As the non-banking financial (NBF) sector is a fast-growing and promising market in Egypt, this article sheds light on CG regulations applied on companies carrying out NBF activities in Egypt (NBF Companies).
On 23 June 2020, the FRA issued Decree No. 100 for the year 2020 (the Decree), repealing the previous CGRs issued by virtue of FRA Decrees No. 107 for the year 2016, No. 164 for the year 2018 and No. 61 for the year 2020 (the Former CGRs). The Decree introduces CGRs that are applicable to companies operating in the fields of securities, real estate finance and refinance, microfinance, financial leasing, factoring, and consumer finance.
The Board of Directors shall constitute a number of committees among its members or others, which shall be constituted by a decision of the BOD of the Company in the light of the rules of selection, the term of the membership of the Committees, the term of office and the emoluments and allowances of their members approved by the General Assembly of the Company.
These committees are constituted by a decision by the BOD of the company in the light of rules of selection, the method of operation of the committees, the duration of their membership and the remuneration and allowances of their members approved by the Joint General Assembly.
The committees shall meet periodically at least one meeting every three months and each committee shall periodically notify the Board of BOD of the company of the reports of the results of its work and the recommendations or decisions it makes if it is authorized to issue such decisions.
The Decree No. 100 of 2020 determines each committee’s role, structure and regulations. Such committees shall be composed of non-executive and independent members; the majority of the members and the chairman of the Audit committee shall be independent members.
