Regulatory Alerts2021-01-01
Decision of the Board of Directors No. (28) of 2021
The Financial Regulatory Authority issued Decision No. (28) of 2021 to amend Decision No. (11) of 2014 regarding the listing and delisting rules for securities at the Egyptian Exchange. This amendment adds a second paragraph to Article 41, prohibiting target company boards from convening ordinary or extraordinary general assemblies between the publication of the Authority's approval of a takeover offer and the announcement of its results. It also adds a third paragraph to Article 48, requiring companies seeking to split share nominal values to notify the Authority of their reasons and allowing them to proceed with general assembly proceedings if no objection is raised within two working days.
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Chairman of the Authority Decision of the Board of Directors No. (28) for 2021 dated 2021/2/28 Amending Decision of the Board of Directors No. (11) for 2014 Regarding the Rules for Listing and Delisting of Securities at the Egyptian Exchange
Board of Directors of the Financial Regulatory Authority Having reviewed the Capital Market Law issued by Law No. (95) of 1992 and its executive regulations; and on Law No. (10) of 2009 regulating supervision over markets and non-banking financial instruments; and on Decision of the Board of Directors No. (11) of 2014 regarding the rules for listing and delisting of securities at the Egyptian Exchange; and after approval by the Board of Directors in its session held on 2021/2/28;
Has Decided:
(Article One) A second paragraph to Article (41), and a third paragraph to Article (48) of Decision of the Board of Directors No. (11) of 2014 regarding the rules for listing and delisting of securities at the Egyptian Exchange, are added with the following text:
Article (41 - Second Paragraph): The board of directors of the target company shall not convene ordinary or extraordinary general assemblies from the date of publishing the Authority's decision approving the draft takeover offer and information memorandum at the Exchange, until the date of announcing the result of the takeover offer.
Article (48 - Third Paragraph): The company wishing to split the nominal value of its shares is obligated to notify the Authority of the reasons therefor, and the company may proceed with convening the general assembly to consider the splitting decision in the absence of an objection from the Authority within two working days from the date of notification.
(Article Two) This decision shall be published in the Egyptian Gazette and on the electronic websites of both 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
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