Regulatory Alerts2018-01-01
Decision of the Board of Directors of the Authority No. (59) of 2018
The Financial Regulatory Authority of Egypt issued Decision No. (59) of 2018 to amend the corporate governance rules for securities market companies under Decision No. (107) of 2016. The amendment mandates that companies appoint one or more independent auditors from the Authority's registry, with annual appointments renewable for a maximum of six consecutive financial years. Following the six-year term, the company must replace the auditor with an independent professional unaffiliated with the outgoing auditor, who cannot be reappointed until three financial years have elapsed.
Financial Regulatory Authority
FINANCIAL REGULATORY AUTHORITY
Chairman of the Authority
Decision of the Board of Directors of the Financial Regulatory Authority
No. (59) of 2018 dated 26/4/2018
Regarding the amendment of the Authority's Board of Directors Decision No. 107 of 2016 Concerning the Corporate Governance Rules for Companies Operating in the Securities Field
Board of Directors of the Financial Regulatory Authority
Having reviewed the Joint Stock Companies, Limited Partnerships by Shares, and Limited Liability Companies Law 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 regulating supervision over non-banking financial markets and instruments; and the Anti-Money Laundering Law issued by Law No. (80) of 2007 and its Executive Regulations; and the Statute of the Financial Regulatory Authority issued by Presidential Decision No. (192) of 2009; and the Authority's Board of Directors Decision No. (11) of 2014 concerning the rules for listing and delisting securities on the Egyptian Exchange and its amendments; and the Authority's Board of Directors Decision No. (107) of 2016 concerning the corporate governance rules for companies operating in the securities field; and the approval of the Authority's Board of Directors in its meeting held on 26/4/2018;
Text of the Decision
(Article One)
The text of Item 1-7 of Item (7) of the Authority's Board of Directors Decision No. (107) of 2016 concerning the governance rules for companies operating in the securities field is replaced with the following: "The company shall have one or more independent auditors registered in the auditors' registry maintained by the Authority, appointed annually, and may be renewed for a maximum of six consecutive financial years, provided that upon expiration, it shall be replaced by another independent auditor who is not professionally affiliated with the replaced auditor, and the replaced auditor shall not be reappointed until three financial years have passed from the end of the aforementioned previous year."
(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 as of 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 Postal Code: 12577 Tel.: (00202) 35345350 - Fax: (00202) 35370036 www.FRA.gov.eg
Smart Village, Building 136 - B, Giza, Egypt Postal Code: 12577 Tel.: +202 35345350 - Fax: +202 35370036 info@fra.gov.eg