• Dr. Omran: FRA’s Initiative to reduce fees for SME examination and study services by 50% reinforces Egypt Vision 2030
• Dr. Omran: Listed companies shall submit a statement including shareholders who have frozen their shares to attend the General Assembly 24 hours before the meeting
Dr. Mohammed Omran, FRA’s Chairman issued Executive Decree No. 159 of 2020 on reducing fees for SME examination and study services by 50% upon obtaining FRA’s approval on IPO prospectus for incorporation or capital increasing , upon issuing shares for merger, split or increasing capital stock through reserves or profits or increasing the nominal value of existing shares. Also, companies shall obtain this reduction upon issuing bonds or sukuk in cases of public or private subscription and upon inviting shareholders to increase the capital and trade in the subscription rights as well as in tender offers.
Dr. Omran said that the initiative came in light of FRA’s policy to diversify sources of finance for different economic sectors and motivating SMEs to participate in the Stock Exchange as a financing tool that help SMEs to achieve growth and expansion. Also, the initiative is in line with Egypt Vision 2030 through providing support to SMEs, enhancing their role in the national economy and increasing their competitiveness.
FRA’s Chairman noted that recent recommendations issued by the IOSCO had called for providing promotional measures for SMEs and removing financing obstacles.
On the other hand, Dr. Omran noted that both ordinary general assemblies and extraordinary general assemblies stressed on verifying that shareholders of the listed companies should freeze their shares at the Central Depository Company.
Dr. Omran clarified that FRA has considered amending listing and delisting rules – according to the executive decision issued by the end of last September 2020 adding a second paragraph to Article 41 of listing and delisting rules. The said Article stated that before holding the General Assembly, the company shall request a statement from MCDR including the shareholders who froze their shares for the purpose of attending the General Assembly. The company is also obliged to submit the statement to the company’s auditor attending the General Assembly to verify the validity of freeze list submitted by the shareholders attending the meeting and compare it to the MCDR statement. Then, MCDR shall submit a copy of the statement to FRA and GAFI to consider it upon approving the decisions of the General Assembly.