• El-Nashar: The Law grants the Federation an independent legal personality and the Founding Committee activates the Statute’s transitional provision
FRA will host the first meeting of the Egyptian Securities Federation tomorrow, Monday. Representatives of all Securities Brokerage Companies will attend the meeting. It will discuss and take a number of measures to proceed with the procedures of calling for the Federation’s first General Assembly and electing its Board of Directors in order to activate the Federation. The meeting will be held upon the invitation of the Founding Committee – formed by FRA’s decision – headed by Mr. Sulaiman Nazmi and the membership of four representatives of companies licensed to carry out activities in the field of securities or subjected to the provisions of the Central Depository and Registry Law.
FRA Vice-Chairman emphasized that the Founding Committee shall take the necessary procedures set for the licensed companies to join the Federation. It will include companies licensed by the Authority to practice one of activities related to the field of securities and subjected to the provisions of the Capital Market Law and the Central Depository and Registry Law. The committee shall follow the procedures for convening the Federation’s first General Assembly to elect the Board of Directors and this shall be within a period not exceeding six months from the date of the issuance of decision no. (375) of 2019.
The Founding Committee includes Mr. Awni Abdel Aziz, Mr. Alaa Saba, Dr. Essam Khalifa and Ms. Neveen Taheri. The Committee will collect membership fees, will approve income and expenditure account and will review the auditor’s report for this period. Also, the Founding Committee will take all the necessary procedures to activate the Federation to start its activities. In addition, it shall present a comprehensive report on the actions taken by the Federation’s General Assembly and the expenditure required by the procedures at the expense of the Federation.
El-Nashar pointed out that for the first time in the history of the Egyptian Capital Market, a self-regulated entity is established by those operating in Capital Market and sets the rules governing the obligations and rights of its members. It is called the Egyptian Securities Federation. It includes in its membership every company operating in the field of securities and subjected to the provisions of Capital Market Law promulgated by Law No. 95 of 1992 or the provisions of the Central Depository and Registry Law issued by Law no. (93) of 2000 as soon as it obtains a license from the Authority to carry out the activity and is listed at FRA’s registries. The company shall submit a copy of the license to the Federation as well as the names of the Board members. On the other hand, the membership shall be cancelled once the Authority cancels the granted license.
He added that the Federation was established under the provisions of Article 41bis 9 of Law no. 17 of 2018 amending the Capital Market Law. In addition, he noted that the Federation has an independent legal personality and it presents recommendations for Capital Market’s development, raises awareness, adopts initiatives in support of its activity and develops the skills of those operating in the market.
It is worth mentioning that FRA’s BOD had issued by the end of February, decision no. (20) of 2019 on the statute of the Egyptian Securities Federation. The decision includes a transitional provision in Article 44 where it appoints a Founding Committee to take the necessary steps to call for the Federation’s first General Assembly to elect the Board of Directors.
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