 million in 2017, compared to AED 253.8 million in 2016, an 8% decline. Total consolidated revenues reached to AED 430.9 million in 2017 compared to AED 449 million in 2016. The total revenue comprised of AED 329 million of operational revenues and AED 101.9 million of investment revenues and others.
