The Financial Regulatory Authority, headed by Mohamed Farid, has issued Decision No. 118 of 2023 amending the Authority’s Board of Directors’ Decision No. 20 of 2019 regarding the Egyptian federation for securities and Resolution No. 119 of 2023 regarding extending the deadline for the founding committee of the Egyptian federation for securities to elect its board.
The decision stipulated that the deadline for the founding committee of the Egyptian federation for securities to hold the first general assembly of the federation for a period of three months, starting from 18 June 2023.
The Federation’s Board of Directors, according to the recent amendments to the articles of association, has 13 members representing all activities operating in the stock market, including 3 members representing the activity of brokerage in securities, 3 members representing the activity of managing funds, portfolios, direct investment, venture capital and the rest of the other activities, 2 representatives of the activity of participating in the establishment of companies (financial holding companies) and the activity of promoting and covering subscriptions in securities, 2 representatives of the activity of the central depository and registry of securities and custodians, one of whom is of the activity of the central depository and registry of securities, 3 independent members from experienced.
The new amendments made it possible for each category to vote and choose from among the candidates representing the category to which it belongs, instead of all members voting and choosing from among the candidates of all categories, while ensuring that women’s representation is achieved by two members.
In the same context, an experienced independent member of the board of directors of the federation has experience of no less than 15 years in the field of securities, provided that all companies that are members of the federation have the right to vote to choose candidates for membership of the federation’s board of directors as independent experienced members.
Voting will also be for the categories representing companies working in the field of securities, through the member company of the federation, which has the right to vote, to choose from among the candidates representing the category to which it belongs, according to the list prepared for that.
The decision included adding a new condition stipulating that he should not be a member of the board of directors of the Authority or one of the Egyptian Exchanges, or a non-executive member of the board of directors of a central depository and registry company, the Investor Protection Fund from Non-Commercial Risks, or the Settlement Guarantee Fund Committee, while allowing the use of secure technological systems to conduct elections.
The amendments also included determining who has the right to vote in the elections by limiting that to the chairman of the board of directors of the member company of the federation, while allowing him to authorize the managing director of the company or one of the occupants of its senior management positions to vote, and it is also permanently prohibited for the member company to authorize other companies or persons to attend on her behalf in the elections of the Federation’s Board of Directors and voting on her behalf.
In the same context, the decision organized the process of sorting and announcing the election results, according to the highest correct votes obtained by the candidates for each of the different categories, taking into account that the announcement of the victory of the two women who obtained the highest votes on the level of all lists should begin with their candidacy, and then complete the winners who obtained The highest votes in the different categories, and that in the event that two or more candidates have an equal number of votes, the vote will be re-voted between these candidates to announce the winner among them.