Regulatory Alerts2020-01-01
Decision No. 176 of 2020 on Ownership Structure and Board Composition Regulations for Central Deposit and Registration Companies for Government Securities
The Financial Regulatory Authority issued Decision No. 176 of 2020 to mandate strict ownership thresholds and corporate governance standards for central deposit and registration companies handling government securities. The decree requires the Central Bank of Egypt to hold at least 50% ownership (or 100% if acting alone) and dictates that company boards must comprise five to nine members, including a majority of experienced non-executives, at least two independent directors, and at least one woman. It further prohibits dual leadership roles, caps board tenure at nine years across three terms, mandates cumulative voting, and grants existing companies a compliance grace period until the second subsequent election cycle.
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