UDC Ordinary and Extra Ordinary General Assembly Meeting approves formidable results for 2011

United Development Company (UDC), one of Qatar's leading public shareholding companies, held its Annual Ordinary and Extra Ordinary General Assembly Meeting (AGM) on Tuesday, February 28^th, 2012 at 6:30 PM. The meeting was held at Al Gassar Resort, St Regis Hotel-Doha. 

The quorum was met in the presence of the majority of the shareholders who approved the annual report and the 2011 financial results. 

During the meeting all motions proposed by the Board of Directors were adopted with respect to: 

Ordinary Annual General Meeting:

- Board of Director’s report on the company’s activities and its financial position for the financial year ending 31^st December 2011 and the future plan of the company.

- Auditor’s report on the company’s accounts for the financial year ending 31 December 2011.

- Approval of the Company’s balance sheet and the profit and loss accounts for the financial year ending 31^st December 2011 and deciding on the recommendation of the Board of Directors regarding the dividends.

- The General Assembly released from liability All Members of the Board of Directors for the financial year ending 31 December 2011 and determined their remuneration.

- Corporate Governance Report 2011.

- The General Assembly appointed Ernst and Young as External Auditors for the financial year 2012 and fixed their remuneration. 

Extraordinary Annual General Meeting:

- Distribution of 64,350,000 shares as bonus shares at the rate of 4 shares for each ten shares (40% of the capital) and thus increasing the capital of the Company to QR 2,252,250,000 and amend the Memorandum and Articles of Association accordingly. 

- Increasing the capital of United Development Company by 112 million shares issued to The Pension and Social Insurance Authority offered for the value of 1.6 billion Qatari Riyals and to delete the second Clause of Article (8) of the Articles of Association by removing the following: (no natural or corporate person is allowed to own more than 10% of the total shares).

The meeting was called to order by Hussein Al-Fardan, UDC Chairman who said: “In addition to the positive financial results, the Board has undertaken a number of measures to improve governance and oversight of the company, and put in place new initiatives designed to increase the possibility of creating value for the shareholders”. 

“We see clear signs of long-term opportunities and we plan to grasp them in tandem with Qatar’s National Vision of steady, sustainable growth, under the wise leadership of His Highness the Emir of the State of Qatar, Sheikh Hamad Bin Khalifa Al-Thani and His Heir Apparent, His Highness Sheikh Tamim Bin Hamad Al-Thani.” Al-Fardan said.

Khalil Sholy, UDC’s Managing Director and President said: “Despite an increasingly challenging global market environment, United Development Company achieved good results in 2011. Total comprehensive income grew 544% to QR 4,877,197,000. Profit saw a very positive increase of 607% to QR 3,780,562,000, more than six times the profit achieved in 2010 despite the fact we increased development spending on promising projects. Net profit, at QR 3,771,526,000, was 511% higher than the previous year’s record high. This was mainly due to the fact we have completed a number of significant investment projects and marked them to market. Earnings per Share were 528% higher than the year before”. 

“Our strategic plan calls for each of our major businesses to contribute to our future success, and our company- wide strategy is focused on creating partnerships, achieving growth and minimizing risks. This strategy provides UDC with a stronger profile going forward” Sholy said.