Abu Dhabi – Mubasher: Dana Gas’ annual general meeting (AGM) has declined the board’s recommendation for the postponement of the distribution of a 5% cash dividend.

The board recommended the dividends in March but it advised shareholders later to defer their decision due to an ex parte injunction from an English court preventing the UAE-based company from approving the dividends, according to a company statement released on Thursday.  

Earlier in April, the energy producer received an interim injunction and interim anti-suit injunction from the English High Court of Justice with regard to its Sukuk Case.

Dana’s board requested guidance from the UAE’s Securities and Commodities Authority (SCA), which advised the Abu Dhabi-listed energy giant to refer the restraining order to national courts to decide whether it is eligible to be effective in the UAE or not.

The SCA also advised the company to postpone the approval of the 5% dividends, but shareholders stood against such decision, opting for the distribution of the dividends, Dana revealed.

“In the recent development on 16 April 2018, the Sharjah Federal Court decided, upon an application by a shareholder of the Company, freezing the English Court Order until it is submitted to UAE Courts to determine its enforceability in the UAE,” it said.