FRA calls on companies to adhere to Egypt's anti-Coronavirus measures

CAIRO – 14 March 2020: Financial Regulatory Authority (FRA) called on companies to take decisions coping up with the precautionary measures applied by the Egyptian state to confront the emerging Coronavirus.

Chairman of FRA Mohamed Omran asked listed companies on the Egyptian Exchange and companies operating in the field of non-banking financial activities, to adhere to setting out a system for remote voting by shareholders who are entitled to participate, and vote in the General Assembly elections.

Omran also requested to make an alternative voting mechanism available by one of the custodians - who are authorized to practice the activity - or registered owners in accordance with the provisions of the Central Depository and Registry Law of Securities. He explained that the process would be through a voting form in which he identifies all the topics presented on the agenda of the General Assembly and the shareholder is notified before each subject presented by agreeing, rejecting or abstaining from voting.

“The precautionary measures taken by all Egyptian state agencies to combat the emerging virus drove us to activate some of the options provided by the law of joint stock companies, limited partnership companies, limited liability companies and single-person companies issued by Law No. 159 of 1982, which are permitted to use any of the electronic systems to view the items of the ordinary or extraordinary general assembly meetings and vote on them remotely by the shareholders who are entitled to participate and vote in the association,” Omran clarified.

This step comes days after Egypt’s government banned all large community events and gatherings until further notice to prevent the spread of coronavirus (Covid 19).

Discovered in late 2019 in China, the virus has outbreak to around 117 countries and regions. Earlier this week, the World Health Organization (WHO) described the outbreak as a pandemic.