Regulatory Alerts2018-01-01
Decision of the Board of Directors of the Authority No. (82) of 2018
The Financial Regulatory Authority (FRA) issued Decision No. (82) of 2018 to amend the Egyptian Exchange's listing and delisting rules by inserting two new provisions into Article 18. The amendment mandates that company board members must provide a certified legal declaration confirming no criminal convictions or serious capital market violations in the past five years, subject to specific rehabilitation and time-lapse conditions. Additionally, it requires companies to promptly disclose any disqualifying circumstances regarding their directors and replace them with qualified individuals within the FRA's specified timeframe.
Chairman of the Authority
Decision of the Board of Directors of the Financial Regulatory Authority
No. (82) of 2018 dated 28/5/2018
Amending Decision of the Board of Directors of the Authority No. (11) of 2014
Regarding the Rules for Listing and Delisting Securities on the Egyptian Exchange
Board of Directors of the Financial Regulatory Authority
Having reviewed the Law on Joint Stock Companies, Limited Partnerships and Limited Liability Companies issued by Law No. (159) of 1981 and its executive regulations;
and the Capital Market Law issued by Law No. (95) of 1992 and the decisions issued in implementation thereof;
and the Central Deposit and Registration of Securities Law issued by Law No. 93 of 2000 and its executive regulations;
and Law No. (10) of 2009 on regulating supervision over financial markets and non-banking financial instruments;
and Presidential Decree No. (191) of 2009 on the provisions organizing the management and financial affairs of the Egyptian Exchange;
and the Statutes of the Financial Regulatory Authority issued by Presidential Decree No. (192) of 2009;
and Decision of the Board of Directors of the Authority No. (11) of 2014 regarding the rules for listing and delisting securities on the Egyptian Exchange and its amendments;
and the approval of the Board of Directors at its meeting held on 28/5/2018;
Decided
(Article One)
The following two items are added to Article (18) of the Rules for Listing and Delisting Securities on the Egyptian Exchange issued by Decision of the Board of Directors of the Authority No. (11) of 2014 and its amendments referred to above:
- …………………………………………………
- …………………………………………………
- …………………………………………………
14 - A certified declaration from the Company's Legal Advisor confirming that no criminal judgments have been issued against any of the Board of Directors members during the five years preceding the date of the declaration for a criminal penalty, or a misdemeanor penalty for an offense involving honor or integrity, or any of the crimes stipulated in the laws regulating non-banking financial activities - unless their reputation has been restored - or the penalty has been served and three years have passed since its execution, or it has been established that any of them has repeatedly been accused of committing serious violations of the Capital Market Law during the last three years, unless acquitted.
(Article Two)
This Decision shall be published in the Egyptian Gazette and on the websites of the Authority and the Egyptian Exchange, and shall take effect from the day following its publication in the Egyptian Gazette.
Chairman of the Board of Directors of the Authority
Dr. Mohamed Omran
46076
Smart Village, Building No. B-136, Giza, Egypt
Postal Code: 12577
Tel.: +202 35345350 - Fax: +202 35345360
info@fra.gov.eg
Smart Village, Building no. B-136, Giza
Postal Code: 12577
Tel.: (00202) 35345350 - Fax.: (00202) 35370036
www.FRA.gov.eg
15 - A commitment by the Company to disclose to the Authority and the Exchange the occurrence of any of the circumstances stipulated in the preceding item, and to replace the person meeting those circumstances within the timeframe determined by the Authority with another person who meets the stipulated conditions.