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The Egyptian financial Authority Decree NO.91 of 2020

The Egyptian financial Authority Decree NO.91 of 2020

08/06/2020

The Financial Regulatory Authority (FRA) has issued Decree No. 91 of 2020 amending some rules for listing and removing securities listed on the Egyptian Stock Exchange (ESE) that allowed the members from outside the company to join both the review and risks committees as a guarantee of the impartiality.

The main points of the decree:

Regarding the reviewing committee:

The decree implied a new rule which allowing the members from outside the companyt to join the reviewing committee in the listed companies, companies dealing in the securities, companies licensed to practice real estate financing, financial leasing and factoring activities, consumer finance companies, and microfinance companies;

The committee shall be consisting of an odd number which shall not be less than three members from among the non-executive board members, however the majority of the committee must be independent and its chairman must be one of them;

The decision urged the members of the committee to be known for their competence and experience in the company's field of work and that at least one of them have experience in financial and accounting affairs, and the committee may seek the assistance of an auditor or whoever it deems appropriate to attend its meetings (even if they are not a member).

Regarding the Risks committee:

The aforementioned companies must, upon establishing the risk committee, commit themselves to forming it from an odd number of members of no less than three, the majority of whom are from non-executive board members and independent members.

The committee may include members from outside the company.

The chairman of the committee must be from Non-executive or independent members.

The (FRA) has granted these companies a period of time to reconcile their positions with a maximum period of 12/31/2020 in accordance with the decisions issued in this regard.

If you have any questions concerning the issues raised above or would like to have a more detailed discussion, please feel free to contact us via email: azzam@azzam-lawfirm.com.

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