Regulatory Alerts2021-01-01
Decision No. 40 of 2021 Regarding the Ownership Structure, Board Formation, and Nomination Conditions for the Central Depository and Clearing Company
The Financial Regulatory Authority issued Decision No. 40 of 2021 to establish comprehensive ownership structure and corporate governance regulations for the Central Depository and Clearing Company for Government Securities and Financial Instruments. The decision mandates that the Central Bank of Egypt hold 100% ownership if acting alone, or over 50% in partnerships, while requiring a five-to-nine-member board with cumulative voting, mandatory female representation, and strict professional and reputational eligibility criteria for directors. It further outlines a formal nomination review process by an Authority-appointed committee, establishes a five-day appeal window with a final two-week ruling period, and aligns the company’s operations with existing regulatory measures and corporate governance standards.