Deputy Chairman of the Authority

Circular Letter

No. (4) for the Year 2019 dated 25/06/2019

Regarding the extension of the deadline granted to companies listed on the Egyptian Exchange and companies operating in non-banking financial activities to regularize their status and amend their articles of association by introducing the cumulative voting mechanism in the election of board members

In the context of the Financial Regulatory Authority fulfilling its initiative role in accordance with the provisions of Law No. 1 of 2009 issued regarding the regulation of supervision over markets and non-banking financial instruments, and working to spread investment culture and awareness, and protect small investors in companies listed on the Egyptian Exchange and companies operating in non-banking financial activities.

And in implementation of the Authority's Board of Directors' decisions No. (154, 155) for the year 2018 regarding the obligation of companies listed on the Egyptian Exchange and companies operating in non-banking financial activities to amend their articles of association and stipulate the cumulative voting mechanism in the election of board members, thereby allowing proportional representation on the board.

And to facilitate matters for the concerned companies, it has been decided to extend the deadline granted to the companies addressed by the provisions of the aforementioned decisions to regularize their status, amend their articles of association, and incorporate the cumulative voting mechanism in the board members' election process to allow proportional representation, until the end of December 31, 2019.

Dated: 25/06/2019

Deputy Chairman of the Authority
Judge / Khaled El-Nashar

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