Regulatory Alerts2021-01-01
Circular Letter No. 7 of 2021 Regarding the Representation of Women on Boards of Directors of Non-Banking Financial Companies and Egyptian Exchange-Listed Companies
The Financial Regulatory Authority issued Circular Letter No. 7 of 2021 to clarify the optional compliance obligation for Egyptian Exchange-listed and non-banking financial companies regarding female board representation. The circular specifies that these entities may satisfy the requirement by either appointing at least two female directors or ensuring women constitute no less than 25% of their board compositions. This clarification aligns with the Authority's Decisions No. 109 and 110 of 2021, reinforcing market stability and supporting Egypt Vision 2030's sustainable development goals for women's leadership.
Financial Regulatory Authority
Deputy Chairman of the Authority
Circular Letter No. (7) of 2021 dated 25/7/2021
Regarding the Representation of Women on Boards of Directors of Companies Operating in Non-Banking Financial Activities and Companies Listed on the Egyptian Exchange
In the context of the Authority's efforts to contribute to women's empowerment by providing them with opportunities for leadership and decision-making in line with Egypt Vision 2030 and its strategy for sustainable development, the Authority's Board of Directors issued Decision No. (109) of 2021 amending the rules for listing and delisting securities on the Egyptian Exchange, and Decision No. (110) of 2021 amending the conditions for granting, maintaining licenses and share ownership rules of companies operating in non-banking financial activities. This was done by requiring that the board compositions of Egyptian Exchange-listed companies and non-banking financial companies include female members, as stipulated in these two decisions.
In this regard, and to ensure the stability of non-banking financial markets and the proper application of the issued decisions, the Authority wishes to confirm that the compliance obligation of Egyptian Exchange-listed companies and non-banking financial companies, in accordance with the aforementioned Board decisions, is an optional obligation. Companies may either include at least two female board members or ensure that the proportion of women's representation does not fall below (25%) of their board compositions.
Consequently, for these companies to have fulfilled their obligation under the provisions of the aforementioned Board decisions, they may choose either to include two female board members or to ensure that the proportion of women's representation in such composition is not less than (25%).
This Circular Letter is published on the electronic websites of both the Authority and the Egyptian Exchange.
Dated: 25/7/2021
Deputy Chairman of the Authority Dr. Islam Azam
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