In 2017, the Egyptian Government sent amendments of its Companies Law to Parliament, with the goal of adding more protections to small shareholders and increasing governance and transparency across companies.
Specific reforms of the Companies Law include:
- Protection – Of shareholders through procedures that foster and increase transparency such as improving voting procedures and other decisions taken at the board or at assembly meetings.
- Ease of Starting a Business – By improving registration and incorporation processes to become in line with international standards and diversifying options for company establishment and incorporation (to include single shareholder companies, for example).
- Governance – By including additional transparency and disclosure standards to be adhered to by companies.
- Access to Finance – By diversifying financial options for companies and approving tools like preferred stocks, Sukuk and convertible bonds.
- Transparency – By allowing cumulative voting and impeding the abuse of power such as insider trading activities within companies.
For more information about Egypt’s investment law click here
