Regulatory Alerts2014-01-01
Board of Directors Decision No. (108) of 2014
The Egyptian Financial Regulatory Authority (EFRA) issued Decision No. (108) of 2014 to amend its regulations governing the division of joint-stock companies listed on the Egyptian Exchange. The decision defines horizontal and vertical corporate divisions, mandates that asset and liability transfers occur at book value unless the regulator approves an alternative valuation method, and requires the board to submit a detailed division plan, pro forma financial statements, and legal opinions to the Extraordinary General Assembly for approval. It further mandates that resulting entities be registered with the Central Depository and Clearing Company, comply with exchange listing and delisting rules, and publish regulator-approved disclosure reports upon completion.