Dr. Mohammed Omran, FRA’s Chairman announces that FRA’s BOD approves the addition of a new article no. (28) bis to FRA’s BOD decision no.(20) of 2019 on the statute of the Egyptian Federation for Securities. The said article states that the member company, its affiliates and companies under the effective control of the same natural or legal person may not present more than one candidate to the membership of the Federation’s BOD.
FRA’s Chairman emphasizes that FRA’s BOD decision on the statutes of the Egyptian Federation for Securities has set the general framework governing the Federation in terms of defining its objectives, competence, resources and organs, including the Board of Directors as one of the organs through which the Federation is exercising its functions.
Dr. Omran adds that the statute stipulates the formation of the Federation’s BOD, taking into account the representation of all parties working in the field of securities. In addition, it provides the conditions to be met by candidates for the membership of the board of directors. As the statue stipulates that there must be a representative of companies’ incorporation activity (financial holding companies) in the Federation’s BOD, then, it may include members subjected to the effective control of the same natural or legal person. In this respect, the Federation and its decisions will be under control in a way that achieves the Federation’s objectives.
In the same context, FRA’s BOD approves extending the period granted to the Constitution Committee to convene the first general assembly of the Federation to elect Board members for another six months so that the Constitution Committee can complete the procedures and take the necessary decisions to hold the Federation’s first general assembly.
Dr. Omran also reveals that FRA’s BOD has discussed a draft law that regulates the comprehensive insurance activity. FRA’s Chairman says that the draft law includes ten chapters and 233 articles (some amended and other newly introduced). He emphasizes that many experts and specialists in all areas of insurance and reinsurance and related activities and services prepare the draft law adding that the provisions of the Law took into account the community dialogue that was conducted in three stages and absorbed all the visions and aspirations of the industry, which was then thoroughly revised by FRA experts.