Payment of Dividends
Pursuant to the Commercial Companies Law and Article 69 of the Company's Articles, the Company must transfer ten per cent. of net profits in each year to a statutory reserve until such reserve at least equals 50 per cent. of paid-up capital. In addition, the Company is obligated, in accordance with Article 188 of the Commercial Companies Law and Article 69 of the Company's Articles, to set aside part of its profits to cover its liabilities towards its employees. According to Article 69 of the Company's Articles, the percentage of net profit to be transferred to cover the Company's employment liabilities is determined by the General Assembly of the Company.
Article 70 of the Company's Articles provides that dividends shall be paid to shareholders at the place and on the dates (provided within thirty days of the resolution of the General Assembly) determined by the board of directors.
Dividend Policy
The declaration, amount and payment of dividends is determined by majority vote of the shareholders at an annual general meeting of the Company, generally, but not necessarily, on the recommendation of the board of directors.
Consistent with the Company's growth strategy in the near term, the Company currently plans to reinvest part or all of its profits in the development of its businesses and in new business opportunities as they become available. Future dividends will depend on the Company's results of operations, financial position, cash requirements, legal reserve and minimum capital requirements, future prospects and other factors deemed relevant by the board of directors and the shareholders.
Dividend History
The table below sets out the dividends declared for the periods presented:
| Dividends for the Fiscal Year Ended 31 December | |||
| 2020 | 2019 | 2018 | |
| Cash Dividend | 0.04* | 0.04* | 0.6 |
| Bonus Share Dividend (per share) | 0 | 0 | 0 |
| Total Value of Dividend | QAR 252,000,000 | QAR 252,000,000 | QAR 378,000,000 |
*24 June 2019 : The stock split will split each share with a nominal value of QAR 10.0 into 10 shares each with a nominal value of QAR 1.0, thereby increasing Aamal’s total number of shares from 630,000,000 to 6,300,000,000 shares and leaving the total value of Aamal’s paid-up capital unchanged at QAR 6.3 billion
