Agent of the State Audit Bureau: “The Head of the Telecommunications Holding Company is not entitled to claim the profits of his subsidiaries”
The Undersecretary of the State Audit Bureau, Alaa Al-Masallati, stated exclusively to our source about the eligibility of the head of the telecommunications company, Mohamed Ben Ayed, to demand the profits of telecommunications companies, without meeting a general assembly or a board of directors, where he said that he has no right to do so.
Ben Ayed mentioned that he had demanded that Libyana Phone Mobile and Al-Madar Al-Jadid companies transfer hundreds of millions of dinars to the international telecommunication holding accounts from their profits without the final approval of the company’s budgets and lists becoming clear and without observing the simplest rules of profit distribution. Another company has a separate legal personality and independent financial disclosure, even if that company is owned by the holding company.
Each one of Libyana, Al-Madar Al-Jadid and the Holding Company have a general assembly, and the members of each general assembly may be the same persons and characteristics, but the distribution of profits is subject to a separate decision for each general assembly and for each company separately, and that the head of the holding company, its general manager, or the head of its board does not represent the general assembly of the holding company, nor Libyana company, nor Al-Madar company, so there is no owner capacity in the person of the chairman of the holding board.
The distribution of profits for any company with an independent financial liability is done through the meeting of the ordinary general assembly, through which the budget is approved, the profits and losses are approved, and taxes are paid on them, and then they are distributed to the owners.