On 11 February 2018, the Egyptian Gazette published Ministry of Investment decision No. 16 of 2018 amending the Executive Regulations of Companies Law No. 159 of 1981. The amendment of the executive regulations mirrors the recent amendment of a significant number of provisions of the Companies Law that were published on 16 January 2018, representing the most significant change to the Law since its enactment in the early eighties. Together, the amendment of the Law and its Executive Regulations introduce the ‘one-person company’ as a new legal form of company offering limited liability to the founder. In addition, significant corporate governance provisions were modified and/or added. These result in significant changes to the rules and procedures governing ordinary and extra ordinary general assembly meetings, the election of board members, financial statement disclosure and publication requirements, access to company records and information, minority shareholder rights, the acknowledgement of shareholder agreements, and the buyback of treasury shares. Companies that are subject to Companies Law No. 159 of 1981 have been given a grace period of one year to apply the new rules.
In its ELU issue of January 2018 Week 4, Thebes Consultancy covered key parts of the amendment to the Companies Law introduced by Law No. 4 of 2018. You can read a more comprehensive review of the new amendments to the Law, in the addition to the most recent amendment to the Executive Regulations through this link.