UAE: Methaq's general assembly refuses to release the BOD and the auditor from liability for 2021 and 2022
Source: Middle East Insurance Review | Aug 2023
The general assembly of Methaq Takaful Insurance Company (Methaq), held on 12 July, refused to absolve the members of the board of directors and the auditors for the fiscal years 2021 and 2022.
The company said, in a disclosure to the Abu Dhabi Securities Exchange, that the board of directors’ report on the company’s activities, its financial position and the auditor’s report were not approved.
In addition, the general assembly did not approve the appointment of the members of the internal shariah supervision committee. Moreover, it refused to approve the nomination of an auditor for 2023.
In April 2023, Methaq had announced the dissolution of its board of directors and the appointment of a temporary administrative committee to assume all duties and powers of the company’s board of directors. The company said that this procedure came based on the Central Bank’s letter dated 31 March 2023 as losses amounted to around AED60m ($16.3m), constituting over 40% of the company’s capital.
A company statement then attributed losses to fluctuations in financial markets, fair values of real estate, in addition to intense competition, low prices in the insurance market and high business costs. M