Regulatory Alerts2020-01-01
Board of Directors Decision No. (47) of 2020 Amending Board Decision No. (11) of 2014 Regarding the Rules for Listing and Delisting Securities on the Egyptian Exchange
The Financial Regulatory Authority (FRA) of Egypt issued Board Decision No. 47 of 2020 to amend its 2014 rules governing the listing and delisting of securities on the Egyptian Exchange. The amendment introduces a new general condition under Article 6 that explicitly prohibits any listed company from combining the roles of Chairman of the Board with those of Managing Director or Chief Executive Officer. This decision was approved on March 22, 2020, and became effective the day after its official publication in the Egyptian Gazette.
Financial Regulatory Authority
FINANCIAL REGULATORY AUTHORITY
Chairman of the Authority
Board of Directors Decision of the Financial Regulatory Authority
No. (47) of 2020 dated 22/3/2020
Amending Board Decision No. (11) of 2014
Regarding the Rules for Listing and Delisting Securities on the Egyptian Exchange
The Board of Directors of the Financial Regulatory Authority,
Having reviewed the Law on Joint Stock Companies, Companies Limited by Shares, Limited Liability Companies, and Single-Shareholder 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 its Executive Regulations;
And Law No. (10) of 2009 regulating supervision over non-banking financial instruments and securities;
And Presidential Decree No. (192) of 2009 issuing the Basic Statute of the Financial Regulatory Authority;
And Board Decision No. (11) of 2014 regarding the rules for listing and delisting securities on the Egyptian Exchange;
And having approved this matter at its meeting held on 22/3/2020;
Decided
(Article One)
Clause (c) is added to Article (6) of the Rules for Listing and Delisting Securities on the Egyptian Exchange, with the following text:
Article (6): General Conditions for Listing Securities:
Listing on the exchange tables requires responsible registration with the Authority and fulfillment of the following general conditions:
…………………
(c) Prohibition of combining the position of Chairman of the Board with the position of Managing Director or Chief Executive Officer of the company.
(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
Financial Regulatory Authority
Dr. Mohamed Omran
Smart Village, Building 136, Giza, Egypt
Postal Code: 110
Telephone: +202 3524530
Fax: +202 3527016
WWW.FRA.GOV.EG
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