Newsletter December 2018, Issue 4 - Page 7

December 2018

7

EGX Launches First Guide of All Rules Governing Minority Shareholders’ Rights & Obligations

October 29, 2018

The Egyptian Exchange (EGX) has launched a comprehensive guide for the rules and laws regulating minority shareholders 'rights, "Minority Shareholders' Rights". This guide aims at informing investors with the legislative framework regulating their rights in each of the new Investment Law No.72 for year 2017, EGX listing rules, its amendments, and the Corporate Law No.159 for year 1981, its latest amendments and its executive regulations. In addition to the new Capital Market Law No.95 for year 1992, its latest amendments and its executive regulations.

This guide is part of EGX contribution in raising the level of knowledge for all stakeholders related to the securities industry, as it will enlighten shareholders with their rights and obligations.

Minority shareholders or small shareholders are the shareholders who do not have a majority in terms of number of shares; therefore, they don’t have a significant share in the company's capital accordingly they have no power or authority to make a decision regarding the company’s management of the company.

This guide reviews the concept of the minority in shareholding companies where it is based on four main pillars about the means to protect the minority shareholders in many cases such as the conflict of interest, the board members misuse of corporate assets to achieve personal gain, and the abuse of rights by the majority shareholders.

Mohamed Farid, EGX Chairman, said that the guide aims at raising the level of knowledge of minority shareholders about all laws, regulations and rules governing this matter.

"Introducing investors to their rights that are delivered in the laws regulating their investments enhances the attractiveness of the Egyptian market to domestic and foreign investor. It is the main gateway for creating job opportunities, raising income and improving the living conditions", said Mr. Mohamed Farid and concluded, "The guide also emphasizes the transparency on the Egyptian business environment which is the main gear for investment flows.”

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