Dr. Mohammed Omran – Chairman of the Financial Regulatory Authority (FRA) welcomed the announcement by the World Bank Group of the results of The Doing Business report 2018 yesterday. The report emphasized that Egypt improved its performance by 33 positions in Minority Investor Protection Index. Dr. Omran added that the economic scene in Egypt has recently witnessed two positive things. The first is related to the decision taken by the Minister of Investment to amend the Executive Regulations of Companies Law by requiring a minimum of 21 days for the period elapsed between the notification of shareholders or publication of the invitation to the general assembly of a joint stock company and the General Assembly meeting instead of granting 15 days in this regard, that is after a recommendation given by the Authority’s Board. In this respect, shareholders will be given the sufficient time to study all topics on the agenda of the General Assembly meeting.
The other matter is related to granting shareholders of the listed companies the priority right to subscribe to shares of capital increase, whether they traded in priority subscription rights separately from capital increase share or being traded with the company’s share.
Dr. Omran noted that Egypt’s progress in Minority Investor Protection Index for the fourth year in a row, in addition to the optimistic view resulted from approving a draft law that amends the provisions of Companies Law No. 159 of 1981 which was presented by the Minister of Investment, it is expected that after approving these amendments by the House of Representatives and its issuance, a significant additional progress in Minority Investor Protection Index will be achieved.